Mobile Home Titles for the Real Property Lawyer. This, not that

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1 Mobile Home Titles for the Real Property Lawyer Chicago Title CPE Seminar October 2017 This, not that Mobile Home NOT Mobile Home 1

2 This, not that Mobile Home GS (7): >8 in width or >40 in length Or, >320 sq ft Permanent chassis Designed for use as a dwelling With or without permanent foundation Construction governed by National Manufactured Housing Construction and Safety Standards Act and North Carolina Manufactured Housing Board (NCGS Art 9B, Chapter 143) NOT Mobile Home GS House Trailer. Any trailer or semitrailer designed and equipped to provide living or sleeping facilities and drawn by amotorvehicle. Recreational Vehicle. A vehicular type unit primarily designed as temporary living quarters for recreational, camping, or travel use that either has its own motive power or is mounted on, or towed by, another vehicle. The basic entities are camping trailer, fifth wheel travel trailer, motor home, travel trailer, and truck camper. a. Motor home. G.S (27)d2. b. Travel trailer. A vehicular unit mounted on wheels, designed to provide temporary living quarters for recreational, camping, or travel use c. Fifth wheel trailer. A vehicular unit mounted on wheels designed to provide temporary living quarters for recreational, camping, or travel use d. Camping trailer. A vehicular portable unit mounted on wheels and constructed with collapsible partial side walls that fold for towing by another vehicle and unfold at the campsite to provide temporary living quarters for recreational, camping, or travel use. e. Truck camper. A portable unit that is constructed to provide temporary living quarters for recreational, camping, or travel use, consisting of a roof, floor, and sides and is designed to be loaded onto and unloaded from the bed of a pickup truck. This, not that NOT a modular home either. No VIN # No Manufacturers Certificate of Origin (MCO) Components do not have Tongue, Wheels, Axle Restrictive Covenants issue See Briggs v Rankin, 127 NC App 477, aff d 348 NC 686 (1998) Contrast double or triple wide mobile homes 2

3 Wait a Minute you mean there s a mobile home on the Property? Wait a Minute there s a Mobile home on the Property? How can you tell? Tax card showing home as personal property or no home/improvement Prior recorded Dec of Intent or MVR46G Lender asks for ALTA 7 (hopefully before closing) GIS / Google Maps / Street View Appraisal Survey (perhaps) Someone is kind enough to tell you. 3

4 So there is a Mobile Home on the Property now what? EVERY TIME, EVERY TIME, EVERY TIME!! IF there is a mobile home on the property Obtain the serial number (s) Contact DMV to determine the status of title: Never issued Issued and still titled Issued and retired Retired and renewed USE Varied Search Terms kind of like you would searching the AOC for judgments DMV will only search by the information given 4

5 EVERY TIME, EVERY TIME, EVERY TIME!! Converting Mobile Homes to Real Property 5

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8 Title is in FORMER owner!?!? Facts: Mobile home situate on the property has a DMV title in the name of a former owner of the real property. Long departed or deceased what then? Old days DMV devised procedure involving the purchase of a indemnity bond to protect the interests of the former owner and allow title to the MH to be converted to real property of the current owner. Title is in FORMER owner!?!? 2013 NC General Assembly passed GS Procedure if Certificate of Title is in name other than Real Property owner Statute allows the current owner of the real property upon which a mobile home is affixed, to file an affidavit with NCDMV and to have the title of the mobile home vested in the their name. The MVR 46G form has been amended to allow its use for this purpose. DOES NOT address liens on the old title! 8

9 Title is in FORMER owner!?!? Affidavit must include: (1) The make and model. (2) The VIN and Serial Number of the home (3) The legal description of the real property on which the manufactured home is affixed (4) A description of any security interests in the manufactured home affixed to real property upon which cancellation is sought. (5) A section for the Division's notation or statement that either the affiant submits this affidavit pursuant to subsection (a1) of this section to have the title deemed surrendered by the owner listed on the certificate of title. (6) An affirmative statement that the affiant is (i) the record owner of the real property on which the manufactured home is affixed and the lease for the manufactured home does not include a provision allowing the owner listed on the certificate of title to dispose of the manufactured home prior to the end of the primary term of the lease or (ii) is the owner of the manufactured home and either owns the real property on which the manufactured home is affixed or has entered into a lease with a primary term of at least 20 years for the real property on which the manufactured home is affixed. (7) The affiant affirms that he or she has sent notice of this cancellation by hand delivery or by first class mail to the last known address of the owner listed on the certificate of title 9

10 Mobile Homes Removal of Stale Liens Mobile Homes Removal of Stale Liens Session Law

11 Removal of Stale Liens Automatic Expiration Highlights of S.L Automatic expiration of security interest in manufactured home; renewal of security interests in manufactured homes (G.S A) Release of security interest on affidavit (G.S ) satisfied or a sworn affidavit by the owner that the debt has been satisfied and that either: (i) owner has been unable to determine the identity or the current location of the secured creditor or its successor or (ii) the secured creditor has not responded within 30 days to a written request from the owner to release Removal of Stale Liens Automatic Expiration Requires Stated Maturity date for all liens on mobile home titles after July 1, If NO STATED MATURITY, a lien perfected by notation on a certificate of title will AUTOMATICALLY EXPIRE 30 years after issuance of the certificate of title containing the notation of security interest**. **Unless renewed 11

12 Removal of Stale Liens Automatic Expiration For liens perfected after July 1, 2017 Unless renewed, Lien will AUTOMATICALLY EXPIRE on the earlier of: 90 days AFTER STATED MATURITY DATE; or 15 years days after the date of issuance of the original certificate of title containing the notation of the security interest G.S (c) Removal of Stale Liens Lien Renewal PRIOR to the AUTOMATIC EXPIRATION DATE Secured party may deliver application for renewal to the DMV Upon Renewal, the lien of the security interest shall expire at the earlier of: 10 years after the DATE of RENEWAL; 90 days after the original maturity date (if not extended); OR 90 days after the EXTENDED MATURITY DATE on the RENEWAL G.S (d) & (f) 12

13 Removal of Stale Liens By Affidavit of Owner Owner may exhibit to the division such evidence as may be available showing satisfaction or other discharge of the debt secured Together with a sworn affidavit by the owner that the debt has been satisfied. Not NEW G.S Removal of Stale Liens By Affidavit of Owner NEW and effective July 1, 2017 If the vehicle is a manufactured home, the owner may proceed in accordance with subsection (e) of this section or may, in the alternative, provide the Division with a sworn affidavit by the owner that the debt has been satisfied and that either: (1) After diligent inquiry, the owner has been unable to determine the identity or the current location of the secured creditor or its successor in interest; OR (2) The secured creditor has not responded within 30 days to a written request from the owner to release the secured creditor's security interest. G.S See Form MVR 4 13

14 Removal of Stale Liens By Affidavit of Owner DMV may treat either of these methods employed by the owner as a proper release for purposes of this section when satisfied as to the genuineness, truth and sufficiency thereof. Prior to cancellation, DMV shall give at least 15 days notice to the Secured Party DMV shall NOT cancel a security interest if the secured party responds that its lien continues in effect. DMV absolved from liability for reliance on affidavit. G.S Mobile Homes and Mechanics Liens BEFORE MLA appointment required for improvements in excess of $30,000 Cost of Mobile Home + Cost of Installation Title companies took position that combined cost determined applicability of MLA requirement. NOW (July 1, 2017) Cost of Mobile Home is EXCLUDED when determining whether MLA must be appointed. For LEASEHOLDS ONLY Cost of Install ONLY Cost of Install rarely exceeds $30,000. G.S. 44A 11.1(a1) 14

15 One other item of note MVR 317 (in appendix) This form must be used to transfer DMV title of a deceased owner to the heirs. Note that this form is not generally available and will be supplied upon request from DMV with instruction Must be signed by the Clerk of Court in the county where the estate was administered. 15