Selling a Mobile Home and Land in the Same Transaction
Two Titles or One? Selling a Mobile Home and Land in the Same Transaction in Oklahoma
Mobile and manufactured homes are frequently sold together with the land on which the homes are placed. This type of transaction is allowed in Oklahoma, but each transaction is unique. Because of the many problems that can arise in this type of purchase and sale, Oklahoma buyers should be extra careful to inspect the status of both a mobile home title and land title before closing this type of purchase.
See our Oklahoma Mobile (Manufactured) Home Guide for a more comprehensive guide to mobile and manufactured home issues in Oklahoma.
Options for a proper mobile home and land closing:
There are two general pathways for these transactions without court involvement:
In the first pathway, the seller must have separate certificate of title documents for the home and the land. If title is separate, the buyer should receive two title instruments at closing; a certificate of title for the home and a deed for the land.
The second proper closing pathway is when the seller (or someone who owned the home and land before seller) has formally surrendered the home’s certificate of title and merged legal title to the home with the land. If this is the case, only one title should be conveyed in the form of a deed, but the home details (think VIN and manufacturer information) should be listed on the deed.
Frequent issues in a mobile home and land closing:
- Seller never obtained a certificate of title to the mobile/manufactured home. If the home is newer, the seller may be able to obtain an initial certificate of title if they still have a copy of the manufacturer’s statement/certificate of origin (MSO or MCO).
- Seller does not have title to the mobile/manufactured home. If the Oklahoma Tax Commission (OTC) has not received a formal surrender of the home’s certificate of title, which is done using OTC forms, the record title owner of the home may be unavailable, deceased, or impossible to find.
- No tax has been paid on the mobile/manufactured home. Mobile homes and manufactured homes in Oklahoma are considered personal property by default, as opposed to real property. When certificate of title issues arise in relation to mobile homes, OTC has frequently not been able to collect taxes on the personal property home. If that is the case, sellers should be sure to confirm that the home has been taxed as an improvement to the real estate by the county tax assessor. If the home has not been taxed by either method, the seller may owe back taxes at closing.
- Is the mobile home collateralized? Mortgage lenders may attempt to obtain additional security for a mortgage loan by listing both the mobile home and the land as collateral in the loan documents. If this is the case, the buyer will usually not be able to remove the home from the land without permission from the lender; this means owners cannot upgrade their homes or change the status of the title of the home without express consent from the bank.
Contact Avenue Legal Group for help determining the status of title or correcting title issues for mobile homes, manufactured homes, or land throughout Oklahoma.
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