Bulletin: TX000075

Dear Associates:

The legislature adopted HB 2438 (effective 6/18/05) to modify the requirements for treatment of manufactured housing units.

The main change for the title industry is §1201.2055, Occupations Code, which clarifies that once a manufactured home has been elected as real property and a statement of ownership and location (SOL) issued as such, no further SOLs are necessary when the manufactured home and land are sold as a unity. Within 60 days after it has been issued by the Texas Department of Housing and Community Affairs (Department), the SOL must be recorded in the county records and a copy of the recorded SOL must be sent to TDHCA for entry in its records and the tax assessor-collector must be notified of the filing; otherwise, the manufactured home is still considered elected as personal property.

New §1201.217, Occupations Code, also provides a procedure for the owner of real property to secure abandonment of a manufactured home owned by another, and to apply for an SOL that extinguishes all liens on the home. The prior owner of the home has 45 days after the date the notice of declaration of abandonment by the landowner to remove the home; otherwise the liens on the home are extinguished and the real property owner may declare the home abandoned and apply to the department for an SOL listing the real property owner as the owner of the manufactured home.

Company Policy: An SOL issued by TDHCA showing an election as real estate must be recorded in the real property records and a copy of the recorded SOL sent to TDHCA and the tax assessor-collector. The title company is legally allowed to charge for this extra step, if it chooses to do so.

Once the home has been elected real property and the SOL issued, recorded in the land records of the county where the home is located and the recorded SOL returned to the TDHCA, we require no further SOLs when the home and land are resold together.