When purchasing a manufactured home, many prospective buyers ask, "Does a manufactured home have a title?" The simple answer is yes, a manufactured home does have a title, much like a vehicle. This document is important as it establishes the ownership of the home and provides essential details about the property. Knowing how titles work for manufactured homes is important for anyone looking to buy, sell, or finance such a home.
The Importance of a Title for a Manufactured Home
A title for a manufactured home serves as proof of ownership and contains vital information such as the current and previous owners, manufacturer details, square footage, color, year of manufacture, and a unique Vehicle Identification Number (VIN).
The document is essential because it helps protect your investment by legally identifying you as the owner. Having a title guarantees that you can sell your home, transfer ownership, or secure financing without complications.
Unlike site-built homes, which are considered real property, manufactured homes are initially classified as personal property. The classification means they are subject to different regulations and processes. However, you can have the manufactured home classified as real property under certain circumstances, making the title even more significant.
How a Title is Issued
When a manufactured home is newly built, it comes with a Manufacturer's Certificate of Origin (MCO). The certificate is transformed into a title when the home is sold to a buyer. The dealer typically handles this process, making sure the title accurately reflects the new owner's details.
The title will then be processed by the state's Department of Motor Vehicles (DMV) or a similar agency to ease the process compared to traditional real estate transactions.
If you are financing your manufactured home, the lender's information will also be included on the title until the mortgage is paid in full. Once the loan is settled, the title will be released to you, marking you as the outright owner of the home.
Transferring Ownership of a Manufactured Home
Transferring ownership of a manufactured home involves a formal process similar to transferring a vehicle title. When selling your home, the title must be signed over to the new owner, who will then have it reissued in their name.
This process is crucial to avoid legal complications or potential tax issues. Failing to transfer the title correctly can result in disputes over ownership and financial liabilities, so it's important to handle the task with care.
When purchasing a manufactured home, always make sure the title is free of liens or encumbrances. This precaution protects you from potential legal issues that could arise from past owners' debts or obligations tied to the property.
When a Manufactured Home Becomes Real Property
In some states, if a manufactured home is permanently affixed to land owned by the homeowner, it can be re-titled as real property through an Affidavit of Affixation process. The change can have several benefits, including eligibility for different financing options and potentially lower property taxes.
The process involves surrendering the personal property title and establishing the home as a fixture of the land, akin to a site-built home. It's important to consult with local authorities and financial institutions to understand the implications of this change and guarantee it aligns with your long-term plans for your property.
How to Secure Your Manufactured Home Title
Securing and maintaining a clear title for your manufactured home is essential. Make sure to store your title documents safely and keep copies in case you need them for legal or financial transactions. Regularly check the title's status, especially if you plan to sell or refinance your home.
When considering purchasing a manufactured home, take the time to verify that the title is legitimate and free from any claims. It is vital in safeguarding your investment and ensuring a smooth transaction process.
Your Journey with Cambio Communities
Cambio Communities is committed to providing exceptional living experiences in affordable communities. If you're considering purchasing or leasing a manufactured home, let us assist you in finding the perfect home that suits your needs.
Contact us today and find your home today, where quality and community come together to create the ideal living environment.