Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act

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  4. Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
  5. Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act

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(765 ILCS 170/Art. 5 heading)

ARTICLE 5. CONVEYANCE AND ENCUMBRANCE OF MANUFACTURED HOMES AS REAL PROPERTY AND SEVERANCE ACT

 

(765 ILCS 170/5-1)

Sec. 5-1. Short title. This Act may be cited as the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act. All references in this Article to "this Act" mean this Article.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-2)

Sec. 5-2. Findings and purpose.

(a) The General Assembly finds that there is a need to clarify the legal status of manufactured homes affixed or to be affixed to real property in the State.

(b) The purpose of this Act is to establish a clear statutory procedure for converting to real property manufactured homes located outside of mobile home parks that are affixed to real property and for the severance of manufactured homes from real property.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-5)

Sec. 5-5. Manufactured home; permanently affixed to real property. For the purposes of this Act, "manufactured home" means a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code. Notwithstanding the foregoing, for the purposes of subsection (b)(2) of Section 1322 of the federal Bankruptcy Code (11 U.S.C. § 1322(b)(2)), a manufactured home shall be deemed to be real property. For the purposes of this Act, a manufactured home is "affixed to a permanent foundation" if the wheels, axles, and towing hitch are removed, and it is anchored to real property by attachment to a permanent foundation and connected to residential utilities (such as water, gas, electricity, or sewer or septic service). The certification of a certified residential real estate appraiser, a certified general real estate appraiser, a licensed manufactured home installer, or a licensed professional engineer that the home is affixed to a permanent foundation shall establish conclusively that the home is affixed to a permanent foundation.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-10)

Sec. 5-10. Act not mandatory; record notice. The owner of a manufactured home that is personal property or a fixture may, but need not, cause that manufactured home to be deemed to be real property by satisfying the requirements of Section 5-30 of this Act and the requirements of Section 3-116.1 or 3-116.2 of the Illinois Vehicle Code, as applicable.

To convey or voluntarily encumber a manufactured home as real property, the following conditions must be met:

  • (1) the manufactured home must be affixed to a permanent foundation on real property;
  • (2) the ownership interests in the manufactured home and the real property to which the manufactured home is affixed must be identical, or, if the manufactured home is not located in a mobile home park as defined in Section 2.5 of the Mobile Home Park Act, and if the owner of the manufactured home, if not the owner of the real property, is in possession of the real property pursuant to the terms of a lease in recordable form that has a term that continues for at least 20 years after the date of execution, then the consent of the lessor of the real property must be given;
  • (3) the person (all, if more than one) having an ownership interest in such manufactured home shall execute and record with the recording officer of the county in which the real property is located an affidavit of affixation as provided in Section 5-15 of this Act and satisfy the other applicable requirements of this Act; and
  • (4) upon receipt of a certified copy of the recorded affidavit of affixation pursuant to Section 5-25 of this Act, any person designated therein for filing with the Secretary of State shall file the certified copy of affidavit of affixation with the Secretary of State; except that:
    • (A) in a case described in subsection (a)(4)(A) of Section 5-15 of this Act, a certified copy of the affidavit of affixation and the original Manufacturer's Statement of Origin, each as recorded in the county in which the real property is located, must be filed with the Secretary of State pursuant to Section 3-116.1 of the Illinois Vehicle Code; and
    • (B) in a case described in subsection (a)(4)(B) of Section 5-15 of this Act, a certified copy of the recorded affidavit of affixation as recorded in the county in which the real property is located, and the original certificate of title, including, if applicable, a certificate of title issued in accordance with subsection (b) of Section 3-109 of the Illinois Vehicle Code, must be filed with the Secretary of State pursuant to Section 3-116.2 of the Illinois Vehicle Code.

(Source: P.A. 98-749, eff. 7-16-14; 99-78, eff. 7-20-15.)

 

(765 ILCS 170/5-15)

Sec. 5-15. Affidavit of affixation.

(a) An affidavit of affixation shall contain or be accompanied by:

  • (1) the name of the manufacturer, the make, the model name, the model year, the dimensions, and the manufacturer's serial number or numbers of the manufactured home, and whether the manufactured home is new or used;
  • (2)(A) a statement that the party executing the affidavit is the owner of the real property described therein or (B) if the party executing the affidavit is not the owner of the real property, (1) a statement that the manufactured home is not located in a mobile home park as defined in Section 2.5 of the Mobile Home Park Act and that the party executing the affidavit is in possession of the real property pursuant to the terms of a lease in recordable form that has a term that continues for at least 20 years after the date of execution of the affidavit and (2) the consent of the lessor of the real property, endorsed upon or attached to the affidavit and acknowledged or proved in the manner as to entitle a conveyance to be recorded;
  • (3) the street address and the legal description of the real property to which the manufactured home is or shall be affixed; and
  • (4) as applicable:
    • (A) if the manufactured home is not covered by a certificate of title, including, if applicable, a certificate of title issued in accordance with subsection (b) of Section 3-109 of the Illinois Vehicle Code, a statement by the owner to that effect, and
      • (i) a statement by the owner of the manufactured home that the manufactured home is covered by a Manufacturer's Statement of Origin, the date the Manufacturer's Statement of Origin was issued, and the manufacturer's serial number or numbers of the manufactured home; and
      • (ii) a statement that annexed to the affidavit of affixation is a copy of the Manufacturer's Statement of Origin for the manufactured home, duly endorsed to the owner of the manufactured home, and that the owner of the manufactured home shall surrender the original Manufacturer's Statement of Origin to the Secretary of State; or
    • (B) if the manufactured home is covered by a certificate of title, including, if applicable, a certificate of title issued in accordance with subsection (b) of Section 3-109 of the Illinois Vehicle Code, a statement by the owner of the manufactured home that the manufactured home is covered by a certificate of title, the date the title was issued, the title number, and that the owner of the manufactured home shall surrender the title to the Secretary of State;
  • (5) a statement whether or not the manufactured home is subject to one or more security interests or liens, and
    • (A) if the manufactured home is subject to one or more security interests or liens, the name and address of each party holding a security interest in or lien on the manufactured home, including but not limited to, each holder shown on any certificate of title issued by the Secretary of State, if any, the original principal amount secured by each security interest or lien; and a statement that the security interest or lien shall be released; or
    • (B) a statement that each security interest in or lien on the manufactured home, if any, has been released, together with due proof of each such release;
  • (6) a statement that the manufactured home is or shall be affixed to a permanent foundation;
  • (7) the name and address of a person designated for filing the certified copy of the affidavit of affixation with the Secretary of State, to whom the recording officer shall return the certified copy of the affidavit of affixation after it has been duly recorded in the real property records, as provided in Section 5-25 of this Act; and
  • (8) the certification of a certified residential real estate appraiser, a certified general real estate appraiser, a licensed manufactured home installer, or a licensed professional engineer, as provided in Section 5-5 of this Act.

(b) An affidavit of affixation shall be in the form set forth in this Section, duly acknowledged or proved in like manner as to entitle a conveyance to be recorded, and when so acknowledged or proved and upon payment of the lawful fees therefor, the recording officer shall immediately cause the affidavit of affixation and any attachments thereto to be duly recorded and indexed in the record of deeds.

(c) An affidavit of affixation shall be in the form set forth below:

MANUFACTURED HOME
AFFIDAVIT OF AFFIXATION

STATE OF ........................)

)SS.

COUNTY OF .......................)

BEFORE ME, the undersigned Notary Public, on this day personally appeared ......................... (type the name(s) of each person signing this Affidavit) known to me to be the person(s) whose name(s) is/are subscribed below (each a "Homeowner"), and who, being by me first duly sworn, did each on his or her oath state as follows:

1. Homeowner owns the manufactured home ("Home") described as follows:..............................................................

..............................................................

(Year; Manufacturer's Name; Manufacturer's Serial No(s).)

2. The street address of the real property to which the Home is or shall be permanently affixed ("Property Address") is:

..............................................................

(Street or Route; City; County; State; Zip Code)

3. The legal description of the real property to which the Home is or shall be affixed ("Land") is:..............................................................

..............................................................

..............................................................

..............................................................

4. Homeowner is the owner of the Land or, if not the owner of the Land, the Home is not located in a mobile home park, as defined in Section 2.5 of the Mobile Home Park Act, and Homeowner is in possession of the Land pursuant to a lease in recordable form that has a term that continues for at least 20 years after the date of the execution of this Affidavit, and the consent of the lessor is attached to this Affidavit.5. The Home is or shall be assessed and taxed as an improvement to the Land.6. As of the date of the execution of this Affidavit, or, if the Home is not yet located at the Property Address, upon the delivery of the Home to the Property Address:

(a) The Home [ ] is [ ] shall be affixed to a permanent foundation as defined in Section 5-5 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act;

(b) The wheels, axles, towbar, or hitch were removed when the Home was placed on the Property Address; and

7. The Home [ ] was [ ] was not permanently affixed before January 1, 2011.8. If Homeowner is the owner of the Land, any conveyance or financing of the Home and the Land shall be a

single transaction under applicable State law.9. The Home is subject to the following security interests or liens:

Name of Lienholder: ..........................................

Address: .....................................................

Name of Lienholder: ..........................................

Address: .....................................................

10. Other than those disclosed in this Affidavit, Homeowner is not aware of (i) any other security interest, claim, lien, or encumbrance affecting the Home or (ii) any other facts or information that could reasonably affect the validity of the title of the Home or the existence or non-existence of security interests in it.11. A release of lien from each of the lienholders identified in paragraph 11 of this Affidavit [] has been [] shall be delivered to the Secretary of State. 12. Homeowner shall initial only one of the following, as it applies to the Home:

[] The Home is not covered by a certificate of title. The Home is covered by a Manufacturer's Statement of Origin, issued on the ...... of .........., ....., manufacturer's serial number ........................, which Homeowner shall surrender to the Secretary of State. A copy of the Manufacturer's Statement of Origin, duly endorsed to Homeowner, is attached to this Affidavit.

[] The Home is covered by a certificate of title issued on the ....... day of .........., ......, title number ........................, which Homeowner shall surrender to the Secretary of State.

13. Homeowner designates the following person to file a certified copy of this Affidavit with the Secretary of State, and the person to whom the Recorder shall return a certified copy of this Affidavit after it has been duly recorded in the real property records:

Name: ...................................................

Address: .................................................

14. This Affidavit is executed by Homeowner pursuant to Section 5-15 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.15. The certification, pursuant to Section 5-5 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, of a certified residential real estate appraiser, a certified general real estate appraiser, a licensed manufactured home installer, or a licensed professional engineer that the home is affixed to a permanent foundation is attached to this Affidavit.

IN WITNESS WHEREOF, Homeowner(s) has/have executed this Affidavit in my presence and in the presence of the undersigned witnesses on this ...... day of ......, ......

...........................(SEAL) ..........................

Homeowner #1 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #2 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #3 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #4 Witness

...........................

Printed Name

STATE OF .........................)

) SS.

COUNTY OF ........................)

The foregoing instrument was acknowledged before me this (date) by (name(s) of person(s) who acknowledged).

.......................... Notary Public

Signature

My commission expires: ...................

Official Seal:

ATTENTION RECORDER: This instrument covers goods that are or are to become fixtures on the Property described herein and is to be filed for record in the records where conveyances of real estate are recorded.

(Source: P.A. 98-749, eff. 7-16-14; 99-166, eff. 7-28-15.)

 

(765 ILCS 170/5-20)

Sec. 5-20. Disposition of liens. Neither the act of affixing a manufactured home to a permanent foundation nor the recording of the affidavit of affixation shall impair the rights of any holder of a security interest in or lien on a manufactured home perfected as provided in Section 3-202 of the Illinois Vehicle Code, unless and until the due filing with and acceptance by the Secretary of State of an application to surrender the title as provided in Section 3-116.2 of the Illinois Vehicle Code and release of all security interests or liens as provided in Section 3-205 of the Illinois Vehicle Code. Upon the filing of such releases, the security interests or liens perfected under Section 3-202 of the Illinois Vehicle Code are terminated. The recording of an affidavit of affixation does not change the character of any security interest or lien noted on a certificate of title, and no recording tax shall be imposed at the time an affidavit of affixation is recorded upon any security interest in or lien on a manufactured home perfected under Section 3-202 of the Illinois Vehicle Code.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-25)

Sec. 5-25. Notice to Secretary of State. Upon payment of the fees provided by law and recordation of the affidavit of affixation, the recording officer shall endorse the affidavit as "recorded in land records", setting forth thereon the indexing information for the affidavit of affixation, and the recording officer shall forthwith forward a certified copy of the recorded affidavit of affixation and all attachments thereto to the person designated therein for filing with the Secretary of State. Upon receipt of a certified copy of the recorded affidavit of affixation by the person designated therein for filing with the Secretary of State, such person shall forthwith deliver for filing to the Secretary a certified copy of the affidavit of affixation and other documents as provided in item (4) of Section 5-10 of this Act.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-30)

Sec. 5-30. Effect of recorded affidavit of affixation. A manufactured home shall be deemed to be real property when all of the following events have occurred:

  • (1) the manufactured home is affixed to a permanent foundation as provided in Section 5-5 of this Act;
  • (2) an affidavit of affixation conforming to the requirements of Section 5-15 of this Act has been recorded;
  • (3) a certified copy of the recorded affidavit of affixation has been delivered for filing to the Secretary of State as provided in Section 5-25 of this Act; and
  • (4) the requirements of Section 3-116.1 or 3-116.2 of the Illinois Vehicle Code, as applicable, have been satisfied.

A conclusive presumption shall arise that the averments of the recorded affidavit of affixation establish that, for all purposes, the manufactured home is real property.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-35)

Sec. 5-35. Conveyance and encumbrance as real property. Upon the satisfaction of the requirements of Section 5-30 of this Act and the requirements of Section 3-116.1 or 3-116.2 of the Illinois Vehicle Code, as applicable, such manufactured home shall be deemed to be real property; any mortgage, deed of trust, lien, or security interest that can attach to land, buildings erected thereon, or fixtures affixed thereto shall attach as of the date of its recording in the same manner as if the manufactured home were built from ordinary building materials on site; title to such manufactured home shall be transferred by deed or other form of conveyance that is effective to transfer an interest in real property, together with the land to which such structure has been affixed; and the manufactured home shall be deemed to be real property and shall be governed by the laws applicable to real property.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-40)

Sec. 5-40. Exclusive procedure. The method of converting a manufactured home to real property set forth in Section 5-10 of this Act shall be exclusive, and shall supplant the common law of fixtures as it relates to manufactured homes.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-45)

Sec. 5-45. Applicability. Nothing in this Act shall impair any rights existing under law prior to the effective date of this Act of anyone claiming an interest in the manufactured home.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-50)

Sec. 5-50. Affidavit of severance.

(a) If and when a manufactured home for which an affidavit of affixation has been recorded is detached or severed from the real property to which it is affixed, the person (all, if more than one) having an interest in the real property shall record an affidavit of severance in the land records of the county where the affidavit of affixation with respect to the manufactured home is recorded. The affidavit of severance shall contain or be accompanied by:

  • (i) the name, residence, and mailing address of the owner of the manufactured home;
  • (ii) a description of the manufactured home including the name of the manufacturer, manufacturer's serial number or numbers of the manufactured home;
  • (iii) the book number, page number and date of recordation of the affidavit of affixation;
  • (iv) a statement of either (A) any facts or information known to the party executing the affidavit that could reasonably affect the validity of the title of the manufactured home or the existence or non-existence of a security interest in or lien on it, or (B) that no such facts or information are known to such party; and
  • (v) the name and address of the person designated for filing the certified copy of the recorded affidavit of severance with the Secretary of State, to whom the recording officer shall return the certified copy of the affidavit of severance after it has been duly recorded in the real property records, as provided in subsection (d) of this Section.

(b) The affidavit of severance shall be in the form set forth in subsection (d) of this Section, duly acknowledged or proved in like manner as to entitle a conveyance to be recorded, and when so acknowledged or proved and upon payment of the lawful fees therefor, such recording officer shall immediately cause the affidavit and any attachments thereto to be duly recorded and indexed in the record of deeds.

(c) Upon payment of the fees provided by law and recordation of the affidavit of severance, the recording officer shall endorse the affidavit as "recorded in land records", setting forth thereon the indexing information for the recorded affidavit of severance, and the recording officer shall forthwith forward a certified copy of the recorded affidavit of severance to the person designated therein for filing with the Secretary of State. Upon receipt of a certified copy of the recorded affidavit of severance by the person designated therein for filing with the Secretary of State, such person shall deliver for filing to the Secretary of State such certified copy of the affidavit of severance and the other documents provided in subsection (a) of this Section, together with an application for a certificate of title to the manufactured home, to be issued in accordance with subsection (b) of Section 3-109 of the Illinois Vehicle Code.

(d) An affidavit of severance shall be in the form set forth below:

MANUFACTURED HOME
AFFIDAVIT OF SEVERANCE

STATE OF .........................)

)SS.

COUNTY OF ........................)

BEFORE ME, the undersigned notary public, on this day personally appeared ................... (type the name(s) of each person signing this Affidavit) known to me to be the person(s) whose name(s) is/are subscribed below (each an "Affiant"), and who, being by me first duly sworn, did each on his or her oath state as follows:

1. The owner(s) of the manufactured home described below reside(s) at the following address:..............................................................

(Street or Route; City; County; State; Zip Code)

Mailing address, if different:

..............................................................

(Street or Route; City; County; State; Zip Code)

2. The manufactured home that is the subject of this Affidavit ("Home") is described as follows:..............................................................

(Year; Manufacturer's Name; Manufacturer's Serial No(s).)

3. The Home was severed from the following address ("Land"):

..............................................................

(Street or Route; City; County; State; Zip Code)

4. An Affidavit of Affixation was duly recorded in the land records of the county in which the Land is located on (date) ............., in book number ...... at page number .....5. Affiant is the owner of the Land or, if not the owner of the Land, is in possession of the Land pursuant to a lease in recordable form, and the consent of the lessor is attached to this Affidavit.6. The Home is subject to the following security interests:

Name of Lienholder: ..........................................

Address: .....................................................

Name of Lienholder: ..........................................

Address: .....................................................

7. Other than those disclosed in this Affidavit, Affiant is not aware of (i) any other security interest, claim, lien, or encumbrance affecting the Home or (ii) any other facts or information that could reasonably affect the validity of the title of the Home or the existence or non-existence of security interests in it.8. A release of lien from each of the lienholders identified in paragraph 6 of this Affidavit [] has been [] shall be delivered to the Secretary of State. 9. Affiant designates the following person to file a certified copy of this Affidavit with the Secretary of State, and the person to whom the Recorder shall return a certified copy of this Affidavit after it has been duly recorded in the real property records:

Name: ....................................................

Address: .................................................

10. This Affidavit is executed by Affiant pursuant to Section 5-50 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.

IN WITNESS WHEREOF, Affiant(s) has/have executed this Affidavit in my presence and in the presence of the undersigned witnesses on this ....... day of ................, .......

...........................(SEAL) ..........................

Homeowner #1 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #2 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #3 Witness

...........................

Printed Name

...........................(SEAL) ..........................

Homeowner #4 Witness

...........................

Printed Name

STATE OF .........................)

) SS.

COUNTY OF ........................)

The foregoing instrument was acknowledged before me this (date) by (name(s) of person(s) who acknowledged).

.......................... Notary Public

Signature

My commission expires: ...................

Official Seal:

ATTENTION RECORDER: This instrument covers goods that had been fixtures on the Property described herein and is to be filed for record in the records where conveyances of real estate are recorded.

(Source: P.A. 98-749, eff. 7-16-14.)

 

(765 ILCS 170/5-55)

Sec. 5-55. Documents in trust.

(a) Manufacturer's Statement of Origin. The holder of a Manufacturer's Statement of Origin to a manufactured home may deliver it to any person to facilitate conveying or encumbering the home. Any person receiving a Manufacturer's Statement of Origin so delivered holds it in trust for the person delivering it.

(b) Lien Release. The holder of a security interest in a manufactured home may deliver lien release documents to any person to facilitate conveying or encumbering the home. Any person receiving any such documents so delivered holds the documents in trust for the lienholder.

(Source: P.A. 98-749, eff. 7-16-14.)


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