Bill Text: VA SB680 | 2024 | Regular Session | Introduced
Bill Title: Manufactured homes; conversion to real property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-07 - Stricken at request of Patron in General Laws and Technology (15-Y 0-N) [SB680 Detail]
Download: Virginia-2024-SB680-Introduced.html
Be it enacted by the General Assembly of Virginia:
1. That §46.2-653.1 of the Code of Virginia is amended and reenacted as follows:
§46.2-653.1. Conversion of manufactured home to real property.
A. After a manufactured home has been titled in the Commonwealth and at such time as the wheels and other equipment previously used for mobility have been removed and the unit has been attached to real property owned by the manufactured home owner, the owner may convert the home to real property in accordance with the provisions of subsection B or C. Except as provided in §§58.1-3219.5 and 58.1-3219.9, and for the purposes stated in §§58.1-3219.5 and 58.1-3219.9, the provisions of this section constitute the only manner by which a manufactured home owner may convert a manufactured home to real property.
B. A manufactured home owner who wishes to convert the a
manufactured home that is not subject
to a security interest to real property shall submit a
sworn affidavit to the Department that the wheels and other equipment
previously used for mobility have been removed from the manufactured home and
the unit has been attached to real property owned by the manufactured home
owner.
The affidavit must be in a form approved by the Commissioner. Upon compliance by the owner with the procedure for surrender of title, the Department shall rescind and cancel the Virginia title. The Department shall not cancel the title if a security interest has been recorded on the title and not released by the secured party. After canceling the title, the Department shall provide written confirmation to the owner that the title has been surrendered and has been canceled by the Department.
Upon receipt of confirmation that the title has been surrendered and has been canceled by the Department, the owner shall file a sworn affidavit of affixation with the circuit court of the locality where the real property is located. The affidavit shall include all of the following information:
1. The manufacturer and, if applicable, the model name of the manufactured home.
2. The vehicle identification number and serial number of the manufactured home.
3. The legal description of the real property on which the manufactured home is placed, including the property address, stating that the owner of the manufactured home also owns the real property.
4. Certification that there are no security interests in the manufactured home that have not been released by the secured party.
5. The homeowner's statement that the title has been surrendered and has been canceled by the Department and that the home is intended to be a permanent fixture and improvement to the land, to the same extent as any site-built home, and assessed and taxed with the land as real property.
In addition, a copy of the confirmation provided by the Department that the title has been surrendered and canceled by the Department shall be attached to and filed with the affidavit.
Upon filing the affidavit of affixation, the manufactured home
shall then be deemed to be real estate and shall thereafter be conveyed and
encumbered only as real estate is conveyed and encumbered, except when the home
is thereafter physically severed from the real property and a new title issued
in accordance with subsection C D.
A security interest in a manufactured home is perfected against the rights of judicial lien creditors, execution creditors, and purchasers for value on and after the date such security interest attaches. The Commissioner shall have prepared a list of all titles canceled pursuant to this section and furnish it, in conjunction with the reports submitted pursuant to § 46.2-210, to the commissioner of the revenue of each county and city without cost.
C. A manufactured home owner who wishes to convert a manufactured home that is subject to a security interest to real property may do so by submitting to the Department a notarized affidavit stating that the current lienholder agrees to convert the existing security interest to a mortgage for real property upon the completion of the process of surrendering and canceling the title pursuant to this section. Such affidavit must be in a form approved by the Commissioner.
1. Upon receipt of such notarized affidavit and compliance by the owner with the procedure for surrender of title, the Department shall rescind and cancel the Virginia title and shall provide written confirmation to the owner that the title has been surrendered and has been canceled by the Department.
The owner of the real property shall record the following documents in the official records of the clerk of court in the county in which the real property is located:
a. A recorded mortgage deed with a manufactured home rider that includes the manufacturer and, if applicable, the model name of the manufactured home.
b. The vehicle identification number or serial number of the manufactured home.
c. The legal description of the real property on which the manufactured home is placed, including the property address, stating that the owner of the manufactured home also owns the real property.
d. The notarized affidavit, required pursuant to this subsection, stating that the current lienholder agrees to convert the existing security interest to a mortgage for real property upon the completion of the process of surrendering and canceling the title.
e. A copy of the Department's written confirmation to the owner that the title has been surrendered and has been canceled by the Department.
The clerk of the court, upon receipt of the documents, shall record such documents against the real property and provide a copy of the recorded deed to the owner of the real property.
The recording of a security interest in the deed records of the county under this subsection satisfies the requirements for filing a financing statement for a fixture to real property. The recording of a manufactured home in the deed records of the county is independent of the assessment and taxation of the manufactured home as real property. The recording of a manufactured home in the deed records of the county makes the manufactured home subject to the same provisions of law applicable to any other building, housing, or structure on the land. However, the manufactured home may not be sold separately from the land or leasehold estate unless the owner complies with the procedures in this section to convey the manufactured home.
If the Department rescinds the title, the Department shall notify the county assessor after 90 days of any unreleased security interest recorded in the Department's records for the manufactured home. The county assessor shall record the security interest information for such manufactured home in the deed records.
2. A manufactured home that is subject to a security interest shall be conveyed by deed or real estate contract and shall only be transferred together with the property to which it is affixed, unless procedures described in this subsection for issuance of a new title are followed.
The owner of the real property with a recorded deed and rescinded title shall file an application with the Department to issue a new title to the mobile home if the mobile home is to be removed from the real property. The Department shall issue a new title upon compliance with the requirements of subdivisions D 1 and 2, except for the requirement in subdivision D 1 d, and receipt of an application from the owner of the real property containing the following information:
a. An affidavit signed by the owners of the land and all secured parties and other lienholders consenting to the removal of the home.
b. A certification from a title insurance company listing the owners and all secured parties and other lienholders that is dated within 10 days of the date of application for a new title under this subsection.
D. If the owner of a manufactured home whose certificate of title has been canceled under this section subsequently seeks to sever the manufactured home from the real property, the owner may apply for a new certificate of title in accordance with the provisions of this section.
1. The owner shall file with the circuit court where the real property is located an affidavit that includes or provides for all of the following information:
a. The manufacturer and, if applicable, the model name of the manufactured home.
b. The vehicle identification number
and or
serial number of the manufactured home.
c. The legal description of the real property on which the manufactured home is or was placed, stating that the owner of the manufactured home also owns the real property.
d. Certification that there are no security interests in the manufactured home that have not been released by the secured party.
e. The homeowner's statement that the home has been or will be physically severed from the real property.
2. The owner must submit the following to the Department:
a. A copy of the affidavit filed in accordance with
subdivision C
1.
b. Verification that the manufactured home has been severed from the real property. Confirmation of severance by the commissioner of the revenue where the real property is located shall constitute acceptable evidence that the unit has been severed from the real property.
Upon receipt of the information required in subdivision C 2, together with a title
application and required fee, the Department is authorized to issue a new title
for the manufactured home. The initial title issued under the provisions of
this subsection shall contain no security interests, provided however, that
nothing contained herein shall be construed to prevent a subsequent security
interest from being recorded on the title.
