Buying, Selling, or Moving a Mobile/Manufactured Home
March 2010
When buying, selling, or moving a mobile/manufactured home, there are certain requirements that must be satisfied to successfully transfer ownership, to file for the homestead classification, or to secure a moving permit. The owner of the mobile/ manufactured home must obtain a tax clearance form signed by the assessor and auditor-treasurer of the county in which the home is located stating there are no current or delinquent taxes due. Once this form is processed and issued, the owner can transfer the title of the home, apply for the homestead classification, or get a moving permit to tow it across state highways, county roads, city streets, or township roads.
What type of document is used to buy or sell a mobile/manufactured home?
When a mobile/manufactured home is bought or sold, the transaction is usually documented in writing. A mobile/manufactured home bill of sale or contract agreement may be used to help show proof of ownership and protect the rights of the buyer and seller. It provides the terms and conditions of the sale; the names and addresses of the buyer and seller; the make, model, year of manufacture, size, and vehicle identification number of the mobile/manufactured home; the location of the home; warranties; and a notary acknowledgment. However, a bill of sale or contract agreement is not sufficient to establish ownership for Minnesota property tax purposes. To complete the sale or transfer of the home, a certificate of title must be signed over by the seller.
What is a certificate of title?
In Minnesota, a certificate of title is considered the official proof of ownership for a mobile/manufactured home. It is used to convey ownership from one person to another. This legal document lists the owner’s name and address, the title number, and information about the make, model, year of manufacture, and vehicle identification number of the home. The title also provides the name and address of any lien holder, as a secured party (i.e. an individual person or financial institution), whom the owner borrowed money to purchase the home. If the loan has been paid-off, the security interest is released and a confirmation of lien perfection forwarded to the owner. The certification of lien release should be attached to the original certificate of title to establish clear ownership.
How does one obtain a certificate of title?
The seller of a mobile/manufactured home may keep the certificate of title in a safe place like a filing cabinet, safe, or safety deposit box. To sell or give ownership to another person, the title must be located and the transferable portion of the document completed with the buyer’s name and address, the date of transfer, and seller’s signature. Then, it must be transferred at an authorized Department of Public Safety office (i.e. Stearns County License Center) so that the new owner can obtain an original certificate of title.
What can one do if a certificate of title cannot be found?
A person may request a copy of their own record or that of another person with their written consent by submitting a DVS (Driver and Vehicle Services) Records Request form and paying a processing fee to the Department of Public Safety, Driver and Vehicle Services Division---Records Unit, at 445 Minnesota Street, Suite 161, St. Paul, Minnesota 55101-5161. Access to driver’s license and motor vehicle records is governed by M.S 168.346; 171.12, subdivision 7; 171.12, subdivision 7a; U.S. code title 18, sections 2721-2725 and chapter 13. For further information, contact the DVS Division at 651-215-1335 or visit the web at www.mndriveinfo.org.
How is a certificate of title transferred?
A mobile/manufactured home title is transferred the same as a motor vehicle, boat, or trailer except there are no excise taxes collected. Title and secured party fees are similar to other transfers. When transferring title, one must submit the certificate of title with completed transferable information, present a tax clearance form signed by the assessor and auditor-treasurer in the county where the mobile/manufactured home is located affirming that all past and current taxes levied on the home have been paid, and pay all required fees. After a careful examination and review of ownership has been performed, the Department of Public Safety mails an original certificate of title to the new owner.
Who is responsible for the property taxes on a mobile/manufactured home that is treated as personal property?
The owner of record as of the assessment date, January 2nd of the year the taxes are levied, is the responsible party. If the mobile/manufactured home is sold, the payment of taxes should be discussed between the buyer and seller. The county will hold the seller responsible for the payment of the entire year’s tax. If the taxes are unpaid, the county will pursue collection from the seller. Any delinquent taxes will be submitted for collection under the name of the seller to the Revenue Recapture Unit of the Minnesota Department of Revenue.
Should the assessor be notified if a mobile/manufactured home has been bought or sold?
Yes, if a mobile/manufactured home has been bought or sold, the parties to the sale should transfer the certificate of title and make the assessor aware of the ownership change. This notification is necessary to ensure that the new owner is assessed the taxes, informed about the taxation laws relating to a mobile/manufactured home, and given the opportunity to file a timely application for homestead if it is their principal residence. Otherwise, the assessor will continue to assess the property and send all tax information to the seller.
What must one do before moving a mobile/manufactured home to another location?
If an owner is planning to relocate a mobile/manufactured home, the proper state, county, city, and township authorities should be contacted to obtain the required permit(s). Before a permit can be issued, the owner must obtain a tax clearance form from the assessor and auditor-treasurer in the county where the mobile/manufactured home is located. This form is issued to the owner only when all property taxes that are due or will become due have been paid. If a mobile/manufactured home is moved without the proper paperwork, the law allows for a fine to be imposed on the mover.
If you have any questions regarding this information or suggestions for a future column, please contact me.
Stearns County Assessor’s Office
Administration Center, Room 37
705 Courthouse Square
St. Cloud, MN 56303
Phone: 320-656-3680
or e-mail: gary.grossinger@co.stearns.mn.us