1st Deal Done-Now I Need Some Advice - Posted by Glenn

Posted by Steve-WA on February 29, 2008 at 11:02:15:

usually, the buyer’s name goes on title to satisfy the park that they are true owner-occupants. Since this park doesn’t seem to care about that, then I would agree with the PM.

It’s really no big deal - just make sure that if there are annual property taxes, and you get the bill, that the buyer swill be responsible to pay you so that you can pay the taxes. Perhaps divide taxes by 12 and add that amount to the payment - hold it back (“escrow it”) so that you can pay the tax bill when you get it.

In WA, one can put the buyer down as registered owner with the county so that they are the taxpayer, but with the state titling agency it is a different registration, so this could be done such that the county bills the buyer/owner for annual property taxes, but the title need not show their name. When paid off, you can transfer it to them.

BIG BUT ADVANCE WARNING!!!

But, if there is trouble in the case of eviction, they have an equity interest, and if they want to pursue that, you would have to explain to a judge why you did not put them on title. There is a “Contract for Title” form that can be used to justify what the PM is describing. Should keep you out of hot water if there is ever a problem.

Check your email

1st Deal Done-Now I Need Some Advice - Posted by Glenn

Posted by Glenn on February 29, 2008 at 09:46:09:

I just did my first Mobile Home Note on Monday. I am working with a very helpful PM so the deal went off somewhat easily. However, he is recommending that I keep the title in my LLC name until the note is paid in full, so that it would easier to repossess in case of eviction. I wanted to put the title in the buyers name with my LLC as the first lienholder. Any help would be greatly appreciated.

Thanks,

Glenn

Re: 1st Deal Done-Now I Need Some Advice - Posted by JeffB (MI)

Posted by JeffB (MI) on March 01, 2008 at 07:07:12:

I agree with everything Steve said, but will add that it’s VERY important to understand your state laws regarding conveyance of title.

In my state, title MUST be passed to the buyer (even in a lease-option type situation) regardless of whether the park requires it or not. This is because we have a 6% sales tax that applies to mobile homes, and the state wants to make sure they are paid up front when a sale (or disguised sale such as L/O or ATP) occurs.

Congrats on getting the first deal done!

Jeff