Two steps to help achieve a smooth transaction:
- Indicate up front that the property in your transaction includes a mobile home or manufactured home. The title report usually will turn this up — but not always. The sooner your Escrow Officer knows about the mobile, the more quickly she can move to handle any of the special issues that come up because of that.
- You can call the Escrow Department at any time regarding the description and ownership of a mobile home. We are able to contact the Department of Licensing to determine the true information about the unit as far as the DOL is concerned. Often this takes only a few minutes for us to determine. Sometimes the owner of the real property is not the same as the owner of the mobile. It is good to know this early so that there is the maximum amount of time to work on that issue.
MOBILE HOMES AND TAXES:
SALE: Property taxes have to be paid in full for the entire year (even in a January closing) if the mobile remains in its current location. Property taxes have to be paid in advance for the following year if the mobile is moved as a result of the transaction. Excise tax is paid by the seller if the mobile remains in its current location. Use Tax (sales tax) is paid by the buyer if the mobile is moved as a result of the transaction. The rate varies based on currrent location of the mobile, but it is roughly equal to the county sales tax rate.
REFINANCE: Property taxes — our county will accept first half taxes paid up until October, then taxes have to show paid in full for the year. Sometimes a quit claim deed is used in a refi to add or subtract a spouse or change vesting from a trust to an individual. If anything is done in a refi that requires an Excise affidavit, then taxes have to be paid in full for the year on the mobile.
Questions? Contact our office at (360) 694-4722.