CHAPTER 49 HOUSE BILL No. 2723 (Amended by Chapter 134) An  Act relating to manufactured homes and mobile homes; amending K.S.A. 58-4204 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      New Section  1. (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 man-
ufactured 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 re-
quired to be issued for a manufactured home or mobile home pursuant
to K.S.A. 58-4204, and amendments thereto, the owner of the manufac-
tured home or mobile home shall make application to the division, in-
cluding 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 elim-
ination 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, in-
cluding 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 manufac-
tured home or mobile home owns the real property where the manufac-
tured 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 mo-
bile 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 manu-
factured 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 pur-
suant 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.

      New Sec.  2. The division shall prepare such forms as may be nec-
essary to implement the provisions of section 1, and amendments thereto,
and the director shall adopt such rules and regulations as are necessary
to carry out the provisions of the Kansas manufactured housing act, in-
cluding rules and regulations establishing reasonable fees to cover the
division's costs in implementing the provisions of section 1, and amend-
ments thereto.

      New Sec.  3. The provisions of sections 1 through 3, and amendments
thereto, shall be a part of and supplemental to the Kansas manufactured
housing act.

      Sec.  4. K.S.A. 58-4204 is hereby amended to read as follows: 58-
4204. (a) For purposes of this section, a manufactured home or mobile
home shall be considered to be personal property. Upon the transfer or
sale of any manufactured home or mobile home by any person or dealer,
the new owner thereof, within 30 days, inclusive of weekends and holi-
days, from the date of such transfer or sale, shall make application to the
division for the issuance of a certificate of title evidencing the new owner's
ownership of such manufactured home or mobile home. An application
for certificate of title shall be made by the owner of the manufactured
home or mobile home, or the owner's agent, upon a form furnished by
the division, and it shall state all liens or encumbrances thereon and such
other information as the director may require. Notwithstanding any other
provision of this section, no certificate of title, other than a duplicate title,
shall be issued for a manufactured home or mobile home having any
unreleased lien or encumbrance thereon, unless the transfer of such man-
ufactured home or mobile home has been consented to in writing by the
holder of the lien or encumbrance. Such consent shall be in a form ap-
proved by the director. The county treasurer shall use reasonable dili-
gence in ascertaining whether the facts stated in such application are true,
and if satisfied that the applicant is the lawful owner of the manufactured
home or mobile home, or otherwise entitled to have the certificate of
title therefor issued in such applicant's name, shall so notify the division,
who shall issue an appropriate certificate of title.

      (b) The director shall design a distinctive certificate of title to be
issued to owners of manufactured homes and mobile homes, so as to be
distinguishable from certificates of title issued to owners of vehicles. The
certificate of title shall contain a statement of any liens or encumbrances
which the application discloses and shall provide such other information
as the director determines necessary and appropriate. The certificate of
title shall contain upon the reverse side a form for assignment of title to
be executed by the owner before a notary public or some other officer
authorized to administer oaths. This assignment shall contain a statement
of all liens or encumbrances on the manufactured home or mobile home
at the time of assignment. When the ownership of any manufactured
home or mobile home passes by operation of law or by repossession upon
default of a lease, security agreement or executory sales contract, the
person owning such manufactured home or mobile home, upon furnish-
ing satisfactory proof to the county treasurer of such ownership, may
procure a certificate of title to the manufactured home or mobile home.

      (c) Dealers shall execute, upon delivery to the purchaser of every new
manufactured home, a manufacturer's statement of origin stating the liens
and encumbrances thereon. Such statement of origin shall be delivered
to the purchaser at the time of delivery of the manufactured home or at
a time agreed upon by the parties, not to exceed 30 days, inclusive of
weekends and holidays. The agreement of the parties shall be executed
on a form approved by the director. In the event delivery of title cannot
be made personally, the seller may deliver the manufacturer's statement
of origin by restricted mail to the address of the purchaser shown on the
purchase agreement. The manufacturer's statement of origin may include
an attachment containing assignment of such statement of origin on forms
approved by the director. Upon the presentation to the division of a man-
ufacturer's statement of origin, by a manufacturer or dealer for a new
manufactured home, sold in this state, a certificate of title shall be issued.

      (d) The fee for each original certificate of title shall be $3.50. The
certificate of title shall be good for the life of the manufactured home or
mobile home while owned or held by the original holder of the certificate
of title.

      (e) Upon sale and delivery to the purchaser of every manufactured
home or mobile home subject to a purchase money security interest, as
defined in K.S.A. 84-9-107 provided for in article 9 of chapter 84 of the
Kansas Statutes Annotated, and amendments thereto, the dealer or se-
cured party may complete a notice of security interest and, when so com-
pleted, the purchaser shall execute the notice, in a form prescribed by
the director, describing the manufactured home or mobile home and
showing the name and address of the secured party and of the debtor
and such other information as the director may require. The dealer or
secured party may, within 10 days of the sale and delivery, mail or deliver
the notice of security interest, together with a fee of $2.50, to the division.
The notice of security interest shall be retained by the division, until it
receives an application for a certificate of title to the manufactured home
or mobile home and a certificate of title is issued. The certificate of title
shall indicate any security interest in the manufactured home or mobile
home. Upon issuance of the certificate of title, the division shall mail or
deliver confirmation of the receipt of the notice of security interest, the
date the certificate of title is issued and the security interest indicated, to
the secured party at the address shown on the notice of security interest.
The proper completion and timely mailing or delivery of a notice of se-
curity interest by a dealer or secured party shall perfect a security interest
in the vehicle manufactured home or mobile home described on the date
of such mailing or delivery.

      (f) In the event of a sale or transfer of ownership of a manufactured
home or mobile home for which a certificate of title has been issued,
which certificate of title is in the possession of the transferor at the time
of delivery of the manufactured home or mobile home, the holder of such
certificate of title shall endorse on the same an assignment thereof, with
warranty 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 of
delivery to the buyer of the manufactured home or mobile home, or at a
time agreed upon by the parties, not to exceed 30 days, inclusive of week-
ends and holidays, after the time of delivery. The sale of a mobile home
or manufactured home by a manufactured home dealer without such
delivery of an assigned certificate of title is fraudulent and void, and it
shall constitute a violation of the Kansas manufactured housing act. The
agreement of the parties shall be executed on a form provided by the
division. The requirements of this subsection concerning delivery of an
assigned title are satisfied, if the transferor mails to the transferee, by
restricted mail, the assigned certificate of title within the 30 days, and if
the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments
thereto, such transferor shall be deemed to have possession of the cer-
tificate of title, if the transferor has made application therefor to the
division.

      The buyer shall then present such assigned certificate of title to the
division, and a new certificate of title shall be issued to the buyer upon
payment of the fee of $3.50. If such manufactured home or mobile home
is sold to a resident of another state or country, the dealer or person
making the sale shall notify the division of the sale and the division shall
make notation thereof in the records of the division. If any manufactured
home or mobile home is destroyed, dismantled or sold as junk, the owner
shall immediately notify the division by surrendering the original or as-
signed certificate of title.

      (g) When a person acquires a security agreement on a manufactured
home or mobile home subsequent to the issuance of the original title on
such manufactured home or mobile home, such person shall require the
holder of the certificate of title to surrender the same and sign an appli-
cation for a mortgage title in such form as prescribed by the director.
Upon such surrender, the person shall immediately deliver the certificate
of title, application and a fee of $3.50 to the division. Upon receipt thereof
the division shall issue a new certificate of title, showing the liens or
encumbrances so created, but not more than two liens or encumbrances
may be shown upon a title. The delivery of the certificate of title, appli-
cation and fee to the division shall perfect such person's security interest
in the manufactured home or mobile home described in the certificate of
title. When a prior lienholder's name is removed from the title, there
must be satisfactory evidence presented to the division that the lien or
encumbrance has been paid. When the indebtedness to a lienholder,
whose name is shown upon a title, is paid in full, such lienholder, within
10 days after written demand by restricted mail, shall furnish to the holder
of the title a release of lien or execute such a release in the space provided
on the title. For failure to comply with such a 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 such failure. When the indebtedness
to a lienholder, whose name is shown upon a title, is collected in full,
such lienholder, within 30 days, shall furnish notice to the holder of title
that such indebtedness has been paid in full and that such title may be
presented to the lienholder at any time for release of lien.

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

      (i) Any dealer who has acquired a manufactured home or mobile
home, the title for which was issued under the laws of and in a state other
than the state of Kansas, shall not be required to retain a Kansas certificate
of title therefor during the time such manufactured home or mobile home
remains in such dealer's possession and at such dealer's established or
supplemental place of business for the purpose of sale. Upon the sale of
any such manufactured home or mobile home, the dealer immediately
shall deliver to the purchaser or transferee the certificate of title issued
by the other state, properly endorsed and assigned to the purchaser or
transferee, together with an affidavit executed by the dealer setting forth:

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

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

      (3) that the dealer has the right to sell and transfer the vehicle man-
ufactured home or mobile home.

      Sec.  5. K.S.A. 58-4204 is hereby repealed.

      Sec.  6. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 9, 2002.
 Published in the Kansas Register April 18, 2002.
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