We are not aware of any law requiring a legal description to reference manufactured homes that have been converted to real property. However, if your title company recommends including such a reference in the legal description, we are not aware of any reason to reject their recommendation. Additionally, secondary market purchasers of the mortgage loan may expect to see a reference to the manufactured homes in the legal description.
Once a manufactured home has met the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act’s requirements to be converted to real property, it is deemed real property, and “any mortgage that can attach to land, buildings erected thereon, or fixtures affixed thereto shall attach as of the date of its recording in the same manner as if the manufactured home were built from ordinary building materials on site.”
The Illinois Conveyances Act states that a mortgage may include a description of the relevant real estate along with the county it is located in but provides no further details on what this description should include for manufactured homes that have been converted to real property.
Fannie Mae has issued guidance on its eligibility requirements for purchasing mortgages for manufactured housing. The guidance states that once a manufactured home has been converted to real property, the lender should “record the lien on real property by way of a mortgage,” and “include a description of the manufactured house in the mortgage.” The guidance also provides that the legal description should “include the make, model, vehicle identification number, and the language, ‘which is permanently affixed and attached to the land and is part of the real property.’”
For resources related to our guidance, please see:
- Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, 765 ILCS 170/5-35 (“Upon the satisfaction of the requirements of Section 5-30 of this Act and the requirements of Section 3-116.1 or 3-116.2 of the Illinois Vehicle Code, as applicable, such manufactured home shall be deemed to be real propertyany mortgage, deed of trust, lien, or security interest that can attach to land, buildings erected thereon, or fixtures affixed thereto shall attach as of the date of its recording in the same manner as if the manufactured home were built from ordinary building materials on site
- Illinois Conveyances Act, 765 ILCS 5/11(a) (“Mortgages of lands may be substantially in the following form: The Mortgagor (here insert name or names), mortgages and warrants to (here insert name or names of mortgagee or mortgagees), to secure the payment of (here recite the nature and amount of indebtedness, showing when due and the rate of interest, and whether secured by note or otherwise), the following described real estate (here insert description thereof), situated in the County of …., in the State of Illinois. Dated (insert date). (signature of mortgagor or mortgagors)”)
- Fannie Mae, Titling Manufactured Homes as Real Property (“Once there is a surrender of the Certificate of Title to the manufactured home, or if it isn’t a requirement, lenders should record the lien on real property by way of a mortgage. It should include a description of the manufactured house in the mortgage. In addition, the legal description should include the make, model, vehicle identification number, and the language, ‘which is permanently affixed and attached to the land and is part of the real property.’”)