Current through Reg. 49, No. 38; September 20, 2024
(a) Application Requirements. In order to be
deemed complete, an application for a Statement of Ownership must include, as
applicable:
(1) A completed and fully
executed Application for Statement of Ownership on the Department's prescribed
current form;
(2) The required
fee;
(3) If the statement of
ownership is to reflect the recordation of a lien, other than a tax lien, for
which the Department does not have the owner's consent, copies of documentation
establishing the creation and existence of each such lien, and an affidavit of
fact explaining the circumstances of the lien;
(4) When one or more existing liens are to be
released, assigned, or foreclosed, appropriate supporting
documentation;
(5) When an
application for Statement of Ownership indicates a change in ownership but no
change in lien, supporting documentation that clearly establishes that the lien
holder consented to that change; and
(6) When a manufactured home is to be
designated for use as a dwelling after the home has been designated for
business use, salvage, or as real property, evidence of a satisfactory
habitability inspection by the Department.
(b) Right of Survivorship: If a right of
survivorship election is made, then the Department will issue a new Statement
of Ownership to the surviving person(s) upon receipt of a copy of the death
certificate of the deceased person(s), a properly executed application for
Statement of Ownership, and the applicable fee.
(c) Corrections to Statements of Ownership.
(1) If a correction is required as a result
of a Department error, it will be corrected at no charge.
(2) If a correction is requested because of
an error made by a party other than the Department, the correction will not be
made until the Department receives the following:
(A) A complete corrected application for
Statement of Ownership, or
(B)
Documentation deemed appropriate and approved by the Executive Director,
pursuant to §1201.207(c) of the Standards Act.
(d) Upon issuance of a Statement
of Ownership, the Department will mail one copy to the owner and one copy to
the lienholder. If an additional copy is desired for a third party it should be
noted on the application with appropriate mailing information.
(e) Exchanging a Document of Title or
certificate of attachment for a Statement of Ownership: The Department will
issue a Statement of Ownership, with no change in status, to replace a title or
certificate of attachment at no charge upon receipt of the original title or
certificate of attachment and the physical location of the home. If a
manufactured home title showed that it was personal property, that will be
presumed to be its status until and unless a revised Statement of Ownership is
applied for and issued. Likewise, if a manufactured home has had a certificate
of attachment issued and had title cancelled to real property, that shall be
presumed to be its status until and unless a revised Statement of Ownership is
applied for and issued.
(f)
Updating of Statements of Ownership on Manufactured Homes Transferred as Real
Property.
(1) When a manufactured home has
become real property because the owner completed the conversion process
required by the Standards Act, the home may be sold, transferred, or encumbered
as real property by the customary means used for real property transactions. As
long as the home remains real property at the same location, ownership of the
home is confirmed in the same manner as any other real property, rather than by
verifying Department records. A new Statement of Ownership does not have to be
applied for until and unless:
(A) the home is
moved from the location specified on the statement of ownership;
(B) the current owner of the manufactured
home wishes to convert it to personal property status;
(C) the use of the property is changed to
business use or salvaged; or
(D)
the manufactured home no longer meets the requirements to be classified as real
property (such as the home being on property subject to a long term lease which
is not assignable to the buyer or transferee).
(2) To convert a manufactured home from real
property to personal property, the owner of the home must submit a completed
Application for Statement of Ownership to the Department with supporting
documentation as follows:
(A) If the
applicant is not the owner of record with the Department, satisfactory proof of
ownership under a complete chain of title. Acceptable evidence would include,
but not be limited to, authenticated copies of all intervening transfer
documents, a court order confirming ownership, or title insurance policy in
such owner's name issued by a title insurance company licensed to do business
in Texas.
(B) Satisfactory evidence
that any liens on the manufactured home have been discharged or that all
lienholders have consented to the change.
(C) Evidence of either a satisfactory
habitability inspection by the Department or an election to convert the status
of the home to business use or salvage.
(D) For the purposes of subparagraph (B) of
this paragraph, the Department may rely on a commitment for title insurance, a
title insurance policy, or a lawyer's title opinion to determine that any liens
on real property have been released.
(3) To update the ownership on a manufactured
home already elected and perfected as real property, and remaining in the same
location as real property, the new owner of the home must submit a completed
Application for Statement of Ownership to the Department with supporting
documentation as follows:
(A) If the
applicant is not the owner of record with the Department, satisfactory proof of
ownership under a complete chain of title. Acceptable evidence would include,
but not be limited to, authenticated copies of all intervening transfer
documents, a court order confirming ownership, or title insurance policy in
such owner's name issued by a title insurance company licensed to do business
in Texas.
(B) Satisfactory evidence
that any liens on the manufactured home have been discharged or that all
lienholders have consented to the change.
(C) For the purposes of subparagraph (B) of
this paragraph, the Department may rely on a commitment for title insurance, a
title insurance policy, or a lawyer's title opinion to determine that any liens
on real property have been released.
(4) When a home is being converted to real
property, a copy stamped "filed" by the county must be submitted to the
Department as evidence that the requirements of §1201.2055 of the
Standards Act have been satisfied and the real property election has been
perfected. This must be done within sixty (60) days from the issuance date
reflected on the Statement of Ownership.
(g) When a title company or attorney's office
fails to complete the conversion of a manufactured home to real property, the
holder or servicer of the loan may apply for a statement of ownership electing
real property status after-the-fact, providing that evidence of notice to all
parties is sent via certified mail and that proof of such efforts is provided
along with an affidavit of fact describing such efforts, pursuant to
§1201.2055(i)(3) of the Standards Act.
(h) Submitting an application for Statement
of Ownership pursuant to the abandonment provision in §1201.217 of the
Standards Act, should include an affidavit of fact, on the prescribed form,
attesting to that all statutory notifications have been made to the appropriate
parties, including the tax assessor-collector of the county where the home is
located, and evidence that all notification was sent via certified
mail.
(i) A Priority Handling
Service may be offered by the Department for an additional fee of $55, each
time an application for statement of ownership is reviewed on a priority basis,
whether the application is complete or incomplete. Initial or resubmitted
applications submitted with priority handling requested and including the
additional fee, will be processed within five working days from the date the
application is recognized as received in the Department (applications received
after 3:30 p.m. become part of the following day's mail).
(1) If the application is received complete,
a Statement of Ownership will be issued and mailed within the established
time.
(2) If the application is
received incomplete, a Request for Additional Information will be issued and
mailed within the established time.
(3) Applications requiring habitability or
salvage rebuilding inspections are not eligible for the Priority Handling
Service.
(j) When it is
deemed appropriate by the executive director, an affidavit of fact may be
required as additional documentation to accompany a statement of ownership
application.
