Selling a mobile home that has a lien

A lien is a claim that has to be dealt with before the home transfers clear. On a Texas manufactured home that is still personal property, the lien is filed with the Texas Department of Housing and Community Affairs and it shows on the Statement of Ownership. You can still ask me to make a cash offer when money is owed. The lien has to be paid or released as part of the transfer, and I will not guess the payoff from a form.

This is general information from public Texas sources, not legal advice about your lien or your taxes.

Where the lien shows up

Section 1201.2055 of the Texas Occupations Code Chapter 1201 says that a lien on a manufactured home treated as personal property is made by filing the document with the department. Section 1201.219 says a lien, other than inventory financing, is perfected by filing a notice with the department, and the statement has to reflect the liens on file. The TDHCA Statement of Ownership FAQ says the statement confirms ownership and the liens recorded with the department.

You can look yourself in the TDHCA Manufactured Home Ownership Records search. Use the HUD label, Texas seal, serial number, or the owner's name. The TDHCA application instructions say to check that search for current ownership, mortgage liens, and tax liens before a transfer.

A lender release on a personal-property home is the division's Form B, listed on the TDHCA forms page. The FAQ says a release of lien does not have to be notarized. Tax liens use a different form. Do not send a lender release form to clear taxes.

Tax liens

Texas has no state property tax. The Texas Comptroller of Public Accounts property tax assistance page says the Comptroller does not collect the tax and does not set the rate. Local taxing units do. The Comptroller's property tax system basics page says the county appraisal district appraises property as of January 1. The Comptroller's page on paying property taxes says a tax lien attaches to taxable property on January 1 to secure that year's taxes, and that unpaid taxes can get in the way of a sale.

For the manufactured home itself, the TDHCA tax lien information page says Tax Code section 32.03 requires tax liens against manufactured homes to be recorded with the department. Texas Tax Code Chapter 32 is that statute. Section 1201.219 says a tax lien on a manufactured home that is not in a retailer's inventory is perfected only by filing notice with the department, and that the tax collector files it. The department's ownership record is where that filing shows up.

If you do not know whether the taxes are paid, say so. The county appraisal district can tell you how the home is listed. The tax office can tell you what is owed. I will not invent a payoff.

If the home is already real property

Once a real-property election is perfected, section 1201.2055 says the home is real property for all purposes. The TDHCA tax lien FAQ says the division's position is that the home is then no longer a manufactured home for recording liens, including tax liens, and that the division is not recording those liens. A mortgage or a tax claim is then in the county land records and the local tax account, not only on the statement. If you are selling the lot with the home, use the land page.

Paying the lien when you sell to me

There is no fee to you for selling to me, and I pay the closing costs. That does not mean every lien is smaller than the offer. If a lender or the tax office is owed more than the home is worth to me, I will tell you after I see the home and the numbers. Sometimes the payoff can be handled as part of the sale and you still receive money. Sometimes the offer does not cover what is owed, and you may not want to sell. You decide. Pick "there's a lien" on the form if you know one exists, even if you do not know the balance.

Questions people ask

How does a lien show on a Texas manufactured home?

On a home that is still personal property, a lien is filed with the Texas Department of Housing and Community Affairs and it shows on the Statement of Ownership. The department's ownership search is where you look. A lender lien and a tax lien are both recorded there while the home is personal property.

What is a tax lien on a mobile home?

Property tax in Texas is local. The county appraisal district appraises the property. The tax office sends the bill. The Texas Comptroller of Public Accounts does not collect that tax and does not set the rate. A tax lien attaches to taxable property on January 1 of the tax year. For a manufactured home that is still in the department's records, a tax lien is perfected by filing notice with TDHCA.

Can I sell if I still owe a lender?

You can ask me to look. The lien has to be paid off or released before a clear transfer. There is no fee to you for selling to me, and I pay the closing costs. If the amount owed is more than the home is worth to me, I will say so. I will not guess the payoff from the form.

What if the home is already real property?

Once a real-property election is perfected, the home is real property for all purposes. TDHCA's position is that it then does not take lien filings, including tax liens, on that manufactured-home record. Taxes and a mortgage are then a matter for the county records and the tax office. Check the statement and the county.

Will the offer cover what I owe?

Not always. I make an offer after I see the home and the record. Sometimes the offer is enough to pay the lien and leave you something. Sometimes it is not. You decide whether to take it.