Essential Actions You Need to Follow When Peddling a Mobile Home on the Market
Selling a mobile home requires careful attention to legal processes and documentation to ensure a smooth and lawful transaction. Here are some key steps to follow:
Confirm Ownership and Title Type
First, determine if your mobile home is deeded real property (attached to land) or non-deeded personal property (not affixed, considered a vehicle). Ownership is proven by deed for deeded homes or title for non-deeded homes, similar to vehicles.
Prepare and Transfer Necessary Documents
For non-deeded homes, sellers must provide the title, registration, a bill of sale, and current registration decal to the buyer. Sellers must execute an assignment form or bill of sale containing buyer/seller details and sale price to legally transfer ownership.
Notify the Mobile Home Park Owner (if applicable)
In many states, sellers must give the park owner written notice about the intent to sell, whether the home stays or moves. The park owner may have rights to approve a buyer or enforce park rules but cannot unreasonably withhold approval.
Seller Disclosures
Sellers must disclose all known material defects of the home, including structural, electrical, plumbing, or hazards. Disclose any title issues or legal claims that might affect ownership or sale.
Compliance with Licensing for Sale Involvement
If working with real estate agents selling non-deeded mobile homes treated as personal property, agents require distinct licensing for mobile home sales apart from a standard real estate license.
Execute a Formal Purchase Agreement
Even in family sales or private transactions, sign a purchase agreement outlining buyer/seller details, property description, price, terms, and conditions to prevent disputes.
Additional Considerations
Ensure the buyer understands and agrees to park rules, including any age restrictions or vehicle/animal policies. If the home was purchased before certain legislation dates, additional notification or procedural steps may apply.
The Importance of a Bill of Sale
A bill of sale is a crucial document that serves as legal proof of the transfer of ownership, including the names and contact information of the buyer and seller, the purchase price, a description of the mobile home, and the date of the transaction.
Working with a Cash Buyer
Working with a cash buyer can simplify the process by removing financing hurdles and speeding up the transaction.
Navigating the Sale Process with Confidence
Navigating the sale process with confidence involves understanding legal responsibilities, knowing the home's value, and preparing all necessary documentation in advance.
State-Specific Laws and Regulations
State laws often mandate that sellers of mobile homes provide disclosures to the buyer, including the condition of the home, any known defects, the age of the structure, previous damages, or information about utility hookups and appliances.
Classification of a Mobile Home
If a mobile home is classified as personal property, the transaction will more closely resemble a vehicle sale. If it's considered real property, the sale process must adhere to real estate laws, which may involve a licensed real estate agent, title company, and possibly a lawyer.
Consulting a Professional
Consulting a local real estate professional or attorney can help navigate the nuances of your state's laws. If the mobile home is considered personal property, the title is usually issued by the state's Department of Motor Vehicles or Housing Agency.
Avoiding Legal Issues
Failure to provide accurate disclosures can result in lawsuits or the reversal of the sale. Check the title for any liens, which must be satisfied before the transfer. The classification of a mobile home (real property or personal property) is crucial for the sales process.
In the realm of mobile home selling, investors may find opportunities to purchase homes classified as personal property, as the transaction process will resemble that of a vehicle sale in many cases. When selling deeded mobile homes, working with real estate agents who possess distinct licensing for mobile home sales can help navigate complex real estate laws.
