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If you have been following our blog posts, you already know how important it is to get owner’s title insurance for residences and commercial properties you own. This type of coverage can protect you from a range of title defects like public records errors, fraud, forgery, and previously unknown heirs. Without owner’s title coverage, you could end up being responsible for paying the costs associated with resolving title defects.
Of course, not every type of property is the same. When we talk about homes and businesses, we are talking about permanent structures that are attached to the property on which they are located. But what if you own a mobile home or a manufactured home that was brought in in pieces and assembled on site? The rules are different for these types of structures, and you may need to get title coverage for them. Here’s more about mobile homes and manufactured homes and how they relate to owner’s title insurance:
The term “mobile home” was first used in the early 20th century to describe homes built on a steel chassis that could be towed by a vehicle from one location to another. In the 1970s, new safety standards were introduced to ensure a consistent standard of quality for mobile homes. After 1976, such homes became referred to as “manufactured homes,” although they are still often called trailers or mobile homes.
There are some other structures that are referred to as manufactured homes. These structures are usually built in a factory, off-site from the land where they will be installed. They are built in pieces, which are shipped to their final location and assembled on-site. In the eyes of the law, these types of manufactured homes are classified in the same way as mobile homes, although this may vary by state or locality.
Because mobile homes and manufactured homes do not have a title or deed in the traditional sense, they are not considered real estate. They will usually have a vehicle title rather than a real estate deed. Again, this can vary by state or locality.
Title insurance is only available for “real property,” meaning buildings affixed permanently to the land where they are located. As such, you cannot obtain title insurance for a mobile or manufactured home. However, there is an exception.
If a mobile home or manufactured home has been permanently affixed to the land where it is located, you may be able to convert it to real property. Each state has its own process for doing this. In some states, you will need to apply for a document known as a certificate of title, although it may be called a deed of conveyance or have other names. This process will be required for any mobile homes, as well as for existing manufactured homes. If you are purchasing a new manufactured home that will be permanently affixed to the land when it is assembled, you may not need a certificate of title in some states, although you will have to file an affidavit of fixture with the appropriate state office.
Once you have completed all the necessary steps to obtain a certificate of title for your mobile or manufactured home, and the state and locality where you live consider it a piece of real property, you can get owner’s title insurance. At World Wide Land Transfer, we strongly encourage you to do this as soon as possible. Even if your home was previously considered a vehicle, title defects could still arise from the land where it is located. There could be a previously unknown easement, a boundary line dispute, a public records error, or other title defects that you will be responsible for resolving as the property owner. Title insurance can protect you, but only if you purchase a policy before those defects are discovered.
In Florida, more than 10% of all homes are mobile or manufactured homes. If you own or plan to buy one, taking all the steps to convert it to real property and getting an owner’s title insurance policy is a wise investment. With your certificate of title in hand and your title policy in place, you can potentially save yourself thousands of dollars in legal and administrative fees, all for an affordable one-time premium. Call World Wide Land Transfer today if you have questions about title insurance and manufactured homes or need any other Florida title and escrow services.
World Wide Land Transfer is a service-oriented PA title company with offices in Philadelphia, New York, and Washington, D.C. With a record of going above and beyond, we are trusted to close everything from complex commercial transactions to residential refinance and purchase transactions.
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