Manufactured homes can be titled as real property, like a site-built house, or as personal property, like a vehicle, depending on the state, the home's age, and whether it is permanently affixed to land. The difference changes the entire closing process, from the documents to the title search.

Real Property vs. Personal Property

A manufactured home that is permanently affixed to owned land can be treated as real property, conveyed by deed and covered by title insurance. A home that is not affixed, or is on leased land, may be personal property with a certificate of title issued by the state, similar to a vehicle title.

  • Real property: conveyed by deed, covered by title insurance.
  • Personal property: conveyed by certificate of title.
  • The distinction depends on state law and the home's attachment.

How the Title Is Held

For real-property treatment, the home and land are usually conveyed together by deed, and the title search covers the land and the improvements. For personal-property treatment, the state issues a title certificate that must be transferred, and lenders may take a security interest under different rules.

  • Deed-based transfer for real property.
  • Certificate of title for personal property.
  • Lender security interests follow the property type.

Converting a Home to Real Property

Many states allow owners to convert a manufactured home from personal to real property by permanently affixing it and filing the right documents, such as a statement of affixation or a title surrender. The process and the forms vary by state, and the conversion affects financing and taxes.

  • The home must be permanently affixed.
  • The state title certificate is surrendered or endorsed.
  • The process and requirements vary by state.

Buying and Selling Manufactured Homes

Buyers and sellers need to know which title system applies before contracting. A home titled as personal property may not be eligible for a conventional mortgage, and the closing process is different. Investors should confirm the property type and the title system during due diligence.

  • Confirm whether the home is real or personal property.
  • Check the state title certificate or the deed.
  • Confirm the financing options for the property type.

The Bottom Line

Manufactured home transactions run on the state's rules for the property type, and those rules vary widely. The closing team needs to know how the home is titled to handle the documents correctly. When in doubt, confirm the classification before you commit.

  • Read the guide on title problems that delay closings.
  • Request an exact title and escrow quote for the transaction.
  • Ask the closing team how the home's title will be handled.