[Legislativecommittee1] FW: Manufactured Homes as Real Property
George Peters
execdirector at washingtonlandtitle.com
Mon Dec 16 16:52:57 PST 2024
Good afternoon all.
Attached is a proposed draft of a mobile home bill, sought by cooperatives.
(It’s designed to allow de-titling in a cooperative situation – the mobile
home owner won’t have fee title to the lot, but will have ownership in the
land indirectly be virtue of share ownership in the cooperative, which will
have title to the land and will lease the space to the mobile home owner.)
You can distinguish the original draft from my redline suggestions.
I expect to see a bill dropped.
I suppose three things might happen. This may be premature, but my
recommendations would be:
They submit a bill with my suggested language. We should support that.
They submit a bill with no additional changes; only their draft. I’d suggest
remaining neutral, mainly because we’ve lived with the statute for years. I
would not recommend supporting, because in my estimation, the added changes
make sense. But, the committee might elect to oppose or even support.
They make some changes but, not all, and/or other changes (perhaps the
bankers will have suggestions). We’d have to review the bill again before
deciding what to do.
HOWEVER – FOR YOUR ADDITIONAL CONSIDERATION:
I don’t know what individual title companies are doing with respect to RCW
65.20.070(1)(a)(iii), which calls for a title company certification (not
expressly a “certificate”). Title companies should have an aversion to
products that involve unlimited abstractor liability, and should rather want
to issue a guarantee type of product. Lori suggests that there are ways to
comfortably address this existing statutory requirement with existing
practices. But, if you have any concerns about this language, please bring
them up. If there is language that you feel won’t compromise title company
liability exposure, please feel free to suggest it.
George
George Peters, WTP
Executive Director
Washington Land Title Association
<https://washingtonlandtitle.com> https://washingtonlandtitle.com
Mail: PO Box 328, Lynnwood, WA 98046
Delivery: 6817 208th St SW, #328, Lynnwood, WA 98036
206-437-5869 (Mobile)
206-260-4731 (Fax)
<mailto:execdirector at wltaonline.org> execdirector at washingtonlandtitle.com
This is a confidential communication intended solely for the named
recipient. If you are not the intended recipient, please destroy it and call
George Peters at 206-437-5869 immediately. Thank you.
From: George Peters <execdirector at washingtonlandtitle.com>
Sent: Wednesday, December 11, 2024 8:03 AM
To: Carrie Tellefson (carrie at sound-gov.com) <carrie at sound-gov.com>
Cc: Sam Miller (sam at sound-gov.com) <sam at sound-gov.com>; JP Kissling
(jpkissling at fitico.com) <jpkissling at fitico.com>; Michelle Taylor
(mjtaylor at firstam.com) <mjtaylor at firstam.com>; lorbullard at firstam.com;
Maureen Pfaff (maureen at olypentitle.com) <maureen at olypentitle.com>
Subject: FW: Manufactured Homes as Real Property
Importance: High
Hi all – here is my email to Alma Weber, with proposed language attached as
a PDF.
I appreciate that they send draft bill request language.
George
George Peters, WTP
Executive Director
Washington Land Title Association
<https://washingtonlandtitle.com> https://washingtonlandtitle.com
Mail: PO Box 328, Lynnwood, WA 98046
Delivery: 6817 208th St SW, #328, Lynnwood, WA 98036
206-437-5869 (Mobile)
206-260-4731 (Fax)
<mailto:execdirector at wltaonline.org> execdirector at washingtonlandtitle.com
This is a confidential communication intended solely for the named
recipient. If you are not the intended recipient, please destroy it and call
George Peters at 206-437-5869 immediately. Thank you.
From: George Peters <execdirector at washingtonlandtitle.com
<mailto:execdirector at washingtonlandtitle.com> >
Sent: Monday, December 9, 2024 10:49 AM
To: 'Weber, Alma' <Alma.Weber at leg.wa.gov <mailto:Alma.Weber at leg.wa.gov> >
Cc: 'Peterson, Rep. Strom' <Strom.Peterson at leg.wa.gov
<mailto:Strom.Peterson at leg.wa.gov> >; 'Dolly, Serena'
<Serena.Dolly at leg.wa.gov <mailto:Serena.Dolly at leg.wa.gov> >
Subject: RE: Manufactured Homes as Real Property
Importance: High
Alma, here are some additional comments on suggested changes to the mobile
home statutes. We think the goal with respect to addressing cooperatives is
good, and the current draft revisions would appear to address some of the
concerns regarding cooperative communities.
However, there is other existing language in this statute that could perhaps
be changed for clarity and to eliminate other existing ambiguities and
contradictions.
1. The definition of “homeowner” in RCW 65.20.020(4) is “
means the
owner of a manufactured home.” However, the definition of “owner” (in §(7)
is:
“
means, when referring to a manufactured home that is titled, the person
who is a registered owner. When referring to a mobile home that is untitled
pursuant to this chapter, the owner is the person who owns the land.”
This creates an ambiguity and inconsistency. While “manufacture home” and
“mobile home” have the same meaning and can be used interchangeably, this
definition of “owner” suggests a distinction is to be made between a mobile
home and a manufactured home – that is, it only applies to a manufactured
home if it remains titled, and only applies to a mobile home when the title
has been eliminated. We suggest avoiding this apparent contradiction by
using only one term here – perhaps “manufactured home” since that term is
more commonly used throughout the rest of the statute.
Suggested language is shown in redline in the attached draft. (I’ve
underlined suggested additional language and shown in in bold font, and
shown suggested deletions in bolded red font.)
2. The definition of “Land” in RCW 65.20.020(5) should not exclude a
manufactured home. The main intent of this statute is to provide a way to
have the manufactured home included as part of the land once the title has
been eliminated, and the use of “land” elsewhere in the document does in
fact include the mobile home when the title has been eliminated. We suggest
that this definition be amended to mean real property excluding the
manufactured home if the title has not been eliminated, and means real
property including the manufactured home if the title has been eliminated.
Again, see suggested language in the attached draft.
3. The definition of “Owner” in RCW 65.20.020(7) includes the owner of a
leasehold estate in land but only when the lease has a term of 35 years or
more. We do not know the reason that any limiting language is in the current
statute, and do not know why 35 years was the time frame that was used. The
35 year term seem arbitrary and unnecessarily eliminates the benefits of the
statute to other lessees – not just those who lease from a cooperative.
There are two problems with this language:
First, it refers to a lease with a term of 35 years, which would arbitrarily
and unfairly limit the ability of someone with a leasehold estate of, say 34
years (which ought to be considered a long term lease) to eliminate the
title of a mobile home. If any time frame must be shown, perhaps the lease
term in this statute should be two years, since that would be consistent
with RCW 65.08.060(3). In other words, any leasehold interest, as long as it
is considered real property, ought to be permitted. This is especially
important since this statute provides for dealing with what happens when a
mobile home is moved – no matter the reason. The mobile home on any
leasehold land may need to be moved at any time during the lease term.
Second, it creates a potential ambiguity for the Department of Licensing. As
an example, the DOR might be requested to eliminate a title when the
homeowner’s existing lease was initially for, say 40 years, but has a
remaining leasehold term of, say 30 years. Is the leasehold estate – for
purposes of this current mobile home statute – 30 years or 40 years? This
wouldn’t be an issue for the DOR if all leases that are real property by
statutory definition were treated equally.
Our recommendation is to not have any arbitrary leasehold estate term in
this statute that is inconsistent with existing law.
Also, while perhaps a minor change, we suggest changing “property” to “land”
in this section.
Again, see suggested language in the attached draft.
4. Perhaps the reference to the term “property” in the definition of
“security interest” in RCW 65.20.020(10) might be changed to “manufactured
home” and “land”? “Property” is not defined, but land and manufactured home
are defined terms. This also is in line with definition of “secured party”
in RCW 65.20.020(9) and in line with RCW 65.20.030. See suggested language
in the attached draft.
5. We suggest updating RCW 65.20.060 in line with the other changes by
adding a reference to a lease and referring to “land” rather than
“property”.
While perhaps minor, we also suggest using the term “secured party” instead
of “lender” in this section.
Again, see suggested language in the attached draft.
I assume the above suggestions will be acceptable the cooperative interests,
but am happy to discuss with them further.
Feel free to let me know if you have any questions.
George
George Peters, WTP
Executive Director
Washington Land Title Association
<https://washingtonlandtitle.com> https://washingtonlandtitle.com
Mail: PO Box 328, Lynnwood, WA 98046
Delivery: 6817 208th St SW, #328, Lynnwood, WA 98036
206-437-5869 (Mobile)
206-260-4731 (Fax)
<mailto:execdirector at wltaonline.org> execdirector at washingtonlandtitle.com
This is a confidential communication intended solely for the named
recipient. If you are not the intended recipient, please destroy it and call
George Peters at 206-437-5869 immediately. Thank you.
From: George Peters <execdirector at washingtonlandtitle.com
<mailto:execdirector at washingtonlandtitle.com> >
Sent: Friday, December 6, 2024 9:29 AM
To: 'Weber, Alma' <Alma.Weber at leg.wa.gov <mailto:Alma.Weber at leg.wa.gov> >
Cc: 'Peterson, Rep. Strom' <Strom.Peterson at leg.wa.gov
<mailto:Strom.Peterson at leg.wa.gov> >; 'Dolly, Serena'
<Serena.Dolly at leg.wa.gov <mailto:Serena.Dolly at leg.wa.gov> >
Subject: RE: Manufactured Homes as Real Property
Alma, thank you for sending this draft along. I will look at it and get back
to you shortly.
I will also ask a colleague for any additional thoughts.
George
George Peters, WTP
Executive Director
Washington Land Title Association
<https://washingtonlandtitle.com> https://washingtonlandtitle.com
Mail: PO Box 328, Lynnwood, WA 98046
Delivery: 6817 208th St SW, #328, Lynnwood, WA 98036
206-437-5869 (Mobile)
206-260-4731 (Fax)
<mailto:execdirector at wltaonline.org> execdirector at washingtonlandtitle.com
This is a confidential communication intended solely for the named
recipient. If you are not the intended recipient, please destroy it and call
George Peters at 206-437-5869 immediately. Thank you.
From: Weber, Alma < <mailto:Alma.Weber at leg.wa.gov> Alma.Weber at leg.wa.gov>
Sent: Thursday, December 5, 2024 2:19 PM
To: George Peters < <mailto:execdirector at washingtonlandtitle.com>
execdirector at washingtonlandtitle.com>
Cc: Peterson, Rep. Strom < <mailto:Strom.Peterson at leg.wa.gov>
Strom.Peterson at leg.wa.gov>; Dolly, Serena < <mailto:Serena.Dolly at leg.wa.gov>
Serena.Dolly at leg.wa.gov>
Subject: Manufactured Homes as Real Property
Hi George,
Rep Peterson plans on introducing the attached bill to allow owners of
manufactured homes in cooperative communities to eliminate the home's title
with the Department of Licensing. I know you had some conversations about
the bill prior to drafting and Rep Peterson wanted to share this final draft
with you.
Please let us know if you have any thoughts or questions about the bill.
Thank you,
Alma
ALMA WEBER
Policy Analyst | House Democratic Caucus
Pronouns: she/her
Call/Text: 360.786.7757
<http://housedemocrats.wa.gov/> housedemocrats.wa.gov |
<mailto:alma.weber at leg.wa.gov> alma.weber at leg.wa.gov
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