All State Mobile Home Guide

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Revision as of 18:01, 26 January 2018 by Alanfields (talk | contribs) (→‎District of Columbia)

Mobile Home Conversion Statutes

Underwriting Standards

Mobile homes and manufactured homes are considered motor vehicles in most states, and titled as such. It has a manufacturer’s statement of origin that is replaced with a certificate of title upon sale to a consumer and registration with the state – just like a car.

In most states, manufactured homes are transferred by assigning the certificate of title in the same manner as selling a car. Liens may be recorded against “vehicle titled” mobile homes and manufactured homes under the state’s motor vehicle title lien laws and/or as a UCC security interest in personal property (in most states recorded with the secretary of state centrally). This creates difficulties in insuring a mobile home as part of a real estate loan or sale transaction.

If the manufactured home is titled as a motor vehicle, (a) a deed doesn’t convey valid title – no more than the deed would convey the Mercedes parked in the garage; and (b) a mortgage or deed of trust covering the property, even if it includes the VIN number of the home, does NOT create a valid lien.

ALTA Mobile Home Coverages

Lenders and owners, understandably, want assurance that they are getting the interest in the manufactured or mobile home they are lending against. Fannie Mae rules require it. As such, they ask their title insurers to issue an additional endorsement confirming that the insured "land" includes the “includes the manufactured housing unit located on the land described in Schedule A at Date of Policy.

  • The ALTA 7-06 is intended to give assurance to the lender that their lien on the land “includes the manufactured housing unit located on the land described in Schedule A at Date of Policy.” This endorsement may be issued for a manufactured home that has previously been “converted” to real property or which you are currently converting. The ALTA 7-06 or the state specific variant is routinely requested by lenders when the collateral includes a manufactured home.
  • The ALTA 7.1-06 (loan) and 7.2-06 (owners) are endorsements designed for use when a manufactured home has first been placed on a property or “converted” to real property and provide additional assurances that the manufactured home is actually on the insured property, has been “converted” to a real property interest, belongs to the same owner as the Land, and all personal property or motor vehicle liens have been properly released.
    • The ALTA 7.1-06 and 7.2-06 are to be issued only upon specific request and only when your office or an outside mobile home title specialist are handling the conversion to real property concurrently with the insured transaction.

Issuing Agent Responsibilities

Prior to issuing any of the ALTA 7 series endorsements, the issuing agent must confirm that the title to the manufactured home has been "retired"; that it has been validly "converted" to real property in accord with the law of the state; and that the land records contain those documents required in that state to evidence the surrender of the vehicle title and conversion to real property.

If the land records do not already contain the required records, or the home is newly affixed, it is the responsibility of the agent -- prior to issuing the endorsement -- to complete the surrender of title and conversion of the property.

In most states, this is a lot of extra work, and requires a knowledge of the manufactured home title process beyond the experience of most title agents. Use of an outside mobile home title service to assist in the process should be considered.

If the ALTA 7.1-06 or 7.2-06 have been specifically requested, the issuing agent is responsible for also confirming that the ownership of the mobile home shown in the motor vehicle records exactly matches the ownership of the land; that the motor vehicle records do not reflect any liens which are not paid off contemporaneously with the conversion, and to conduct independent searches of personal property liens, UCC records and other land and non-land records which might reflect a lien.

Below are summaries of the laws regarding retirement and conversion of manufactured and mobile homes.

Alabama

In Alabama, the retirement and conversion process is governed by Ala.Code 1975 §32-20-20(b) and Department of Revenue Procedure 810-5-75-.66. Among other things, this process requires:

  • That the manufactured home be permanently affixed to the parcel of real property
  • That the ownership of the manufactured home and real property be identical
  • The (vehicle) titled owner and lienholders apply for cancellation of the Certificate of Title through a designated agent
  • The Alabama Department of Revenue issues a certificate of cancellation
  • The application to the DoR includes
    • the certificate of origin or certificate of title;
    • lien releases for all liens recorded on the vehicle title;
    • An affidavit executed by all who have an ownership interest in the manufactured home and the realty to the effect that the manufactured home is permanently affixed -- Affidavit Form; and
    • written verification from the judge of probate that the manufactured home has been recorded as being permanently affixed and recorded as real property in that county.

A UCC Search at the state level should be conducted to confirm that there are no filed security instruments claiming the home as “personal property.”

If the land records include facially valid (1) affidavits of retirement and (2) a certificate of cancellation from the Department of Revenue, the ALTA 7-06 may be issued without additional investigation.

If the land records do not include both of those, or the manufactured home is newly placed, further investigation of the status of the motor vehicle title is warranted. You will generally need to complete the retirement and conversion process outlined above, and record appropriate documentation, prior to issuance of any of the ALTA 7 series of endorsements.

A mobile home title may be cancelled if the home is affixed to real property owned by the homeowner – ownership of both the home and the land must be identical. The owner must submit an application to the state department of revenue, including a release of any liens noted on the title. If the mobile home is later detached from the land, the owner must reapply for a new certificate of title. This statute is part of the state title law and does not state whether the home is treated as real property for foreclosure or other purposes after the title is cancelled.

--Alanfields (talk) 19:24, 2 May 2017 (PDT)

Arizona

A mobile home permanently affixed, i.e., installed on real property owned by the homeowner,2 and for which an affidavit of affixture is recorded, shall be assessed as real property for tax purposes.3 A mobile located in a mobile home park will, along with the leasehold interest, be treated as real property if the homeowner files an affidavit of affixture with the county recorder and: (1) the home was installed on the real property with all wheels and axles removed in compliance with local and state installation standards; (2) the owner of the home entered into a lease of at least twenty years for the lot and the lease specifically permits the recording of an affidavit of affixture; and (3) a memorandum of lease, signed by both landlord and tenant, is recorded that lists specified information as to the mobile home as well as the legal description of the real property as required by statute.4 Regardless of whether the home is located in a park, the affidavit of affixture must identify the holder of any security interest in the home that is not terminated by the consent of the secured party, and any such interest survives recordation of the affidavit.5 When an affidavit of affixture is recorded, the owner must surrender the certificate of title.6. if an affidavit of affixture is submitted for recording on a mobile home that enters this state for sale or installation, a certificate of compliance or waiver that is issued by the Arizona department of housing is required and must be submitted with the affixture.7 A lien on a mobile home for which an affidavit of affixture is recorded may be perfected either in the manner provided by law for real property or in the manner provided for fixtures.

Reviewed by Dann Barbakoff 1.18.18.

Arkansas

If a mobile or manufactured home is affixed to real estate, the title may be surrendered to the state department of finance and administration for cancellation. After cancellation, a security interest, lien, or encumbrance may be obtained in the same manner as for real property.8

California

If a manufactured or mobile home is affixed to a permanent foundation in compliance with state standards,9 default and sale are governed by California’s mortgage foreclosure laws.10 The homeowner must own the land or have a minimum 35-year lease.11 Any lienholders must consent to the attachment of the home to the land.12 The owner must surrender the certificate of title, and a statement that the home was affixed to real property is to be recorded in the county land records.13 Once these procedures are completed, the home is deemed a fixture and an improvement to the real property.14 Default and sale are also governed by the state mortgage foreclosure laws if the creditor has a security interest in the land in addition to the home.15

Colorado

The owner of a manufactured home, once it is permanently affixed to the ground so that it can no longer be drawn over the public highways, may surrender the certificate of title and apply for purging of the title. The owner must also obtain the consent of the holders of any unreleased security interests in the home. The home then becomes real property, and subject to all laws that would apply to real estate.16 Although the statute does not explicitly state that the homeowner must also own the land upon which the home is placed, it appears that after conversion the home is taxed as part of the land upon which it sits, and so conversion would only be practical when the homeowner also owns the land. Although the statute does not address retitling, the Colorado Division of Motor Vehicles, Department of Revenue, currently permits a bonding procedure to allow homeowners to reestablish title.17

Connecticut

Title conveyances to manufactured homes are recorded on the land records with the town clerk’s office of municipality.18 While the document conveying title to homes on leased land must recite information about the land or park where the home is located,19 it appears to allow conveyance of homes located upon land owned by the homeowner by deed, and such home would become part of the real property.20


District of Columbia

No procedure.

Updated by Ned Livornese 1-24-18


Delaware

The process for surrendering the Certificate of Title and classifying a manufactured home as real property is slightly different in each county, but the main steps are:

1) Notifying the County to request a surrender of title. 2) A form/application/fee is required. 3) The home is inspected by a County official to ensure that it is affixed to the land, its wheels and axles removed and it is anchored to the land. 4) The County issues a letter or other certification to the DMV that the home meets its requirements to be considered real property. 5) The DMV issues a C‐grade classification certificate and a notice to the County that the Certificate of Title has been surrendered.

Updated by Ned Livornese 1-24-18

Florida

The owner of a mobile home permanently affixed to land also owned by the homeowner, or in which the homeowner has a recorded leasehold interest of at least 30 years, may retire title to the home.21 Before title is retired the following documents must be recorded in the official records of the clerk of court in the county where the home is located: (1) the original title to the home, including a statement by any recorded lienholder that the security interest has been released or will be upon retirement of title; (2) legal description of the real property, and if the homeowner’s interest in the property is a leasehold, a copy of the lease; and (3) a sworn statement of the owner that he or she owns the home and the real property or leasehold interest. After the title is retired, the home is only conveyed by deed or real estate contract along with the property to which it is affixed.22 A new title may be obtained if the home is to be removed from the land.23 Another Florida statute provides that if the mobile home is classified as personal property by a seller or lender at the time a security interest in the home was granted, it shall continue to be so classified for all purposes relating to the loan and security agreement.24

Reviewed by Joe Tschida 1-19-18

Georgia

A manufactured or mobile home is personal property unless: (1) the home is or is to be permanently affixed to real property and one or more persons with an ownership interest in the home also has an ownership interest in the real property; and (2) the owner and all holders of security interests sign and file a certificate of permanent location with the clerk of the local superior court and the state revenue commissioner. Once such a certificate is properly filed, the home is a part of the real property for all legal purposes, including foreclosure.25

Idaho

A manufactured home may constitute real property if the home is permanently affixed to a foundation and the running gear is removed. The home must be sited on land owned (or being purchased) by the homeowner or, if the home is being financed in accordance with a federal housing agency’s guidelines, is leased by the homeowner. The homeowner must record with the county recorder a statement of intent to declare the home as real property, and must turn over the certificate of title. Upon exercise of this option, lending institutions may treat the home as real property.26 Physical removal of the home from the land is then prohibited unless the owner applies to have a new certificate of title issued.27

Illinois

Act requires:

  • the manufactured home is affixed to a permanent foundation as provided in Section 5-5 of this Act;
  • an affidavit of affixation conforming to the requirements of Section 5-15 of this Act has been recorded;
  • a certified copy of the recorded affidavit of affixation has been delivered for filing to the Secretary of State as provided in Section 5-25 of this Act; and
  • the requirements of Section 3-116.1 or 3-116.2 of the Illinois Vehicle Code, as applicable, have been satisfied.

A conclusive presumption shall arise that the averments of the recorded affidavit of affixation establish that, for all purposes, the manufactured home is real property. IL Mobile Home Conversion Law

Indiana

If a manufactured home is attached to real estate by a permanent foundation, the owner may submit the certificate of title and an affidavit to the bureau of motor vehicles.28 The county recorder is then to record the affidavit in the county real estate records,29 and the home is thereafter deemed to be an improvement to the real estate.30

Iowa

Iowa has separate provisions depending on whether or not the home is in a manufactured home community. If the home is located in a manufactured home community and installed on a permanent foundation, the owner may surrender the certificate of title to the county treasurer for the purpose of assuring eligibility for federal mortgage lending programs. The title cannot be surrendered if there are unreleased security interests. A foreclosure action on a manufactured home whose title has been surrendered must be conducted as a real estate foreclosure. The owner may reapply for a certificate of title at a later date.31 If the home is not in a manufactured home community, it must be placed on a permanent foundation. If a security interest is noted on the title, the homeowner must tender a mortgage on the real estate to the creditor, or the secured party must consent to the conversion, in which case the secured party retains a security interest in the home that is separate from any interest in the land. This statute is a tax law that does not state whether foreclosure law applies after the home is converted to real property.32

Kansas

Whenever a manufactured or mobile home is permanently affixed to real property by placement upon a permanent foundation that cannot be removed intact from the land, the owner may apply to have the certificate of title eliminated. The application must include an affidavit signed by the owner and all parties having a security interest in the home. If the application is approved, it is filed in the county registry of deeds. Once the certificate of title is eliminated, ownership of the home is an incident of ownership of the land under governing real property law, and the home is subject to a lien only as part of the real property.33 Kentucky When a manufactured home is or is to be permanently affixed to real estate, the owner may file an affidavit of conversion with, and surrender the certificate of title to, the county clerk, who is then to record the affidavit. The home is then deemed an improvement of the real estate.34

Louisiana

A manufactured home is considered immovable when an authentic act or validly executed and acknowledged sale or mortgage containing a description of the home as described in the certificate of title or manufacturer's certificate of origin, and a description of the land is recorded in the local parish records. The document must include a declaration by the owner of the home and any holder of a security interest in the home that the home is to remain permanently attached to the land. Once this document is recorded, the home is subject to all laws concerning immovable property.35 However, the rights of the holder of a validly recorded chattel mortgage or a security interest perfected under Article 9 of the UCC are unaffected.36 The owner may reverse the process so that the home is once again treated as movable property by filing another statement of intent and applying for a new certificate of title.37

Reviewed by David Silverstein 1/19/18.

Maryland

Procedures for attaching a "manufactured home" to a permanent foundation and converting it to real property are found in MD Real Property §8B–101 to §8B–302. Any lien that can attach to real property shall attach in the same manner to a manufactured home that is converted to real property. The title and all rights to a manufactured home shall be transferred by deed with the transfer of a parcel or real property to which the manufactured home has been affixed. An affidavit of affixation must be recorded with the clerk of the county in which the parcel of real property to which the manufactured home is affixed is located.

Updated Ned Livornese 1-24-18

Michigan

The owner of a mobile home affixed to real property in which the owner also has an ownership interest, may apply for cancellation of the certificate of title. To be considered affixed to the real property, the wheels, towing hitches and running gear must be removed and the home must be attached to a foundation or other support system. The application must include the written consent of each holder of a security interest to termination of the security interest and cancellation of the title. Once the title is cancelled, the mobile home is considered part of the realty and a lienholder may perfect a new security interest or lien on the mobile home only in the manner prescribed by the real estate laws.38 The owner may reapply for a certificate of title at a later date.39 In 2003, the Sixth Circuit had held that security interests in manufactured homes in Michigan could be perfected only by recording them on the title, not by recording a traditional mortgage.40 The legislature responded by amending its titling laws to recognize both methods.41 It amended the statute again two years later to make this rule retroactive.42

Minnesota

When a manufactured home is affixed to real property, and financed by a mortgage on the real property, the owner of the home must surrender the certificate of title to the registrar of motor vehicles for cancellation. The department is then to issue a notice of surrender, which may be recorded in the county recorder’s office or the registrar of titles. The statute provides that the manufactured home is then deemed to be an improvement to real property. The department may not cancel the certificate of title, however, if an unsatisfied security interest is noted on it.43

Mississippi

An owner of a manufactured or mobile home, who also owns the land on which the home is located, has the option of declaring whether the home is to be classified as personal or real property. To be classified as real property, the wheels and axles must be removed and the home must be anchored and blocked in accord with rules adopted by the commissioner of insurance.44 A certificate that the home has been classified as real property is then recorded in the county land records,45 and the home’s certificate of title may be sent to the state tax commission for cancellation.46 The home is then treated as real property for purposes of ad valorem taxation, and a security interest in the home and land may be obtained through the use of a mortgage or deed of trust.47

Missouri

The owner of a manufactured home may convert it to real property by attaching it to a permanent foundation on real property that the owner of the home also owns, and removing or modifying the transportation apparatus so that it is impractical to reconvert it to be readily movable.48 Unlike the other statutes summarized in this subsection, this statute does not provide for surrender of the title or recordation of a document in the county land records.

Montana

A manufactured home is considered an improvement to real property if the running gear is removed, the home is attached to a permanent foundation on land that is owned or being purchased by the owner of the home (or that is placed on the land with the permission of the landowner), and a statement of intent declaring the manufactured home as an improvement to real property is recorded with the county. The statement of intent must include, inter alia, a description of any security interests in the home and approval from all lienholders to eliminate the certificate of title. After these steps are completed, the manufactured home may not be removed from the land unless the owner files a statement of reversal of this declaration. A manufactured home that has been declared an improvement to real property must be treated by lending institutions in the same manner as any other improvement to real property.49

Nebraska

The title for a mobile or manufactured home may be canceled if it is affixed to real property in which the owner of the home has any ownership interest. The statute defines ownership interest as fee simple interest, or an interest as a lessee that continues for at least twenty years after the required affidavit. The title is surrendered for cancellation to the county clerk or designated official where the title is issued or to the Department of Motor Vehicles if title is issued by the department. Along with the title to be surrendered an affidavit of affixture on a form provided by the department must be submitted. The form requires among other things, the names and addresses of all owners of the home, a description of the home, the legal description of the real property, a statement that the home is affixed, and the written consent of each lien holder to release its lien and cancel the title. After the title is canceled and the affidavit recorded, the home is treated as part of the real property.50 The statute also provides a method for returning the home to the status of personal property.51

Nevada

A mobile or manufactured home is eligible to become real property if it becomes permanently affixed to land. The owner of the home must either own the land or, if the home is being financed in accordance with the guidelines of a federal housing program, lease it. The owner must record an affidavit of conversion in the county recorder’s office, deliver a copy of the affidavit and all documents relating to the home to the manufactured housing division of the state department of business and industry, and pay the current year’s personal property tax.52 (But homes that are sited on lots outside mobile home parks in accordance with local zoning laws are automatically recorded as real property without the need for an affidavit.53) Once the home is converted to real property, it is deemed to be a fixture and an improvement to the real property.54

New Hampshire

A manufactured home placed on a site not owned by the homeowner but connected to utilities shall be deemed real estate for the purposes of transfer and shall be subject to attachment, liens, foreclosure and execution in the same manner as real estate.55 However, security interests in manufactured housing may also be created and perfected under the U.C.C. as adopted by New Hampshire.56 The statute does not address homes placed on land owned by the homeowner. Owners of manufactured homes in this situation must rely upon common law to determine if the home becomes real property. New Hampshire also has a statute which allows any lending institution to treat a manufactured home the same as realty for the purposes of securing loans to finance the home. When a lending institution exercises this option, no certificate of title is required, and all of the provisions of real estate law, including conveyances, deeds, and foreclosure, apply to the home. The home must be placed on a foundation or slab and hooked up to all conventional and necessary utility systems and must be intended to be used as a permanent dwelling unit.57

New Jersey

New Jersey requires that all manufactured homes not taxed as real property must have certificates of ownership (titles) issued by the Director of the Division of Motor Vehicles.58 A manufactured home is taxed as real property when it is affixed to the land by a permanent foundation, or if by a nonpermanent foundation but connected to utility systems so as to render it habitable on a permanent basis.59 However, a manufactured home installed in a park is not taxed as real property.60 When a mobile or manufactured home is relocated from a park to land which the owner of the home also has an interest in or title to, the owner must file a notice with the Director of the Division of Motor Vehicles at least 10 days before the move. If the director accepts the notice as complete, the certificate of ownership is canceled on the date of relocation.61

North Carolina

A manufactured home qualifies as real property if it is a residential structure; the moving hitch, wheels, and axle have been removed; and the owner either owns the land on which it is located or has a lease of at least twenty years that expressly provides for disposition of the mobile home upon termination of the lease.62 The owner of such a home may have the certificate of title cancelled by submitting it, along with an affidavit, to the division of motor vehicles.63 If the certificate of title shows a security interest that has not been released, the division may not cancel the title without the written consent of all secured parties. The affidavit is then to be filed in the county registry of deeds. An owner who wishes to separate the home from the land after the title has been cancelled can apply for a new certificate of title. Once the certificate of title is cancelled and the affidavit is recorded, the manufactured home becomes an improvement to real property and any lien on the home shall be perfected and given priority in the manner provided for real property liens.64

Reviewed by Joseph McManus 1/18/2018

Ohio

To be taxed as real property, a manufactured or mobile home must be affixed to a permanent foundation and be located on land that the owner of the home also owns.65 The owner of a home, which will be taxed as real property, must surrender the certificate of title to the county auditor.66 The owner must either satisfy any liens on the home, or, with the lienholder’s consent, give the lienholder a mortgage on the home and land. Once surrendered, the title is to be deactivated, but it can be reactivated upon application by the homeowner. These statutes do not state what effect the deactivation of the title has outside the context of taxation, but a bankruptcy case holds that if a home was converted to real property through this procedure for taxation purposes it is also real property for purposes of bankruptcy law.67

Oregon

The owner of a manufactured structure, or the dealer selling it, may apply to the county assessor to have the structure recorded in the county deed records. The owner must either own the land on which the structure is located, or hold a recorded lease of twenty years or more that specifically permits the structure to be recorded in the county deed records. The owner must turn over any ownership document for cancellation. The deed records must list any unreleased security interest in the manufactured structure. Once recorded in the deed records, the manufactured structure is subject to the same provisions of law applicable to any other building, housing, or structure on the land, and may be sold separately from the land or leasehold estate only if the owner applies to have it removed from the deed records.68

Pennsylvania

Upon application, the department of transportation may cancel a certificate of title for a mobile home that is affixed to real property.69 The home must be permanently mounted on a foundation.70 The owner must complete a form and return it, along with the title, to the department of transportation.71 If a lien appears on the certificate of title, the title will not be cancelled until the home owner submits satisfactory evidence that the lien has been recorded against the land.72 After cancellation, the ownership interest in the mobile home, together with all liens and encumbrances on it, is transferred to and encumbers the real property.73

South Carolina

The owner of a manufactured home may affix the home to real property by installing it in accordance with the state installation standards, removing the wheels, axles, and towing hitch, and filing an affidavit for retirement of title, pursuant to §56-19-500, et. Seq. of the South Carolina Code of Laws.74 The homeowner must either own the land on which it is located or have a leasehold estate of thirty-five years or more in the land. The local register of deeds or clerk of court must then record the affidavit as if it were a deed to real property. Upon completion of this process, the home is to be treated as real property for all purposes except condemnation.75 The title certificate may be cancelled by presenting it to the division, along with a clocked and stamped copy of the affidavit.76 Any party listed on the title certificate as having a security interest in the home must either release the lien or consent to the cancellation of the title.77 Once a manufactured home has been converted to real property in this manner, a manufactured home severance affidavit must be filed before it can be severed from the land. 1/23/2018-revised-CJY

South Dakota

If a mobile or manufactured home is fixed to real property, and the owner of the home also owns the land, the owner may request that the title to the home be surrendered.78 If the owner wants to remove the home from the real property at a later time, the owner may apply to have a title reissued.79 These statutes are part of the state motor vehicle titling laws and do not state the effect of surrendering the title.

Tennessee

In Tennessee, the retirement and conversion process is governed by Tenn. Code Ann. § 55-3-138. In order to qualify to cancel the motor vehicle title, the manufactured home must be

  • affixed to the real property, with a foundation system complying with all applicable laws and rules,
  • the wheels and axles removed,
  • permanently connected to sewer/septic and other utilities;
  • the ownership of the home must be identical to the ownership of the land.
  • All lienholders must have released their liens on the home.

The owner must then surrender the title(s) or manufacturer’s statement or certificate of origin to the Tennessee Department of Revenue along with a recorded “affidavit of affixation” that, among other things certifies the above.

The process is documented by an Affidavit of Affixation recorded in the land records.

If the land records include facially valid Affidavit of Affixation, which has all the elements required in Tenn. Code Ann. § 55-3-138(b), the ALTA 7-06 may be issued without additional search. The ALTA 7.1-06 or 7.2-06 may be issued upon review of the Affidavit, and confirmation that there are no liens reflected in the motor vehicle or UCC records of the State of Tennessee, real and other property taxes are paid; and no federal state or governmental liens appear of record.

However, since a de-titled Mobile home may be retitled as set forth in Tenn. Code Ann. §55-3-139, an affidavit from the borrower/seller should be required to the effect that the manufactured home has not been retitled.

If the land records do NOT reflect the Affidavit of Affixation, or the manufactured home is newly placed, further investigation of the status of the motor vehicle title is warranted. You will generally need to complete the retirement and conversion process outlined above, conduct a UCC Search at the state level to confirm that there are no filed security instruments claiming the home as “personal property,” and the usual tax and land record searches, then record appropriate documentation, prior to issuance of any of the ALTA 7 series of endorsements.

Reviewed By Joseph McManus 1/18/2018

Texas

A manufactured home can be treated as real property, if it is attached to land that the homeowner also owns, or which the homeowner is leasing under a long-term lease as defined by the state department of housing and community affairs.81 To be attached to land it must be installed in compliance with state rules and connected to a utility.82 The owner must file an application for a statement of ownership and location with the department. In addition, each lienholder must either release the lien or give written consent to the conversion of the home to real property.83 Within sixty days after the department issues a statement of ownership, the owner must file a certified copy in the real property records of the county in which the home is located and notify the department and the tax assessor-collector that the certified copy has been filed.84 The home is then considered real property for all purposes.85 Another Texas statute provides that, if a consumer buys real property and a manufactured home at the same time, and certain other conditions are met, the creditor may elect to treat the home as if it were residential real property for all purposes in connection with the credit transaction.86 If the creditor so elects, and discloses this election conspicuously to the consumer, then the transaction is considered to be a residential real property transaction for all purposes.87

Utah

A manufactured or mobile home is considered an improvement to real property if the homeowner also owns the land to which it is permanently affixed, or leases the land and is financing the home in accordance with federal housing agency guidelines. The owner must surrender the title and complete an affidavit that, inter alia, identifies any security interests in the home. The affidavit and the receipt for the surrender of the title are then recorded by the county recorder. The homeowner may acquire a new title upon removing the mobile home from the land. Since this statute is part of the state mortgage lending and servicing act, it is likely that it will govern whether foreclosure is the appropriate way for the lender to proceed in the event of default.88

Vermont

If a mobile home is financed while the home is permanently sited in a manner intended for continuous residential occupancy by the homeowner on land also owned by the homeowner, it shall be financed as a residence.89 Otherwise a mobile home may be financed under 9 V.S.A. § 41a(b)(4) or 9 V.S.A. Pt. 3, Ch. 59, both of which regulate chattel loans.

Virginia

The owner of a manufactured home or house trailer that exceeds the size permitted for highway travel must apply for a title within thirty days after purchase. Once the wheels and other equipment that made the home mobile are removed and the home has been attached to realty, then the owner may return the title to the department of motor vehicles for cancellation. The home may then be transferred only as real estate. Any security interest perfected on the title continues despite the cancellation of the title.90 A bankruptcy court has held that the determination of whether a mobile home is real or personal property must be made on a case-by-case basis and an owner’s failure to comply with the statute, while it might be indicative of the owner’s intent that home remain personal property, is not conclusive.91

Washington

The owner of a manufactured home that is affixed to land (i.e., installed in accordance with state installation standards92) may apply to have the title eliminated. The owner of the home must also own the land on which it is sited, have a lease of thirty-five years or more for the land, or be purchasing the land under a real estate contract.93 The owner must submit the title and an application, which must identify any security interests, to the department of licensing for approval.94 After approval, the title is to be cancelled and the approved application is to be recorded in the county real property records.95 The statute provides that the manufactured home is then to be treated as real property as if it were a site-built structure,96 except for purposes of taxation.97 If the title has not been eliminated, the home is not real property.98 The statute provides a procedure to obtain a new title if the home is to be removed from the land.99

West Virginia

The commissioner of motor vehicles may cancel a certificate of title for a mobile or manufactured home that is affixed to real property owned by the homeowner.100 The homeowner must submit an application and the certificate of title. The cancellation certificate is then to be recorded in the county deed records. Upon recordation, the statute provides that the home is to be treated for all purposes as an appurtenance to the real estate to which it is affixed.101

Wisconsin

The owner of a manufactured home must obtain a certificate of title,102 unless the homeowner is not a resident of Wisconsin103 or the homeowner intends to make the home a fixture to land in which the homeowner has an ownership or leasehold interest.104 The leasehold interest must be subject to Wisconsin’s real property statutes which exclude leases for a term limited to one year or less.105

Wyoming

If a mobile home is installed on a permanent foundation and is taxable as real property,106 and all liens have been paid, the certificate of title is to be surrendered to and cancelled by the county clerk.107


Endnotes

1 Ala. Code § 32-20-20.

2 Ariz. Rev. Stat. Ann. § 42-15201(2).

3 Ariz. Rev. Stat. Ann. § 42-15202.

4 Ariz. Rev. Stat. Ann. § 33-1501. A home recorded as real property under this statute is to be assessed as personal property for tax purposes, however. Ariz. Rev. Stat. § 42-15203(K).

5 Ariz. Rev. Stat. Ann. §§ 33-1501, 42-15203.

6 Ariz. Rev. Stat. Ann. § 28-2063.

7 Ariz. Rev. Stat. Ann. § 42-15205.

8 Ark. Code Ann. §§ 27-14-807, 27-14-1603.

9 Cal. Health & Safety Code § 18551 (West) (includes construction standards, plan approval, etc.).

10Cal. Health & Safety Code § 18039.1 (West).

11Cal. Health & Safety Code § 18551(a)(1)(A) (West).

12Cal. Health & Safety Code § 18551(a)(1)(B) (West).

13Cal. Health & Safety Code § 18551(a)(2), (3) (West).

14Cal. Health & Safety Code § 18551(a)(4) (West).

15Cal. Health & Safety Code § 18039.1 (West).

16Colo. Rev. Stat. Ann. § 38-29-118.

17http://www.dola.state.co.us/dpt/dpt_news/docs/Bulletins/2007%20bulletins/BULLEINNO04-07.pdf

18Conn. Gen. Stat. Section 21-67a

19Conn. Gen. Stat. Section 21-67a(c)

20Connecticut information at www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/manufachousing/.

21Fla. Stat. §319.261

22Fla. Stat. §319.261(5)

23 Fla. Stat. §319.261(6)

24 Fla. Stat. § 320.015.

25 Ga. Code Ann. §§ 8-2-180 to 8-2-183.

26 Idaho Code Ann. §§ 63-304(2), 63-305(1). Cf. In re Sasinouski, 52 B.R. 67 (Bankr. Idaho 1985) (even though home owner did not comply with Idaho title purging statute, land and mobile home were both encumbered by the deed of trust on land, where deed of trust did not explicitly exclude mobile home and lender relied upon appraisal that included both the home and land when making the loan).

27 Idaho Code Ann. § 63-305.

28 Ind. Code § 9-17-6-15.1.

29 Ind. Code § 9-17-6-15.3.

30 Ind. Code § 9-17-6-15.5.

31 Iowa Code § 435.26A.

32 Iowa Code § 435.26. See also Ford v. Venard, 340 N.W.2d 270 (Iowa 1983) (holding that Iowa’s title purging statute was not intended to be the exclusive method to convert mobile home to real property and that common-law methods of converting personal to real property remained).

33 Kan. Stat. Ann. § 58-4214.

34 Ky. Rev. Stat. Ann. § 186A.297 (West).

35 La. Rev. Stat. Ann. § 9:1149.4. See also La. Rev. Stat. Ann. § 9:1149.3.

36 La. Rev. Stat. Ann. § 9:1149.4.

37 La. Rev. Stat. Ann. § 9:1149.6.

38 Mich. Comp. Laws Ann. § 125.2330i(5).

39 Mich. Comp. Laws Ann. § 125.2330i.

40 Boyd v. Chase Manhattan Mortg. Corp. (In re Kroskie), 315 F.3d 644 (6th Cir. 2003).

41 Mich. Pub. Act No. 44, S.B. 425 (2003), enacting Mich. Comp. Laws Ann. § 125.2330i..

42 Mich. Comp. Laws Ann. § 125.2330i, as amended by Mich. Pub. Act No. 162, H.B. 4484 (2005). See In re Ozwalt, 444 F.3d 524 (6th Cir. 2006) (interpreting statute to allow security interest in mobile home to be perfected by filling of mortgage with county registry, without notation on title, even when transaction occurred before statutory amendments); MERS v. Pickrell, 721 N.W.2d 276 (Mich. Ct. App. 2006) (in light of 2005 statutory amendment, creditor has option of perfecting security interest in mobile home either under the Act or under real estate law, even for home that was affixed to real estate before earlier amendments in 2003); In re Hoggard, 330 B.R. 595, 605 (Bankr. W.D. Mich. 2005) (concluding that 2003 legislation overruled Kroskie; also finding security interest in home protected by Revised Article 9’s priority rules). But cf. In re Gregory, 316 B.R. 82 (Bankr. W.D. Mich. 2004) (interpreting title purging statute not to have retroactive effect, a conclusion rejected by Sixth Circuit in In re Ozwalt, but finding security interest in home protected against bankruptcy trustee’s strong-arm power because of Revised Article 9’s changes to priority rules)

43 Minn. Stat. § 168A.141. See also Minn. Stat. § 273.125 (standards for taxing mobile homes as real property).

44 Miss. Code Ann. § 27-53-15.

45 Id. See also Opinion Miss. Att’y Gen., Miller, No. 2005-0131, 2005 WL 1220419 (Miss. Att’y Gen. Apr. 8, 2005).

46 Miss. Code Ann. § 63-21-30.

47 Miss. Code Ann. § 27-53-15.

48 Mo. Rev. Stat. §§ 700.111, 700.010(5) (definition of “manufactured home” as one that is, inter alia, readily movable). See In re Estate of Parker, 25

S.W.3d 611 (Mo. Ct. App. 2000) (mobile home not converted to real property when the home was held jointly by married couple and placed on land held by only by one spouse as it was not placed on land held by the owner of the home).

49 Mont. Code Ann. § 15-1-116.

50 Neb. Rev. Stat. § 60-169.

51 Neb. Rev. Stat. § 60-169.

52 Nev. Rev. Stat. § 361.244. See In re Colver, 13 B.R. 521 (Bankr. D. Nev. 1981) (mobile home placed on land owned by owner of home with its wheels removed remained personal property in absence of compliance with statute and when lender stated in security instrument that home would remain person property over the life of the loan).

53 Nev. Rev. Stat. §§ 278.02095, 361.244(5).

54 Nev. Rev. Stat. § 361.244(3).

55 N.H. Rev. Stat. § 477:44; see also N.H. Rev. Stat. §80:18-a (defining “mortgage” for tax collection purposes to include security interests in manufactured housing created and perfected under N.H. Rev. Stat. § 477:44).

56 N.H. Rev. Stat. § 477:44 IV.

57 N.H. Rev. Stat. Ann. § 384:16-d.

58 N.J. Stat. Ann. § 39:10-2, §39:10-6.

59 N.J. Stat. Ann. § 39:10-2, §54:4-1.5-a.

60 N.J. Stat. Ann. § 39:10-2, §54:4-1.5-b.

61 N.J. Stat. Ann. § 39:10-2, §39:10-11.1.

62 N.C. Gen. Stat. § 105-273(13).

63 N.C. Gen. Stat. § 20-109.2.

64 N.C. Gen. Stat. §§ 47-20.6, 47-20.7.

65 Ohio Rev. Code Ann. § 4503.06(B)(1), (2) (West).

66 Ohio Rev. Code Ann. § 4505.11 (West.

67 In re Cluxton, 327 B.R. 612 (B.A.P. 6th Cir. 2005). See also Benner v. Hammond, 673 N.E.2d 205 (Ohio Ct. App. 1996) (holding that home that had title purged under revenue statute and was considered real property under the owner’s mortgage was not a “trailer” for the purposes of a restrictive covenant).

68 Or. Rev. Stat. § 446.626. See also Or. Rev. Stat. § 446.611 (means of perfecting security interest in mobile home that still has an ownership document).

69 75 Pa. Cons. Stat. § 1140.

70 Pa. Code tit. 67, § 401.5(a).

71 Id.

72 Pa. Code tit. 67, § 401.5(b).

73 75 Pa. Cons. Stat. § 1140.

74 S.C. Code § 56-19-510. See also S.C. Code § 56-19-500(1).

75 S.C. Code § 56-19-510.

76 S.C. Code § 56-19-520.

77 Id.

78 S.D. Codified Laws § 32-3-3.2.

79 S.D. Codified Laws § 32-3-3.3.

80 Tenn. Code Ann. § 55-3-138. See also Tenn. Code Ann. § 55-3-138 (procedure for reapplying for new certificate).

81 Tex. Occ. Code Ann. § 1201.2055 (Vernon).

82 Tex. Occ. Code Ann. § 1201.003(2-a) (Vernon).

83 Tex. Occ. Code Ann. § 1201.2075 (Vernon).

84 Tex. Occ. Code Ann. § 1201.2055 (Vernon).

85 Id. See also Tex. Prop. Code Ann. § 2.001 (Vernon).

86 Tex. Fin. Code Ann. § 347.455 (Vernon).

87 Id.

88 Utah Code Ann. § 70D-1-20. See also Utah Code Ann. § 41-1a-503.

89 Vt.. Stat. Ann. tit. 9, § 2603 (b)

90 Va. Code Ann. § 46.2-653.

91 In re Banks, 259 B.R. 848 (Bankr. E.D. Va. 2001).

92 Wash. Rev. Code § 65.20.020.

93 Wash. Rev. Code §§ 65.20.020, 65.20.040.

94 Wash. Rev. Code § 65.20.040.

95 Wash. Rev. Code § 65.20.050.

96 Id. See also Wash. Rev. Code §§ 65.20.030, 65.20.060 (manufactured home whose title has been eliminated may be conveyed only by deed or real estate contract).

97 Wash. Rev. Code § 65.20.910.

98 Wash. Rev. Code § 65.20.030.

99 Wash. Rev. Code § 65.20.070.

100 W. Va. Code § 17A-3-12b.

101 Id. See also W. Va. Code § 15-5-12 (tax statute providing that a mobile home sited on land owned by someone other than the home owner is classified as personal property whether or not it is permanently affixed to the land, unless the certificate of title has been cancelled).

102 Wis. Stat. §101.9203 (1)

103 Wis. Stat. §101.9203 (3)

104 Wis. Stat. §101.9203 (4)

105 Wis. Stat. §706.001

106 See Wyo. Stat. Ann. § 39-15-101(a)(v) (to be real property, must be physically or constructively annexed to the real property and adapted to the use of the real property, and there must be evidence of intent to make it a permanent part of the real property).

107 Wyo. Stat. Ann. § 31-2-502.

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