UNIFORM
MANUFACTURED HOUSING ACT
SECTION
1. SHORT TITLE. This [act] may be cited as the Uniform
Manufactured Housing Act.
SECTION
2. DEFINITIONS. In this [act]:
(1)
“Electronic” means relating to technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities.
(2) “Home” means a manufactured home,
as defined in Section 2(5) of this [act].
(3) “Installed” means that a
manufactured home has electricity supplied by a utility or by any other means
or has been occupied as a residence at one location for at least thirty days,
whichever occurs first.
(4) “Legal description of the
manufactured home” is the home’s manufacturer, make, model designation, model
year, identification number, length, and width.
(5) “Manufactured home” or
“manufactured housing” means a structure, transportable in one or more
sections, which, in the traveling mode, is eight body feet or more in width or
40 body feet or more in length, and which is built on a permanent chassis and
designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and includes the plumbing, heating,
air-conditioning, and electrical systems contained therein; but the terms do
not include any self-propelled recreational vehicle and do not include a
structure used only for nonresidential purposes. The terms “manufactured home” and
“manufactured housing” also include a mobile home, as defined in Section 2(6)
of this [act].
(6) “Mobile home” means a structure
manufactured before June 15, 1976, transportable in one or more sections,
which, in the traveling mode, is eight body feet or more in width or 40 body
feet or more in length, and which is built on a permanent chassis and designed
to be used as a dwelling with or without a permanent foundation when connected
to the required utilities, and includes the plumbing, heating,
air-conditioning, and electrical systems contained therein; but the term does
not include any self-propelled recreational vehicle and does not include a
structure used only for nonresidential purposes.
(7) “Person” means an individual,
corporation, business trust, estate, trust, partnership, limited liability company,
association, joint venture, public corporation, government or governmental
subdivision, agency, or instrumentality, or any other legal or commercial
entity.
(8) “Record” means information that
is inscribed on a tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form.
(9)“Recorder” means the government
official that records documents affecting land titles and makes them available
for public inspection.
(10) “State” means a state of the
United States, the District of Columbia, Puerto Rico, the United States Virgin
Islands, or any territory or insular possession subject to the jurisdiction of
the United States.
(11) “Transferee” means a person who
acquires property in any legal manner, including sale, gift, or testate or
intestate succession.
(12) “Transferor” means a person who
transfers property in any legal manner, including sale, gift, or testate or
intestate succession.
(13) “Sign” means, with present
intent to authenticate or adopt a record:
(A) to execute or adopt a tangible
symbol; or
(B) to attach to or
logically associate with the record an electronic symbol, sound, or process.
Comment
Paragraph
(1) is the standard Uniform Law Commission definition of “electronic”.
Paragraph
(3) identifies when a manufactured home has become sufficiently connected to
land that the home becomes real property.
In considering alternatives, the drafting committee stressed the need
for a standard that is objective, easy to verify, and achievable in all
jurisdictions and by all manufactured home owners. The committee considered and rejected
numerous definitions, including the following:
·
permanent affixation to land, which was defined
as installation in accordance with the manufacturer’s installation instructions
and with applicable federal, state, and local laws. The committee rejected this standard because:
(1) it excludes homes that are improperly installed; (2) it requires a
determination whether a home has been properly installed; and (3) though
unlikely, the home can be moved and, therefore, is not “permanently” affixed;
·
issuance of a certificate of occupancy, because
not all jurisdictions require them;
·
government certification of utility connection
or of proper home installation, because the certification can take several months
to obtain;
·
attachment to a permanent foundation, because
the HUD definition of “manufactured home” does not require it and because some
states and many landlords do not permit a permanent foundation in a leasehold
community; and
·
satisfaction of the fixture test, because it is
fact dependent and unpredictable and because some forms of installation that
the HUD Code permits do not satisfy that test.
Because
only 1% of manufactured homes are moved after being sited on land, the
committee determined that residential use of the home at one location for a
month or connection to a source of electricity is a sufficient connection to
the land and is a standard that is objective, readily verifiable, and
universally achievable.
Paragraph
(4) includes the information that most state statutes require in conveyance
documents for manufactured homes.
Paragraph
(5) is based on the “manufactured home” definition in Uniform Commercial Code §
9-102(53). As stated in comment 5(b) to
that section, the definition is intended to have the same meaning as the
definition in the federal Manufactured Housing Act, 42 U.S.C. §5402(6).
Using this definition will help harmonize this act with the federal act
and with the U.C.C. The drafting
committee’s style member offered alternative language to conform the definition
to the Style Committee’s rules, but, to avoid conflicts or gaps between this
uniform act and the U.C.C., the drafting committee respectfully determined to
use the definition based on Article 9. However,
the committee also decided that, for purposes of this act, the definition
should differ from the Article 9 definition in four ways:
·
Although the Article 9 definition is based on
the federal definition, Article 9 omits a clause that the federal definition
includes—“and except that such term shall not include any self-propelled
recreational vehicle.” Although that
exclusion is appropriate for Article 9, it is inappropriate for purposes of
this act. Therefore, that clause is in
this act’s definition.
·
This act’s “manufactured home” definition
expressly includes “mobile homes” to make clear that factory-built homes of any
age are covered by the act. As a term of
art, “manufactured homes” are homes built in a factory on or after June 15,
1976, which was the effective date of HUD’s construction standards for
them. “Mobile homes” are homes
manufactured before that date. Some
states that permit a home to be characterized as real property from the time of
retail purchase do so only for manufactured homes, whereas other states do so
for manufactured and mobile homes. E.g., Colo. Rev. Stat. § 38-29-102(6)
(manufactured and mobile homes); Idaho Code Ann. § 39-4105(8) (manufactured
homes only); Mont. Code Ann. § 15-1-101(l) (manufactured homes only); N.H. Rev.
Stat. Ann. § 674:31 (manufactured and mobile homes); N.D. Cent. Code § 39-05-01
(manufactured homes only); Or. Rev. Stat. § 446.561 (manufactured and mobile
homes); Tex. Occ. Code Ann. § 1201.003(18) (manufactured and mobile homes).
·
This act’s definition expressly excludes
manufactured homes used only for nonresidential purposes.
·
Based on the federal definition, Article 9
provides that a “manufactured home” must include at least 320 square feet
unless the manufacturer files a certification that the home was built in accordance
with the HUD construction standards, in which case the home can be less than
320 square feet. Because the U.C.C.
definition permits homes of less than 320 square feet to be categorized as a
“manufactured home” and because the certification process is unavailable for
homes built before the standards’ effective date, the drafting committee
elected to eliminate the minimum square footage requirement.
Paragraph
(7) is the standard Uniform Law Commission definition of “person”.
Paragraph
(8) is the standard Uniform Law Commission definition of “record”.
Paragraph
(10) is the standard Uniform Law Commission definition of “state”.
Paragraph
(13) is the standard Uniform Law Commission definition of “sign”.
SECTION 3. RETAIL SALE OF NEW
MANUFACTURED HOME.
(a) After [day before act’s
effective date], a manufactured home retailer that sells a new manufactured
home shall deliver a deed in recordable form to the transferee if the home is
or will be installed on land in this state. The retailer may not deliver the deed until
the home has been placed on that land. The
deed must include the following:
(1) the legal
description of the manufactured home;
(2) a legally sufficient
description of the land on which the home is or will be installed;
(3) if the home
transferee does not own the land on which the home is or will be installed, the
landowner’s name;
Alternative A
(4) the home
manufacturer’s address;
(5) the retailer’s warranties
that its title to the home is good and its transfer rightful and that the home
is free from any security interest or other lien or encumbrance that is not
listed as an exception on the deed; and
(6) as an attachment to
the deed, the manufacturer’s certificate or statement of origin.
Alternative B
(4) the home
manufacturer’s address; and
(5) the retailer’s
warranties that its title to the home is good and its transfer rightful and
that the home is free from any security interest or other lien or encumbrance
that is not listed as an exception on the deed.
(b) When the deed is filed for
recording or the home has been installed, whichever occurs first, the home will
be real property for all purposes from the date the deed was delivered, even if
the deed does not satisfy the requirements of this section.
Comment
This
section is designed to ensure that the purchaser of a new manufactured home
acquires it as real property, so that mortgage financing is more readily
available. Subsection (a) provides that
the retailer shall not transfer title until the home is placed on land, and
subsection (b) provides that the home will be real property from the time of
title transfer.
Because
the home will be real property when transferred, subsection (a) requires the
retailer to transfer title by a deed in recordable form and specifies the
additional information that must be included in the deed because it is
conveying title to a manufactured home, rather than to a site-built home. Subsection (a)(5) is based on U.C.C. §
2-312(1). Alternatives A and B are
included because some states do not require a manufacturer’s certificate or
statement of origin.
Subsection
(b) specifies three methods by which a manufactured home changes from personal
property to real property. The first
method, filing the deed for recording, has the advantages of bringing the home’s
title into the real property recording system and of being readily
verifiable. However, an owner may fail
to file for a variety of reasons, including in an attempt to avoid the
obligation to pay real property taxes.
Therefore, based on the definition of “installed”, subsection (b)
provides two other methods by which the home will be converted to real property—supplying
electricity to the home or occupying it as a residence at one location for at
least thirty days. When one of these
events occurs, the home is extremely unlikely to be moved, and both events
normally are readily ascertainable.
Subsection
(b) also provides that, when the home changes to real property, that property
classification relates back to the time that the home purchaser acquired title. In this way, the home purchaser can qualify
for mortgage financing. Compare Colo. Rev. Stat. § 38-29-114(2)
(new manufactured home becomes real property when certificate of permanent
location recorded in land records); Idaho Code Ann. § 63-304 & Idaho Admin.
Code r. 35.01.03.304 (new manufactured home becomes real property when
purchaser records “statement of intent to declare the manufactured home as real
property” with the county recorder and provides tax assessor with copy of
recorded statement of intent); Mont. Code Ann. § 15-1-116 (new manufactured
home becomes real property when “Statement of Intent to Declare a Manufactured
Home an Improvement to Real Property” is recorded in land records); N.D. Cent.
Code §§ 39-05-35(1)(c) & 47-10-27(6) (new manufactured home becomes real
property when affidavit of affixation recorded in land records and copy of
recorded affidavit of affixation and application for surrender of title filed
with Department of Transportation); Or. Rev. Stat. § 446.626 (new manufactured
home becomes real property when “Application and Certification Exempting a
Manufactured Structure from Ownership Document” filed with county assessor and
county assessor records application in deed records); Tex. Occ. Code Ann. §
1201.2055 (new manufactured home becomes real property when (1) “Statement of
Ownership and Location” (SOL) filed with Department of Housing & Community
Affairs (“Department”), (2) Department mails certified copy of SOL to owner and
each lienholder, (3) owner files certified copy of SOL in land records and
notifies Department and tax assessor-collector that copy has been filed, and
(4) Department and tax assessor-collector note in their records that real
property election has been made).
Though
the manufactured home will be real property when the retailer transfers title,
Article 2 of the Uniform Commercial Code governs the sale, because it
constitutes the sale of a “good”. U.C.C.
§ 2-105(1) (“ ‘Goods’ means all things (including specially manufactured goods)
which are movable at the time of identification to the contract for sale . . .
.”); Joswick v. Chesapeake Mobile Homes,
Inc., 765 A.2d 90 (Md. 2001); Reece
v. Homette Corp., 429 S.E.2d 768 (N.C. Ct. App. 1993); Osburn v. Bendix Home Systems, Inc., 613 P.2d 445 (Okla. 1980); Duffee v. Judson, 380 A.2d 843 (Pa.
Super. Ct. 1977); Long v. Quality Mobile
Home Brokers, Inc., 248 S.E.2d 311 (S.C. 1978); Paskell v. Nobility Homes, Inc., 871 S.W.2d 481 (Tenn. 1994); Apeco Corp. v. Bishop Mobile Homes, Inc.,
506 S.W.2d 711 (Tex. App. 1974). This
act does not preempt Article 2, including its warranties. Section 9 of this act addresses warranties
that are not included in Article 2.
Subsection
(b) further provides that, when a home is classified as real property, it is
real property for all purposes. Accord Colo. Rev. Stat. §§
38-29-112(1.5), 38-29-114(2); Mont. Code § 15-1-116(5); Or. Rev. Stat. §
446.626(2) & (5). This provision
eliminates the ambiguity that currently exists in some state statutes
concerning the purposes for which the home is to be treated as real
property. When a statutory provision
that a manufactured home can be classified as real property does not include
this type of language, courts have questioned whether the home is classified as
real property only for certain purposes, such as financing or taxation, or for
all purposes.
Pursuant
to Section 3, the home will become real property though the home owner does not
own the land on which the home is installed.
Many state statutes permit a manufactured home on leased land to be real
property. E.g., Cal. Health &
Safety Code § 18551(a)(1)(A); Colo. Rev. Stat. § 38-29-202(1)(d); Conn.
Gen. Stat. § 21-67a; Fla. Stat. §
319.261; Idaho Code § 63-304(1)(b); N.H. Rev. Stat. § 477:44, subp. I;
Or. Rev. Stat. § 446.626(1); S.C. Code §
56-19-510; Tex. Occ. Code § 1201.2055.
However, other states do not permit a home to be real property if it is on
leased land. E.g., Ala. Code § 32-8-30; Ariz.
Rev. Stat. § 42-15201(2); Ga.
Code § 8-2-181(b)(1); Mich. Comp. Laws § 125.2330i; Miss. Code §
27-53-15; Vt. Stat. tit.
9, § 2603(b). This restriction
automatically prevents about one-quarter of manufactured homes from being
converted to real property.
Some
states that permit a manufactured home on leased land to be classified as real
property require the landowner’s consent to the real property classification. E.g., Ariz. Rev. Stat. § 33-1501; Or. Rev. Stat. § 446.626. This requirement is unnecessary because, as
provided in Section 7(a) of this act, title to the home and to the land remain
distinct, and because, as provided in Section 7(b), the home and the land are
valued and taxed separately.
Another
restriction in some states is that the land lease must have a minimum specified
term. E.g., Cal. Health & Safety Code § 18551(a)(1)(A) (thirty-five
years); Colo. Rev. Stat. §
38-29-202(1)(d) (ten years); Fla. Stat.
§ 319.261 (thirty years); Or.
Rev. Stat. § 446.626(1) (twenty years); S.C. Code § 56-19-510 (thirty-five years). This restriction addresses
the concern that the owner will have to move the home in the relatively short
term because, for example, the lease term has expired and the tenant cannot
afford a rent increase. However, even if
the lease is for a long term, it can provide for periodic rent increases and
for early termination, such as upon the tenant’s default. Moreover, when a lease terminates, the home
usually is left in place and is sold to a new owner, because the cost of moving
and the potential for damage are so great.
Although the length of the lease term is a loan underwriting
consideration, it is an unnecessary restriction on the ability to classify a
manufactured home as real property, as evidenced by the jurisdictions that do
not require a minimum term. Conn. Gen.
Stat. § 21-67a; Mont. Code § 15-1-116(1); N.H. Rev. Stat. § 477:44, subp. I; 10 Tex. Admin. Code § 80.2 (no minimum
term required if each lienholder has approved the real property classification;
otherwise, lease term must be at least five years).
SECTION 4. MANUFACTURED HOME ACQUIRED BEFORE [ACT’S
EFFECTIVE DATE].
(a) If a manufactured home owner,
other than a manufactured home retailer, acquired the home before [act’s
effective date] and the home is installed on land in this state, the owner may
file a certificate of location for recording in the land records of the
jurisdiction in which the home is installed.
The certificate must include the following:
(1) the date of the
certificate;
(2) the owner’s name;
(3) the name of the person
from whom the owner acquired the home;
(4) the date that the
owner acquired the home;
(5) the legal
description of the manufactured home;
(6) a legally sufficient
description of the land on which the home is installed;
Alternative A
(7) if the owner does
not own the land on which the home is installed, the landowner’s name;
(8) the home owner’s
signature; and
(9) as an attachment to
the certificate, the manufacturer’s certificate or statement of origin or the
certificate of title that establishes the owner’s ownership of the home.
Alternative B
(7) if the owner does
not own the land on which the home is installed, the landowner’s name; and
(8) the home owner’s
signature.
(b) When the certificate is filed
for recording, the home will be real property for all purposes.
(c) If the owner of a manufactured
home acquired it before [act’s effective date] and if the home is installed on
land in this state when the owner transfers title to the home, the owner shall deliver
a deed in recordable form to the transferee.
The deed must include the following:
(1) the legal
description of the manufactured home;
Alternative A
(2) a legally sufficient
description of the land on which the home is installed;
(3) if the home
transferee does not own the land on which the home is installed, the
landowner’s name; and
(4) if the transferor
has not previously filed a certificate of location for recording, the
manufacturer’s certificate or statement of origin or the certificate of title
that establishes the transferor’s ownership of the home, as an attachment to
the deed.
Alternative B
(2) a legally sufficient
description of the land on which the home is installed; and
(3) if the home
transferee does not own the land on which the home is installed, the
landowner’s name.
(d) If the home is not real property
immediately before the deed is delivered to the transferee, it becomes real
property for all purposes at the time of delivery.
Comment
Subsections
(a) and (b) make the act voluntarily retroactive. If the owner of a pre-act home wants to convert
it to real property, these paragraphs provide the means to do so. Accord
Or. Rev. Stat. § 446.626(1); Tex. Occ. Code
§ 1201.214. Compare Colo. Rev. Stat.
§§ 38-29-112(1.5), 38-29-118 (home owner must
file certificate of permanent location to reclassify home as real property
when home is permanently affixed to land even if owner purchased before law’s
effective date; recognizing that an owner may not comply with this requirement,
a subsequent purchaser of the home must file certificate of permanent location).
By
requiring the owner of a pre-act, installed home to transfer title by
recordable deed, virtually all homes eventually will be classified as real
property. By bringing all manufactured
home titles into the existing real property recording system, states can save
money by eliminating the manufactured home title system that the Department of
Motor Vehicles or other agency currently administers.
Alternatives
A and B are included in subsections (a) and (c) because some states do not
require a manufacturer’s certificate or statement of origin or a certificate of
title.
SECTION 5. MOVING A
MANUFACTURED HOME.
(a) Before a manufactured home is
moved from a location for which a deed or certificate of location has been
filed for recording, the owner shall file a certificate of severance for
recording in the same land records. The
certificate must include the following:
(1) the home owner’s
name;
(2) the legal
description of the manufactured home;
(3) a legally sufficient
description of the land from which the home will be moved;
(4) a statement that the
home is going to be moved;
(5) the approximate date
that the home will be moved;
(6) the recording
information for the current deed or certificate of location; and
(7) the owner’s
signature.
(b) If a manufactured home for which
a deed or certificate of location has been filed for recording is on land that
the home owner does not own, the landowner cannot remove the home until the
landowner files a certificate of severance, together with a certified copy of
any required judgment or order authorizing the landowner to sever the home, for
recording in the same land records. The
landowner, rather than the home owner, shall sign the certificate of severance.
(c) The recorder shall record and
index the certificate of severance, together with the certified copy of any
required judgment or order, and shall deliver the recorded certificate to the
person that owned the home when the certificate was filed. When the certificate of severance is filed,
the recorder shall deliver a copy of it to the tax assessor for the
jurisdiction from which the home is moved.
(d) If the home owner is the same
before and after the home is moved, the owner shall file a certificate of location
for recording in the land records of the jurisdiction to which the home has
been moved within ten days after the home is moved. The certificate required by this subsection must include the following:
(1) the date of the
certificate;
(2) the owner’s name;
(3) the legal
description of the manufactured home;
(4) a legally sufficient
description of the land to which the home has been moved;
(5) if the owner does
not own the land to which the home has been moved, the landowner’s name;
(6) if a deed or
certificate of location for the home previously has been filed for recording in
this state, the recording information for that deed or certificate;
Alternative A
(7) if a deed or
certificate of location for the home has not previously been filed for
recording in this state, the name of the person from whom and the date on which
the owner acquired the home;
(8) the home owner’s
signature; and
(9) if a deed or
certificate of location for the home has not previously been filed for
recording in this state, the manufacturer’s certificate or statement of origin
or the certificate of title that establishes the owner’s ownership of the home,
as an attachment to the certificate.
Alternative B
(7) if a deed or
certificate of location for the home has not previously been filed for
recording in this state, the name of the person from whom and the date on which
the owner acquired the home; and
(8) the home owner’s
signature.
When the
certificate is filed for recording or the home has been installed at the new location,
the home will be real property for all purposes from the date it was moved to
the new location.
(e) If the home owner after the move
is different than the owner before the move, the transferor shall deliver a
deed in recordable form to the transferee.
Unless the title transfer is governed by Section 3 of this [act], the
deed must include the following:
(1)
the legal description of the manufactured home;
(2) a legally sufficient
description of the land to which the home has been or will be moved;
Alternative A
(3) if the home
transferee does not own the land to which the home has been or will be moved,
the landowner’s name;
(4) if a deed or
certificate of location for the home previously has been filed for recording in
this state, the recording information for that deed or certificate; and
(5) if a deed or
certificate of location for the home has not previously been filed for
recording in this state, the manufacturer’s certificate or statement of origin
or the certificate of title that establishes the transferor’s ownership of the
home, as an attachment to the deed.
Alternative B
(3) if the home
transferee does not own the land to which the home has been or will be moved,
the landowner’s name; and
(4) if a deed or
certificate of location for the home previously has been filed for recording in
this state, the recording information for that deed or certificate.
When the deed
is filed for recording or the home has been installed at the new location, the
home will be real property for all purposes from the date the home was moved to
the new location.
(f) Subject to Section 6(b) of this
[act], relocation of a home does not impair a security interest or other lien
or encumbrance on the home.
Comment
Section
5 incorporates the requirements of a number of state statutes but simplifies
the requirements and fills in gaps in many of the existing statutes. Alternatives A and B are included in
subsections (d) and (e) because some states do not require a manufacturer’s
certificate or statement of origin or a certificate of title. The following descriptions of some
representative state statutes will provide an overview of the different methods
for addressing the issue of home relocation.
Colorado requires
the home owner to file a certificate of removal with the county clerk and
recorder for the county where the home is located. Colo. Rev. Stat. § 38-29-203(1)(a) &
(b). Within twenty days after the
location change, the owner must file a notice of the change with the county
assessor and the county treasurer for the counties from which and to which the
home has been moved. § 38-29-143. A landlord that is evicting a tenant can
record a certificate of removal. §
38-29-203(2.5)(b). If a lienholder fails
to consent to relocation, the home owner can file a bond in an amount equal to
150% of the secured amount. Colo. Rev.
Stat. § 38-29-203(4). When the home is permanently affixed at the
new location, the owner must file a certificate of permanent location. § 38-29-118.
Connecticut requires
a manufactured home owner to file a statutorily-specified “Mobile Manufactured
Home Removal Statement” for recording in the land records of the jurisdiction
where the home currently is located at least 72 hours before moving the home. The form describes the home’s current
location and the location to which it is being moved. It also requires the written consent of each
security interest holder “subject to the condition that the . . . security
interest/mortgage/lien/attachment shall remain in full force and effect.” Conn. Gen. Stat. § 21-67a(f).
In
Idaho, at least thirty days before a
manufactured home relocation, the owner must give the county assessor for the
county where the home is located (1) A “Reversal of Declaration of Manufactured
Home as Real Property”, (2) a copy of a title report from a title insurance
company that identifies all owners of an interest in the land to which the home
is affixed and the written consent of each owner, other than the owner of a
right-of-way, easement, or subsurface right, and (3) an application for a title
to the home. The reversal declaration
must be recorded and a certificate of title must be issued before the owner
moves the home. Idaho Code § 63-305;
Idaho Admin. Code r. 35.01.03.304.02 & .04.
Montana requires
the owner to file a statement of reversal of declaration with the county clerk
and recorder of the county in which the home is located. All lienholders must consent to the reversal. The clerk and recorder must forward a copy of
the statement to the Department of Justice (“Department”; entity responsible
for titling manufactured homes). The
Department must give the owner a restored certificate of origin or certificate
of title. After receiving the fee for a
new certificate of title, the county treasurer must forward the statement of
reversal of declaration to the Department.
The Department then must give the owner a statement in recordable form
that the process of converting the home has been completed. The owner then must record the
statement. Mont. Code § 15-1-118.
New Hampshire
requires an owner that is relocating a home within the state to record a deed
evidencing the change of location in the land records of the counties from
which and to which the home is moved. If
the home is moved outside the state, the owner must record a
statutorily-prescribed relocation statement in the land records of the county
from which the home is moved. The home
cannot be moved out of state unless all lienors give written consent on the
transfer statement. If the home is on
leased land, the landowner’s written consent also is required whether the owner
is relocating the home inside or outside the state, because the landowner has a
right to a lien for any unpaid rent. The
consent requirement alerts the landowner to file a lien before the home is
moved to another jurisdiction. N.H. Rev.
Stat. § 477:44, subp. II.
In
Oregon, a manufactured home that is
classified as real property cannot be moved unless the Department of Consumer
and Business Services, the agency that titles manufactured homes, approves the
move and the county assessor issues a “trip permit”. The department cannot approve an application
to move a home to another county unless all taxes and special assessments have
been paid. If the department approves
the move, it must issue an ownership document and must deliver it to the holder
of the most senior security interest in the home or, if none, to the
owner. The department also must send a
copy of the ownership document to any other security interest holder and to the
county assessor for the county to which the home is to be moved. Or. Rev. Stat. § 446.631.
Texas requires the
owner that relocates to apply for a new Statement of Ownership and Location
(“SOL”) within sixty days after the relocation, Tex. Occ. Code § 1201.206(f),
though the change location form states that it must be recorded within thirty
days after relocation. The owner must
submit a copy of the Texas DOT moving permit with the SOL application. 10 Tex. Admin. Code SOL Application Instructions
4.
*
* * * * * * * * * * * * * *
When
a manufactured home is severed from the land, it becomes personal
property. However, consistent with
several cases concerning site-built homes, subsection (f) provides that moving
a home does not impair a security interest or other lien or encumbrance on the
home. Courts that have held that a
relocated home remains encumbered by a pre-existing mortgage or deed of trust
also have held that, upon default, the security interest holder first must
foreclose on the land from which the home was moved. If that sale does not generate enough
proceeds to repay the secured loan, the lender then can foreclose on the
home. These courts also have held that
the lien on the home is senior to a mortgage or deed of trust on the land to
which the home was moved. Johnson v. Bratton, 70 N.W. 1021 (Mich.
1897); Partridge v. Hemenway, 50 N.W.
1084 (Mich. 1891); Hamlin v. Parsons,
12 Minn. 108 (1866); Mills v. Pope, 4
P.2d 485 (1931); Betz v. Verner, 19
A. 206 (N.J. 1890); Turner v. Mebane,
14 S.E. 974 (N.C. 1892); Dakota Loan
& Trust Co. v. Parmalee, 58 N.W. 811 (S.D. 1894). See Restatement (Third) of
Property (Mortgages) § 4.6, Reporters’ Note cmt. b. However, in a few other cases, courts have
held that the secured lender loses its security interest in the home when it is
moved but has an action for waste or for impairment of security. Bockout
v. Swift, 27 Cal. 433 (1865); Walch
v. Beck, 296 N.W. 780 (Iowa 1941); Clark
v. Reyburn, 1 Kan. 281 (1863); Harris
v. Bannon, 78 Ky. 568 (1880).
SECTION 6. MANUFACTURED HOME
FROM ANOTHER STATE.
(a) Within ten days after moving a
manufactured home from another state to land in this state, the home owner
shall file a certificate of location for recording in the land records of the jurisdiction
to which the home has been moved. The
certificate must include the following:
(1) the date of the
certificate;
(2) the owner’s name;
(3) the name of the
person from whom the owner acquired the home;
(4) the date that the
owner acquired the home;
(5) the legal
description of the manufactured home;
(6) a legally sufficient
description of the land to which the home has been moved;
Alternative A
(7) if the owner does
not own the land to which the home has been moved, the landowner’s name;
(8) the home owner’s
signature; and
(9) as an attachment to
the certificate, the manufacturer’s certificate or statement of origin or the
certificate of title that establishes the owner’s ownership of the home.
Alternative B
(7) if the owner does
not own the land to which the home has been moved, the landowner’s name; and
(8) the home owner’s
signature.
When the
certificate is filed for recording or the home has been installed, the home
will be real property for all purposes from the date the home was moved to land
in this state.
(b) After a manufactured home owner
brings the home into this state from another state and files a certificate of location
as provided in subsection (a), subsequent purchasers for value of an interest
in the home, including a security interest, acquire the interest free and clear
of any lien or other encumbrance that is not recorded in the land records of
the jurisdiction in this state to which the home has been moved, unless the
subsequent purchaser knows of the lien or other encumbrance at the time of
purchase. A lien or encumbrance is
recorded in the land records if the document that created it is recorded, if the
recorded certificate of location describes it, or if it is described on the
manufacturer’s certificate or statement of origin or the certificate of title
that is recorded with the certificate of location.
Comment
Subsection
(a) is based on Colo. Rev. Stat. § 38-29-117(6), though Colorado does not have
a filing deadline. Alternatives A and B
are included in subsection (a) because some states do not require a
manufacturer’s certificate or statement of origin or a certificate of title.
Subsection
(b) is based on Colo. Rev. Stat. § 38-29-127.
SECTION 7. EFFECTS OF CONVERSION TO REAL PROPERTY.
(a) If the manufactured home is on
land that the home owner does not own, the landowner acquires no interest in
the home, and the home is not subject to the tenancies, liens, and other
encumbrances on the land.
(b) If the manufactured home is on
land that the home owner does not own, the home and land must be valued and
taxed separately.
(c) If the manufactured home is on
land that some or all of the home owners own, those owners’ interests in the
home are subject to the same tenancies, liens, and other encumbrances as the land
title.
(d) Subject to Section 6(b) of this
[act], a security interest that is perfected in a manufactured home before it
becomes real property has priority over a conflicting interest of an
encumbrancer or owner of the land and over a conflicting interest of an
encumbrancer of the home after it becomes real property.
(e) The manufactured home is not a
fixture.
(f) Subject to Section 6(b) of this
[act], transactions, certificates of title, records, and information that were
validly entered into or created before the effective date of this [act], and
would be subject to this [act] if they had been entered into or created on or
after the effective date of this [act], and the rights, duties, and interests
flowing from these transactions, certificates of title, records, and
information, remain valid after the effective date of this [act].
Comment
Subsection
(b) is based on Colo. Rev. Stat. § 38-29-112(1.5).
Subsection
(d) is based on U.C.C. § 9-334(e)(4).
Subsection
(e) is intended to create parity between site-built homes and manufactured
homes. Because a manufactured home is
personal property before it is installed on land, a court may treat the home as
a fixture, which is a type of real property.
As a fixture, different financing and creditor remedies are available
than for a site-built home. Therefore,
this subsection provides that the home is not a fixture.
Subsection
(f) is from Uniform Law Commission Drafting Rule 603.
SECTION 8. RECORDING DEED OR
CERTIFICATE OF LOCATION. When a manufactured home deed or certificate
of location is filed, the recorder shall record and index it. If a manufacturer’s certificate or statement
of origin or certificate of title is filed with the deed or certificate of
location, the recorder shall record and index them as one document and then
shall destroy the manufacturer’s certificate or statement of origin or the
certificate of title. The recorder shall
deliver the recorded deed or certificate of location to the home owner and a
copy of the recorded deed or certificate of location to the tax assessor. If a manufacturer’s certificate or statement
of origin or certificate of title is filed with the deed or certificate of
location, the recorder also shall deliver a copy to the [government agency that
maintains manufactured home title records].
Comment
In
many states that permit a manufactured home to be classified as real property,
the necessary documents must be filed initially with the agency that maintains
the manufactured home title records or with the tax assessor. This type of process is cumbersome and can
prevent the home’s title from appearing in the land records until several weeks
after the filing. For example, in Texas,
a manufactured home retailer that sells a home has 60 days after the sale to
file an application for a Statement of Ownership and Location (“SOL”) and the
original manufacturer’s certificate or statement of origin with the
Manufactured Housing Division of the Texas Department of Housing &
Community Affairs (“Department”). The
Department then has 15 days to issue the SOL and send it to the home owner. After receiving the SOL, the owner has 60
days to file a certified copy of the SOL in the real property records of the
county where the home is located and to notify the Department and the tax
assessor-collector that the copy has been filed for record. Tex. Occ. Code §§ 1201.206, 1201.207,
1201.2055(d). The Oregon procedure is
similarly complicated and slow. Or. Rev.
Stat. § 446.626(2) (application to classify manufactured home as real property
and any ownership document filed with county assessor; application then
recorded in deed records; assessor then sends ownership document to agency that
titles manufactured homes; agency cancels ownership document and sends cancellation
confirmation to assessor and to owner). See also Or. Admin. R. 918-550-0160 (tax
assessor).
In
contrast, this section requires the deed or certificate of location to be filed
first with the recorder. Accord Colo. Rev. Stat. § 38-29-114(2); Mont. Code §
15-1-116(1); N.H. Rev. Stat. §477:44, subp. III. When the home buyer finances the purchase,
the lender or title insurer normally will file the deed or certificate for
recording. When the buyer does not
finance the purchase, the manufactured home retailer, like a car dealer, can
offer to file the deed for recording, or the purchaser can file it. In this way, the home immediately is brought
into the real property title system.
Moreover, by requiring the recorder, rather than the home owner, to
notify the tax assessor and the government agency that maintains the
manufactured home title records, the notice is more likely to be given. The home owner may be unaware of the
requirement to deliver notice or may attempt to avoid paying real property
taxes by failing to deliver it.
The
possibility that a manufactured home seller will fraudulently transfer title to
the home more than once is another significant practical concern. This wrongful practice is facilitated if the
transferor retains the original ownership document. Therefore, this section requires delivery of
the original ownership document to the recorder when the deed or certificate of
location is filed. It also requires the
recorder to destroy the ownership document to prevent its future use. This section is based on Colo. Rev. Stat. §§ 38-29-202(1)(c), 38-29-207.
SECTION 9. HOME WARRANTIES.
Manufactured home warranties apply to a home whether it is real property
or personal property.
Comment
This section is designed to retain warranties for a
manufactured home that is classified as personal property when it is converted
to real property. It is based on Tex.
Occ. Code §1201.2055(h).
SECTION 10. REAL ESTATE LICENSE
UNNECESSARY. Nothing in this [act] requires a manufactured
home retailer to be licensed as a real estate agent.
Comment
This section is based on Tex. Occ.
Code § 1201.222.
SECTION 11. ENFORCEMENT.
A manufactured home transferee, lender, or any other person subject to
this [act] may bring an action to enforce a right granted or obligation imposed
by this [act]. [Punitive damages may be
awarded for a willful failure to comply with this [act].] The court may award reasonable attorney’s
fees and costs.
Comment
This section is based on Uniform
Common Interest Ownership Act § 4-117 (2008).
SECTION 12. UNIFORMITY OF
APPLICATION AND CONSTRUCTION. In applying and construing
this uniform act, consideration must be given to the need to promote uniformity
of the law with respect to its subject matter among states that enact it.
Comment
Uniform
Law Commission Drafting Rule 601 (2006) requires inclusion of this provision to
foster uniformity after the act’s enactment.
SECTION 13. RELATION TO
ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT.
This [act] modifies, limits, and supersedes the federal Electronic
Signatures in Global and National Commerce Act, 15 U.S.C. section 7001, et
seq., but does not modify, limit, or supersede Section 101(c) of that act, 15
U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices
described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).
Comment
Uniform
Law Commission Drafting Rule 602 (2006) requires inclusion of this provision to
comply with Section 102(a)(2)(B) of the Electronic Signatures in Global and
National Commerce Act, 15 U.S.C. Section 7002(a)(2)(B). Section 102(a)(2)(B) provides that a state
statute can modify, limit, or supersede the Electronic Signatures in Global and
National Commerce Act by specifically referring to it.
SECTION 14. REPEALS.
The following are repealed:
Legislative Note: This
section is for states wishing to replace their existing statutes concerning:
(1) classification of manufactured homes as real property or as personal
property, (2) titling of manufactured homes, (3) creation and perfection of
security interests in manufactured homes and creditor remedies, and (4)
manufactured home taxation.
SECTION 15. EFFECTIVE DATE.
This [act] takes effect on ____________.
