The Burton Law Firm, P.C. has over 10 years of experience in this area
of the law. If you have questions about this subject please call us
at 713-222-6262; or email David Torok at david@burton-lawfirm.com.
Manufactured Housing
- What is a HUD-code manufactured home?
This is a structure constructed on or after June 15,
2006, according to the rules of the United States Department of Housing and Urban Development,
transportable in one or more sections, which, in the traveling mode, is eight feet or more in width
or 40 feet or more in length, or, when erected on site, is 320 or more square feet, and which is built
on a permanent chassis and designed to be used as a dwelling with or without a permanent
foundation connected to the required utilities, and includes plumbing, heating, air-conditioning, and
electrical systems.
- What is a mobile home?
This is a structure, same as a manufactured home, but constructed
before June 15,2006.
- Where do I go to get a title or Statement of Ownership and Location to my mobile or
manufactured home?
Effective September 1,2003, all outstanding documents of title are considered
to be Statements of Ownership and Location (SOLs). All mobile or manufactured home SOLs in the
State of Texas are issued by the headquarters of Manufactured Housing Division of the Texas
Department of Housing & Community Affairs in Austin.
- How long will it take to get my Statement of Ownership and Location?
This will depend partly
on the method of delivery of the application and the method you choose to have the Statement
returned to you. If your application is complete, regular processing takes 10 business days and Quick
Processing (at an additional charge) takes 3 business days. If the application is incomplete, a Request
for Additional Information will be mailed to the appropriate party, resulting in delays and longer
processing times.
- What is Quick Processing?
When applying for a Statement of Ownership and Location (formerly
referred to as a title), you may wish to have your application processed in 3 business days (rather
than 10) by requesting Quick Processing. Your application may NOT receive Quick Processing
unless it: is complete; is submitted by overnight mail to our physical address: 221 East 1 lth Street,
Austin TX 7870 1 ; has a completed Quick Processing cover sheet on top and is accompanied by full
payment of fees, including the additional Quick Processing fee. It will take 3 business days to
process from the date that it is received complete in the Manufactured Housing Division (MHD) mail
room. The Statement of Ownership and Location will be forwarded via regular mail unless a prepaid
overnight envelope is provided with the application. The Quick processing fee is nonrefundable,
unless the state fails to provide the quick processing turn around.
- May 1 install my own home?
If your home is new, the answer is no. On the sale of a new home,
the sale is not complete until the home is installed. The retailer is responsible for the initial
installation and cannot waive that responsibility. If your home is used, and you wish to perform any
installation activity on your own home (including supporting, blocking, leveling, securing,
anchoring, and properly connecting multiple or expandable sections or components and making
minor adjustments), you must obtain a license to do so.
- What is the difference between an SOL and a title?
Before June 2003, manufactured home
ownership was evidenced by a Certificate of Title. When the ownership of a home changed, an
application for title transfer had to be submitted to the Manufactured Housing Division (MHD), and
a new title would be issued. When a home became real property or was declared for business use or
salvaged, the title was cancelled, and the tracking of the ownership of the home by the MHD ceased.
After June 2003, the law replaced the Certificate of Title with the Statement of Ownership and
Location (SOL). The SOL is a statement of the information contained in the MHD official record
for a manufactured home. The ownership and location record of every manufactured home in Texas
is now tracked by the MHD regardless of whether the home is for business use only, is salvaged, or
is treated as personal or real property. Because the SOL simply confirms the MHD official record,
no document of title is needed to evidence ownership. If the MHD record states that someone owns
a manufactured home, that record is conclusive evidence of such until and unless the record is
changed.
- How do I get an SOL?
You must apply to the MHD for it within 30 days from the date of any sale
or relocation of the home. This is very important because ownership of a manufactured home does
not pass or vest at a sale or transfer of the home until a completed application for the issuance of an
SOL is filed with the department. If you purchase your home from a licensed retailer, they may assist
you in completing the necessary forms, and they must provide you with all information and
supporting documents that are necessary to complete your application. If you purchase a new home,
the retailer must file the SOL application for you.
- How do I elect the real or personal property status of my home?
This must be done on a
completed and notarized Application for Statement of Ownership and Location accompanied by the
applicable fees.
- When must I apply for a revised SOL?
Any time there is a change in any of the following: owner
name(s); physical location of the home; lien information,; elected treatment of the home
(real/personal property), or use (residentialhon-residential).
- What do I do if I never got a title or SOL to my home and the person that sold it to me is gone?
First, determine what forms and fees are required. In addition to the required forms and fees,
evidence of ownership (i.e. bill of sale, purchase agreement, contract, receipts, deed records, etc.)
to support the application will be required. The application will be reviewed, and if the MHD finds
the evidence to be insufficient, you will be notified as to what will be required to complete the
application. Once your application is deemed complete, it will be processed and an SOL will be
issued. Additionally, if the person who sold you the home was a retailer, you may file a complaint
with the MHD by completing the Consumer Complaint Form.
- What do I need to do to change my home from personal property to real property?
First, you
cannot elect real property status for your home unless it is attached to land that you own or land that
you are leasing under a qualifling long-term lease. Next, if there are any liens on your home (such
as a consumer loan lien), the liens will need to be discharged or the lien holders will have to give
written consent. The only exception to this requirement is where the transaction is being handled
through a title company that is insuring against existing liens, such as the situation where you are
converting from personal property to real property and paying off your consumer loan by refinancing
with a mortgage loan. Third, in connection with your application for a new SOL you will need to
provide an affidavit of election, showing that you have elected real property status. The MHD will
issue your SOL, and until a certified copy is recorded in the real property records of the county
shown on the SOL, the conversion to real property status is not complete. If you are making the
conversion to real property status on your own (not going through a lender, title company, or
attorney), contact the county clerk to find out their procedures, requirements, and fees for recording
this document.
- Can I change it back to personal property? How?
Just apply for a new SOL, indicating on the
application that the reallpersonal property election is being changed to personal property. An
inspection will be required as well as a lien search or proof of no liens from a title company. You
will also need to notify your county tax assessor of the change so that they can alter the way that they
assess and administer property taxes on the home.
- What is required to sell a manufactured home for "residential use" that is classified as "business
use"?
Before you can sell the home, you must obtain a revised SOL which indicates that the home
is no longer reserved for business use only. The home will need to be inspected to be sure it is
habitable before it is changed back to residential use.
- Can I sell a manufactured home that is not habitable?
That depends on the circumstances. If
you sell more than one manufactured home in a twelve month period, you must be licensed as a
retailer; and a licensed retailer may not sell a home that is not habitable unless it is sold for business
use only. A sale by an exempt consumer is not covered by the Texas Manufactured Housing
Standards Act. However, if the home is moved, the new installation is subject to inspection; and at
the inspection the habitability condition will be cited if observed. Also, if the home is not habitable,
even if the sale is exempt from our jurisdiction, you may be committing a practice that will give rise
to liability.
- What do I do if I want to move my home?
First, the person or company that moves the home
must contact the Texas Department of Transportation to obtain any required permit, a copy of which
must be submitted with your application for anew SOL. Next, you will need to apply for a new SOL,
showing the new location. Also, any lien holders will need to be discharged (paid off) or give their
written consent to the move.
- Is notarization needed on the release of liens indicated on the face of the titles since there is
space for the notarization?
No, notarization is not required on a release of lien.
- Is the moving permit required on applications where the home was moved in the past?
If an
SOL applicant had the home moved when they bought the home, the State requires a copy of the
moving permit. If the move took place too long ago or if the home was moved without a permit, the
applicant could, in lieu of a moving permit, provide a "Tax Certificate" issued by the county where
the home used to be installed showing no taxes due. If taxes are due, they will have to be paid. Also,
if a consumer purchases a home from a licensed retailer and finds that the retailer moved the home
without a permit or that there are taxes owed on the home at its previous location, the consumer may
file a complaint with the MHD within two years from the date of purchase. If so, the Consumer
Protection staff of the MHD may be able to force the retailer to pay the taxes owed or file against
their bond.
- How do I get a duplicate if I have lost my original title or Certificate of Attachment?
Due to
changes in Texas law, Titles and Certificates of Attachment are no longer produced. Effective
September 1, 2003, all such documents became known as Statements of Ownership and Location
(SOLS).
- What is a Texas Seal, and do I have to apply for one?
A Texas Seal is a metal plate with a
number that is used to identifl a manufactured home that does not have a HUD Label. State law
requires that a manufactured home have either a HUD Label or a Texas Seal attached to it before any
sale, exchange, or lease purchase (or any negotiations for such) of the home to a consumer.
- Do I need an SOL, if I am trying to file for a homestead exemption and the County offices will
not accept my title as proof of ownership?
Texas law states that as of September 1,2003, all titles
became Statements of Ownership and Location (SOLS), so the title should be acceptable. However,
if the County will not accept the title, you may submit a written request to the MHD for an SOL at
no charge, as long as the original title is surrendered and there are no changes to any of the
information on the title. If the original title has been lost or if any of the information on the title has
changed, a completed Application for Statement of Ownership and Location and applicable fees will
be required.
- I never received a certified copy of my SOL even though your records show that it was issued.
Can another one be sent to me?
Yes.
- When is a third-party closing required?
A transaction for the acquisition of a manufactured
home considered to be real property must occur at the office of a federally insured financial
institution, a title insurance company, or an attorney at law. If the home that you wish to acquire is
currently treated as personal property and you elect to continue to treat it as such, then you are not
required to have a third party closing.
- How do I get a homestead exemption?
First, you must contact the appropriate county office in
the county where your home is located to find out what their requirements are and whether or not
you will need to apply for a revised SOL (for a change in reallpersonal property election, ownership,
location, etc.). Once you know exactly what type of SOL you need to apply for, then you can contact
the Manufactured Housing Division of the Texas Department of Housing & Community Affairs.
- May I move my own home?
You may, but you must obtain a permit from the Texas Department
of Transportation (TxDOT) to do so. You will need a copy of your TxDOT permit in order to apply
for a new SOL showing a new location.
- What are Wind Zones, and what do I need to know about them?
The counties along the Gulf
Coast are designated as Wind Zone I1 counties because they often experience very strong winds,
especially when a hurricane makes landfall. Therefore the homes that are installed in those counties
must be built and installed to withstand these higher winds. To be installed in a Wind Zone I1 county,
a manufactured home constructed on or after September 1,1997, must meet Wind Zone I1 standards.
Wind Zone I1 homes and homes built prior to September 1, 1997, may be installed in a Wind Zone
I or I1 county without restriction. Wind Zone I homes may not be installed in those counties
designated as Wind Zone 11. The counties designated as Wind Zone I1 are Aransas, Brazoria,
Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Orange,
Rehgio, San Patricio and Willacy.
- What is the HUD certification label?
The HUD certification label is a red metal label affixed
to a manufactured home by the original manufacturer. This label exists as proof that the home was
constructed under the Federal Manufactured Housing Program administered by HUD.
- How do I get an error on my SOL corrected?
If you find an error on an SOL, please inform our
office in one of 4 ways: by e-mail at processing@tdhca.state.tx.us; by mail (TDHCA, P.O. Box
12489, Austin, TX 7871 1); by facsimile at 5 12-475-1 109; or by telephone at 1-800-500-7074. The
State will need the following information: the identification numbers of the home (HUD Label,
Texas seal, andlor serial numbers). You will also need to state exactly what needs to be corrected.
If it is determined that the error was made by the applicant, a completed Application for Statement
of Ownership and Location and the necessary fee will be required to issue a corrected SOL.
Otherwise, a certified copy of the corrected SOL will be mailed to you at no charge.
- What is a lease-purchase?
This means to enter into a lease contract with a provision conferring
on the lessee an option to purchase the manufactured home.
- What are the laws on taxing a manufactured home?
Although the general rule is that personal
property is not subject to property taxes, there is an important exception when it comes to
manufactured homes; and thus such can be taxes, even as personal property.
- Why is the HUD label important?
The label is needed for various purposes, such as the sale,
refinancing or moving of the home.
- Where do I find the HUD label?
The label is intended to be permanently attached to the exterior
of the home, near the rear of each section. Thus a two-section home will have two separate labels.
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