Mobile homes and manufactured homes are a popular housing option in Florida. They offer a way for residents and vacationers to take advantage of the State’s mild climate and tropical environment at a lower cost than larger, traditionally built homes. With that said, there are still legal requirements and regulatory hurdles that buyers and sellers must consider when transferring title to a mobile or manufactured home.
Methods of Titling a Mobile Home
How the titling process works will depend on a few different factors. For purchasers who finance their mobile home, the lender or lienholder keeps the title until the total amount is paid off. If you purchased the property with cash and did not need financing, your mobile home title will be issued directly to you by the Division of Motor Vehicles (DMV). The lienholder will be listed on the title until the lien is paid off in full and the lienholder has filed a lien satisfaction.
However, if your mobile home is considered real property and not a vehicle (i.e., title has already been retired), a property deed (such as a Warranty Deed) is the method by which to transfer title. The title retirement process is discussed in greater detail below.
Manufactured homes are built under a federal building code developed by the U.S. Department of Housing and Urban Development (HUD). The HUD code went into effect June 15, 1976. Mobile homes built after that date are called manufactured homes. Manufactured homes may be single- or multi-section and are transported to the vacant land and installed on site.
Transferring and Retiring the Title of a Mobile Home
In Florida, the transfer of ownership for mobile homes must usually be done by transferring the certificate of title. Florida statute says that the person who is acquiring the property will not be able to obtain the mobile home title until a certificate of title is issued.
Retirement is the process that attaches the mobile or manufactured home to the vacant land it sits on, changing the home from personal property to real property. If the title of the home has already been “retired”, then only a property deed transfer is needed. Retiring the title to a mobile home in Florida means transferring the title from a DMV-issued title to a property deed. Retiring title is not an option if the underlying land is rented.
Some benefits of retiring title are that the home is no longer subject to a sales tax upon sale and that future transfers of the home and land are via a property deed. Title insurance can also be obtained to property the owner’s title interest. Furthermore, sellers can take advantage of capital gains tax exclusions that are only available to real property owners.
When the homeowner also owns the land upon which the mobile home is permanently affixed, a “Real Property” decal must be obtained. The Real Property or “RP” decal does not expire and is permanent so long as the mobile home is not moved.
Other Title and Lien Considerations
Ensuring that clear and marketable title is passed to the new buyer from the previous owner is essential. Due diligence is necessary to protect the buyer from any issues later on. Assistance from an experienced Florida real estate attorney is recommended when purchasing a mobile or manufactured home.
A thorough title and municipal lien search will check for matters pertaining to outstanding mortgages, debts, judgments, tax liens, code violations, open and expired permits, and outstanding utilities. Title insurance should also be obtained to ensure that any title disputes or matters that arose in the chain of title prior to closing will not disrupt the new owner’s rights to superior title to the property.
How Farshchian Law Can Help
At Farshchian Law, our Florida real estate attorneys are experienced with all types of mobile and manufactured home purchases and sales, and we can also assist with the process of retiring the title to the mobile home. Schedule a free consultation with us by calling 855-513-5880 or email us via our Secure Contact Form. We provide real estate, deed and title transfer, and closing and settlement services throughout the State of Florida.