(1) The
certificate of origin or certificate of title for a manufactured home
designated 2000-year model and newer that is permanently affixed to a parcel of
real property may be cancelled if the ownership of the manufactured home and
real property is identical. The term "permanently affixed" means that the
tongue, axles and wheels have been removed from the manufactured home and it
has been installed in accordance with the Installation Rules and Regulations of
the Alabama Manufactured Housing Commission as found in chapters 535-X-12 and
535-X-13. Either the original retail purchaser or lienholder as recorded on the
certificate of origin, or the titled owner or owner's lienholder as recorded on
the certificate of title or listed on a completed surety bond may apply for
cancellation of a certificate of origin or certificate of title. The request
for cancellation must be made through a designated agent appointed by the
department. The department, upon approval of the cancellation request, will
issue a certificate of cancellation of the certificate of origin or
cancellation of the certificate of title to the manufactured home in accordance
with the following procedures:
(a)
Cancellation of Certificate of Origin/Title. The original retail purchaser or
lienholder for the original retail purchaser, or titled owner or owner's
lienholder as recorded on the certificate of origin/title must apply for a
cancellation of certificate of origin/title through a designated agent of the
department.
1. The designated agent will use
the Alabama Title System (ALTS) to prepare Form MVT 5-39E "Notice of
Cancellation of a Certificate of Origin or Alabama Certificate of Title for a
Manufactured Home Classified as Real Property".
2. ALTS will assign a unique document control
number (DCN) and creation date to each completed MVT 5-39E. The MVT 5-39E will
be valid for 90 days from its creation to be used in conjunction with the Form
MVT 5-1E "Application for Cancellation of Certificate of
Origin/Title".
3. All parties who
have ownership in both the manufactured home and the realty to which the
manufactured home has become permanently affixed must sign the MVT 5-39E
attesting to the fact that the manufactured home has been permanently affixed
and recorded as real property.
Note: No more than two owners can be recorded on a
certificate of cancellation.
4. The MVT 5-39E must be signed by the judge
of probate (or his/her designee) in the county where the manufactured home is
located attesting to the fact that the manufactured home has been recorded as
being permanently affixed and recorded as real property in that county. A
designated agent will use ALTS to complete an MVT 5-1E "Application for
Cancellation of Certificate of Origin/Title", for each manufactured home
identification number listed on the MVT 5-39E, based on information listed on
the MVT 5-39E.
5. The designated
agent must assemble the cancellation package (MVT 5-1E, MVT 5-39E, certificate
of origin/title for each separate unit, lien release, etc.)/ and submit it to
the department. The title application and fees as required by §
32-20-4,
Code of Ala.
1975, must be sent electronically through ALTS utilizing either an
Automated Clearing House (ACH) transaction or credit card payment.
6. The department will examine the documents
received and, if approved, issue a Certificate of Cancellation For A
Certificate of Origin/Title For A Manufactured Home Classified As Real
Property, in the name of the first retail purchaser or the titled
owner.
(b) Certification
of Cancellation by Posting a Surety Bond.
1.
When the current owner or owner's lienholder is not properly recorded on a
certificate of title or when a manufacturer certificate of origin is not
available, such parties must post a bond by applying through a designated
agent. In addition, if the department is not satisfied as to the ownership of
the manufactured home or that there are no undisclosed security interests in
it, as a condition of issuing a certificate of cancellation, the department may
require the applicant to file with the department a surety bond executed by a
person/company authorized to conduct a surety business in this state, or in
lieu of, a deposit of cash with the department in the amount of the required
bond. The bond is conditioned to indemnify any prior owner and lienholder and
any subsequent purchaser of the manufactured home or person acquiring any
security interest in it.
2. A
single bond is required for each manufactured home.
3. The bond must be in an amount equal to
fifty thousand dollars ($50,000.00) for manufactured homes less than ten (10)
model years old and twenty-five thousand dollars ($25,000.00) for all
manufactured homes ten (10) model years old and older, or in lieu of, a deposit
of cash in the amount of the required bond will be accepted.
4. The department's surety bond portal will
assign the partially completed MVT 10-1A application a unique document control
number (DCN) and creation date. The MVT 10-1A will be valid for 90 days from
date of creation.
Note: A maximum of four (4) manufactured home
identification numbers can be entered on the MVT 10-1A application, if the
manufactured home contains more than one unit.
5. After department approval of MVT 10-1A,
the MVT 10-1 must be completed and executed by a surety company licensed and
duly authorized to do business in Alabama. The completed MVT 10-1 must be
submitted with the MVT 5-1E.
6.
Chapter 20 of Title 32,
Code of Ala. 1975, does not
provide for the issuance of a replacement certificate of cancellation. In the
event that a certificate of cancellation is lost, stolen, mutilated, destroyed,
or becomes illegible, a replacement certificate of cancellation cannot be
issued. However, records of the cancellation may be obtained from the
department.
7. The department may
authorize designated agents to electronically submit title applications and
supporting documents in lieu of delivering the original documents to the
department.
