HF 894

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to property; modifying provisions relating to 
  1.3             certificates of title to manufactured homes; amending 
  1.4             Minnesota Statutes 2002, section 168A.141. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 168A.141, is 
  1.7   amended to read: 
  1.8      168A.141 [MANUFACTURED HOME AFFIXED TO REAL ESTATE 
  1.9   PROPERTY.] 
  1.10     Subdivision 1.  [PROCEDURE CERTIFICATES SURRENDERED FOR 
  1.11  CANCELLATION.] The owner of If a manufactured home which is to 
  1.12  be affixed as an improvement to real estate may property, the 
  1.13  owner of the manufactured home shall surrender the home's any 
  1.14  manufacturer's certificate of origin or certificate of title to 
  1.15  the department for cancellation.  The certificate must be 
  1.16  surrendered before affixing the home to real property and in no 
  1.17  event later than the execution of a mortgage intended to 
  1.18  encumber the home and real property.  The owner shall give the 
  1.19  department the address and location of the real estate property.
  1.20  The department may require the filing of other 
  1.21  information.  Upon surrender of the certificate, the 
  1.22  manufactured home is deemed to be an improvement to real 
  1.23  property. 
  1.24     Subd. 2.  [PERFECTED SECURITY INTEREST AVOIDS 
  1.25  CANCELLATION.] The department may not cancel a certificate of 
  2.1   title if a security interest has been perfected on the 
  2.2   manufactured home.  If a security interest has been perfected, 
  2.3   the department shall notify the owner and each secured party 
  2.4   that the certificate of title and a description of the security 
  2.5   interest have been surrendered to the department and that the 
  2.6   department will not cancel the certificate of title until the 
  2.7   security interest is satisfied.  Permanent attachment to real 
  2.8   estate property does not extinguish an otherwise valid security 
  2.9   interest in or tax lien on the home.  
  2.10     Subd. 3.  [NOTICE OF SECURITY INTEREST AVOIDS 
  2.11  SURRENDER.] The certificate need not be surrendered if (1) a 
  2.12  security interest exists on the certificate of title at the time 
  2.13  the home is affixed to real property and (2) the owner files 
  2.14  with the county recorder a notice that the manufactured home 
  2.15  located on the property is encumbered by a security interest.  
  2.16  The notice must state the name and address of the secured party 
  2.17  as set forth on the certificate of title.  Neither the notice 
  2.18  described in this section nor the security interest on the 
  2.19  certificate is deemed an encumbrance on the real property. 
  2.20     Subd. 4.  [REISSUANCE OF CERTIFICATE OF TITLE.] The 
  2.21  commissioner shall issue a certificate of title to the owner of 
  2.22  a manufactured home affixed to real property upon receipt of an 
  2.23  affidavit executed by the owner of the real property that the 
  2.24  home is no longer affixed to real property and upon receipt of 
  2.25  proof that any security interests encumbering improvements to 
  2.26  the real property have been satisfied.