Mobile Home Park - Lost Titles On Un-Occupied Homes

[Padric Lynch]

While going negotiating for a MHP, I have requested that the Seller convey's all un-occupied park owned homes with a title. This was the only term that was met with resistance. He explained that he has done rent-to-own on homes that did not have a title, and that I could do the same thing. He would apply for the title near the end of the rent-to-own agreement, then put the home in the tenant's name. Does this sound fishy? Is my request warranted? My intuition says yes. Also, in the case that I do have to apply for the lost titles, what does that process look like and how long does it take?

[John Jacobus]

While it’s reasonable to ask for all titles to abandoned homes prior to closing, I’ve found that there are always 1-2 that are problematic.  Obtaining title to abandoned homes is cumbersome in NC, as it is in most states.  The process is governed by the NC DMV and requires a waiting period and several steps.  I wouldn’t allow this point  to kill your deal because it is so common and can be resolved through a bit of soul crushing bureaucratic process endurance on your part.  I don’t think it’s shady; rather, it’s probably a sign of laziness or lack of awareness on the part of the seller.  Most mom & pop owners we’ve encountered don’t bother to go through the process of obtaining the title because the title holders rarely resurface and they typically disappear for a reason.  Some don’t know that there’s a process they must go through.  Welcome to the industry!

To keep your deal alive, you can 

a) negotiate a discount to the price that’s equivalent to the value of the abandoned homes and then you deal with obtaining the titles; or

b) push the closing date to a point when the seller can obtain the titles; or

c) have the seller agree to deposit a portion of the sales proceeds as a credit in escrow to be released to the seller if a) you’re able to successful obtain the titles within x days or b) to be released to you if you’re unable to obtain the titles within x days.