- 8 - During the time they are located on the sales lots that ADI leases, model manufactured homes are owned by and titled to ADI. The independent salespersons, not ADI, are responsible for local media advertising costs, wages, if any, paid to sales assistants, sales commissions, sales taxes, and utility fees and insurance premiums on the sales lot. As indicated, ADI enters into the sales lot lease agreements with owners of the real property, and ADI, not the independent salespersons, makes the lease payments due on these leases. Also, ADI pays some miscellaneous costs relating to the model manufactured homes that are placed on the sales lots. For the majority of its income relating to the purchase and sale of manufactured homes, ADI receives various incentive payments from the manufacturers and from lenders (e.g., on each manufactured home sold ADI might receive a cash incentive payment from the manufacturer of 10 percent of the total purchase price paid to the manufacturer). Incentive payments that ADI receives are referred to in the record as “retail” incentives, and it appears that these payments represent incentives typically given by manufacturers and lenders to retail sellers of manufactured homes. ADI also receives from the independent salespersons a $300 processing fee for each manufactured home sold.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011