The Farah Law Firm

Mobile Home Ownership Transfer

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Navigating the Transfer of Mobile Home Ownership in Texas: Understanding the Statement of Ownership Process

For residents of Dallas-Fort Worth and beyond, the Texas Department of Housing and Community Affairs (TDHCA) plays a crucial role in the transfer and sale of mobile homes. Unlike traditional real estate transactions, mobile homes in Texas are not accompanied by a title. Instead, the TDHCA issues a Statement of Ownership, a document that verifies ownership and any associated liens. A real estate attorney can help you navigate the ins and outs of this process to ensure a smooth experience.

The Evolution of Documentation

Before June 2003, manufactured homes in Texas had a Certificate of Title. However, a significant change occurred after this date when the TDHCA introduced the Statement of Ownership and Location (SOL). Over time, the SOL evolved into the current Statement of Ownership. This document is now the key to confirming ownership, lien status, and other essential details related to mobile homes.

When to Apply for a Statement of Ownership

Homeowners must apply for a Statement of Ownership within 60 days of a sale, relocation, or change in lien information. Failure to do so may result in late fees and delays in issuance. The application process involves a $55 fee, and expedited processing within five business days is available for an additional $55. Applicants should ensure they have all necessary supporting documents, such as bills of sale, contracts, deeds, purchase agreements, or sale receipts.

Assistance from Licensed Retailers

If the mobile home is purchased from a licensed retailer, the seller is responsible for assisting the buyer in completing the required forms. The retailer must also provide the necessary information, supporting documents, and fees to the TDHCA. In cases where the retailer fails to provide support, buyers can file a complaint with the TDHCA using the Consumer Complaint form.

Mobile home as personal property

The classic manner in which a mobile home is classified is as personal property, meaning it is not affixed to the land in such a way that would allow for traditional mortgage financing, resale values, taxation and homestead exemptions.   In the majority of cases, mobile homes are titled as personal property and can easily be bought and sold like a vehicle or any other personal property asset.  Our office assist with personal property mobile home transfers.  Under the Texas Property Code, a manufactured home is by default personal property and is only real property if: (1)  the statement of ownership and location for the home issued under Section 1201.207, Occupations Code, reflects that the owner has elected to treat the home as real property;  and (2)  a certified copy of the statement of ownership and location has been filed in the real property records in the county in which the home is located.

Converting to Real Property

Converting a mobile home to real property requires attaching it to owned or leased land under a qualifying, long-term lease. Approval from lien holders is necessary, and a copy of the title commitment or policy is required. Once approved, the Statement of Ownership is issued, but the conversion is incomplete until a certified copy is recorded with the county of location.   In many cases, an engineering certification may be necessary to make financing eligible through FHA/VA and even conventional mortgage loans.

Changes in Use and Moving

Owners must inform the TDHCA if there are changes in the mobile home’s use or physical location. Changing from business to residential use or moving the home requires reapplication and may involve inspections. A permit from the Department of Motor Vehicles is also necessary for moving a manufactured home, with lien holders’ consent or discharge.

Private sale of mobile home

One other item to keep into account when selling a manufactured home to another party, is the bill of sale that will address any sort of disclaimer of warranty a Buyer may want to obtain from the Seller. This is particularly of concern since once the Texas mobile home is sold to the Buyer, it may still remain on your restricted land or a rented lot at a mobile home park which can lead to potential liability on behalf of the seller.  The parties will be best to put all details of the transaction in writing so as to prevent any dispute.

Correcting Errors

In case of errors on the Statement of Ownership, homeowners can contact the TDHCA through email, mail, phone, or fax. Providing identification numbers of the manufactured home and details about the corrections needed is essential. If the mistake is on the homeowner’s part, a new application and a $55 fee are required. Otherwise, the TDHCA corrects the statement and sends it free of charge.

Understanding the Statement of Ownership process is vital for mobile homeowners in Texas. Whether you are buying, selling, or making changes to your mobile home, adhering to the TDHCA guidelines ensures a seamless and legally compliant experience. For additional assistance or legal advice, contact The Farah Law Firm. Our real estate attorneys are familiar with mobile home transactions in Texas and will help guide you through the process.

What Our Clients Say About Us

“I was referred to The Farah Law Firm by a friend of mine when I was injured in an auto accident. I am so glad that my friend referred me to Michael and his extremely helpful team. They were not only successful in getting my settlement but also helped me find great doctors to aid in my recovery from the accident. I highly recommend The Farah Law Firm.”

    EDDIE G.

    “Michael, I would like to express my thanks to you and your entire team for all your hard work in getting my case to a fair and generous settlement. I could not have asked for better legal representation for the long and nerve-racking process of my case. You are very compassionate, nice, and extremely good at what you do. I respect your dedication representing the victims of a personal injury cases.”

      TINA L.

      “The Farah Law Firm has an extensive knowledge of business entity transactions in Texas and had kept my transaction moving smoothly and in the right direction. Thank you Michael for making the process easy.”

        ESSAM K.

        “Michael drafted the lease that we will use for our commercial building. He had great communication, was readily available to answer any questions we had, and was very professional. He wrote us a lease that fit our need and I will definitely work with The Farah Law Firm again in the future.”

          CHARLES B.

          “I hired The Farah Law Firm for the non-traditional sale of my residential property. The Farah Law Firm’s professionalism and outstanding knowledge of residential transactions made the sale go smoothly. The Attorneys and staff at the Farah Law Firm were understanding and took the time to explain each step of the process. They will be the ones who I will refer to all my friends and family for any future legal endeavors.”

            LALO T.

            *Please note: Due to the costs involved and the favorability of land in Texas per contract and common law, we currently are not accepting residential tenant defense cases.