The State of Michigan has revamped its procedures relative to the processing of Affidavits of Affixture for mobile homes being sold along with land. The State will no longer accept and process an Affidavit of Affixture submitted post-closing which was executed by a Seller at the closing table. The State has taken the position that at closing the Seller has also executed a deed to the new Buyer for the land upon which the mobile home sits, thus removing the Seller as the title holder of the land. Therefore, the seller is removed as a party who would be able to complete and execute the Affidavit of Affixture as they no longer own the land.
Processing of new files for closings which involve a mobile home will now need to be handled as follows:
Selling with a Mortgage Involved
This revised protocol may hinder a sales transaction wherein the land to be sold has a mobile home on the premises; the title to the mobile home has not been retired via an Affidavit of Affixture; the Buyer is going to purchase the land and mobile home with a purchase money mortgage wherein the lender has included in their appraised valuation both the value of the land and the mobile home; and the lender is requiring the issuance of the ALTA 7 Endorsement as part of their closing contingencies. In order to accommodate a closing under these circumstances the Seller will need to process an Affidavit of Affixture prior to our closing and bring the original State approved Affidavit of Affixture to closing to be recorded as part of closing.
Selling without a Mortgage (Cash deal)
A cash sale of land with a mobile home on it the settlement agent will need to know if the PA and parties have agreed to have the title to the mobile home retired and insured as part of the owner’s policy to be issued. If the mobile home title is to be retired and the interest of the mobile home included as part of the “Land” as defined in the owner’s policy to be issued, then the Seller is required to process an Affidavit of Affixture prior to our closing and bring the original State approved Affidavit of Affixture to closing to be recorded as part of our closing.
A cash sale where the title to the mobile home is only to be signed over the new Buyer and not retired or insured as part of the owner’s policy to be issued, then the title being signed over to the Buyer as part of our closing, however the settlement agent/closing company will not take any responsibility for the Buyer having the new title processed; the costs associated with the new title or any taxes to be paid for the use/transfer of title to the new Buyer. All of that will need to be assumed by the purchasing party. Further, the owner’s policy does not insure or make representations as to the title to the mobile/manufactured home located on the land