Title Conflicts... MH Vs Permanent Housing
Getting ready to do 1st MH to property deal and doing the diligence boogie. A RE agent told my partner that he had some title conflicts that took considerable time to sort out, when he bought a MH at a park and then set it up on a foundation on property. I've heard that MH's not on permanant foundations are titled like vehicles... so is there a title change neccesary when it becomes permanant? Must it become titled w/the property? I'm in CA, but perhaps the issue is similar in other states. Any experience out there for the greenhorn? Thanks. Preston.
TO: PRESTON
Here is the phone number for HCD (Housing & Community Development) 916-255-2532 that handles the registration for mobiles & manufactured homes. DMV has not been responsbile for mobiles in 1980 ... so mobiles are no longer treated "like a vehicle".
Also contact the county tax department for the county where you are planning to move the mobiles home. You may be required to place the mobile home on permanent foundation. Most counties are now requiring permanent foundations. And your lender may require permanent foundation also.
By placing the mobile on permanent foundation then the current registration with HCD is discontinued and the mobile home is then considered taxed as 'REAL PROPERTY" by the county tax department. That is how new manufactured homes are taxed when placed on permanent foundation on land.
What year is the mobile home? That is another issue both from the county and your lender. The important date is June 15, 1976. Most counties in California will not issue building permits and lenders will not loan unless the manufactured date is newer than June 15, 1976.
June 15, 1976 is when an upgrade on building compliance requirements for mobile homes was implemented.
GOOD LUCK
Cheryl Lopez
[ Edited by cheryllopez on Date 03/31/2004 ][ Edited by JohnLocke on Date 05/08/2004 ]
Thanks Cheryl, I'm in Lake County and am trying to stay away from a large loan. So used Mnf home 85 - 95 models are what I'm looking at. I'm planning to set up the Mnf home on property and then flip it. My concern is the time frame required to change over the title from HCD to real property. Have you had to do that?(anyone?) I heard maybe 5 months. I'll check with HCD and my county tax office. Thanks for the # to HCD. Thanks also for a past post that got me some repo info. Preston.
HI PRESTON --
Regarding the title change from HCD to real property.
It would be best for you to talk to the title company that you plan to use on your transaction. They should be able to explain this to you to put you at ease ... if not look for another title company.
Here is my experience with HCD and their processing. It will not take 5 months for the change. The title company will send HCD and the Lake County tax department the documents from your closed escrow. Usually HCD complete the transfer within 4-6 weeks ... then HCD notifies Lake County tax deptartment of the transfer ... then the county will notify you similar to all purchased with a "supplemental bill" on taxes. Because in escrow you were charged taxes based on the land and now you have a manufactured home on it.
Cheryl Lopez