The classification of a factory-built home as real or personal property hinges on several key factors, most notably whether it is permanently affixed to land. A manufactured home resting on a temporary foundation, with wheels and axles still attached, and retaining its vehicle identification number, is generally considered personal property, similar to a vehicle. Conversely, a manufactured home permanently attached to a foundation, with its wheels and axles removed, and registered with the relevant authorities as real property, typically falls under the definition of real property, much like a site-built house. This distinction affects taxation, financing, and legal considerations.
Properly classifying a factory-built home has significant implications for owners, lenders, and taxing authorities. Historically, these homes were often treated as personal property, leading to higher interest rates on loans and different tax assessments compared to traditional homes. The shift towards treating permanently affixed manufactured homes as real property has provided owners with greater financial stability and access to traditional mortgage products, contributing to their wider acceptance within the housing market. This distinction also impacts insurance needs and legal disputes relating to the property.
