| (a) Application Requirements. In order to be deemed
complete, an application for a Statement of Ownership must include,
as applicable:
(1) A completed and fully executed Application for
Statement of Ownership on the Department's prescribed current form
(2) The required fee;
(3) If the statement of ownership is to reflect the
recordation of a lien, other than a tax lien, for which the Department
does not have the owner's consent, copies of documentation establishing
the creation and existence of each such lien, and an affidavit of
fact explaining the circumstances of the lien;
(4) When one or more existing liens are to be released,
assigned, or foreclosed, appropriate supporting documentation;
(5) When an application for Statement of Ownership
indicates a change in ownership but no change in lien, supporting
documentation that clearly establishes that the lien holder consented
to that change; and
(6) When a manufactured home is to be designated for
use as a dwelling and/or personal property after the home has been
designated for business use, salvage, or as real property, evidence
of a satisfactory habitability inspection by the Department.
(b) Right of Survivorship: If a right of survivorship
election is made, then the Department will issue a new Statement of
Ownership to the surviving person(s) upon receipt of a copy of the
death certificate of the deceased person(s), a properly executed application
for Statement of Ownership, and the applicable fee.
(c) Corrections to Statements of Ownership.
(1) If a correction is required as a result of a Department
error, it will be corrected at no charge.
(2) If a correction is requested because of an error
made by a party other than the Department, the correction will not
be made until the Department receives the following:
(A) A complete corrected application for Statement
of Ownership, or
(B) Documentation deemed appropriate and approved by
the Executive Director, pursuant to §1201.207(c) of the Standards
Act.
(d) Upon issuance of a Statement of Ownership, the
Department will mail one copy to the owner and one copy to the lienholder.
If an additional copy is desired for a third party it should be noted
on the application with appropriate mailing information.
(e) Exchanging a Document of Title or certificate of
attachment for a Statement of Ownership: The Department will issue
a Statement of Ownership, with no change in status, to replace a title
or certificate of attachment at no charge upon receipt of the original
title or certificate of attachment and the physical location of the
home. If a manufactured home title showed that it was personal property,
that will be presumed to be its status until and unless a revised
Statement of Ownership is applied for and issued. Likewise, if a manufactured
home has had a certificate of attachment issued and had title cancelled
to real property, that shall be presumed to be its status until and
unless a revised Statement of Ownership is applied for and issued.
(f) Updating of Statements of Ownership on Manufactured
Homes Transferred as Real Property.
(1) When a manufactured home has become real property
because the owner completed the conversion process required by the
Standards Act, the home may be sold, transferred, or encumbered as
real property by the customary means used for real property transactions.
As long as the home remains real property at the same location, ownership
of the home is confirmed in the same manner as any other real property,
rather than by verifying Department records. A new Statement of Ownership
does not have to be applied for until and unless:
(A) the home is moved from the location specified on
the statement of ownership;
(B) the current owner of the manufactured home wishes
to convert it to personal property status;
(C) the use of the property is changed to business
use or salvaged; or
(D) the manufactured home no longer meets the requirements
to be classified as real property (such as the home being on property
subject to a long term lease which is not assignable to the buyer
or transferee).
(2) To convert a manufactured home from real property
to personal property, the owner of the home must submit a completed
Application for Statement of Ownership to the Department with supporting
documentation as follows:
(A) If the applicant is not the owner of record with
the Department, satisfactory proof of ownership under a complete chain
of title. Acceptable evidence would include, but not be limited to,
authenticated copies of all intervening transfer documents, a court
order confirming ownership, or title insurance policy in such owner's
name issued by a title insurance company licensed to do business in
Texas.
(B) Satisfactory evidence that any liens on the manufactured
home have been discharged or that all lienholders have consented to
the change.
(C) Evidence of either a satisfactory habitability
inspection by the Department or an election to convert the status
of the home to business use or salvage.
(D) For the purposes of subparagraph (B) of this paragraph,
the Department may rely on a commitment for title insurance, a title
insurance policy, or a lawyer's title opinion to determine that any
liens on real property have been released.
(3) To update the ownership on a manufactured home
already elected and perfected as real property, and remaining in the
same location as real property, the new owner of the home must submit
a completed Application for Statement of Ownership to the Department
with supporting documentation as follows:
(A) If the applicant is not the owner of record with
the Department, satisfactory proof of ownership under a complete chain
of title. Acceptable evidence would include, but not be limited to,
authenticated copies of all intervening transfer documents, a court
order confirming ownership, or title insurance policy in such owner's
name issued by a title insurance company licensed to do business in
Texas.
(B) Satisfactory evidence that any liens on the manufactured
home have been discharged or that all lienholders have consented to
the change.
(C) For the purposes of subparagraph (B) of this paragraph,
the Department may rely on a commitment for title insurance, a title
insurance policy, or a lawyer's title opinion to determine that any
liens on real property have been released.
(4) When a home is being converted to real property,
a copy stamped "filed" by the county must be submitted to the Department
as evidence that the requirements of §1201.2055 of the Standards
Act have been satisfied and the real property election has been perfected.
This must be done within sixty (60) days from the issuance date reflected
on the Statement of Ownership.
(g) When a title company or attorney's office fails
to complete the conversion of a manufactured home to real property,
the holder or servicer of the loan may apply for a statement of ownership
electing real property status after-the-fact, providing that evidence
of notice to all parties is sent via certified mail and that proof
of such efforts is provided along with an affidavit of fact describing
such efforts, pursuant to §1201.2055(i)(3) of the Standards Act.
(h) Submitting an application for Statement of Ownership
pursuant to the abandonment provision in §1201.217 of the Standards
Act, should include an affidavit of fact, on the prescribed form,
attesting to that all statutory notifications have been made to the
appropriate parties, including the tax assessor-collector of the county
where the home is located, and evidence that all notification was
sent via certified mail.
(i) A Priority Handling Service may be offered by the
Department for an additional fee of $55, each time an application
for statement of ownership is reviewed on a priority basis, whether
the application is complete or incomplete. Initial or resubmitted
applications submitted with priority handling requested and including
the additional fee, will be processed within five working days from
the date the application is recognized as received in the Department
(applications received after 3:30 p.m. become part of the following
day's mail).
(1) If the application is received complete, a Statement
of Ownership will be issued and mailed within the established time.
(2) If the application is received incomplete, a Request
for Additional Information will be issued and mailed within the established
time.
(3) Applications requiring habitability or salvage
rebuilding inspections are not eligible for the Priority Handling
Service.
(j) When it is deemed appropriate by the executive
director, an affidavit of fact may be required as additional documentation
to accompany a statement of ownership application.
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