- February 12, 2007
- All Offices Authorized to Issue Title Insurance in the State of Maryland
- Manufactured Housing
Recently there has been a marked increase in the amount of claims resulting from the issuance of title insurance for real property on which sits manufactured housing/mobile homes. As such, the following underwriting guidelines must be followed when you encounter real property that is improved by a manufactured/mobile home and the lender is requesting an ALTA Endorsement Number 7.
1) You must determine that the owner of the underlying land and the mobile home are one in the same. In order to determine this, you should examine the CURRENT motor vehicle title certificate which was issued when the unit was purchased or registered in the last state of residence of the owner.
2) You must determine that the mobile home unit is actually on the land. One method is to look at the State website to determine if the property has been assessed as improved.
3) You must determine the unit is permanently affixed to the land. To be permanently affixed, the wheels and axles of the unit must have been removed. It must also be hooked-up to public utilities such as gas and/or electricity.
4) You must determine whether any security interests in the unit at the time it was affixed to the land still exist (e.g., financing statements, UCC, etc.). You must complete a search of the land records and the Maryland State Department of Assessments and Taxation (SDAT UCC searches are available online at: http://sdatcert3.resiusa.org/ucc-charter/UCCSearch_a.asp).
If they do, you must require their release or add an exception to Schedule B of the Owner's and Loan policies, to wit:
This is a matter covered under the Uniform Commercial
Code or under the motor vehicle registration laws of the State of
5) If the motor vehicle title certificate is presently outstanding, it must be relinquished (turned in) with the State.
6) If insuring the structure as a mobile home inclusive with the land, you must add a notation in the legal description in Schedule A identifying the mobile home unit as a part of the property insured. The unit's make and serial number should be included.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.