Affixation of Minnesota Manufactured Homes

Affixation of Minnesota Manufactured Homes – Procedures

Minnesota Statutes, Chapter 168A identifies certain procedures which, if completed, may facilitate the establishment of marketable title with respect to real property upon which a Minnesota manufactured home has been permanently affixed.

However, any failure to satisfy the requirements of M.S., Chapter 168A with respect to Minnesota manufactured homes affixed to real property may result in the title to such real property being unmarketable.

Minnesota Manufactured Homes Affixed to Real Property

M.S. Section 168A.1412 identifies certain legal procedures relating to Certificates of Titles issued by the Minnesota Driver and Vehicle Services Division of the Minnesota Department of Public Safety (“MN DVS”) with respect to Minnesota manufactured homes affixed to real property:

The Certificates of Titles discussed herein are those issued by MN DVS, and not the Minnesota registered property “Torrens” title certificates issued by the Registrar of Titles in any particular Minnesota County.

Surrender of Minnesota Manufactured Home Title Certificates

M.S. Section 168A.1412, Subd. 2 identifies a procedure for the surrender of Certificates of Title to the MN DVS with respect to Minnesota manufactured homes affixed to real property, by providing in part as follows:

Subd. 2.   Surrender of certificate of title.

(a) The owner of the manufactured home may surrender the manufacturer’s certificate of title to the commissioner for cancellation.

Upon receipt of the certificate of title, the commissioner must issue notice of cancellation to the owner of the manufactured home. . . .

Upon receipt of the request and verification of ownership in Driver and Vehicle Services Division records, the commissioner must issue notice of cancellation to the owner of the manufactured home and must not require the owner to deliver the certificate of title or obtain a duplicate certificate of title.

After canceling a certificate of title, the commissioner must not allow transfer of the title to the manufactured home as personal property.

The commissioner must not require the owner of the manufactured home to deliver the affidavit of affixation described in subdivision 5 in order for the commissioner to issue notice of cancellation.

Cancellation of Lost Minnesota Manufactured Home Title Certificates

M.S. Section 168A.1412, Subd. 2 also identifies a procedure for the cancellation of lost Certificates of Title by the MN DVS with respect to Minnesota manufactured homes affixed to real property, by providing in part as follows:

Subd. 2.   Surrender of certificate of title.

(a)  . . . In the event the certificate of title is lost, stolen, mutilated, destroyed, or becomes illegible, the owner may submit a written request for cancellation of the title which includes the serial number of the manufactured home and states that the certificate of title is lost, stolen, mutilated, destroyed, or has become illegible.

Upon receipt of the request and verification of ownership in Driver and Vehicle Services Division records, the commissioner must issue notice of cancellation to the owner of the manufactured home and must not require the owner to deliver the certificate of title or obtain a duplicate certificate of title.

After canceling a certificate of title, the commissioner must not allow transfer of the title to the manufactured home as personal property.

The commissioner must not require the owner of the manufactured home to deliver the affidavit of affixation described in subdivision 5 in order for the commissioner to issue notice of cancellation.

Affixation of Minnesota Manufactured Homes – Affidavit of Affixation 

M.S. Section 168A.1412, Subd. 5 identifies that an “Affidavit of Affixation” must be executed when the Manufacturer’s Certificate of Origin or the MN DVS issued Certificate of Title is surrendered by its owner to MN DVS, or otherwise cancelled by MN DVS, with respect to Minnesota manufactured homes affixed to real property:

Subd. 5.   Affidavit of affixation.

An affidavit of affixation must be in substantially the following form and must contain the following information and attachments described in the form . . . :

Recording an Affidavit of Affixation

M.S. Section 168A.1412, Subd. 5 identifies requirements for the recording of an Affidavit of Affixation with respect to Minnesota manufactured homes affixed to real property, and an identification of the party responsible for recording the Affidavit of Affixation, by providing in part as follows:

The county recorder or registrar of titles, as applicable, must accept any such affidavit.

The county recorder or registrar of titles, as applicable, must provide a copy of the recorded affidavit of affixation to the county auditor of the county for the real property described therein or otherwise inform the county auditor that the home is to be taxed as an improvement to the real property to which it is affixed.

Presumably, the purpose of such a delivery is to notify the County Auditor to change the property tax status:

• from vacant land upon which a manufactured home classified as personal property has been temporarily located,
• to improved real property upon which a manufactured home has been permanently affixed.

In 2019, at least one County Auditor was requiring that the property taxes for the entire year be paid in full before an Affidavit of Affixation could be recorded with respect to Minnesota manufactured homes affixed to real property – even if the recording of the document was to occur prior to the date on which the first one-half of property taxes were due – based upon the County Auditor’s interpretation of M.S., Section 273.125, Subd. 8(b).

Limitations – Existing Security Interest

M.S. Section 168A.1412, Subd. 2(b) identifies a prohibition on cancelling a certificate of title when there is an outstanding security interest, by providing in part as follows:

(b) The commissioner must not cancel a certificate of title if, under this chapter, a security interest has been perfected on the manufactured home.

If a security interest has been perfected, the commissioner must notify the owner of the manufactured home that each secured party must release or satisfy the security interest prior to cancellation of the certificate of title by the commissioner.

Affixing the manufactured home to real property or recording an affidavit of affixation without cancellation of the certificate of title does not extinguish an otherwise valid security interest in or tax lien on the manufactured home.

Affixation of Minnesota Manufactured Homes – FNMA Financing

Section B2-3-02 of the FNMA “Selling Guide” – published February 6, 2019 – identifies that Minnesota manufactured homes affixed to real property must be “legally classified as real property” in order to be eligible for FNMA mortgage financing.

Section B7-2-04 of the FNMA “Selling Guide” – published February 6, 2019 – identifies that the lender with respect to FNMA mortgage financing which is to be provided with respect to Minnesota manufactured homes affixed to real property must be provided with a Lender’s Policy of Title Insurance which includes an ALTA [American Land Title Association] Endorsement 7, 7.1, or 7.2.

Affixation of Minnesota Manufactured Homes – ALTA Endorsement 7

An ALTA Endorsement 7 provides substantially similar to the following:

The term “land” as defined in this policy includes the manufactured housing unit located on the land at Date of Policy.

Affixation of Minnesota Manufactured Homes – ALTA Endorsement 7.1

An ALTA Endorsement 7.1 provides substantially similar to the following:

The term “Land” includes the manufactured housing unit located on the land described in Schedule A at Date of Policy.

Unless excepted in Schedule B, the Company insures against loss or damage sustained by the Insured if, at Date of Policy:

1. A manufactured housing unit is not located on the land described in Schedule A.

2. The manufactured housing unit located on the land is not real property under the law of the state where the Land described in Schedule A is located.

3. The owner of the land is not the owner of the manufactured housing unit.

Affixation of Minnesota Manufactured Homes – FNMA Announcement 7-06

FNMA Announcement 7-06 – published June 15, 2007 – further identified the requirements in order for Minnesota manufactured homes affixed to real property to be eligible for FNMA mortgage financing, by providing in part as follows:

5. Titling Manufactured Homes as Real Property and Lien Requirements.

To be eligible for purchase by Fannie Mae, a manufactured home loan must be secured by a perfected lien (or liens) on real property consisting of the manufactured home and the land.

The manufactured home must be legally classified as real property under applicable state law, including relevant statutes, regulations, and judicial decisions.

The following requirements are also applicable:

• the owner of the manufactured home must own the land on which the home is situated;
• the manufactured home must be attached to a permanent foundation on the land and comply with state and jurisdictional requirements for permanent affixation; . . .

. . . any certificate of title to the manufactured home must be surrendered to the appropriate state government authority; . . .

Conclusion:

Affixation of Minnesota Manufactured Homes to Real Property

Please contact Minnesota Attorney Gary C. Dahle for assistance with facilitating the establishment of marketable title with respect to Minnesota manufactured homes affixed to real property.

Legal fees will be applicable – and advance payment may be required.

While less involved than a court proceeding, the statutory procedure with respect to Minnesota manufactured homes affixed to real property is significantly more involved than just “filing a form” – and is not well suited for do-it-yourselfers.

If you have an e-mail account, and a good Internet connection, Attorney Gary C. Dahle can assist you in any Minnesota County.

Copyright 2021 – All Rights Reserved.

Gary C. Dahle –  Attorney at Law

2704 Mounds View Blvd., Mounds View, MN 55112

Phone:  763-780-8390 Fax:     763-780-1735        gary@dahlelaw.com

Legal Disclaimer

Information provided herein is only for general informational and educational purposes. The laws regarding Minnesota manufactured homes involve many complex legal issues. If you have a specific legal problem about which you are seeking advice, please consult with a Minnesota attorney at law.

Gary C. Dahle, Attorney at Law, is licensed to practice law only in the State of Minnesota, in the United States of America. Therefore, only those persons interested in matters governed by the laws of the State of Minnesota should consult with, or provide information to, Gary C. Dahle, Attorney at Law, or take note of information provided herein.

Accessing the web site of Gary C. Dahle, Attorney at Law – https://www.dahlelaw.com – may be held to be a request for information. However, the mere act of either providing information to Gary C. Dahle, Attorney at Law, or taking note of information provided on https://www.dahlelaw.com, does not constitute legal advice, or the establishment of an attorney/client relationship.

Nothing herein will be deemed to be the practice of law or the provision of legal advice. Clients are accepted by Gary C. Dahle, Attorney at Law, only after preliminary personal communications with him, and subject to mutual agreement on terms of representation.

If you are not a current client of Gary C. Dahle, Attorney at Law, please do not use the e-mail links or forms to communicate confidential information which you wish to be protected by the attorney-client privilege.

Please use caution in communicating over the Internet. The Internet is not a secure environment and confidential information sent by e-mail may be at risk.

Gary C. Dahle, Attorney at Law, provides the https://www.dahlelaw.com web site and its contents on an “as is” basis, and makes no representations or warranties concerning site content or function, including but not limited to any warranty of accuracy, or completeness.

Related Topics:

Minnesota manufactured homes – Overview

Minnesota Manufactured Homes – Certificates of Title

Minnesota Manufactured Homes – Code Compliance

Minnesota Manufactured Homes – Evictions

Minnesota Manufactured Homes – In Park Sales

Minnesota Manufactured Homes – Lot Rentals

Minnesota Manufactured Homes – Security Interests

Minnesota Manufactured Homes – Tax Issues

Minnesota Manufactured Homes – Replacing Lost Title Certificates