The MHP I’m buying has 65 homes that are included with the purchase - good news is the homes are included at 0 value.
The seller just sent me scans of the titles and they’ve been declared as real property.
Does that change anything when it comes time to sell the homes?
Yes. What state is this in?
Florida. Also as it turns out most of the titles were lost so I need to get the seller to replace them.
Each state handles it’s MH titling a little different. So contact the helpful people at the Florida MHA, join up, and get their counsel and forms.
That said, as a general rule, once a home title is surrendered and the home called real estate, the home is transferred just like any other real estate at that point - with the land beneath it.
Thanks Kurt,
You sparked a panicked call to the FMHA. I talked to an attorney, he says it probably wasn’t legal to declare them as real property and it can be undone. It was done back in the 70’s I believe.
Yes, the attorney has confirmed to declare them as real property they are supposed to be on a permanent foundation. They definitely ARE declared as real property, but not legally as they are not on a foundation.
Coach62, Congratulations on your soon to be New Mobile Home Park Purchase!
Now BEFORE you close on your Mobile Home Park make sure that the existing Owner clears up the Mobile Home Titles.
In South Carolina to be ‘real’ property the Mobile Home must be on a permanent foundation (such as brick).
It sounds like Florida has the same requirement/definition.
You will want the Existing Owner to clear up the Mobile Home Titles [remove the ‘Real Property’ description and get the Mobile Home Titles in the Seller’s Name (or Business Name)] BEFORE Closing.
You will have your hands full once you close on your MHP and you do not want to be dealing with incorrect Mobile Home Titles.
When we purchased our second Mobile Home Park, it was owned by an Estate. The Mobile Home Titles were in the names of the Dad (deceased), Mom (deceased), and Business and some Mobile Home Titles did not even exist.
In order to close on the MHP we selected to create an Escrow Account where the Sellers placed $7,000 per missing Mobile Home Title in the Escrow Account. We gave the Sellers 45 Days (then 45 More Days) to come up with valid Mobile Home Titles.
In South Carolina you could eventually get Title to those Mobile Homes through the Abandoned Home Process. However, it is a time consuming process that I would not recommend (unless it is your only option…we have done it and received ownership to a Mobile Home).
Place pressure on the Sellers to fix the situation NOW and then have the Sellers put money in an Escrow Account for all the incorrect/missing Mobile Home Titles.
We wish you the very best!
Thanks kristin. I actually read about your situation in an older post and I’ve already taken your advice. Rather than delay closing I think it’s best that I handle it as you did. I have reasons but I don’t want to bore you with the book it would take to explain.
Thanks again for taking the time to share your experience.
Coach62, you are very welcome!
Good luck on your Closing.
Verify with your Real Estate Attorney that they:
1.) Will Create An Escrow Account For Your Mobile Home Titles
2.) How Much Will They Charge For Creating The Escrow Account & Legal Documentation
3.) What Steps Are Required To Closed The Escrow Account
We wish you the very best!