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BILL AS PASSED BY HOUSE 2007-2008

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H.331

AN ACT RELATING TO FINANCING THE PURCHASE OF A MOBILE HOME

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  9 V.S.A. § 2601 is amended to read:

§ 2601.  Definitions

(a)  As used in this chapter, unless the context requires otherwise, “mobile home” means:

(1)  Mobile home as defined in 10 V.S.A. § 6201.

(2)  An unmotorized vehicle, other than a travel or recreational trailer, designed to be towed and designed or equipped for use as sleeping, eating or living quarters.

(b)  A mobile home remains a mobile home for purposes of this chapter even though it may be used for advertising, sales, display or promotion of merchandise or services, or for any other commercial purposes except the transportation of property.

(c)  A mobile home that was financed as residential real estate shall be defined as residential real estate.

(d)  “Permanently sited” means the mobile home has become affixed to the land.   Factors that tend to show a mobile home is permanently sited include:

(1)  The mobile home has been set up on blocks or otherwise stabilized so that the wheels do not form a major part of the structural support.

(2)  The mobile home has been connected to utilities such as electricity, sewage, water, gas, or oil.

(3)  Skirting has been installed around the base of the mobile home.

(4)  The wheels or axles have been removed.

(5)  The mobile home has been situated in a place that makes removal unlikely.

Sec. 2.  9 V.S.A. § 2603(b) is amended to read:

(b)  An obligation to finance a mobile home if consummated while the A mobile home that is or is intended to be permanently sited in a manner intended for continuous residential occupancy by the owner on land owned that is:

(1)  Owned by the owner of the mobile home shall be financed as a residence residential real estate.

(2)  Leased by the owner of the mobile home may be financed as residential real estate.

Sec. 3.  9 V.S.A. § 2604 is amended to read:

§ 2604Penalty REAL ESTATE DEEDS FOR MOBILE HOMES

A person who violates a provision of this chapter:

(1)  Except for violations of subsection 2603(e) of this title, shall be fined not more than $5,000.00 for each occurrence.

(2)  Shall be subject to all the remedies and penalties available to a consumer and the attorney general under chapter 63 of this title.

(a)  Any mobile home purchased from a mobile home dealer on or after

July 1, 2008 that is financed as residential real estate pursuant to subsection 2603(b) of this title shall be conveyed by a warranty deed drafted in substantially the form provided in subsection (c) of this section.

(b)  An owner of a mobile home shall, upon financing or refinancing a mobile home as residential real estate or selling a mobile home that has been financed as residential real estate, issue to the grantee either a warranty deed or a quitclaim deed that is drafted in substantially the form provided in subsection (c) or (d) of this section.

(c)  A deed that is substantially in the form provided in this subsection shall, when duly executed and delivered, have the force and effect of a deed in fee simple to the grantee, the heirs, successors, and assigns, to their own use, with covenants on the part of the grantor, for the grantor, the grantor’s heirs, executors, and administrators that, at the time of the delivery of the deed, the grantor was lawfully seized in fee simple of the mobile home; that the mobile home was free from all encumbrances, except as stated; that the grantor had good right to sell and convey the same to the grantee, the grantee’s heirs, successors, and assigns; and that the grantor and the grantor’s heirs, executors, and administrators shall warrant and defend the same to the grantee and the grantee’s heirs, successors and assigns, against the lawful claims and demands of all persons.  No owner of land on which a mobile home is sited shall unreasonably withhold the consent required by this statutory form.

Form for Mobile Home Warranty Deed

                              , of                        ,                               County, State of____________,                         (“Grantor”), for consideration paid, grants to___________ of                   Street, Town (City) of                  ,____________ County, State of                  (“Grantee”), with warranty covenants, the________ (description of mobile home being conveyed: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home is situated, or is to be situated, at __________ (state name of park, if any, and street address), Town (City) of __________, __________ County, State of Vermont.
The tract or parcel of land upon which the mobile home is situated, or is to be situated, is owned by                        by deed dated and recorded at Book        , Page      in the land records of the Town (City) of                        
.  

_______                        (wife) (husband) of said Grantor, releases to said Grantee all rights and other interests therein.

   Signed this __________ day of __________, ___.

(Here add acknowledgment)

__________, owner of the tract or parcel of land upon which the aforesaid mobile home is situated, or is to be situated, hereby consents to the conveyance of the mobile home.

Signed this __________ day of __________, ___.

(Here add acknowledgment)

[ ] Check box if the mobile home has been relocated from one site to another within Vermont, and attach a Relocation Statement in the form provided in section 2606 of this title.

(d)  A deed that is substantially in the form provided in this subsection shall, when duly executed and delivered, have the force and effect of a deed in fee simple to the grantee, the heirs, successors, and assigns, to their own use.  No owner of land on which the mobile home is sited shall unreasonably withhold consent required by this statutory form.

Form for Mobile Home Quitclaim Deed

___________, of ___________,              County, State  of__________ _________(“Grantor”), for consideration paid, grants to___ ________ of _________ Street, Town (City) of ____       ,_   ____County, State of __________(“Grantee”), with quitclaim covenants, the (description of mobile home being conveyed:  name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home is situated, or is to be situated, at ________________ (state name of park, if any, and street address), Town (City) of _____________ County, State of Vermont.

The tract or parcel of land upon which the mobile home is situated, or is to be situated, is owned by ____________ by deed dated _____________ and recorded at Book ___, Page    , in the land records of the Town (City) of _________.  

    _____ (wife) (husband) of said Grantor releases to said Grantee all rights and other interest therein.

Signed this ___ day of _______    ,______.

(Here add acknowledgment)

_____________, owner of the parcel of land upon which the aforesaid mobile home is situated, or is to be situated, hereby consents to the conveyance of the mobile home.

Signed this ___day of__                __, _____.

(Here add acknowledgment)

[ ]  Check box if the mobile home has been relocated from one site to another within Vermont, and attach a relocation statement in the form provided in section 2606 of this title.


Sec. 4.  9 V.S.A. § 2605 is added to read:

§ 2605.  Mobile home bill of sale conversion process

The owner of any mobile home that was initially financed pursuant to a motor vehicle loan, motor vehicle retail installment contract, or another form of chattel mortgage shall, if the mobile home is subsequently financed as residential real estate pursuant to subsection 2603(b) of this title, file a request for purging of the security interest with the clerk of the municipality where the chattel mortgage for the mobile home was last recorded.

(1)  A request to purge the security interest of a mobile home shall include the most recent Vermont uniform bill of sale or certificate of origin, the terminated UCC financing statement or statements, and an executed warranty or quitclaim deed, which shall be drafted substantially in the form provided in section 2604 of this title.

(2)  Upon the filing of a request to purge the security interest of a mobile home with the clerk of the municipality where the chattel mortgage for the  mobile home was last recorded, and upon the owner’s procuring the consent of the holders of any security interest in the mobile home shown to be unreleased, the mobile home shall become residential real estate.

(3)  Upon receiving a request to purge the security interest of a mobile home, the municipal clerk shall mark or stamp the originally filed Vermont uniform bill of sale or certificate of origin with the word “converted.”

(4)  A mobile home that has been converted to residential real estate shall not be converted or redefined as personal property.

Sec. 5.  9 V.S.A. § 2606 is added to read:

§ 2606.  Relocating mobile homes to another

              municipality or state

(a)  If a deed for any mobile home is recorded by the clerk of the municipality in which the mobile home is sited, and if that mobile home is relocated to another site within the state of Vermont, the owner of the mobile home shall, within 10 days of the relocation, do all the following:

(1)  File with the clerk of the municipality where the deed was last recorded a relocation statement substantially in the form provided in this subsection.

(2)  File with the clerk of the municipality where the mobile home is relocated a copy of the relocation statement as required by subdivision (1) of this subsection, together with the deed filed with the clerk of the municipality where the mobile home was previously sited.  If the records of a municipality in which the deed or conveyance is recorded are destroyed, an attested copy of the deed or other conveyance from the county clerk shall have the same validity as a copy from the municipal clerk’s office.

(3)  Provide a copy of the relocation statement filed pursuant to subdivision (1) of this subsection to the holders of any unreleased, recorded security interests in the mobile home.

Form for Relocation Statement

                              , of                        ,                               County, State of                         , is the owner of (description of mobile home: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any), which mobile home has been relocated.

The mobile home was previously located at __________ (state name of park, if any, and street address), Town (City) of __________, __________ County, State of Vermont and title, if any, to the same was recorded at Book ___, Page ___, in the records of the Town (City) of __________.

The mobile home is has been relocated to  __________ (state name of park, if any, and street address), Town (City) of __________, __________ County, State of Vermont and title, if any, to the same was recorded at Book___ ___, Page ___, in the records of the Town (City) of __________. 

The tract or parcel of land upon which the mobile home is situated is owned by                        by deed dated                               and recorded at
Book        , Page      in the land records of the Town (City) of               .

The mobile home is subject to an existing mortgage by _____________in favor of _____________, recorded at Book ___, Page    , in the land records of the Town (City) of _______     __.

If the relocation is to a municipality in Vermont other than the municipality in which the deed to the Grantor was recorded, a duplicate original of the deed to the Grantor shall be recorded in the land records of the municipality of the relocation at the same time this statement is recorded.

       Signed this __________ day of __________, ___.

(b)  An out-of-state transfer statement substantially in the form provided in this subsection shall, when duly executed and recorded by the clerk of the municipality in which the mobile home was previously located, have the force and effect of transferring title of the mobile home to the grantee, the grantee’s heirs, successors, and assigns and terminating the record title or deed of the mobile home in the municipal records under circumstances by which the mobile home is relocated outside this state.  No owner of land on which a mobile home is sited shall unreasonably withhold the consent required by this statutory form.  No mobile home may be relocated to a site outside this state unless all holders of liens, attachments, or encumbrances, if any, consent in writing on the transfer statement.

Form for Out-of-State Transfer Statement

__________, of __________, County, State of __________ (“Grantor”), for consideration paid, grants to __________, (complete mailing address) __________, of __________ Street, Town (City) of __________, __________ County, State of __________ (“Grantee”), the __________ (Description of mobile home being conveyed: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home was situated at __________ (state name of park, if any, and street address), Town (City) __________ of __________ County, State of Vermont.

The tract or parcel of land upon which the mobile home was situated is owned by __________ by deed __________ dated __________ and recorded at Book___, Page ___ in the __________ County Registry of Deeds. __________ (wife) (husband) of said Grantor, releases to said Grantee all rights and other interest therein.

The mobile home is transferred subject to an existing mortgage by __________in favor of _____________, recorded at Book ___, Page    , in the land records of the Town (City) of _________, State of Vermont.

Signed this __________ day of __________, ___.

(Here add acknowledgment)

        __________, owner of the tract or parcel of land upon which the aforesaid mobile home was situated, hereby consents to the conveyance of the mobile home.

Signed this __ day of __________, ___.

(Here add acknowledgment)

        __________, holder of (lien, attachment or encumbrance) hereby consent to the conveyance of the aforesaid mobile home, subject to condition that the aforesaid (lien, attachment or encumbrance) shall remain in force and effect thereon.

Signed this __________ day of __________, ___.

(Here add acknowledgment)

(c)  An attachment, mortgage, security interest, lien, or other encumbrance on a mobile home, when properly perfected, shall be enforceable until released or discharged notwithstanding the relocation of the mobile home within or outside this state.

Sec. 6.  9 V.S.A. § 2607 is added to read:

§ 2607.  PENALTY

A person who violates a provision of this chapter:

(1)  Except for violations of subsection 2603(e) of this title, shall be fined not more than $5,000.00 for each occurrence.

(2)  Shall be subject to all the remedies and penalties available to a consumer and the attorney general under chapter 63 of this title.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us