Is Is A Mobile Home In A Park Or Real Property?

[Jay D. Greener]

Thanks for taking time to help with this matter.


There is a development in Fort Collins called “Sunflower” which is a “Senior Gated Community”.


The improvements are good quality manufactured homes (HUD HOMES) and they sell with a 30 yr lease. The buyers do not own the land.


Per County Records, the land is owned by “American Retirement Properties, LLC” as the entire 37acre+/- parcel. The individual manufactured home assessor records indicate the homes to be ‘real property’, they’re assigned parcel numbers as real property but there is no land on the account – the legal descriptions read: “IMPS ONLY, LOT xx, WATERDALE, PER AMENDED SURVEY PLAT 2001044822”, and each home is ‘owned’ by an individual owner – not “American Retirement Properties, LLC”


In my mind these are mobile homes in a mobile home park – the owners do not own the land, but do have some interest in the land, a 30Yr lease, so there is a ‘real’ leasehold interest, but the ‘improvements’ are not real property. Is this a correct assertion?


If the assertion is correct, how are these properties to be appraised? In my mind, a URAR 1004 w/ 1004C addendum would be misleading, as there are no ‘real’ improvements – only personal property located on parcel which is secured via a 30 YR lease. To make matters more complicated, these HUD homes are set on permanent foundations (Post/Pier with concrete perimeter foundations – it would have to be lifted off the perimeter foundation, or the perimeter would have to be demolished to move the home).


Is it possible that the HUD homes were ‘purged’ to the land owned by “American Retirement Properties, LLC” and they are ‘real property’ even though the buyer of the home does not own the land they somehow have a leasehold interest in the purged mobile home (somewhat similar to a condo, except that they own no common area). Again, my confusion is compounded because the Larimer County Assessor has labeled these properties as ‘Real Property’.


How do I find out exactly how to classify these properties and the property rights or interests to be appraised? Is there a FNMA form on which to report this type of property? In the case that I am asked to perform a cost approach, would I have to be a NADA certified appraiser as this appears to be a mobile home in a mobile home park? (I recall from a “manufactured home” class, that the appraiser of a mobile home in a park has to be NADA certified – correct?)


Here are links to the Larimer Assessor Website:


An individual ‘home’: http://www.larimer.org/assessor/query/Deta...NumVar=R1622760

The Land: http://www.larimer.org/assessor/query/resu...mber=8715000005


Thanks in advance for everyones input!

Jay

 

[Nancy Wyatt]

Are these land lease homes? There is a community like that is Longmont, Firestone, and Dacono. Make sure your lender is aware of this.

 

[Richard Carlsen]

Is your order to appraise the house or the real estate. If the house, then you are appraising personal property on essentially, leased land. Leasehold interest is not the same as fee simple so make sure you understand that.

If you are to appraise the real estate (which includes the improvements) you can see the problem with the land in someone other than the borrowers name.

My conclusion from what you said is that you have it exactly right: No matter what they may call it "Gated Community" or "Exclusive Retirement Villa" or what, it is a mfg home in a mfg home park. And that is regardless what the assessor says. I would not touch it on a real estate appraisal form. In Michigan, if it is a mfg house and the title has not been surrendered and an Affidavit of Afixture filed with the SOS, it is still considered personal property.