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S.F. No. 187 - Manufactured Home Titles (First Engrossment)
 
Author: Senator Carrie Ruud
 
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
 
Date: February 28, 2017



 

Section 1.  Manufactured Home Affixed to Real Property.  This section makes changes to the titling process for manufactured homes that are affixed to real property. 

Subdivision 1.  Certificates surrendered for cancellation.  When a manufactured home is affixed to real property, the owner may surrender the manufacturer’s certificate of origin or certificate of title to the department of driver and vehicle services (DVS).  The owner must also file an affidavit of affixation with the county recorder or registrar of titles.  This results in the home becoming an improvement to real property and is no longer titled as personal property. 

Subdivision 1a.  Affidavit form.  Prescribes the form and requirements of the affidavit of affixation required in subdivision 1. 

Subdivision 2.  Perfected security interest prevents surrender.  DVS is prohibited from accepting the surrender of a manufacturer’s certificate of origin or a certificate of title if there is a perfected security interest in the manufactured home. Permanent attachment to real property or recording an affidavit of affixation does not extinguish a valid security interest or tax lien unless all requirements of this section have been satisfied. 

Subdivision 3.  Notice of security interest.  When a perfected security interest exists at the time the home is affixed to real property and the owner has not satisfied the requirements of subdivision 1, the homeowner or secured party may record a notice with the county recorder stating that the home is encumbered by a perfected security interest and is not an improvement to real property. 

Section 2.  Manufactured home unaffixed from realty. This section makes changes to the titling process for manufactured homes that are not affixed to real property. 

Subdivision 1.  Certificate of title requirements.  Modifies and clarifies the circumstances in which DVS must issue a certificate of title or reissue a previously surrendered certificate of title. 

Subdivision 2.  Evidence of eligibility for reissuance.  Makes clarifying changes to the evidence required by subdivision 1. 

Subdivision 3.  Affidavit form.  Prescribes the form and requirements of the affidavit of severance required in subdivision 2. 

Section 3.  Manufactured homes; ownership at issue.  Establishes a system for resolving situations where the ownership of a manufactured home is at issue. 

Subdivision 1.  Requirements for certificate issuance or reissuance.  When an applicant cannot establish ownership because of the inability to locate past owners or applicable records, the applicant may submit specified documentation to DVS in order to obtain a certificate of title reissued. 

Subdivision 2.  Satisfaction of manufactured home security lien; release.  A perfected security interest may be canceled seven years from the date of perfection if the owner has paid the lien in full or the lien has been abandoned and the owner is unable to locate the lienholder to obtain a lien release. 

Subdivision 3.  Suspension or revocation of certificate. The department may revoke a previously issued certificate of title issued under this section if the title was fraudulently procured, erroneously issued, the home has been destroyed, or the home has been involuntarily transferred and the owner did not surrender the certificate of title.

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