Expert: liznarr - 8/26/2008

Question
Howdy. I'll skip alot of the details to keep this as short as possible. My Father-In-Law moved here a couple of years ago from Perú. About 2 years prior to that he purchased an '83 double for 12,000 from a friend of ours to move onto a lot & live in. There was only a hand written acknowledgment of this transaction.
After he moved here he decided to sell instead of live in it. He requested the title from the previous owner but he informed my Father-In-Law he did not have a title to it. It had been given to him by his Father-In-Law and his F-I-L
had bought it with a hand written bill of sale. He couldn't find this BOS. It appears there have been several transactions on this house but never recorded with the state. This info was never disclosed to us prior to the sale. The previous owner was aware of the no title issue. He told me he had checked with the state after his F-I-L had given it to him & they wanted the taxes due from each transaction that had occurred. He choose not to take the necessary action to get the title cleared up to his name. To him it was like an old tractor sitting out in the field & someone stopped and bought it from him. He sold it "as is". My understanding of "as is" of any item that would normally have a title/deed, i.e. an auto, truck, boat, motorcycle, house, property, etc, would be the physical condition of the property but not have anything to do with the title. That would be a separate declaration. All the items listed above that I've ever bought"as is", I bought with the understanding I was getting it in it's existing condition. I never had a thought of there not being a title. So my question is this. Legally, would the lack of a clear title be required to be disclosed regardless of buying it "as is"?
Thanks for your time.

Answer
Hi Joel,

Your understanding is correct in that “as is” generally relates to the physical condition of property.  However, when purchasing real OR personal property, a purchaser should always make sure that he has good title on real property, or a title free and clear of any liens on personal property such as a mobile home, and that title is conveyed (real property) or signed over (personal property) to a purchaser with any exchange of money, trade, or other valuable consideration.

The previous owner should have disclosed his title issue to your father-in-law up front, but as we all know, not everyone always does the right thing.  Regardless of this fact, always remember now that personal property such as a mobile home, automobile or boat has a title and needs to be passed free and clear of any liens when money exchanges hands for a purchase of such.  Tax liens will not necessarily be listed on the title itself, so you may need to always do an independent check with the County Treasurer’s office.

In the absence of a Contract of Sale which stipulates the terms of a purchase, your father-in-law appears to have been taken advantage of.  Many states have mandatory disclosure laws regarding the sale of real property, but you would need to check with your State or County authorities to determine if there are any mandatory disclosure laws for personal property in your area.

With possession of the mobile home having changed several times -- and especially in view of your explanations --  you really do not know if the last titled owner may still think he/she owns the mobile home or not.  I would be looking to your “friend” to pay any accrued, past-due taxes owed on the mobile home and help you get the title issue cleared up, but if he does not voluntarily agree to pay or help, you have another problem.  If your friend will not voluntarily help you through this, you should contact a reputable attorney for advice.

You can contact your County Treasurer and/or County Assessor who deals with personal property and provide the serial number of the mobile home to trace ownership.  Unpaid liens on personal and real property generally pass to a new owner if unpaid at the time of a sale.  Perhaps a plea to the Treasurer’s office might give you some relief, but I would certainly get some sound legal advice because you need a title before you can sell.

Good luck to you, and I hope your father-in-law reaches a successful conclusion.

Regards,
Elizabeth