Mobile homes have seen a drastic upsurge in popularity in recent times. Especially in South Carolina. If you’ve been digging about mobile homes in South Carolina, you might’ve come across de-titling.
De-titling is the process of removing the title of a mobile home from the Department of Motor Vehicles (DMV) and transferring it to the county where the property is located. This has several advantages, like reduced taxes, increased property value, and a simplified sales process.
In this post, we’ll explore what de-titling a mobile home means.
Let’s dive in.
What Is De-titling A Mobile Home?
Essentially, de-titling is a process of legally combining your mobile home with your land. Often lenders require it before financing. This is often necessary for complying with zoning regulations of some states or counties, getting a better financial foundation, and engaging in real estate transactions.
The laws and regulations of de-titling a mobile home vary from state to state. But the basic steps involve submitting documentation, paying fees, and following the state procedures.
Pros And Cons Of De-titling A Mobile Home
De-titling a mobile home has both advantages and disadvantages. But the benefits of de-titling your home far outweigh the disadvantages. Some of the advantages include:
Advantages Of De-titling Your Mobile Home
One of the biggest advantages of de-titling your mobile home is refinanced qualification with lower interest rates. This option is better than owning the home and property separately, as mobile homes depreciate over time. Some banks don’t even offer loans for mobile homes without land attachments as they’re considered high-risk.
But de-titling your mobile home allows it to receive better financial plans and substantially increases the home value. If you decide to sell it in the future, you’ll get more than you paid for the mobile home.
Disadvantages Of de-titling Your Mobile Home
While the disadvantages of de-titling are greatly outweighed by the advantages, there are still a few disadvantages. One of the biggest cons of de-titling your mobile home is taxation. In most states, DMV taxes mobile homes. Following state and county laws, mobile homes are taxed as automobiles.
But de-titling a mobile home takes DMV out of the picture. Resulting in the mobile home being taxed as land. The property tax on land is drastically higher than a mobile home tax.
How To Detitle A Mobile Home?
The only way you can de-title your mobile home is via email. There you need to submit some documents. The paperwork may include:
- A stamped copy of the Mobile Home Affidavit, also known as Retirement of Title Certificate. You’ll acquire this document from the home’s clerk of court or county register of deeds
- The mobile home’s South Carolina title
- The recently paid property tax receipt
- Lien release. If the lien on the mobile home’s title has not been released, it may be necessary to involve a licensed attorney in South Carolina. They can assist in recording a Satisfaction of Lien Affidavit in the county where the home is situated. In cases where a lien exists on the home at the time of de-titling, it is important to file an affidavit with the clerk of court in the respective county.
- de-titling fee
All these documents need to be properly submitted to de-title your mobile home.
Mobile Home De-title Fees
De-titling a mobile home involves various fees. Here are some of them:
- Recording Fees. You must pay a fee for recording the documents of de-titling a mobile home. Visit the recording office to check the current fees
- Ownership change. The charge for changing the ownership of the mobile home is $114
- Detitle review. The fee for a de-title review is $47
- For re-titling a home, a lot book report (also known as a “lien report”) from a title company may be required. Contact the title company for fee details. No report is necessary for de-titling the home
To Wrap It Up
De-titling your mobile home can offer several benefits, like reduced taxes, increased property value, and a simplified sales process. By legally merging your mobile home with your land, not only do you get better finance options, but you also get a better return on investment.
De-titling your mobile home may seem like a daunting process. But this article will help you go through all the steps to de-title your mobile home.
