The department must process completed statement-of-ownership applications within 15 working days, give rejection reasons, and keep ownership/lien records and notices updated. Buyers of new or used manufactured homes can also get ownership protections against liens in the situations described.
Sec. 1201.207. ISSUANCE OF STATEMENT OF OWNERSHIP. (a) Except as provided for in Subsection (a-1), the department shall process any completed application for the issuance of a statement of ownership not later than the 15th working day after the date the application is received by the department. If the department rejects an application, the department shall provide a clear and complete explanation of the reason for the rejection and instructions on how to cure any defects, if possible. (a-1) For the period immediately following June 30 of each year, the department shall, except for applications relating to new manufactured homes and applications accompanied by a tax certificate, cease issuing statements of ownership until all tax liens filed with the department before June 30 have been processed and either recorded or rejected. During this period the department will post on its Internet website a notice as to when it is anticipated that processing statements of ownership will resume and when it is anticipated that such processing will be within the 15-working-day time frame provided by Subsection (a). (b) If the department issues a statement of ownership for a manufactured home, the department shall maintain a record of the issuance in its electronic records and shall mail a copy to the owner and each lienholder. The department shall make available to the public on the department's Internet website in a searchable and downloadable format all ownership and lienholder information contained on the statement of ownership. (c) Except with respect to any change in use, servicing of a loan on a manufactured home, release of a lien on a manufactured home by an authorized lienholder, or change in ownership of a lien on a manufactured home, but subject to Section 1201.2075, if the department has issued a statement of ownership for a manufactured home, the department may issue a subsequent statement of ownership for the home only if all parties reflected in the department's records as having an interest in the manufactured home give their written consent or release their interest, either in writing or by operation of law, or the department has followed the procedures provided by Section 1201.206(k) to document ownership and lien status. Once the department issues a statement of ownership, the department shall not alter the record of the ownership or lien status, other than to change the record to accurately reflect the proper owner's or lienholder's identity or to release a lien if an authorized lienholder files with the department a request for that release, of a manufactured home for any activity occurring before the issuance of the statement of ownership without either the written permission of the owner of record for the manufactured home, their legal representative, or a court order. (d) Notwithstanding any other provision of this chapter, if the consumer purchases a new manufactured home from a licensed retailer in the ordinary course of business, whether or not a statement of ownership has been issued for the manufactured home, the consumer is a bona fide purchaser for value without notice and is entitled to ownership of the manufactured home free and clear of all liens and to a statement of ownership reflecting the same on payment by the consumer of the purchase price to the retailer. If there is an existing lien on the new manufactured home perfected with the department, the owner of the lien is entitled to recover the value of the lien from the retailer. (e) Notwithstanding any other provision of this chapter, if the consumer purchases a used manufactured home from a retailer in the ordinary course of business, the consumer takes the manufactured home free and clear of any liens created by the selling retailer even if they are recorded. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 338, Sec. 15, eff. June 18, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1284 (H.B. 2438), Sec. 13, eff. June 18, 2005. Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 27, eff. January 1, 2008. Acts 2009, 81st Leg., R.S., Ch. 77 (H.B. 2238), Sec. 9, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 46 (H.B. 1510), Sec. 2, eff. September 1, 2011. Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 31, eff. September 1, 2017. Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 32, eff. September 1, 2017.