How to Sell a Mobile (Manufactured) Home on Titled Parcels

Selling a mobile (manufactured) home on a titled parcel can be a daunting task if not handled properly. Many times, these type of homes are found on foundations with utilities, septic fields, decks or full add-on additions. In order to sell a mobile home on a titled parcel, it must have the title on record with the Secretary of State. The problem is many of these are not registered with the State which can create issues in selling. It is personal property with a VIN and title (just like a car). Many times, one may not even know it’s a mobile home without getting into the crawl space underneath to look at the chassis to get a serial number. In order to sell one, a lender will require an Affadavit of Affixture. This means the sale requires the title of the mobile home to be combined with the title of real property. This process allowed for re-titling under section 30a of the Mobile Home Commission Act which allowed a person seeking title to use a surety bond to indemnify the department, or any interest holder of the mobile home, against any expenses or losses. In 2020, the SOS (Secretary of State) removed the ability of using a surety bond and introduced the need for court orders instead. This happened due to a lawsuit filed by those in park communities paying lot rent who alleged that the park owner took possession through the surety bond process if they deemed the home to be abandoned without any notice to the homeowner. This new process has been holding up sales since its introduction as it doesn’t separate mobile homes in a park on leased property versus one on an owned parcel. Michigan Realtors are working diligently to overcome this problem. In the meantime, if you’re considering selling your mobile (manufactured) home on a titled parcel, do your diligence and locate the title and Affidavit of Affixture prior to attempting to sell to save yourself a potential headache through the sale process.