Mobile Homes
Escrow transactions for mobile and manufactured homes are significantly different than that of a typical residential home. The first thing to note is that a mobile home is considered personal property and is not considered real property. This means that, unlike residential escrow, there will be no title insurance, and no recording of a grant deed to guarantee the transfer of the property.
Instead, your escrow officer will work directly with the Ohio Department of Motor Vehicles or the Ohio Department of Housing and Community Development to ensure the transfer of ownership on your new property.
In order to do this accurately, your escrow officer will need a strong understanding of the mobile home escrow process. This is something that can only be gained with years of experience.
Your Escrow Officer Processes All Title Transfer Paperwork
To transfer ownership of a mobile home, your escrow officer processes all necessary documentation with the DMV or HCD, ensures liens are paid in full, submits the appropriate transfer documents, and processes the transfer of title to completion.
In sum, without the guarantee of clear title from a title company, you are relying entirely on the expertise of your escrow officer to complete the mobile home sale accurately and in a reasonable amount of time.
Every Mobile Home Escrow Is Different From The Next
Because there is a large variety when it comes to mobile homes, we see an equally large variety in mobile home escrow and title transfer requirements. For example, if a mobile home is under 40 feet, title transfer will be handled directly with the Ohio Department of Motor Vehicles. If a mobile home is over 40 feet, title transfer will be handled directly with the Ohio Department of Housing and Community.
For each variation in a mobile home sale, there could be an equal variation in the paperwork required to complete the transaction accurately.
To avoid a prolonged or inaccurate escrow processing, you will want to be sure to find an escrow officer that is experienced and knowledgeable in mobile home sales. A failure to do so could result in an incomplete transfer, back fees, and unnecessary hassle. With the right expert, you will have peace of mind in knowing that all required processes are completed accurately for the transfer of ownership.
The Mobile Home Escrow Process
Similar to a residential sale, a person looking to purchase a mobile home will contact a real estate agent, select a property for purchase, and come to a sale agreement with the owner of the existing property.
*IMPORTANT*
At this point, the potential buyer must get park approval from the mobile home park. Park approval varies by park, however, most commonly, a buyer can expect a credit check in addition to any other requirements set forth by the park.
Once the park has approved the new buyer, the real estate agent will draw up a Manufactured Home Purchase Agreement and Joint Escrow Instructions to submit to the escrow officer. The escrow officer will then prepare escrow instructions based on the purchase agreement and complete the necessary transfer documentation based on specific DMV or HCD requirements for that particular mobile home.
As usual, the buyer will submit all monies and the seller will submit the title to the escrow office where they will be kept safely until the transaction is complete. Once transfer documentation is complete the title will go to the buyer (or lender if there is a loan) and a check is disbursed for the sale amount, minus fees, to the seller. The DMV or HCD will process the escrow paperwork and send a new title to the rightful owner as soon as it is ready.