S03182'03 (H-2)

SB-0425,As Passed House,Jun 12, 2003

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 425

(As amended June 12, 2003)

A bill to amend 1987 PA 96, entitled

"The mobile home commission act,"

(MCL 125.2301 to 125.2349) by adding section 30i.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 30i. (1) If a mobile home is affixed to real property

2 in which the owner of the mobile home has the ownership interest,

3 the owner may deliver all of the following to the department:

4 (a) An affidavit of affixture on a form provided by the

5 department that contains all of the following:

6 (i) The name and address of the owner.

7 (ii) A description of the mobile home that includes the name

8 of the manufacturer of the mobile home, the year of manufacture,

9 the model, [ ] the manufacturer's serial number [and, if applicable,] the number

10 assigned by the department.

11 (iii) A statement that the mobile home is affixed to the real

1 property.

2 (iv) The legal description of the real property to which the

3 mobile home is affixed.

4 (v) The name of each holder of a security interest in the

5 mobile home, together with the written consent of each holder to

6 the termination of the security interest and the cancellation of

7 the certificate of title under subsection (2), if applicable.

8 (b) The certificate of title for the mobile home, the

9 manufacturer's certificate of origin if a certificate of title

10 has not been issued by the department, or sufficient proof of

11 ownership as provided in section 30a or 30e.

12 (c) A fee in an amount prescribed in section 30a for a

13 certificate of title.

14 (2) When the department receives an affidavit and certificate

15 of title under subsection (1), the department shall cancel the

16 certificate of title for the mobile home. The department shall

17 not issue a certificate of title for a mobile home described in

18 subsection (1) except as provided in subsection (8).

19 (3) The owner of the mobile home shall deliver a duplicate

20 original of the executed affidavit under subsection (1) to the

21 register of deeds for the county in which the real property is

22 located. The register of deeds shall record the affidavit.

23 (4) The department shall maintain the affidavit under

24 subsection (1) for a period of 10 years from the date of filing.

25 (5) When the department receives an affidavit under

26 subsection (1), the mobile home is considered to be part of the

27 real property, sections 30 to 30h do not apply to that mobile

1 home, any security interest in the mobile home is terminated, a

2 lienholder shall perfect and enforce a new security interest or

3 lien on the mobile home only in the manner provided by law for

4 perfecting and enforcing a lien on real property, and the owner

5 may convey the mobile home only as part of the real property to

6 which it is affixed.

7 (6) If a mobile home is affixed to real property before the

8 effective date of the amendatory act that added this section, a

9 person who is the holder of a lien or security interest in both

10 the mobile home and the real property to which it is affixed on

11 the effective date of the amendatory act that added this section

12 may enforce its liens or security interests by accepting a deed

13 in lieu of foreclosure or in the manner provided by law for

14 enforcing liens on the real property.

15 (7) If the holder of a lien or security interest becomes the

16 owner of a mobile home affixed to real property through the

17 process of real property foreclosure or through a deed in lieu of

18 foreclosure under subsection (6), the holder shall submit an

19 affidavit described in subsection (1) to the department after the

20 redemption period for the foreclosure expires or the deed in lieu

21 of foreclosure is recorded and the department shall cancel the

22 certificate of title for the mobile home.

23 (8) If an owner of both the mobile home and the real property

24 described in subsection (1) intends to detach the mobile home

25 from the real property, the owner shall do both of the

26 following:

27 (a) Before detaching the mobile home, record an affidavit of

1 detachment in the office of the register of deeds in the county

2 in which the affidavit is recorded under subsection (3).

3 (b) Apply for a certificate of title for the mobile home on a

4 form prescribed by the department. The application shall include

5 a duplicate original executed affidavit of detachment and proof

6 that there are no security interests or liens on the mobile home

7 or the written consent of each lienholder of record to the

8 detachment and a fee in the amount prescribed in section 30a for

9 a certificate of title.

10 (9) An owner of an affixed mobile home shall not detach it

11 from the real property before a certificate of title for the

12 mobile home is issued by the department. If a certificate of

13 title is issued by the department, the mobile home is no longer

14 considered part of the real property and sections 30 to 30h

15 apply.

16 (10) As used in this section:

17 (a) A mobile home is "affixed" to real property if it meets

18 all of the following:

19 (i) The wheels, towing hitches, and running gear are

20 removed.

21 (ii) It is attached to a foundation or other support system.

22 (b) "Ownership interest" means the fee simple interest in

23 real property or an interest as the lessee under a ground lease

24 for the real property that has a term that continues for at least

25 20 years after the recording of the affidavit under subsection

26 (3).

27 Enacting section 1. It is the intent of this legislature