Mobile Home Title Surrender: Process & Requirements

Mobile or Manufactured homes have Georgia DMV titles, just like your automobile.   The title to the mobile or manufactured home follows a chain of ownership.  It is essential to ensure these titles convey properly to each owner.  New mobile homes receive either an original manufacturer’s certificate of origin (allowing the owner to apply for a title) or a title in the owner’s name.

Application for a Mobile or Manufactured Home Title

To apply for a mobile home title in the new owner’s name, the owner must have the following documents:

  1. The original manufacturer’s certificate of origin (MCO) or the titles issued in the owner’s name.
  2. A completed MV-1 DOR Motor Vehicle Title/Tag Application for each unit depending on whether the home is a single, double, or triple wide unit.
  3. Applicable fees charged by the county tax office for each application.

Once the owner (for a new or resale mobile home) has the original Georgia Certificate of Title(s), then the owner may complete the process to convert the mobile home to real property.  The owner must complete and file a Georgia DOR Form T-234 with the Clerk of Superior Court in the county where the mobile home is located. The owner must file for each unit separately and also pay applicable recording fees.  If there is a lien holder on the title(s), the lien holder must consent to the filing of the T-234 by executing a form for each unit. Upon recording of the T-234(s), the owner will receive the original forms.

To complete the process of surrendering the mobile home title(s), the original recorded T-234(s) will be provided to the County Tag Office along with the original Georgia Certificate of Title(s) and the applicable filing fees.  The County Tag Office will cancel the title(s) and issue Title Cancelled to Real Property confirming the cancellation of title.

Benefits of Surrendering or Cancelling the Title

Value: By converting a mobile home to Real Property, the value of the property may increase as it will be taxed as improved property. This is different from an uncancelled title. A mobile home is taxed separately from the land.

Marketability:  Mobile Homes that have had the title(s) cancelled and converted to real property are generally eligible to receive a primary residence loan.  This often equates to better financing terms and more affordable housing.

Insurance: Now that the home is recognized as a permanent structure and there are more insurance options.  This can greatly reduce the cost to the potential purchaser.

Title Insurance:  Mobile Homes that have been converted to Real Property can be covered by an Owner’s Title Insurance Policy.

Challenges When Purchasing

Missing Title(s):  Often individuals list Mobile Homes and the properties where they are located as “cash transaction or cash buyers” only.  This is because the seller is unable to convey title through a certificate of title. These sellers instead wish to convey by a Bill of Sale.  This can be extremely risky for a buyer.  It may be very difficult to obtain a Georgia Certificate of Title because of a failure to have a proper chain of title, release from a lien holder, or the seller not having proper authority to convey a clear and good title to the purchaser.  Buyers who want to purchase a mobile home by Bill of Sale only should verify the seller has authority or proper ownership.

Fraud:  In an ever-increasing technology based world, fraud is prevalent in all aspects of the Real Estate industry.  Criminals are producing fake certificates of title and fraudulently executed Bills of Sale.

Difficulty Selling or Financing:  Not obtaining mobile home’s title through the proper conveyance can prevent the buyer from selling or financing the property in the future.  This can also inhibit the buyer’s ability to obtain insurance.

Title Insurance:  When an individual sells a mobile home as personal property and not converted to Real Property, there is no Owner’s Title Insurance policy to protect the property.

Final Thoughts: Ensuring a Smooth Mobile Home Title Process

Use an industry leader with many years of experience as your guide when purchasing a mobile home.  Each transaction has its own unique set of challenges and circumstances.  No transaction is the same.  At Davis & Associates, we have decades of experience in handling mobile and manufactured home transactions.  Our goal is always to help buyers obtain the correctly titled property with the most economically advantageous ownership.