T-31.1 Guideline - TX Supplemental Coverage Manufactured Housing Unit Endorsement

Explanation:

This endorsement is issued in conjunction with a T-2 Loan Policy to insure a manufactured housing unit located on the land. Manufactured housing includes mobile homes permanently attached to the land as a fixture.

Please also see P-9a(4) and R-15c as applicable to endorsement T-31.1 Owner's Policy.

Please also see P-9b(7) and R-11e as applicable to endorsement T-31.1 Loan Policy.

Underwriting Requirements:

T-31.1 Manufactured Housing Endorsement Supplemental Coverage

A company is not required to issue endorsement form T-31 in order to issue endorsement form T-31.1.   Whether or not a T-31 endorsement is issued, compliance with the T-31 underwriting guidelines is also required for issuance of the T-31.1.   Additionally, once you have a Statement of Ownership and Location (SOL) in hand or agree to become responsible for obtaining the SOL, the various coverages provided by the T-31 have been met.  However, you must still have proof that the specific MHU being insured is physically located on the property.  Proof may be obtained by a survey, inspection with pictures or affidavit with pictures.

§1201.2055, Occupations Code, clarifies that once a manufactured home has been elected as real property and a SOL issued as such, no further SOLs are necessary when the manufactured home and land are sold as a unity. Within 60 days after it has been issued by the Texas Department of Housing and Community Affairs (TDHCA), the SOL must be recorded in the county records and a copy of the recorded SOL must be sent to TDHCA for entry in its records and the tax assessor-collector must be notified of the filing; otherwise, the manufactured home is still considered elected as personal property.

§1201.217, Occupations Code, also provides a procedure for the owner of real property to secure abandonment of a manufactured home owned by another and to apply for a SOL that extinguishes all liens on the home. The prior owner of the home has 45 days after the date the notice of declaration of abandonment by the landowner to remove the home; otherwise the liens on the home are extinguished and the real property owner may declare the home abandoned and apply to the department for an SOL listing the real property owner as the owner of the manufactured home.

Company Policy:  An SOL issued by TDHCA showing an election as real estate must be recorded in the real property records and a copy of the recorded SOL sent to TDHCA and the tax assessor-collector. The title company is legally allowed to charge for this extra step, if it chooses to do so.

Once the home has been elected real property and the SOL issued, recorded in the land records of the county where the home is located and the recorded SOL returned to the TDHCA, we require no further SOLs when the home and land are resold together.

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

T-31.1 TX Supplemental Coverage Manufactured Housing Unit Endorsement