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Missouri: Major Changes re Mobile Homes

by Emily Hovater
South & Associates, P.C. – USFN Member (KS, MO)

Editor's Note: The governor vetoed the legislation discussed in this article. For more information, please contact the author at emily.hovater@southlaw.com or 913.663.7600, x118. 

Major changes have occurred with regard to the attachment of mobile homes to real property in Missouri. Previously, the statute governing conversion of mobile homes to real property stated that the owner of a manufactured home may convert it to real property by attaching the manufactured home to a permanent foundation located on real property owned by the manufactured home owner, and by removing or modifying the transporting apparatus, making it impractical for the mobile home to move. V.A.M.S. § 700.375 (2008). In addition to this requirement, the same person or persons must have owned both the unit and the land, which created unity of title. In re Estate of Parker, 25 S.W.3d 611 (Mo. Ct. App. W.D. 2000). These two factual requirements were the only guidelines for determining attachment of a mobile home.

Missouri title companies became progressively concerned over the years about whether the factual requirements truly converted the mobile home to real property. They adopted new underwriting principles in order to avoid possible pitfalls that could occur with the statutory conversion requirements. In addition to the factual requirements that Missouri had for conversion, title companies acted to ensure the mobile home was included in secured deeds of trust and real property legal descriptions.

However, the Missouri legislature has enacted new established procedures for converting a mobile home to real property. In addition to the factual requirements that Missouri already has for conversion, the property owner must file an affidavit of affixation with the recorder of deeds where the mobile home is located and also with the Department of Revenue. (S. 235, 95^th Gen. Assem., Reg. Sess. (Mo. 2009)). The affidavit must contain the street address and the legal description of the real estate to which the manufactured home will be permanently affixed. It should also contain a statement as to whether or not the manufactured home is subject to security interests or liens. Additionally, the affidavit of affixation must be accompanied by a statement of whether or not the manufactured home is covered by a certificate of title.

The legislature’s main goal in enacting this legislation was to streamline the taxation of mobile homes and raise property values in Missouri. In general, manufactured homes are classified as motor vehicles. Having evidence on file that a mobile home has been converted to real estate will make it clear to the Department of Revenue as to how to tax the mobile home. Further, adding the value of the mobile home to the value of the real estate could raise property values.

Now, instead of speculating as to whether the mobile home is affixed to the real estate by just a physical examination of the mobile home itself, there will be a clear record with both the Department of Revenue and with the recorder of deeds. This will eliminate litigation by making it easier to determine which liens have priority, and what exactly is encumbered in deeds of trust involving mobile homes.

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