BP BHEAD INT H

AN ACT Relating to the purchase of manufactured housing; amending RCW 59.22.080 and 65.20.030; adding a new section to chapter 46.12 RCW; adding a new section to chapter 65.20 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that many purchasers of new manufactured homes site these homes on land that they own. The purchaser is often able to purchase both the land and the manufactured home as part of a package. Although the legislature established a procedure in chapter 65.20 RCW for a homeowner to eliminate a manufactured home title if the homeowner owns both the manufactured home and the land to which it is affixed, a title still must be issued when a new manufactured home is purchased and affixed to land owned by the homeowner. The homeowner must then go through the process to eliminate the title. The legislature therefore finds and declares that certificates of ownership shall no longer be issued when new manufactured homes are purchased and affixed to land owned by the homeowner.

NEW SECTION. Sec. 2. A new section is added to chapter 46.12 RCW to read as follows:

A certificate of ownership is not required for any owner of a new manufactured home when the manufactured home is transported and affixed in accordance with RCW 65.20.020(1) to land owned by the manufactured home owner. The manufactured home shall be considered real property.

NEW SECTION. Sec. 3. A new section is added to chapter 65.20 RCW to read as follows:

A title is not required for any owner of a new manufactured home when the manufactured home is transported and affixed to land owned by the manufactured home owner. The manufactured home shall be considered real property.

Sec. 4. RCW 59.22.080 and 1991 c 327 s 1 are each amended to read as follows:

(1) There is hereby imposed a fee of fifteen dollars on every transfer of title issued pursuant to chapter 46.12 RCW on a new or used mobile home where ownership of the mobile home is changed and on each application for the elimination of title under chapter 65.20 RCW. A transfer of title does not include the addition or deletion of a spouse co-owner or a secured interest. A transfer of title does not include the purchase of a new manufactured home that will be affixed to land owned by the manufactured home owner. The department of licensing or its agents shall collect the fee when processing the application for transfer or elimination of title. The fee collected under this section shall be forwarded to the state treasurer. The state treasurer shall deposit each fee collected in the mobile home affairs account created by RCW 59.22.070.

(2) The department of licensing and the state treasurer may enact any rules necessary to carry out this section.

Sec. 5. RCW 65.20.030 and 1989 c 343 s 3 are each amended to read as follows:

When a manufactured home is sold or transferred on or after March 1, 1990, and when all ownership in the manufactured home is transferred through the sale or other transfer of the manufactured home to new owners, the manufactured home shall be real property when the new owners eliminate the title pursuant to this chapter. The manufactured home shall not be real property in any form, including fixture law, unless the title is eliminated under this chapter, or no title is issued in accordance with section 3 of this act. Where any person who owned a used manufactured home on March 1, 1990, continues to own the manufactured home on or after March 1, 1990, the interests and rights of owners, secured parties, lienholders, and others in the manufactured home shall be based on the law prior to March 1, 1990, except where the owner voluntarily eliminates the title to the manufactured home by complying with this chapter. If the title to the manufactured home is eliminated under this chapter, or no title is issued in accordance with section 3 of this act, the manufactured home shall be treated the same as a site-built structure and ownership shall be based on ownership of the real property through real property law. If the title to the manufactured home has not been eliminated under this chapter, ownership shall be based on chapter 46.12 RCW.

For purposes of perfecting and realizing upon security interests, manufactured homes shall always be treated as follows: (1) If the title has not been eliminated under this chapter, security interests in the manufactured home shall be perfected only under chapter 46.12 RCW and the lien shall be treated as securing personal property for purposes of realizing upon the security interest. If the manufactured home is attached to land owned by the homeowner and the secured party seeks to remove the home pursuant to a contract, the secured party is liable for damage to the land to the extent the secured party would be liable if the manufactured home was a fixture under chapter 62A.9 RCW; or (2) if the title has been eliminated under this chapter or no title was issued in accordance with section 3 of this act, a separate security interest in the manufactured home shall not exist, and the manufactured home shall only be secured as part of the real property through a mortgage, deed of trust, or real estate contract.