South Carolina General Assembly
115th Session, 2003-2004

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Bill 3909

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

May 14, 2003

H. 3909

Introduced by Reps. Lucas and Cotty

S. Printed 5/14/03--H.

Read the first time April 1, 2003.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (H. 3909) to amend the Code of Laws of South Carolina, 1976, by adding Article 4 to Chapter 19, Title 56 so as to provide a uniform procedure to retire the Title Certificate, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

JAMES H. HARRISON for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

See Below

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

See Below

EXPLANATION OF IMPACT:

The Department of Public Safety states that this bill would result in a one-time cost of $11,550 associated with Phoenix system program changes and database updates.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 19, TITLE 56 SO AS TO PROVIDE A UNIFORM PROCEDURE TO RETIRE THE TITLE CERTIFICATE TO CERTAIN MANUFACTURED HOMES AFFIXED TO REAL PROPERTY AND TO PROVIDE FOR THE CREATION OF A PROCEDURE BY WHICH A MANUFACTURED HOME AFFIXED TO REAL PROPERTY MAY BE SUBJECT TO A MORTGAGE ON THE REAL PROPERTY TO WHICH THE MANUFACTURED HOME IS AFFIXED.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    The General Assembly finds that there are circumstances where it is advantageous to classify manufactured homes affixed to real property as real property so as to allow for the granting of a mortgage on the real property with the manufactured home being subject to the mortgage, and that while a system for retiring the motor vehicle title on manufactured homes affixed to real property has been utilized by the Division of Motor Vehicles, the procedure is not uniformly followed and, as a consequence, citizens are frequently denied opportunities to secure financing for their manufactured homes from federally guaranteed sources. To ameliorate the difficulties resulting from the absence of a uniform procedure, the General Assembly intends to provide a uniform procedure for retiring the title certificate for a manufactured home affixed to real property and to provide that manufactured homes affixed to real property in specified circumstances may be subject to a mortgage on the real property.

SECTION    2.        Chapter 19, Title 56 of the 1976 Code is amended by adding:

"Article 4

Retirement of Title Certificate to Manufactured Homes

Section 56-19-500.    As used in this article:

(1)    'Affixed' means that the manufactured home is installed in accordance with the state required installation standards, with wheels and towing hitch removed, and with the owner of the home having an intention that the manufactured home becomes an improvement to the real property on which it is situated.

(2)    'Division' means the Division of Motor Vehicles of the Department of Public Safety.

(3)    'Homeowner' means the owner of a manufactured home.

(4)    'Land' means real property excluding the manufactured home.

(5)    'Manufactured home' means a structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width, or forty body feet or more in length, or when erected on site, is three hundred twenty or more square feet and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained in it.

(6)    'Owner' means, when referring to a manufactured home for which a title certificate is issued as required by Section 56-19-210, the person identified on the title certificate as the owner of the home. When referring to a manufactured home for which the title certificate has been retired either pursuant to the procedure utilized by the division or pursuant to this article, the person who owns the real property, or has a leasehold estate of thirty-five or more years.

(7)    'Retire the title certificate' means to cancel an existing title issued by this State or a foreign jurisdiction.

(8)    'Secured party' means any lienholder identified on the certificate of title of a manufactured home, or the lender securing a loan through a mortgage, deed of trust, or real estate contract when referring to real property or real property to which a manufactured home has been affixed and the title certificate retired.

(9)    'Security interest' means an interest in property to secure payment of a loan made by a secured party to a borrower.

(10)    'Sever' means to physically remove the home from the real property to which it is affixed.

Section 56-19-510.    If a manufactured home is affixed to real property that is owned by the homeowner or to real property in which the homeowner has a leasehold estate of thirty-five or more years, the homeowner may apply to the division to have the title to the manufactured home retired by submitting to the division the following:

(1)    an affidavit, in the form prescribed by the division, signed by all owners of the manufactured home and containing:

(a)    the date;

(b)    the names of all of the owners of record of the manufactured home;

(c)    the legal description of the real property to which the manufactured home is affixed;

(d)    a description of the manufactured home including model year, make, width, length, and vehicle identification number;

(e)    the names of all secured parties with a security interest in the manufactured home; and

(f)    a statement that the owner of the manufactured home owns or has a leasehold estate of thirty-five or more years in the real property to which the manufactured home is affixed;

(2)    title certificate for the manufactured home, or the manufacturer's statement of origin in the case of a new manufactured home for which a title certificate has never been issued. Where the title certificate is held by a secured party, the consent of the secured party to the retirement of the certificate of title must be indicated in writing on the title certificate by the secured party;

(3)    a certification by the auditor of the county in which the manufactured home is located that the manufactured home is affixed to the real property;

(4)    a receipt or receipts demonstrating payment of all licensing fees, sales, or use tax and property taxes then due; and

(5)    payment of a fee established by the division not to exceed thirty dollars for retirement of the title certificate and the fee for recording the affidavit in the real property records of the county in which the home is located upon retirement of the title certificate.

Section 56-19-520.    The division must retire the certificate of title upon receipt of the application described in this article. After the title certificate has been retired, the division must transmit the affidavit described above together with the recording fee to the register of deeds in the county in which the manufactured home is located. The register of deed must record the affidavit as if it were a deed to real property with the homeowner being identified as the grantor. The division must maintain a record of each manufactured home title retired under this article indexed by the name of the owner making application to retire the title certificate. Following retirement of the certificate of title and recordation of the affidavit as prescribed in this article, the manufactured home is to be considered for all purposes as real property.

Section 56-19-530.    If at the time of filing of the affidavit by the register of deeds the manufactured home is subject to a lien, the affidavit is also to be filed as a lien against the real property to which the manufactured home is affixed, and indexed in the name of the owner and lienholder. Any lien on the manufactured home at the time of retirement of the title certificate must be perfected and have priority in the manner provided for a lien on real property. The provisions of this article control over the provisions of Section 36-9-334 relating to priority of conflicting security interests in manufactured homes.

Section 56-19-540.    (A)    If a home for which the title certificate has been retired is to be severed from the real property to which it is affixed, it will not be necessary for the owner of the home to obtain a new title certificate if the home is to be affixed to real property in its new location. However, the owner of the home shall file an affidavit containing the following information with the register of deeds in the county or counties from which the home is being moved and where it is to be relocated:

(1)    the name of the owner of the home;

(2)    a description of the home including the name of the manufacturer and serial number;

(3)    the name of the owner of the real property to which the home will be affixed upon relocation; and,

(4)    the deed book and page reference for the filing of the affidavit required upon the initial affixation of the home to real property.

(B)    If the home is not affixed to real property it is necessary for the owner of the home to obtain a new title certificate from the division by filing with the division an application for title certificate of a form acceptable to the division, containing the following information, and the payment of the title fee established by the division:

(1)    the name and address of the owner of the home;

(2)    a description of the home including the name of the manufacturer, the model of the home, the year of manufacturer, and the serial number; and

(3)    the name and address of a person claiming a lien on the home.

(C)    If a home which is to be severed from real property is subject to a lien or mortgage, the home may not be severed without the notarized, written consent of the lienholder to the severance."

SECTION    3.    This act takes effect upon approval by the Governor.

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