Buy Safely. Learn From Others. Anticipate Pitfalls in Manufactured Home Deals.

At Royal Village, a manufactured home community in Toledo, Matthew Caton fought hard for his rights.

Matthew was among a number of residents who lingered in a rent-to-own status. They’d been promised their titles 180 days after they bought in. But they’d been waiting more than a year when they heard they’d finally receive their titles on New Year’s Day, 2024. Still, they waited.

“It’s excuse after excuse,” one resident told a 13 Action News reporter.

The news team called the company that owns Royal Village. The rep there had no information. The local title office said the residents could go to court to get their titles. That would cost several hundred dollars and the court determination wasn’t guaranteed.

Why should it be up to the residents to attempt a legal fix? Wasn’t it up to Royal Village to come through on its contractual promises?

Persistence—And Media Coverage—Pays Off

Frustrated by the property manager’s inaction, Matthew Caton hired a lawyer. And this year, Matthew’s persistence paid off.

13 Action News talked again with Matthew, asking what happened since the news team’s initial visit. Matthew’s lawyer had called the property manager’s office three times before an appointment was finally set up with an auditor to transfer the title. Today, Matthew Caton’s name is on the title. And the company issued a statement confirming the transfer of title “to its rightful owner, Mr. Caton.”

“Please rest assured that we would never sell a home that we do not own. Unfortunately, we encountered some delays in the title transfer process,” the company added.

But Matthew told reporters the company sold him the mobile home when they didn’t hold the title themselves. And the news team confirmed that take. The reporters spotted a title transfer from the previous owner of the manufactured home to Royal Village just days before the company finally conveyed the title to Matthew Caton.

The new title holder told the news team that his sympathies are with the other owners still waiting for their titles, unable to pay for a lawyer’s support.

At Royal Village, Manufactured Homes are Personal Property

The title to a Royal Village home is registered through the state motor vehicles department — not the county recorder of real estate deeds.

Available homes at Royal Village are listed on the major real estate sites, with photos. For under $50K ($314 per month), a household could move into a 960 square foot, two-bed / two-bath manufactured home. Google, Yelp, and other review sites display customer experiences with the company. Those who buy into any housing community should consider reading the online review sites. In some cases, stories from current residents can help buyers come to informed decisions.

Potential buyers should also note the comparative advantages in getting a deed to the land on which a manufactured home exists. Where state law enables this, the land purchase can be financed with a mortgage. Buyers have a harder time getting loans for the structure only. They pay more for these loans, and wind up with less overall protection.

Buyers should carry out due diligence on manufactured home financing. There are fewer consumer protections, state or federal, for contract financing — especially as many contracts aren’t publicly recorded.

Normally, manufactured homes have real estate deeds if ownership includes the land underneath. But a state may require deeds for mobile homes in any case. See this example, for New Hampshire.

Browser Beware! Mobile Home Buyers Should Look Out for Imposter Sellers

The Better Business Bureau now warns consumers about a certain mobile home scam. The group on their radar uses the name Rose Harvey Mobile Homes. Look out for fake pictures of mobile homes on their website and social media accounts. The Louisiana address is a real address for a mobile home community, but the real business has nothing to do with the fake listings online.

The scammer says it will deliver a mobile home to any site in the state for $1,500. That low price alone is a red flag, says the consumer group. And there are plenty of places where mobile homes aren’t allowed to be placed.

The scammers urge their targets to wire money for their mobile home purchases. One target claims to have wired $3,500 to a scammer for a nonexistent home. So, the WBRZ media team sent reporters from “2 on Your Side” to South Louisiana to investigate. These reporters quote Carmen Million, who heads up the BBB of South Central Louisiana.

Million warns potential buyers:

• Be especially careful making long-distance deals and buying something that costs a lot if you can’t physically check it out.

• Find a way to check the seller’s bona fides. Especially when the seller wants money up front.

There’s a reason deed transfers involving loans have escrow accounts. These accounts are safeguards for money sent in advance. When the title is for personal property only, buyers have limited protections and should proceed with due care. 

Safely Buying a Manufactured Home: A Checklist

According to Legal Aid of North Carolina, buyers of manufactured homes can safeguard their interests by taking these steps:

• Read documents and ask questions before signing. If needed, put the deal on hold and tell the salesperson you’re having someone else check over the paperwork before you sign off.

• Make sure the home you’re approved matches your agreed-upon purchase. Double-check the model, year, size, and price.  

• Financing? Be sure your loan application information is correct and not improperly altered.

• Check for a higher-than-promised interest rate, and unanticipated costs and fees. Look for any “extras” the seller might tack on: insurance, warranties, and repair plans.

• Be sure you understand the down payment in the loan application. If it’s called a sales fee, the seller might be taking advantage of your upfront payment.

• Make sure that the terms and conditions of the purchase contract match or exceed what the seller led you to expect.

• Do not sign any blank documents; and always keep copies of what you sign.

Manufactured housing — mobile homes included — form an important part of the housing market.  Buyers should know how the titles work, and what to expect of sellers, before jumping in. Use this column as a starting point for your own due diligence, as Deeds.com cannot give financial or legal advice.