REVISE MANUFACT. HOME TITLE LAWS.

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View NCGA Bill Details2021
Senate Bill 449 (Public) Filed Thursday, April 1, 2021
AN ACT TO REVISE LAWS GOVERNING MANUFACTURED HOME TITLES.
Intro. by Galey, Britt, Daniel.

Status: Ref To Com On Rules, Calendar, and Operations of the House (House action) (Apr 27 2021)
S 449

Bill Summaries:

  • Summary date: Apr 20 2021 - View Summary

    Senate committee substitute makes the following changes to the 1st edition. 

    Adds the following. Directs the Division of Motor Vehicles (DMV) to create a form, and publish the form on its website and make the form available to the public by December 1, 2021, for use by employees, agents, and license plate contractors of the DMV in the cancellation, release, or renewal of a security interest in a manufactured home and the surrender of title to a manufactured home. 


  • Summary date: Apr 1 2021 - View Summary

    Amends GS 20-58.3A, which provides for the automatic expiration of a perfected security interest in a manufactured home perfected by notation on the certificate of title after 30 years of issuance, unless the title states a different maturity date. Expands subsection (g) to also grant immunity to license plate contractors of the Division of Motor Vehicles (DMV), in addition to the DMV, from tort claims based on reliance by the DMV or a DMV contractor on any application for renewal of the perfection of a security interest on a certificate of title for a manufactured home submitted to the DMV or the contractor by a third party, as authorized by the statute.

    Amends GS 20-58.4, which provides for the release of a security interest in a motor vehicle upon satisfaction or other discharge, to direct DMV license plate contractors, in addition to the DMV, to issue a new certificate of title upon the owner's exhibition of signed documents evidencing the release and the certificate of title. No longer requires the DMV to be satisfied by the regularity of the release prior to issuance of the new certificate of title. Regarding the release of a security interest in a vehicle that is a manufactured home, requires DMV licensed contractors, in addition to the DMV to send notice to the last known address of the secured party before cancellation, and prohibits cancellation if the secured party files an objection within 15 days after the notice was sent (previously, required notice by registered letter to the last known address of the secured party). Similar to the changes made to GS 20-58.3A, expands subsection (f) to also grant immunity to license plate contractors of the DMV, in addition to the DMV, for tort claims based on reliance by the DMV or a DMV contractor on any release, affidavit, certificate of title notation, or documents evidencing the release or satisfaction of a security interest related to certificates of title for manufactured homes submitted to the DMV or the contractor by a third party, as authorized by the statute.

    Regarding the surrender of title to a manufactured home that qualifies as real property under GS 20-109.2, no longer requires the DMV Commissioner to require evidence demonstrating that all affected secured parties have been notified and consent to the owner of a manufactured home's application for a new certificate of title following cancellation of the initial certificate of title when the owner seeks to separate the manufactured home from the real property. Deems there to be no right of action against a DMV license plate contractor, in addition to the DMV, for a person damaged by the cancellation of a certificate of title pursuant to subsection (a1), which provides for surrender of the certificate of title to a manufactured home that qualifies as real property when the certificate of title is unavailable.  

    Effective October 1, 2021.