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Modular homes are constructed like conventional homes except they are constructed in a factory setting and they are better that conventional homes because they are stronger, more energy efficient, less expensive and they require less time for construction. They are transported in large modules and then they are assembled on a custom permanent foundation.They are financed like conventional homes.
The source of legal disputes is in mixing the two. With Modular homes the legal disputes, if any, would be the same as with any convetional home.
Most people are confusing mobile homes with modular homes and there is a stigma about mobile homes and mobile home parks.
Another confusing part is the term that is used to describe mobile homes. The term “Manufactured Housing” has been adapted by the mobile home industry to alleviate the stigma of mobile homes.
Of course uninformed people bundle modular homes in this mix since modular homes are constructed in a manufacturing facility and are transported, but that is where the similarity if any ends.
There is no Federal Law governing modular homes but there are federal HUD(Housing and Urban Development) regulations , for the mobile home industry.
The modular homes are regulated by the State building code requirements regarding safety, energy efficiency, snow load requirements for the roof, wind speed in certain areas, load requirements for the floors, etc.