We were recently advised by our title insurance underwriter that the State of Michigan had revamped its procedures relative to the processing of Affidavits of Affixture for mobile homes being sold along with land and that the State would no longer accept and process an Affidavit of Affixture submitted post-closing which was executed by a Seller at the closing table. We then immediately informed you of this change.
However, we have now been advised by the same underwriter that the State’s Bureau of Construction Codes, Department of Licensing and Regulation, which handles the processing of Affidavits of Affixture, has indicated that they will process an Affidavit of Affixture signed by a Seller so long as the that Seller is the owner shown on the Certificate of Title for the mobile home and the seller has not put the buyer’s name on the certificate of title and signed the certificate of title over to the buyers.
They did also indicate that the State will not process the Affidavit of Affixture if the Certificate of Title has been signed over to the Buyer, or if in addition to the Affidavit of Affixture and Certificate of Title, they receive a copy of the deed from Seller to Buyer or other closing documentation indicating that the Seller has already transferred the underlying land. Also, if the sellers have signed the certificate of title over to the buyers, then a duplicate certificate of title to be issued in the Buyer’s name will have to be obtained and once received would need to be submitted to the State along with an affidavit of affixture executed by the Buyers.
We have been advised that the State of Michigan has revamped its procedures relative to the processing of Affidavits of Affixture for mobile/manufactured 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, thereby 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.
To avoid delays in closings, if there is a mobile or manufactured home involved in which a lender is asking for an ALTA 7 endorsement and/or title to the home will be terminated, we will require the Seller 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.
We will set forth the requirement for such on our title commitment when we are made aware that a mobile/manufactured home is involved, in order to alert and remind the parties that this must be achieved prior to closing. Ideally, a seller would have this done prior to or at the time of listing the property. The State form indicates a 7-10 day processing time following receipt of all required documents and the fee, but it often takes longer than this to process.
If the requirement cannot be fulfilled, we would be able to proceed with closing if the lender is not requiring that the title to the mobile home be retired and not requiring an ALTA 7 endorsement with its loan policy and the buyer is aware that the policy will contain an exception stating that the policy will not be insuring anything related to the title to the mobile home.