Underwriting Manual: TX


Mobile And Manufactured Homes

State Supplements

View state supplements to the national underwriting manual.

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Underwriting Manual Subtopic

In General

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The term "land" is defined in the Conditions and Stipulations section of the Texas Owner and Mortgagee title insurance policies as follows:

(d) "land": the land described or referred to in Schedule A, and improvements affixed thereto that by law constitute real property. The term "land "does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy.

The Residential Owner policy defines "land" as:

e. Land. The land or condominium unit described in Schedule A and any improvements on the land that are real property.

In certain cases, the determination as to whether a house or dwelling unit located on the land constitutes real property may not be an easy task.

While those houses or dwelling units that are totally built on the land present no problem in qualifying as real property, those completely built outside the land do present some serious difficulties in order to have them divested of their condition of personal property and have them qualified as part of the land.

In general terms, out-site housing can be grouped as follows:

  • Modular Homes - prefabricate structures that arrive on-site in units preassembled at the factory.
  • Mobile-Component Houses - prefabricated structures consisting of two or more three dimensional components that are joined together at the site.
  • Manufactured Housing Units (MHU) - dwelling structures in which structured chassis support the floors, walls, and roofs, and in which the chassis rest on wheels, axles, and brakes for the purposes of transportation to any site or location.
  • Recreational Vehicles are similar to MHU's except they are less than 320 sq. ft. in area.


Underwriting Manual Subtopic

Requirements In Connection With The Insurance Of Any Kind of Manufactured Housing Unit As Part of the Land

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  • That the ownership of both the manufactured housing unit (statement of ownership and location (SOL)) and the ownership of the land (deed) are in the same party.
  • That there is a manifest intention to dedicate the mobile home or similar housing unit for the exclusive purpose of a permanently located dwelling area, as shown by the application for SOL marked as electing the unit as real property.
  • After January 1, 2002, manufactured housing units permanently affixed to real estate owned by the buyer, or being performed under a contract for deed or contract for sale.
  • That the mobile home or similar housing unit is being taxed in conjunction with the land as a single parcel of real property.
  • That the permanent affixation of the mobile home or similar housing unit to land has been fully effected. This affixation entails, among others, the following steps:

    • Removal of the axles and wheels.
    • Setting on a permanent foundation.
    • Connection to at least one public utility, such as water, electricity, storm sewer, natural gas, propane, or butane.
    • Compliance with any other statutory requirements.
  • That any lien, security interest, or encumbrance affecting the MHU and shown in the title registration, or bill of sale, or certificate of sale, has been properly canceled.

    • The MHU disclosure statement must have been provided by the dealer or lender prior to loan application. Failure of the buyer to receive this notice does not void the deed or any encumbrance.
    • That any mortgage being insured contain the following clause:

      The real property described in this mortgage includes as an improvement to the land set forth herein a (manufactured housing unit) description of any other similar housing unit) permanently affixed to such land.
  • After your examination and above compliance you may issue the Manufactured Housing Endorsement T-31 and a T-31.1.
  • In 2007, legislation was passed dealing with the issuance of statements of ownership and location for manufactured homes to certain lien holder's without the consent of the owner's of those homes. This bill was made necessary by the failure of some owners, retail sellers, lenders and title companies of to getting the required Statement of Ownership in a timely manner. If the lender foreclosures, the TDHCA is unable to issue an SOL to the lender, who then cannot provide an SOL to their buyer. This bill allows the lender or the loan servicer to file an affidavit and the foreclosed loan instrument with the TDHCA and obtain an SOL.

    Effective date January 1, 2008.

    Changes/actions required: This provision does not dispense with the duty to promptly handle all SOL requests in a timely fashion. On the other hand, when a property has been foreclosed and the lender or servicer provides you with an SOL on the manufactured home involved in your transaction, you may consider the home to be real property and handle it in accordance with normal practices.

See also Texas Bulletin TX2013006 – LEGISLATIVE UPDATES 2013 Part I relating to extinguishment of tax liens on manufactured homes. 

Underwriting Manual Subtopic

Schedule B Exception When Mobile Home Does Not Qualify As Part of the Land

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Exception: The land described in this (commitment) (policy) does not include any manufactured housing unit on the subject property.

Underwriting Manual Subtopic

Manufactured Housing Endorsement T-31 & T-31.1

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Upon request of a lender, the underwriting requirements of this section and the payment of the premium as set out in R-11(e) of the Texas Title Insurance Basic Manual, you may issue either or both the T-31 and T-31.1 Endorsements.  A T-31.1 can be issued to both owner and lender.

Underwriting Manual Subtopic

Treatment of Manufactured Housing Units under Various Liens

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Bulletin TX000066 contains a full explanation of MHU laws and standards over the years.

Underwriting Manual Subtopic

Treatment of Manufactured Home as Real Property

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Sections 1201.2055(d), (e), and (g), Occupations Code (2011) provide as follows:  (e)    A real property election for a manufactured home is not considered to be perfected until a certified copy of the statement of ownership and location has been filed and the department and the chief appraiser of the applicable appraisal district have been notified of the filing as provided by Subsection (d).(g)    After a real property election is perfected under Subsection (e):(1)                the home is considered to be real property for all purposes; and(2)               no additional issuance of a statement of ownership and location is required with respect to the manufactured home, unless: (A)  the home is moved from the location specified on the statement of ownership and location;(B)  the real property election is changed; or(C)  the use of the property is changed as described by Section 1201.216  SECTION 2. Section 1201.207(c), Occupations Code (2011) , provides as follows:    (c)       Except with respect to any change in use, servicing of a loan on a manufactured home, release of a lien on a manufactured home by an authorized lienholder, or change in ownership of a lien on a manufactured home, but subject to Section 1201.2075, if the department has issued a statement of ownership and location for a manufactured home, the department may issue a subsequent statement of ownership and location for the home only if all parties reflected in the department's records as having an interest in the manufactured home give their written consent or release their interest, either in writing or by operation of law, or the department has followed the procedures provided by Section 1201.206(k) to document ownership and lien status.  Once the department issues a statement of ownership and location, the department shall not alter the record of the ownership or lien status, other than to change the record to accurately reflect the proper owner's or lienholder's identity or to release a lien if an authorized lienholder files with the department a request for that release, of a manufactured home for any activity occurring before the issuance of the statement of ownership and location without either the written permission of the owner of record for the manufactured home, their legal representative, or a court order.  Other sections deal with tax liens. What you should do:  When you take on the responsibility for obtaining a Statement of Ownership and Location you must comply with all of the steps required by the department of housing and community affairs including the required notices to the chief appraiser.