If you are shopping for a factory-built home, or selling one, the difference between modular and manufactured matters more than the names suggest. It changes how the home is titled and how it transfers.
Modular homes
A modular home, once it is installed on a permanent foundation, usually has no certificate of title. It is generally handled the same way as a site-built home, and the deed transfers the home along with the land.
Manufactured homes
A manufactured home is different. It has its own title and a VIN, and it transfers more like a car title. The exception is when that title has been retired and the home has been legally converted to real property on a foundation. In that case it is treated as part of the real estate.
Why this matters
- For buyers: it affects what you are actually receiving at closing, and how a lender and title company will treat the purchase.
- For sellers: it affects what paperwork has to be in order before the home can be sold.
What to do
Before you write an offer or list a home like this, find out which category it is in and whether any title has been retired. Ask your agent to confirm early, because it is much easier to sort out before a contract is signed than at the closing table.
Rules and procedures can differ among Pennsylvania, Delaware and Maryland, so your Foraker agent can walk you through how it works for your specific property.
General information, not legal advice.
Thinking about buying or selling? Talk to a Foraker agent.
