Manufactured Homes are generally personal property and are titled similar to motor vehicles by a certificate of title. However, under certain circumstances, a Manufactured Home may be so permanently affixed to the land that the law treats it like a site-built house – an improvement to real estate. Whether a Manufactured Home is personal property or real estate is very important to the homeowner, lender and title insurer.
With the passage of HB 827 in 2018, effective January 1, 2019, a Manufactured Home is treated as personal property unless the homeowner elects to (a) declare at the time of registration that the Manufactured Home is to be classified as real estate for ad valorem tax purposes only, or (b) permanently retire the title to the Manufactured Home by filing an Affidavit of Affixation. Once retired, the Manufactured Home would be part of the real estate until an Affidavit of Severance or Affidavit of Destruction is filed of record. Upon filing an Affidavit of Severance, the Manufactured Home would need to be retitled and would then be treated as personal property. Attorneys or title companies closing these transactions will examine the liens reflected on the Certificate of Title (for personal property) and in the land records (for real property) to insure priority of liens.
Course Presented by Kenneth Farmer.