In this multiple series of posts regarding Manufactured Home issues another one that we deal with multiple times a day throughout the State of California is the issue of the 433a document.
Albeit we have and still do deal with what's known as an Affidavit of Affixture which is the same thing but in other States we are only focusing on Californai in this post.
The 433A is a recorded document also known as: "NOTICE OF MANUFACTURED HOME (MOBILEHOME) OR COMMERCIAL MODULAR INSTALLATION ON A FOUNDATION SYSTEM"
There is a certain irony that the document does not utilize the term "Permanent Foundation", yet the HCD Form 433A is synonymous with the term “Permanent". It is an important distinction to make because the common perception is that by retrofitting a manufactured home's foundation, it is then installed on a foundation similar to a site built home and the home can never be moved.
This is not the case.
By virtue of the 433A and installation of a state approved foundation system, the land and home become mechanically attached and thus are physically and legally conjoined as one entity.
Once recorded, the 433A overrides any visual determination, even by a contractor or an engineer. Until a 433A is recorded, no matter how significantly the home is supported, tied-down, strapped, or braced, the home is still considered personal property or chattel until the home is legally affixed.
This is not to minimize the extra stability and security that might exist by virtue of heavy duty components, strapping or seismic bracing, but the principal purpose of the 433A is to convert the home to real property for the security interest and title security of the home.
Problems occurred in the past when loans were originated based on an appraiser's visual determination of physical attachment or if the home was assessed as real property.
A 433A is California's only document providing recorded legal notice that the home and land are conjoined as real property and is the defining instrument for lender and title security.
If one doesn't exist, then you're probably in need of our services now or in the future. In California, the process of conversion is overseen by the California Department of Housing and Community Development (HCD) and complies with California Code of Regulations, Title 25, Division 1, Chapter 2, Section 18551.
Although the 433C was previously accepted by some lenders, the 433C is a paper document creating a voluntary conversion to property tax but because it does not prove the home is on a permanent foundation, it does not meet most lending requirements.
Therefore, the most satisfactory title elimination is accomplished by having the manufactured home installed on a state-approved permanent foundation system, permitted by the overseeing building authority and having a recorded 433A proving to that fact.
