BP BHEAD INT H

AN ACT Relating to ownership of manufactured homes; amending RCW 33.24.007, 46.12.055, 46.12.290, 46.70.135, 59.22.080, and 61.12.030; adding a new chapter to Title 64 RCW; repealing RCW 65.20.010, 65.20.020, 65.20.030, 65.20.040, 65.20.050, 65.20.060, 65.20.070, 65.20.080, 65.20.090, 65.20.100, 65.20.110, 65.20.120, 65.20.130, 65.20.900, 65.20.910, 65.20.920, and 65.20.930; and providing an effective date.

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

NEW SECTION. Sec. 1. PURPOSE. The legislature recognizes that while manufactured homes are an important source of affordable housing in this state, the ownership of these homes has traditionally been treated in the same manner as vehicles and confusion has existed regarding when manufactured homes are real or personal property. Over the past several years, the legislature began a process to gradually treat manufactured homes as housing, such as providing for the department of community, trade, and economic development's division of housing to administer titling of manufactured homes in RCW 46.12.295. Recognizing that manufactured home owners often are excluded from conventional financing under the present systems, a home owner may elect to have his or her property classified as real property enabling that owner a greater accessibility to the lending markets. The purpose of this chapter is to also establish a process to obtain and transfer ownership of and to protect security interests in manufactured homes and to treat manufactured homes as housing and not vehicles.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Authorized agent" means the county auditor in each of the counties of the state.

(2) "Certificate" means a manufactured housing certificate of ownership issued under this chapter.

(3) "Dealer" means any person, firm, partnership, corporation, or association licensed under the laws of this state to engage in the business of buying, selling, exchanging, or otherwise trading in manufactured homes.

(4) "Department" means the department of community, trade, and economic development.

(5) "Director" means the director of the department of community, trade, and economic development.

(6) "Manufactured home" or "home" means a structure designed and constructed to be transportable in one or more sections and 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 that include plumbing, heating, and electrical systems contained within the home. The structure must comply with the national mobile home construction and safety standards act of 1974 as adopted by chapter 43.22 RCW if applicable. "Manufactured home" does not include a modular home. A structure that met the definition of a "manufactured home" at the time of manufacture is still considered to meet this definition notwithstanding that it is no longer transportable.

(7) "Manufacturer" means a person, firm, partnership, corporation, or association engaged in the manufacture of new manufactured homes.

(8) "Owner" means any person, association of persons, firm, or corporation in whose name the certificate is issued.

(9) "Person" means a natural person, association of persons, firm, partnership, or corporation.

(10) "State" includes the territories and the federal districts of the United States.

(11) "Title" means a vehicle certificate of ownership issued under chapter 46.12 RCW.

NEW SECTION. Sec. 3. APPLICATION. This chapter applies to manufactured homes sold or transferred after June 30, 1995.

NEW SECTION. Sec. 4. ADMINISTRATION. The director is charged with the duty of administering this chapter. For that purpose the director is vested with the power to make such reasonable rules, prepare, prescribe, and require the use of such forms and provide such procedures as may be reasonably necessary or essential to the efficient administration of this chapter.

NEW SECTION. Sec. 5. AUTHORIZED AGENTS. The county auditor in each of the counties of the state is designated to be the authorized agent of the director and, under the direction of the director, is charged with the administration of the terms and provisions of this chapter and the rules which may from time to time be adopted for the administration of this chapter in the county in which such authorized agent holds office.

NEW SECTION. Sec. 6. SALE OR TRANSFER OF MANUFACTURED HOME. (1) After June 30, 1995, all sales or transfers of an interest in a manufactured home shall take place on a form prescribed by the director and must be recorded in the official records at the county auditor's office in the county where the manufactured home is located.

(2) All sales or transfers prior to July 1, 1995, are governed by chapter 46.12 or 65.20 RCW.

NEW SECTION. Sec. 7. FORMS CONTENT. (1) After June 30, 1995, all sales and transfers of manufactured housing must take place on a form prescribed by the director containing, at a minimum, the following information: The description of the manufactured home including the model and manufacturer thereof, the model year, a description of any other distinguishing mark, number or symbol placed on the home by the manufacturer for identification purposes, the dimensions of the home, the name of the seller or sellers, the name of the buyer or buyers, and any known lien or security interest. The certificate shall be the document used as the instrument of conveyance of interest from the seller to the buyer with any and all lien or security interests disclosed.

(2) After June 30, 1995, all manufactured homes that are physically moved from one location to another, either within the same county or across county lines, must complete and record that relocation on a transfer in location form. The transfer in location form shall be on a form prescribed by the director, containing at a minimum the name of the owner, the lien or security interests of record, the tax account number or numbers (either real, personal, or both) of the land on which the home is being removed, the tax account number or numbers (either real, personal, or both) of the land onto which the home is being moved, the model year and manufacturer of the home, the new site permit number, and any related dealer information as required if sold from a dealer's inventory.

NEW SECTION. Sec. 8. RECORDING REQUIREMENTS. After June 30, 1995, all certificates, transfer in location forms, and any other related documents which may be required by the director or under this chapter must be recorded in the official records of the county auditor in the county where the manufactured home is located. Fees shall be imposed for this recording process as prescribed by RCW 65.04.130 and 36.18.010.

NEW SECTION. Sec. 9. EXCISE TAX/USE OR SALES TAX REQUIREMENTS. (1) For manufactured homes sold on location, all certificates must have affixed the excise tax stamp or equivalent from the county treasurer's office in the county where the manufactured home is located prior to recording that document. Requirements for excise tax shall be governed by RCW 84.04.080 and 84.04.090 and this chapter does not change those requirements or criteria. Proof that property taxes are current on personal property transfers is still required under this chapter.

(2) Any manufactured home that has been sold from a dealer's inventory or sold or transferred and physically moved from one location to another shall be subject to sales or use tax as prescribed by RCW 82.08.020 and 82.12.020.

(3) The fee shall be paid, or proof of payment of the fee shall be delivered, at the time of recording and such fees may be collected by the authorized agent or the department of revenue. A receipt shall be issued by the authorized agent or the department of revenue as proof of tax collected unless previously collected for the transaction by the department of revenue. The certificate shall be marked or stamped by the authorized agent indicating that sales or use tax was collected and will not require the county treasurer's excise stamp or equivalent for recording.

(4) The county auditor in each county of the state is hereby appointed as an authorized agent for the department of revenue for the purposes of collecting and remitting to the department of revenue sales and use tax collected on manufactured home transactions under RCW 82.08.020 and 82.12.020.

(5) The authorized agent shall pay over and account to the state treasurer for all use tax revenue collected under this section, after first deducting a collection fee in the sum of two dollars for each manufactured home upon which the tax has been collected. All revenue received by the state treasurer under this section shall be credited to the general fund. The authorized agent's collection fee shall be deposited into the county current expense fund. A duplicate of the authorized agent's transmittal report to the state treasurer shall be forwarded forthwith to the department of revenue.

(6) Any applicant who has paid use tax to an authorized agent under this section may apply to the department of revenue for a refund thereof if he or she has reason to believe that such tax was not legally due and owing. This chapter shall be construed as cumulative of other methods prescribed in chapters 82.04 through 82.32 RCW for the collection of tax imposed under this section.

NEW SECTION. Sec. 10. CLASSIFICATION AS PERSONAL OR REAL PROPERTY. The owner or buyer of a manufactured home may elect to have the home classified as real property provided the following criteria are met:

(1) The owner or buyer of the manufactured home has an interest in land upon which the manufactured home is located, either in fee simple, as a purchaser under a real estate contract, or as a lessee having a leasehold interest of no less than thirty-five years.

(2) The owner or buyer of a manufactured home may elect to have the home classified as personal property even though it is situated on real estate owned, leased, or being purchased by such owner or buyer.

(3) A manufactured home that is situated in a manufactured home park, located on land not owned or being purchased by the owner or buyer, or on property where such owner or buyer has a leasehold interest of less than thirty-five years must be classified as personal property. All subsequent sales or transfers will take place on a certificate as prescribed in sections 6, 7, and 8 of this act.

NEW SECTION. Sec. 11. LOST CERTIFICATES OF OWNERSHIP. In the event of the loss of the original recorded certificate, a certified copy of that document may be obtained, for a fee as prescribed by RCW 65.04.130 and 36.18.010, from the county auditor in the county where the original document was recorded. This document shall be as legal or valid as the original document and may used in the same manner.

NEW SECTION. Sec. 12. NEW MANUFACTURED HOMES‑-PURCHASE ORDER, BILL OF SALE, MANUFACTURER'S STATEMENT OF ORIGIN REQUIREMENTS. Upon the sale or transfer by a dealer of a new manufactured home, such dealer shall, upon the delivery thereof, make, execute, and deliver to the purchaser or transferee a good and sufficient bill of sale or purchase order together with the manufacturer's statement of origin and a completed certificate. The manufacturer's statement of origin shall then be recorded with the certificate in the county where the manufactured home is to be located as described in sections 6, 7, and 8 of this act.

NEW SECTION. Sec. 13. RESALE BY DEALERS‑-CERTIFICATE NOT ISSUED UNTIL TIME OF RESALE. (1) For those manufactured homes that are classified as personal property, upon the sale or transfer to a dealer of a used manufactured home for which a Washington certificate or a title has been issued, formal transfer of the certificate from the seller shall not be necessary while the dealer holds the manufactured home in inventory for resale purposes. The dealer shall be required to hold the certificate and a transfer in location form, if required, signed by the seller or sellers. Such documents shall be completed by the dealer upon the sale or transfer of the home to the new buyer or owner.

(2) For those manufactured homes that are classified as real property and are subsequently removed from that classification and held by a dealer in inventory for resale, a new certificate and a transfer in location form, if required, must be completed by the dealer for the owner or seller to sign and it shall be held by the dealer until the manufactured home is resold or disposed of accordingly. The dealer need not complete and record the certificate as long as that home is held in inventory for resale.

(3) The certificate and the transfer in location form must be recorded as provided in section 6 of this act.

NEW SECTION. Sec. 14. CONVERSION OF FOREIGN TITLES OR CERTIFICATES TO A WASHINGTON CERTIFICATE. Where a previous Washington title or certificate does not exist, the owner must first apply for a Washington title through the department of licensing before selling the manufactured home. After the title has been secured, sections 6, 7, and 8 of this act shall apply to all further transfers of ownership.

NEW SECTION. Sec. 15. CONVERSION FOR MANUFACTURED HOMES WITH NO PREVIOUS WASHINGTON RECORDS. Where no title or certificate has been issued previously in any state, the owner or seller must first obtain a Washington title from the department of licensing and, upon resale, shall complete the certificate as prescribed in sections 6, 7, and 8 of this act.

NEW SECTION. Sec. 16. NOTIFICATION OF ASSESSOR. (1) The home owner shall notify the county assessor in the county where the home is located to change the classification from either real to personal property or from personal to real property.

(2) The new classification shall be indicated on the certificate. Upon recording of the certificate, the authorized agent shall notify the county assessor in the county where the manufactured home is located of the change in classification. The manufactured home classified as real property shall remain part of the real property on all subsequent transfers or sales of the real property until such time as the owner or buyer elects to change the status of the home to personal property or transfer the home to a new location. Sales or transfers occurring while the manufactured home is classified as real property shall take place with conventional real property documents.

(3) It is the responsibility of the county treasurer to send copies of the moving permits to the county assessor in the county to which the manufactured home is being moved to as required by RCW 46.44.173. The owner or seller shall contact the county assessor's office in the county where the manufactured home is currently located to have the home removed from the real property tax rolls and a personal property tax account number assigned if one does not already exist. This chapter shall not affect any property taxes that may be due at the time the manufactured home is removed from the land.

NEW SECTION. Sec. 17. COLLECTION OF MISCELLANEOUS FEES BY AUTHORIZED AGENT. The authorized agent shall be appointed by the director under this section to act as an agent to collect any fee required by the department. The authorized agent shall pay over and account to the state treasurer for all of the revenue collected under this chapter after first deducting a two dollar fee for each manufactured home transaction. The authorized agent's collection fee shall be deposited into the county current expense fund.

NEW SECTION. Sec. 18. Sections 1 through 17 of this act shall constitute a new chapter in Title 64 RCW.

Sec. 19. RCW 33.24.007 and 1989 c 343 s 23 are each amended to read as follows:

Unless the context clearly requires otherwise, "real property" means improved or unimproved real estate and includes leasehold interests in improved or unimproved real estate and includes manufactured housing whether temporarily, semipermanently, or permanently attached to land and mobile homes and manufactured homes whose title has been eliminated under chapter ((~~65.20~~)) 64.-- RCW (sections 1 through 17 of this act).

Sec. 20. RCW 46.12.055 and 1989 c 343 s 19 are each amended to read as follows:

The certificate of ownership for a manufactured home may be eliminated or not issued when the manufactured home is registered pursuant to chapter ((~~65.20~~)) 64.-- RCW (sections 1 through 17 of this act). When the certificate of ownership is eliminated or not issued the application for license shall be recorded in the county property records of the county where the real property to which the home is affixed is located. All license fees and taxes applicable to mobile homes under this chapter are due and shall be collected prior to recording the ownership with the county auditor.

Sec. 21. RCW 46.12.290 and 1993 c 154 s 2 are each amended to read as follows:

(1) The provisions of chapter 46.12 RCW insofar as they are not inconsistent with the provisions of chapter 231, Laws of 1971 ex. sess. or chapter ((~~65.20~~)) 64.-- RCW (sections 1 through 17 of this act) apply to mobile or manufactured homes: PROVIDED, That RCW 46.12.080 and 46.12.250 through 46.12.270 shall not apply to mobile or manufactured homes.

(2) In order to transfer ownership of a mobile home, all registered owners of record must sign the title certificate releasing their ownership.

(3) The director of licensing shall have the power to adopt such rules as necessary to implement the provisions of this chapter relating to mobile homes.

Sec. 22. RCW 46.70.135 and 1989 c 343 s 22 are each amended to read as follows:

Mobile home manufacturers and mobile home dealers who sell mobile homes to be assembled on site and used as residences in this state shall conform to the following requirements:

(1) No new manufactured home may be sold unless the purchaser is provided with a manufacturer's written warranty for construction of the home in compliance with the Magnuson-Moss Warranty Act (88 Stat. 2183; 15 U.S.C. Sec. 47 et seq.; 15 U.S.C. Sec. 2301 et seq.).

(2) No new manufactured home may be sold unless the purchaser is provided with a dealer's written warranty for all installation services performed by the dealer.

(3) The warranties required by subsections (1) and (2) of this section shall be valid for a minimum of one year from the date of sale and shall not be invalidated by resale by the original purchaser to a subsequent purchaser or by the certificate of ownership being eliminated or not issued as described in chapter ((~~65.20~~)) 64.-- RCW (sections 1 through 17 of this act). Copies of the warranties shall be given to the purchaser upon signing a purchase agreement and shall include an explanation of remedies available to the purchaser under state and federal law for breach of warranty, the name and address of the federal department of housing and urban development and the state departments of licensing and labor and industries, and a brief description of the duties of these agencies concerning mobile homes.

(4) Warranty service shall be completed within forty-five days after the owner gives written notice of the defect unless there is a bona fide dispute between the parties. Warranty service for a defect affecting health or safety shall be completed within seventy-two hours of receipt of written notice. Warranty service shall be performed on site and a written work order describing labor performed and parts used shall be completed and signed by the service agent and the owner. If the owner's signature cannot be obtained, the reasons shall be described on the work order. Work orders shall be retained by the dealer or manufacturer for a period of three years.

(5) Before delivery of possession of the home to the purchaser, an inspection shall be performed by the dealer or his or her agent and by the purchaser or his or her agent which shall include a test of all systems of the home to insure proper operation. At the time of the inspection, the purchaser shall be given copies of all documents required by state or federal agencies to be supplied by the manufacturer with the home which have not previously been provided as required under subsection (3) of this section, and the dealer shall complete any required purchaser information card and forward the card to the manufacturer.

(6) Manufacturer and dealer advertising which states the dimensions of a home shall not include the length of the draw bar assembly in a listed dimension, and shall state the square footage of the actual floor area.

Sec. 23. 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~~)) 64.-- RCW (sections 1 through 17 of this act). A transfer of title does not include the addition or deletion of a spouse co-owner or a secured interest. 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. 24. RCW 61.12.030 and 1989 c 343 s 21 are each amended to read as follows:

When any real estate in this state is subject to, or is security for, any mortgage, mortgages, lien or liens, other than general liens arising under personal judgments, it shall be unlawful for any person who is the owner, mortgagor, lessee, or occupant of such real estate to destroy or remove or to cause to be destroyed or removed from said real estate any fixtures, buildings, or permanent improvements including a manufactured home whose title has been eliminated under chapter ((~~65.20~~)) 64.-- RCW (sections 1 through 17 of this act), not including crops growing thereon, without having first obtained from the owners or holders of each and all of such mortgages or other liens his or her or their written consent for such removal or destruction.

NEW SECTION. Sec. 25. The following acts or parts of acts are each repealed:

(1) RCW 65.20.010 and 1989 c 343 s 1;

(2) RCW 65.20.020 and 1989 c 343 s 2;

(3) RCW 65.20.030 and 1989 c 343 s 3;

(4) RCW 65.20.040 and 1989 c 343 s 4;

(5) RCW 65.20.050 and 1989 c 343 s 5;

(6) RCW 65.20.060 and 1989 c 343 s 6;

(7) RCW 65.20.070 and 1989 c 343 s 7;

(8) RCW 65.20.080 and 1989 c 343 s 8;

(9) RCW 65.20.090 and 1989 c 343 s 9;

(10) RCW 65.20.100 and 1989 c 343 s 11;

(11) RCW 65.20.110 and 1989 c 343 s 12;

(12) RCW 65.20.120 and 1989 c 343 s 13;

(13) RCW 65.20.130 and 1989 c 343 s 10;

(14) RCW 65.20.900 and 1989 c 343 s 14;

(15) RCW 65.20.910 and 1989 c 343 s 15;

(16) RCW 65.20.920 and 1989 c 343 s 16; and

(17) RCW 65.20.930 and 1989 c 343 s 17.

NEW SECTION. Sec. 26. This act shall take effect July 1, 1995.