What paperwork is required before a deposit is collected?

The requirement of having a sales agreement signed by both the buyer and seller is a critical step in the process of collecting a deposit in a manufactured home transaction. This agreement serves as a legally binding document that outlines the terms of the sale, including details about the home, the purchase price, and any contingencies that might apply. By formalizing the agreement before collecting a deposit, both parties have a clear understanding of their obligations and the specifics of the transaction, which helps to protect their interests.

Having this signed sales agreement ensures that the deposit is tied to a specific property and transaction. Without it, the collector of the deposit may face challenges in the event of disputes or misunderstandings regarding the sale. It's a foundational document that provides clarity and assurance to both the buyer and the seller that the transaction is legitimate and agreed upon.

In contrast, other options such as the offer letter, title transfer documents, or proof of insurance, while important in their own right, do not precede or serve the immediate functionality of justifying the collection of a deposit in the context of the initial financial commitment for the purchase. The sales agreement directly correlates to the intent to carry forward with the transaction, making it the necessary documentation before proceeding with a deposit.