58-4204. Same; certificate of title, application and issuance; form of certificate of title; statement of origin; fees; notice of security interest; assignments of certificates of title; release of li

58-4204

Chapter 58.--PERSONAL AND REAL PROPERTY
Part 6.--MISCELLANEOUS PROVISIONS
Article 42.--MANUFACTURED HOUSING

      58-4204.   Same; certificate of title, application andissuance; form ofcertificate of title; statement of origin; fees; notice of security interest;assignments ofcertificates of title; release of lien or encumbrance; electronic certificateof title.(a) For purposes of this section, a manufactured home or mobile home shallbe considered to be personal property.

      (b)   The provisions of this section shall apply to any electroniccertificate of title, except to the extent such provisions are madeinapplicable by or are inconsistent withK.S.A. 58-4204a, andamendments thereto, or with rules and regulations adopted pursuant toK.S.A. 58-4204a, and amendments thereto.

      The provisions of this section shall apply to any certificate of title issuedprior to January 1, 2003, which indicates that there is a lien or encumbranceon such manufactured home or mobile home.

      (c)   Upon the transfer or sale of anymanufactured home ormobile home by any person or dealer, the new owner thereof, within 30 days,inclusive of weekends and holidays, from the date of such transfer or sale,shall make application to the division for the issuance of a certificate oftitle evidencing the new owner's ownership of such manufactured home ormobile home. An application for certificate of title shall be made by theowner of the manufactured home or mobile home, or the owner's agent, upon aform furnished by the division, and it shall state all liens orencumbrances thereon and such other information as the director mayrequire. Notwithstanding any other provision of this section, nocertificate of title shall be issued foramanufactured home or mobile home having any unreleased lien or encumbrancethereon, unless the transfer of such manufactured home or mobile home hasbeen consented to in writing by the holder of the lien or encumbrance.Such consent shall be in a form approved by the director. The countytreasurer shall use reasonable diligence in ascertainingwhether the facts stated in such application are true, and if satisfiedthat the applicant is the lawful owner of the manufactured home or mobilehome, or otherwise entitled to have the certificate of title thereforissued in such applicant's name, shall so notify the division, who shallissue an appropriate certificate of title.

      (d)   The director shall design a distinctive certificate oftitle to beissued to owners of manufactured homes and mobile homes, so as to bedistinguishable from certificates of title issued to owners of vehicles.The certificate of title shall contain a statement of any liens orencumbrances which the application discloses andshall provide such otherinformation as the director determines necessary and appropriate. Thecertificate of title shall contain upon the reverse side a form forassignment of title to be executed by the owner. This assignment shallcontain a statement of all liens or encumbrances on the manufactured homeor mobile home at the time of assignment. When the ownership of anymanufactured home or mobile home passes by operation of law or byrepossession upon default of a lease, security agreement or executory salescontract, the person owning such manufactured home or mobile home, uponfurnishing satisfactory proof to the county treasurer of such ownership,may procure a certificate of title to the manufactured home or mobile home.

      (e)   Dealers shall execute, upon delivery to the purchaserof every newmanufactured home, a manufacturer's statement of originstating the liens and encumbrances thereon. Such statement of origin shallbe delivered to the purchaser at the time of delivery of the manufacturedhome or at a time agreed upon by the parties, not to exceed30 days, inclusive of weekends and holidays. The agreement of the partiesshall be executed on a form approved by the director. In the eventdelivery of title cannot be made personally, the seller may deliver themanufacturer's statement of origin by restricted mail to the address of thepurchaser shown on the purchase agreement. The manufacturer's statement oforigin may include an attachment containing assignment of such statement oforigin on forms approved by the director. Upon the presentation to thedivision of a manufacturer's statement of origin, by a manufacturer ordealer for a new manufactured home, sold in this state, acertificate of title shall be issued.

      (f)   The fee for each original certificate of title shall be$10. Thecertificate of title shall be good for the life of the manufactured home ormobile home while owned or held by the original holder of the certificate oftitle.

      (g)   Upon sale and delivery to the purchaser of everymanufactured homeor mobile home subject to a purchase money security interest, as provided forin article 9 of chapter 84 of the KansasStatutes Annotated, and amendments thereto, the dealer or secured party maycomplete a notice of security interest and, when so completed, thepurchaser shall execute the notice, in a form prescribed by the director,describing the manufactured home or mobile home and showing the name andaddress of the secured party and of the debtor and such other informationas the director may require. The dealer or secured party may, within30 days of the sale and delivery, mail or deliver the notice of securityinterest, together with a fee of $2.50, to the division.The notice of security interest shall be retained by the division, until itreceives an application for a certificate of title to the manufactured homeor mobile home and a certificate of title is issued. The certificate oftitle shall indicate any security interest in the manufactured home or mobilehome. Upon issuance ofthe certificate of title, the division shall mail or deliver confirmationof the receipt of the notice of security interest, the date the certificateof title is issued and the security interest indicated, to the securedparty at the address shown on the notice of security interest. The propercompletion and timely mailing or delivery of a notice of security interestby a dealer or secured party shall perfect a security interest in themanufactured home or mobile home, as referenced in K.S.A.2009 Supp. 84-9-311, and amendments thereto, on the date ofsuch mailing or delivery.

      (h)   In the event of a sale or transfer of ownership of amanufacturedhome or mobile home for which a certificate of title has been issued, whichcertificate of title is in the possession of the transferor at the time ofdelivery of the manufactured home or mobile home, the holder of suchcertificate of title shall endorse on the same an assignment thereof, withwarranty of title in a form prescribed by the director and printed thereon,and the transferor shall deliver the same to the buyer at the time ofdelivery to the buyer of the manufacturedhome or mobile home, or at a time agreed upon by the parties, not to exceed30 days, inclusive of weekends and holidays, after the time of delivery.The sale of a mobilehome or manufactured home by a manufactured home dealer without such deliveryof an assigned certificate of title is fraudulent and void, and it shallconstitute a violation of the Kansas manufactured housing act.The agreement of the parties shall be executed on a form provided by thedivision. The requirements of this subsection concerning delivery of anassigned title are satisfied, if the transferor mails to the transferee, byrestricted mail, the assigned certificate of title within the 30 days, andif the transferor is a dealer, as defined by K.S.A. 58-4202, andamendments thereto, such transferor shall be deemed to have possession ofthe certificate of title, if the transferor has made application therefor tothe division.

      The buyer shall then present such assigned certificate of title to thedivision, and a new certificate of title shall be issued to the buyer uponpayment of the fee of $10. If such manufactured home or mobile home issold to a resident of another state or country, the dealer or person makingthe sale shall notify the division of the sale and the division shall makenotation thereof in the records of the division. If any manufactured homeor mobile home is destroyed, dismantled or sold as junk, the owner shallimmediately notify the division by surrendering the original or assignedcertificate of title.

      (i)   When a person acquires a security agreement on amanufactured homeor mobile home subsequent to the issuance of the original title on suchmanufactured home or mobile home, such person shall require the holder ofthe certificate of title to surrender the same and sign an application fora mortgage title in such form as prescribed by the director. Upon suchsurrender, the person shall immediately deliver the certificate of title,application and a fee of $10 to the division. Upon receipt thereof thedivision shall issue a new certificate of title, showing the liens orencumbrances so created, but not more than two liens or encumbrances may beshown upon a title. The delivery of the certificate of title, applicationand fee to the division shall perfect such person's securityinterest in the manufactured home or mobile home described in the certificateof title, as referenced inK.S.A. 2009 Supp.84-9-311, and amendments thereto.When a prior lienholder's name is removed from thetitle, there must be satisfactory evidence presented to the division thatthe lien or encumbrance has been paid. When the indebtedness to alienholder, whose name is shown upon a title, is paid in full, suchlienholder, within 10 days after written demand by restricted mail, shallfurnish to the holder of the title a release of lien or execute such arelease in the space provided on the title. For failure to comply with sucha demand, the lienholder shall be liable to the holder of the title for$100 and also shall be liable for any loss caused to the holder by suchfailure. When the indebtedness to a lienholder, whose name is shown upon atitle, is collected in full, such lienholder, within30 days, shall furnish notice to the holder of title that such indebtednesshas been paid in full and that such title may be presented to thelienholder at any time for release of lien.

      (j)   In the event of the sale of a manufactured home ormobile home underthe order of a court, the officer conducting such sale shall issue to thepurchaser a certificate naming the purchaser and reciting the facts of thesale, which certificate shall be prima facie evidence of the ownership ofsuch purchaser for the purpose of obtaining a certificate of title to suchmanufactured home or mobile home. Any such purchaser shall be allowed 30days, inclusive of weekends and holidays, from the date of sale to makeapplication to the division for a certificate of title.

      (k)   Any dealer who has acquired a manufactured home ormobile home, thetitle for which was issued under the laws of and in a state other than thestate of Kansas, shall not be required to retain a Kansas certificate oftitle therefor during the time such manufactured home or mobile homeremains in such dealer's possession and at such dealer's established orsupplemental place of businessfor the purpose of sale. Upon the sale of any such manufactured home ormobile home, the dealer immediately shall deliver to the purchaser ortransferee the certificate of title issued by the other state, properlyendorsed and assigned to the purchaser or transferee, together with anaffidavit executed by the dealer setting forth:

      (1)   That the dealer warrants to the purchaser or transferee and allother persons who claim through the purchaser or transferee that, at thetime of the sale transfer and delivery by the dealers, the manufacturedhome or mobile home was free and clear of all liens, mortgages and otherencumbrances, except those otherwise appearing on the title;

      (2)   the information shown on the title relating to all previousassignments, including the names of all previous titleholders shown thereon;and

      (3)   that the dealer has the right to sell and transfer the manufactured homeor mobile home.

      History:   L. 1991, ch. 33, § 4;L. 2002, ch. 49, § 4;L. 2002, ch. 134, § 11;L. 2002, ch. 134, § 12;L. 2003, ch. 30, § 8;L. 2007, ch. 135, § 2;L. 2008, ch. 39, § 1; July 1.