Why Mobile Home Real Estate Transactions Are Different
Most real estate closings follow a familiar process, but transactions involving manufactured or mobile homes often require additional steps that can affect both the timeline and the documentation needed to close. This is especially relevant in Florida transactions, since 8 percent of single-family residences in the state are mobile or manufactured homes and, currently, one out of five new home builds are manufactured homes.
(Check out this cool census chart that shows percentages by county in Florida.)
Nationally, there are currently 8.5 million manufactured homes across more than 40,000 communities.
Real estate agents who encounter these transactions need to make the sellers aware of what will be needed by the title company to close the deal.
Understanding a few key differences early can help avoid unexpected delays in the closing process.
Mobile Homes Can Involve More Than Just the Land
Unlike a traditional site-built home, a manufactured or mobile home may involve both real property (the land) and personal property (the mobile home itself). Depending on how the home is titled, transferring ownership may require more than simply recording a deed. In some cases, active Certificate of Titles must also be transferred. Because every property is different, it’s important to determine how the home is currently classified before closing.
Affixed Homes Aren’t Always Handled the Same Way
Many people assume that once a manufactured home is permanently affixed to the land, it automatically transfers with the deed. In reality, that’s not always the case.
If a home has not been declared real property, it is generally taxed separately from the land, much like a vehicle. Because those taxes are billed independently, there may be outstanding taxes that need to be addressed before the transaction can be completed.
A home may be permanently affixed and even classified as real property for tax purposes while still having active Certificate of Titles. Declaring a home as real property changes how it’s taxed, but it does not automatically cancel or retire the mobile home titles.
Only after the titles are separately retired (or canceled) will the home typically transfer with the deed rather than by separate certificates of title. If the titles remain active, they generally must still be transferred as part of the sale.
In short, declaring a mobile home as real property determines how it is taxed, while retiring the Certificate of Titles determines how ownership is transferred. Understanding the difference early in the transaction helps identify the correct documentation and can prevent unnecessary delays at or after closing.
Preparing for Closing
When a manufactured or mobile home is involved, additional documentation may be needed depending on the property’s current status. This can include verifying ownership records, confirming real property status, reviewing title information or obtaining documentation related to the mobile home itself. The exact requirements are going to vary from one transaction to another. Addressing these items before closing helps reduce delays and keeps the transaction moving smoothly.
Why Experience Matters
Manufactured and mobile home transactions often involve requirements that don’t exist in a traditional real estate closing. Title insurance purchased during the sale of land containing an unaffixed mobile or manufactured home is only available for the land, since the structures are considered personal property and do not fall under the purview of title insurance.
Working with a company experienced in mobile home transfers helps ensure the appropriate records are reviewed, required documentation is identified early and potential issues are addressed before they become closing delays.
At Network Transaction Solutions, we assist clients with mobile home title services and work closely with lenders, real estate professionals and settlement agents to help keep transactions moving forward.
We also offer additional resources to help you grow your agency, by taking on those specialized tasks that help you focus on your greatest strengths. Contact us today to learn about how we can assist you with eClosings with RON, municipal lien searches, HOA estoppels, mortgage payoff ordering and tracking, mobile home title services and more.
