Tuesday, March 16, 2010

Terminology Tuesday - Title

(Scale of Justice). Source: Wikipedia

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

As defined in Wikipedia:

"Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership. Conveyance of the document may be required in order to transfer ownership in the property to another person. Title is distinct from possession, a right that often accompanies ownership but is not necessarily sufficient to prove it. In many cases, both possession and title may be transferred independently of each other".

Title conveys ownership while a Bill of Sale does not. Title is NOT the same as Bill of Sale.

When titling a property for mobile homes (as personal property), the transaction must accompany the physical title (in most cases, some states vary) and be recorded with the local authority in charge of manufactured housing. (Usually, this is as simple as filing a piece of paper and paying a fee).

Without "recordation," in the eyes of the government and the public whoever is in the record database of the local authority in charge of manufactured housing is the owner of the home.

So, before even exchanging funds when purchasing a mobile home you must first make sure you see a physical title from the seller (in most cases, some states vary) and check with the local housing authority as to who their records on who title currently belongs (according to public records) to if you would like to obtain title to the home.

Depending on your area, the process of titling a mobile home will vary. It's a good idea to get acquainted with the local housing authority in charge of manufactured homes in your area so you get to know the process and how things work. It's a great source of information for learning about the industry in your area.

Happy investing!

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