Retail Home Sales Licence

Definition

Retail Home Sales Business means the business of selling or the offering for sale of manufactured homes, mobile homes or package homes, or any of the units or materials constituting those homes, to an individual for use as a residence.

A direct sales contract is a contract for goods or services worth more than $25, and that is negotiated or concluded in person at a place other than the seller’s place of business. The goods or services must be for personal or household use.

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.To get a licence as a retail home sales business, you must provide the following:

Completed application form (pdf)
Security in the amount of $25,000*. You may get this security in one of two ways:
- General Surety Bond (pdf)
- Cash Security Agreement (pdf) accompanied by:
  - An Irrevocable Letter of Credit (pdf), or
  - Cash (including payment by bank draft, money order, certified cheque – all of these are payable to the Minster of Finance), or
  - A term deposit or other similar instrument in the name of the Minister of Finance, c/o Service Alberta, 3^rd Floor, 10155 – 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)

*Note: In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received.

The amount of security given is a minimum security requirement. The amount could increase at the discretion of the Director of Fair Trading. When setting the security amount, the Director can consider the following: the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal convictions.

A licensing fee of $120 (Note: Your cheque should be made payable to the Minister of Finance. If you are applying in person, you can also pay this fee using Visa, MasterCard, Debit or cash. This fee is for a two-year licence. Licences take effect the date they are issued.)

The department will send you a notice and the appropriate form(s) before your licence needs to be renewed. Licence holders must notify Service Alberta in writing if their business licence address changes.

Copy of retail home sales contract
If direct selling, also attach a copy of contract with “Buyer’s Right to Cancel” (pdf)

Contract Requirements When Selling From Place of Business (pdf)

Every person who is engaged in the retail home sales business must ensure that its retail home sales contracts are in writing and set out:

The date on which the contract was entered into
The name and address of the seller and the buyer
The total amount payable by the buyer and the conditions of payment
A detailed description of the home, materials, appliances or fixtures to be supplied
If the buyer is required to provide a deposit, the amount of the deposit and the terms respecting what it is to be used for and the circumstances in which it is to be returned to the buyer
The delivery date
The completion date, if applicable
The year of manufacture of the home
The name of the home’s manufacturer
The home’s serial number and its CSA label number

A person who is engaged in the retail home sales business and who enters into a retail home sales contract with a buyer must provide a copy of the signed contract to the buyer:

On or before the date that the work under the contract begins, or
Within 10 days after the buyer signs the contract

whichever occurs first.

Direct Selling Contract Requirements (pdf)

Written sales contracts will be required. The contracts must include the following information:

The buyer’s name and address
The seller’s name, business address, telephone number and where applicable, fax number
The salesperson’s name where applicable
The date, and the place where the sales contract is concluded
A description of the goods or services sufficient to identify them
A statement of cancellation rights that conforms with the requirements set out in the regulations and must (a) contain the words set out in either of the options shown in the Schedule, (b) show the heading in not less than 12 point bold type, (c) show the statement of 10-day cancellation rights in not less than 12 point type, and (d) show the remainder of the information in not less than 10-point type (where this notice is not printed directly on the face of the sales contract there is to be a notice printed directly on the face of the contract in not less than 12 point bold type, indicating where in the contract the statement is printed)
The itemized prices of the goods or services or both
The total amount of the sales contract
The terms of payment
In the case of sales contracts for future delivery of goods, future provision of services or goods together with services, the delivery date for the goods, or start date for the services, or both
In the case of a sales contract for the future provision of services or goods together with services, the completion date for providing the services or the goods together with the services
Where credit is extended:
- A statement of any security taken for payment, and
- The disclosure statement required under the Fair Trading Act

Where goods are taken in trade, a description of and the value of the trade-in
The signatures of buyer and seller
A detailed description of the home, materials, appliances or fixtures to be supplied
If the buyer is required to provide a deposit, the amount of the deposit and the terms respecting what it is to be used for and the circumstances in which it is to be returned to the buyer
The completion date, if applicable
The year of manufacture of the home
The name of the home’s manufacturer
The home’s serial number and its CSA label number

Other Requirements

The deposit paid to a licensee under a retail home sales contract is the property of the person who paid it or on whose behalf it was paid and the licensee must not use it as collateral or appropriate or convert it except in accordance with the terms of the signed contract to the buyer.