How Cavco Industries Uses This Clause
Cavco Industries purchase agreements govern the conditions under which deposits may be forfeited upon buyer cancellation. Because manufactured homes may be ordered and built to specification in a factory setting before delivery, cancellation and deposit forfeiture terms may differ from site-built home contracts.
Manufactured home deposits may be subject to restocking or production costs if the home has entered the manufacturing process at the time of cancellation. The specific terms of refund eligibility and cancellation windows are set by the purchase agreement and may vary between Cavco Industries subsidiary brands and dealer networks.
Buyers should carefully review the cancellation timeline, understand at what point the deposit becomes non-refundable, and confirm whether any contingencies (financing, appraisal, site preparation) protect the deposit.
Builder-Specific Details
Factory Production Timeline
Because manufactured homes are built in factory settings, the manufacturer may incur production costs once an order enters the manufacturing queue. Deposit forfeiture terms may reflect these production costs.
Dealer vs. Manufacturer Deposits
Deposits may be collected by the dealer rather than Cavco Industries directly. The refund process may involve both the dealer and the manufacturer, adding complexity to cancellation disputes.
Custom Order Considerations
Homes ordered with custom specifications may have more restrictive cancellation and deposit forfeiture terms than homes purchased from existing inventory.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Cavco Industries's operating states.
| State | Status | Note |
|---|---|---|
| Arizona | Likely Enforceable | Deposit forfeiture provisions in Arizona manufactured home contracts are generally enforceable if the terms are clearly disclosed and agreed to by the buyer. |
| Texas | Likely Enforceable | Deposit forfeiture provisions in Texas manufactured home contracts are generally enforceable. The TDHCA provides guidance on consumer rights in manufactured home transactions. |
| Florida | Likely Enforceable | Deposit forfeiture provisions in Florida manufactured home contracts are generally enforceable if the terms are clearly disclosed. |
| California | Uncertain | California's consumer protection framework may provide additional protections regarding deposit forfeiture in manufactured home transactions. Excessive forfeiture amounts may be challenged as penalties. |
| Oregon | Likely Enforceable | Deposit forfeiture provisions in Oregon manufactured home contracts are generally enforceable if the terms are clearly disclosed. |
| Idaho | Likely Enforceable | Deposit forfeiture provisions in Idaho manufactured home contracts are generally enforceable. |
| Indiana | Likely Enforceable | Deposit forfeiture provisions in Indiana manufactured home contracts are generally enforceable. |
| Virginia | Likely Enforceable | Deposit forfeiture provisions in Virginia manufactured home contracts are generally enforceable if the terms are clearly disclosed. |
Related Clauses in Cavco Industries Contracts
This clause often works in combination with other provisions in Cavco Industries's purchase agreements.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Buyers cannot join together to challenge deposit forfeiture practices through class action litigation.
If the manufacturer substitutes materials after the deposit is non-refundable, the buyer may have limited recourse.
What Buyers Can Do
- Understand when the deposit becomes non-refundable. Review the purchase agreement to determine the exact point at which the deposit becomes non-refundable. This may be tied to the start of manufacturing or a specific calendar date.
- Confirm all contingencies in writing. Ensure that financing, appraisal, and site preparation contingencies are documented in the purchase agreement and protect your deposit if these conditions are not met.
- Clarify who holds the deposit. Determine whether the deposit is held by the dealer or the manufacturer, and what the refund process entails if you are entitled to a return.