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58-4214. Manufactured housing; elimination of certificate of title; requirements; real property. (a) Whenever a manufactured home or mobile home is permanently affixed to real property, by placement upon a permanent foundation of a type not removable intact from such real property, the manufactured home or mobile home shall be considered for all purposes an improvement to real property, if the certificate of title which has been issued or is required to be issued for such manufactured home or mobile home pursuant to K.S.A. 58-4204, and amendments thereto, is eliminated pursuant to this section. If the certificate of title has been eliminated pursuant to this section, the ownership of the manufactured home or mobile home shall be an incident of ownership of the real property where it is located under governing real property law. If the certificate of title has been eliminated pursuant to this section, a separate security interest in the manufactured home or mobile home shall not exist, and the manufactured home or mobile home shall only be subject to a lien as part of the real property where it is located.

(b) To eliminate a certificate of title which has been issued or is required to be issued for a manufactured home or mobile home pursuant to K.S.A. 58-4204, and amendments thereto, the owner of the manufactured home or mobile home shall make application to the division, including submission of the following:

(1) An affidavit, in the form prescribed by the division, signed by all the owners of the manufactured home or mobile home, and also signed by all parties having a mortgage, lien or other security interest in the manufactured home or mobile home, as evidence of consent to the elimination of the certificate of title, and containing:

(A) The date;

(B) the names of all the owners of record of the manufactured home or mobile home;

(C) the legal description of the real property where the manufactured home or mobile home is located;

(D) a description of the manufactured home or mobile home, including model year, make, width, length and identification number;

(E) the names of all parties holding a security interest or otherwise entitled to a lien or encumbrance in the manufactured home or mobile home;

(F) a statement that the owner or one of the owners of the manufactured home or mobile home owns the real property where the manufactured home or mobile home is or will be located; and

(G) the name and address of an owner, lending agency or other entity to which the approved application may be delivered;

(2) the certificate of title for the manufactured home or for the mobile home issued pursuant to K.S.A. 58-4204, and amendments thereto, or in the case of a new manufactured home, the manufacturer's statement of origin;

(3) where one or more parties have a security interest in the manufactured home or mobile home, a release of each such secured party's security interest;

(4) proof of payment of all applicable fees and taxes; and

(5) any other information the division may reasonably require pursuant to duly adopted rules and regulations.

(c) The division shall approve the application for elimination of the title when all requirements of subsection (b) have been satisfied. After the application has been approved, the division shall deliver the approved application as directed by the application. The approved application shall be recorded in the office of the register of deeds of the county in which there is located the real property on which the manufactured home or mobile home is affixed. Upon such recording, the certificate of title shall be presumed to be eliminated. If a certificate of title previously has been issued for the manufactured home or mobile home pursuant to K.S.A. 58-4204, and amendments thereto, the division also shall cancel such certificate of title.

History: L. 2002, ch. 49, ยง 1; April 18.

CASE ANNOTATIONS

1. Manufactured home remained personalty even though affixed to realty where no application made pursuant to K.S.A. 58-4217. In re Thomas, 362 B.R. 478, 483, 484, 487 (2007).

2. The recording of an approved application to eliminate certificate of title for a manufactured home by the Kansas department of revenue's division of motor vehicles is a condition precedent to "elimination." In re Phillips, 420 B.R. 530 (2009).

3. The Kansas manufactured housing act provides for a manufactured home to be encumbered by the mortgage lien on the real property to which it is affixed by means of a recorded mortgage. In re Phillips, 420 B.R. 530 (2009).

4. Section does not preclude common law means of converting a manufactured home into a fixture; the word "whenever" is not exclusive language. Morris v. Ark Valley Credit, 536 B.R. 887, 894 (Bankr. D. Kan. 2015).

5. The bankruptcy board did not clearly err in finding that the manufactured home, which chapter 7 debtor had placed nearly 20 years earlier on realty that he owned, was a common law fixture. In re Gracy, 555 B.R. 767 (D. Kan. 2016).


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