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Selling, Transferring into Inventory, Taxing and Titling Process of a Used Manufactured Home*
- Each Jan. 1: a lien attaches to a home in favor of each taxing unit with the power to tax the property (Tax Code 32.01(a)).
- If the tax is not paid, tax collector must record the lien with TDHCA prior to June 30 of the year following the year taxes accrued (Tax Code 32.03(a-1)). Example: liens for 2007 unpaid taxes must be filed with TDHCA by 6/30/2008.
- If, timely and properly recorded, TDHCA will list the lien on the SOL record of the home on their database and Web site (Tax Code 32.03(a-1), (a-2), 32.015(a)).
- If tax collectors fail to timely/properly record their lien, the lien is unenforceable and TDHCA will not place it on the SOL record, list it on their database or online.
- Retailer buys/accepts on trade a home to be placed in inventory.
- Retailer pays off lender (if applicable) and all tax liens on file with TDHCA (Tax Code 32.03(a-2)).
Tax collector gives retailer certificate showing no liens or a tax paid receipt for the years specified by the retailer.
- Tax collector files release of lien on TDHCA form for the specified tax years. TDHCA removes paid liens from database upon receipt of release of lien from tax collector and issues a new SOL to the new owner.
- Retailer checks where home was located on Jan. 1 prior to date of transfer (Tax Code 32.03(a-2)). If taxes for the year have been assessed then those taxes are to be paid and the receipt will serve as proof of payment. If taxes have not been levied, retailer requests an estimate on the taxes based on the previous year’s tax rate and appraisal and pays that amount (Tax Code 32.03(e)).
- Tax collector issues receipt for estimated tax payment and provides notice that payment is an estimate, the amount may be raised once the rolls are certified, and that the new owner may be liable for the difference between the actual the estimated taxes (Tax Code 32.03(e)).
- For the estimated current year taxes paid, tax collector issues certification to TDHCA that the estimated taxes are being held in escrow until taxes are levied. Once taxes are levied, the tax collector applies the escrow to the taxes. If there is a deficiency between what was previously paid as an estimate and the actual amount due, the tax collector may seek out the new owner to pay the difference (Tax Code 32.03(e)).
- Retailer files application for SOL to move the home into his/her inventory and submits certificate/tax-paid receipt for all years listed on TDHCA’s database and the certificate that the current year taxes have been paid, or that the estimate of the current year taxes have been paid via the certification to TDHCA. (Tax Code 32.03(e) and Occ. Code 1201.206(d)).
- TDHCA issues the retailer an SOL with the house now in the retailer’s inventory.
- Customer selects house from retailer’s lot/inventory.
- Customer buys house and retailer submits an Application for SOL in the customer’s name within 60 days of sale (Occ. Code 1201.206(c), (g), and (h)).
*The above process is subject to change depending on the time of year the transfer occurs. The details of each transfer will need to be determined on a case-by-case basis in order to determine the proper procedure for completing transfer of ownership. This general outline is for educational purposes only and should never be solely relied upon. All members must read the applicable laws and regulations and always consult your own attorney. This outline, nor any other materials provided by TMHA, is/are not legal advice or counsel, as is prohibited by law. Consult your own attorney prior to proceeding in any matter.