Home sellers who want to sell property that includes a mobile or manufactured home may or may not know exactly what it is they are selling.
As a real estate agent, one of your primary goals is to help your clients understand the nuances of these types of property transfers so as a seller, they maximize their ability to find a buyer. This could include converting the home from chattel (personal property) to real property.
The first thing to establish with the homeowner is whether their mobile or manufactured home is real property or chattel. Most mobile and manufactured homes start out as chattel or personal property because they are not permanently affixed to land and can be moved from one piece of land to another.
In most states, a document similar to a deed of conveyance in the form of a Certificate of Title is required for a manufactured home. At the time of the original purchase if the owners intend to permanently affix the home to the land, the certificate of title must still be applied for, but then will need to be cancelled to convert the home to the real property classification.
However, if the owner did not permanently affix the property to land, they can do this at a later date by reclassifying the home as real estate through a legal conversion process. This process is handled differently from state to state and may need to be managed by an attorney to ensure the paperwork is completed and filed correctly.
The most important advantage of converting a manufactured or mobile home to real property status is the ability to finance a mortgage.
When a mobile or manufactured home is not affixed to the property, the process for transferring the property to a buyer involves two separate transactions, the sale of the land – the real property – and the sale of the structure – the personal property. Generally speaking, loan terms for a manufactured home classified as real property are going to be more favorable than those classified as personal property, although conversion is not an automatic guarantee that all lenders will provide conventional financing.
A second advantage of converting to real property is the ability to get title insurance. In the sale of a property where the home is not affixed to the property, title insurance would be available for the land itself, but would not cover the unaffixed home.
Once the structure is converted to real property, title insurance may be available to cover the entire sale of the property, but this should be carefully vetted with the title insurance agent handling the sale to ensure all the necessary documentation is in place so that the underwriter can insure the property accordingly.
Other advantages of converting to real property include availability of homestead exemptions in some states, stronger protection of the property for future heirs, and a much greater ability to resell the property in the future
At FAN, we have a full range of services to support real estate agents, consumers and other title agencies who are handling the unique requirements of mobile and manufactured home transactions. Contact us today to learn how we can help you with your next transaction.
In the ever-evolving world of real estate, homeownership dreams can sometimes feel like reaching for the stars, especially for first-timers up against a market faced with soaring prices and higher mortgage rates. As industry pros, you understand the hurdles many novice homebuyers face.
Amid these challenging market conditions, Florida Agency Network remains dedicated to helping you deliver top-notch service to your clients. Let's explore four strategies you can add to your toolkit to assist clients on their journey toward homeownership.
Many first-time homebuyers might be priced out of purchasing in their current or preferred neighborhoods. As industry pros, here’s where you can advise them to think outside the box. Exploring more affordable communities that offer similar amenities can help them settle into homeownership sooner. Lately, more buyers are discovering hidden treasures by relocating to regions with a lower cost of living. For those with remote work options, this can open up a world of possibilities.
For clients committed to staying put in a location where buying is beyond their budget, you can introduce them to a unique approach. They can continue renting in their desired area while purchasing an investment property in a more affordable neighborhood. This strategy allows them to start building equity to apply toward their future dream home.
Sometimes, it’s necessary to help clients understand that the perfect home with all the bells and whistles might be financially out of reach. Alternatives like townhomes or condos typically cost 20% to 29% less than single-family homes. Encourage them to consider these other options to get them into their own home sooner rather than later, even if it means sacrificing a private yard or garage.
Educate your clients about the power of co-ownership. If it’s in the cards, suggest they explore the option of teaming up with someone to purchase a property. Whether they live together as roommates, treat the property as an investment, or create other innovative arrangements, a partnership can make homeownership much more attainable. Remember to stress the importance of establishing a legally binding contract that outlines clear terms and an exit plan if the partnership dissolves.
As members of our FAN family, you play a crucial role in helping first-time homebuyers navigate these challenges. By sharing these creative strategies and remaining flexible, resourceful and informed, you can assist your clients in transforming their homeownership dreams into reality.
In the ever-competitive real estate landscape, Florida Agency Network recognizes the importance of reputation management – particularly in today’s digital age. Client feedback holds significant sway in shaping a business’s reputation. While responding to negative reviews is a given, a recent article on FloridaRealtors.org also emphasizes the importance of expressing gratitude to positive reviewers.
Positive reviews are like golden nuggets, helping prospective clients make informed decisions. However, the story shouldn’t end once the glowing review is posted; that’s only just the beginning.
Responding to positive reviews conveys a genuine expression of gratitude. It demonstrates that you value your clients and their opinions. A simple “Thank you for your kind words” can go a long way in fostering goodwill.
A collection of unaddressed positive reviews may raise doubts in potential clients’ minds. By actively responding, you confirm the authenticity of these reviews and showcase your dedication to maintaining a stellar reputation.
Engaging with satisfied clients post-transaction helps solidify your relationship. It opens the door to future business opportunities and referrals. A thoughtful response can turn a one-time client into a loyal advocate.
A prompt and heartfelt response sets you apart from others who may not prioritize client engagement. It’s an opportunity to showcase the exceptional service clients can expect when working with your title and settlement agency.
Responding to positive feedback strengthens your bonds with current clients, fuels your audience's growth and encourages more comments. It’s a strategic win-win approach to crafting an outstanding reputation within the industry.
So, as you navigate the dynamic realm of real estate, remember the power of gratitude, the impact of engagement and the strength of our FAN network. After all, it’s not just about the transactions; it’s about the relationships we build.
October and November always seem to be among the busiest seasons of the year, even as “seasonal” sales begin to decline. (Then again, thankfully, there’s not a whole lot of “seasonality” here in Florida!). You’ve probably seen that our own Aaron Davis and Mike LaRosa have been busy sharing their thoughts with a number of respected trade publications. Aaron spoke with The Title Report not long ago about the exploding insurance crisis in Florida while Mike was approached by Housing Wire in October to discuss one of the hottest topics there is right now—affiliated arrangements.
And then, of course, there’s conference season, and this year was no less busy than ever. Aaron and Mike have both made the rounds speaking on affiliated arrangements this year, thanks to RESPRO and ALTA. In fact, Aaron also spoke on digital closings at ALTA ONE. We’ve also attended several shows too, and hope to see everyone at the FLTA Annual or Premier One’s TitleCON in November. Our own Amy Gregory will be presenting at FLTA and Andrea Somers will be discussing cyber insurance at TitleCON, so come hear what they have to share if you can!
Speaking of ABAs and joint ventures, expect a new video series from Aaron and Mike any time now. They’ll take a dive into the elements of building an ABA (or non-ABA operation) that don’t get talked about too often. We’ll keep you updated as to the launch of that series right here.
As busy as we’ve been, it’s always great to take a breath and take in the annual industry gatherings, where the content, exhibit halls and cocktail hour conversations give us all a little perspective on what’s going on in our space.
Several members of the FAN leadership team headed out to Colorado Springs this October to take in ALTA ONE. In addition to being a spectacular venue, the trip was a great opportunity to network and share insights. You didn’t have to be there to know that building affiliated arrangements is one of the hottest topics in the industry right now, but we can confirm it remains hot and may get even hotter! Remember, title revenue can be captured in many ways, and although ABAs are certainly one approach, they’re not always or automatically the best approach.
We’re seeing a lot more interest in capturing revenue—anywhere, everywhere—as rates remain high as well. Aaron and Mike, in their Closingsuite.com roles, have been hearing from quite a few agents across the country seeking ways to enter new geographic markets or partner with lenders, builders and REALTORS to build new operations. That was true at the ALTA show as well.
Much like last year’s event, we can’t say that the attitude in the proverbial room was rosy. But many were guardedly optimistic that we’ve at least bottomed out when it comes to rates and order volume. By some accounts, the magic “turnaround” date will be sometime in April or May, 2024, but, by now, we know better than to make assumptions. Instead, we were impressed by the focus on building partnerships and optimizing processes to help ride out the current downturn. The Broadmoor is a great resort destination, but the folks we talked to were all business.
That’s a great approach to take these days.
Remember, we’re happy to help you consider your options—maybe even offer some you hadn’t thought of previously—if you’re seeking to grow your footprint or open a new title operation. That goes for title agents, real estate brokerages or teams, lenders or builders. Just drop us a note and let’s talk.
The rapid shift to online transactions during the pandemic has opened up new avenues for fraudulent activities. According to FloridaRealtors.org, one such alarming trend seen among realtors in Florida is an increase in 'fake sellers'—scammers posing as property owners to dupe unsuspecting buyers. Below, we dive into this type of land fraud, how to spot it and what measures to take to avoid it.
Land fraud is an illegal scheme in which scammers pose as property owners and attempt to sell properties they don't actually own. This deception can take various forms, from selling non-existent land to selling properties others own. The fraudsters can resort to several strategies to complete their ruse, like forging documents, making excuses for not providing proper identification, or claiming they are out of the country and cannot attend in-person meetings. With digital transactions making fully remote closings more common, these scammers have adapted their tactics to exploit the new opportunities.
Whether you are concerned over this growing predicament or not, you should always follow the advice below to ensure your transaction goes as smoothly as possible.
By staying alert and following these guidelines, you can identify and avoid falling victim to land fraud and move into your dream home with peace of mind. Despite the growing complexity of these scams, constant vigilance can go a long way in protecting yourself and your investment.
If you'd like to learn more about these threats and how to combat them, we'd be happy to help. Give us a call at 866-259-4440.
A real estate professional must ensure that homebuyers find the home of their dreams and remain secure throughout the transaction process. Unfortunately, according to a recent Florida Realtors article, the threat of fraud is only increasing. As real estate scams become more sophisticated, adopting vigilant and proactive measures to safeguard your clients is essential. Below are some helpful tips from the article that you can use to ensure you are well-prepared to protect your clients from fraud.
Stay Informed: Stay updated on the latest fraud techniques targeting homebuyers. Sites like the U.S. Federal Trade Commission or AARP.org are reliable sources. The National Association of Realtors also offers a comprehensive data privacy and security toolkit that is instrumental in understanding your responsibilities around client data.
Educate Your Clients: Remember to warn your clients about potential scams like wire fraud or fake buyer text messages during your first meeting and throughout the homebuying process. Make them aware of the red flags, such as requests for personal information or payments via email or text.
Implement Secure Practices: Use strong, unique passwords and two-factor authentication for all your accounts. Make sure to install timely computer updates and security patches.
Practice Email and Text Safety: Never click on links from an unknown or suspicious email or text message. Always verify the sender's identity before opening attachments or following links. If you receive a suspicious text message, report it as spam and block the number.
Secure Client Data: Handle your client's personal and financial data with extreme care. Ensure all information is stored securely and only share it with trusted contacts.
The ever-evolving tactics of fraudsters can make the real estate transaction process seem daunting for clients. Realtors can feel like the only line of defense to provide a secure environment for your clients. Thankfully, you're not alone.
Florida Agency Network can be by your side to help protect your clients through the closing process and beyond. We know how hard you work to protect your clients from these threats because we take the same precautions to assure homebuyers that their dream home is in safe hands. To learn more about how we can protect your clients from fraud, visit our website or call us at 866-259-4440.
Open houses can bring the perfect buyer to the negotiating table or attract enough interest in your home to spark a bidding war.
Valued Client,
We’ve seen some confusion recently with regards to the requirements of Florida’s new Conveyances to Foreign Entities Act, which took effect on July 1, 2023. Foreign principals from “foreign countries of concern” (The People’s Republic of China, Russian Federation, Islamic Republic of Iran, Democratic People’s Republic of Korea, Republic of Cuba, Venezuelan regime of Nicolas Maduro, Syrian Arab Republic) are now prohibited from owning or acquiring any agricultural land or real property on or within 10 miles of any institution or “critical infrastructure” facility anywhere in Florida.
We’ve been fielding questions regarding the now-required Affidavit of Non-Applicability of Restriction on Foreign Ownership – Natural Person(s) and the Affidavit of Non-Applicability of Restriction on Foreign Ownership – Entity. Specifically, who needs to produce the documents and who needs to sign them? We are attaching copies of both for your convenience. Several of our underwriting partners are requiring all buyers to sign both documents at every closing.
We would be delighted to discuss these new requirements as we understand them at the present time, but since the law is so new we do not have any solid information on how it will be applied or enforced in the times to come except as contained in the attached notices. We will not, unfortunately, be able to advise individual buyers on their specific situations other than requiring that they sign and comply with the notices attached to this bulletin. We do, however, also strongly advise that foreign buyers that are citizens of one of the subject countries speak with independent legal counsel in Florida before entering into a contract to purchase real estate in Florida because the law may impact their ability to purchase the property and that inability may result in a breach of the purchase and sale agreement.
We understand that this is new to everyone in our industry. With this bulletin, we are hoping that it helps provide some guidelines to the new process. Please note, we are unable to guide you, or your client, on whether they should enter a contract to purchase. If you have questions or would like to discuss the statute in greater detail, we are always happy to hear from you to try and help as much as we can. Simply give us a call or email us, and we’ll set a time to discuss.
Regards,
Florida Agency Network
Bulletin PDF Notice to Buyer PDF Affidavit of Compliance PDF
FLTA Notice on Affidavit(s) for Interests of Foreign Countries
