The title to a manufactured home may create title issues for the real property on which a manufactured home is located. Even though a manufactured home may have been placed on the property on a foundation it may not have become part of the real property from a title standpoint.
Titles to manufactured homes in North Carolina are registered with the North Carolina Division of Motor Vehicles (DMV), not with the Register of Deeds in the county where the real property is located. A manufactured home is originally titled as personal property.
The information on the DMV title certificate for a manufactured home will provide the name and address of the registered owner of the manufactured home, the VIN number, title number of the manufacturer of that home and the name of a registered lienholder, if any.
In some counties, the tax assessor will tax a manufactured home as realty if it has been placed on a foundation. This does not, by itself, make the manufactured home a part of the realty.
Including a description of the manufactured home in the property description on the deed or deed of trust does not make the manufactured home a part of the realty or convey clear title to the manufactured home.
In order to complete the process of uniting the manufactured home with the real property, the DMV title to the manufactured home must be canceled. N.C.G.S. § 20-109.2 outlines the procedure for having the DMV title canceled to realty.
The statute provides that if a certificate of title has been issued for a manufactured home but no issued title is available and the manufactured home qualifies as real estate, the owner listed on the title shall be deemed to have surrendered the title to the DMV if the owner of the real property on which the manufactured home is located submits an affidavit to DMV.
To meet the definition of real property in N.C.G.S.§ 105.273(13) the manufactured home must be a residential structure and have the moving hitch, wheels and axles removed from the manufactured home. The home must also have been placed on a permanent foundation. The manufactured home must be listed for ad valorem taxes as real property in the county in which the property is located.
Previously, the statute required that the registered owner of the manufactured home be the one who executes the documents to request cancellation of the DMV title. However, the registered owner of the manufactured home may not be the current owner of the real property. This placed a requirement on the current owner of the property to locate the registered owner of the manufactured home to have the documents properly executed even though the registered owner of the manufactured home may not have owned the real estate for some time. The alternative was the current owner of the real estate to file a petition in Superior Court to have the title to the manufactured home canceled.
However, a recent amendment to N.C.G.S. § 20-109.2 provides that the current owner of the real property on which the manufactured home has been placed may execute the documents necessary to cancel the title under certain provisions. (1) The owner must submit an affidavit to the DMV that the manufactured home meets the definition of real property under N.C.G.S.§ 105.273 (13). (2) The affiant must certify that it is the record owner of the real property on which the manufactured home is affixed or is the lessee of the real property with the primary term of at least twenty years. (3) The tax records showing that the manufactured home is listed for ad valorem taxes as real property must be included with the affidavit. (4) A copy of the notice of cancellation must be sent to the last known address of the owner listed on the certificate of title prior to filing the affidavit with the DMV. Furthermore, if a lien is identified on the certificate of title the lienholder must also certify that the lien is released from the manufactured home. The DMV has modified its form MVR-46G Affidavit for Removal of Manufactured Home from Vehicle Registration Files to incorporate this information in the affidavit to be signed by the current owner of the real property.