By Blackwell M. Brogden., Jr., Chief Deputy Legal Counsel
As a real estate licensee, you should have a general knowledge of manufactured housing (i.e., transportable structures used for dwellings, office-space, etc.). You should be familiar with basic construction methods and know the difference between manufactured homes and manufactured buildings. You should know the requirements for licensure to list, sell, and install manufactured housing, and should be aware that subdivision covenants and zoning codes may restrict or prohibit such structures on a property.
Manufactured or Stick-Built?
In the past, it was easy to distinguish "stick-built" structures (built on-site) from "manufactured" structures (built off-site and transported to the lot where they were installed). But today, due to new construction technologies and conflicting definitions in subdivision covenants and zoning codes, the determination of whether a property is "manufactured" or "stick-built" is not always clear.
The question is further complicated by owners or developers who combine elements of manufactured and stick-built structures. Some, for example, purchase off-site-built structures without exterior siding and then add brick or some other veneer; others assemble multiple manufactured units on site into a two-story building, or order a base unit and then "stick-build" a second floor.
Are the resulting structures stickbuilt or are they manufactured?
State and federal laws make an elementary distinction between a "manufactured home" and a "manufactured building." A manufactured home (formerly called a "mobile home") is designed and built on a permanent chassis even if more than one unit is required to make a complete home (e.g., a "double wide"). A manufactured building (also referred to as a "modular building" or a "modular home") is constructed in units at an off-site location and then transported to and assembled on the site.
Look for the label
Each manufactured home unit should have a serial number and a label permanently attached to it showing its compliance with federal standards. Likewise, any modular unit should have a serial number and label showing its compliance with the State building code.
Look for the labels near exterior doors or inside built-in cabinets. If you find a label, you will at least know that the structure is "manufactured." Furthermore, you should be able to determine more specifically whether it is a manufactured home or a [modular] building.
Licenses Required
Manufactured home builders are licensed and regulated by the Division of Motor Vehicles (which licenses motor vehicle dealers and salesmen). Persons selling manufactured homes are separately licensed and regulated by the North Carolina Manufactured Housing Board.
Persons who install modular homes, regardless of the cost of the homes, must be licensed by the North Carolina Licensing Board for General Contractors. A General Contractor License also may be required when a unit built off-site is to be incorporated into on-site construction, depending upon the total cost of construction.
A real estate broker or salesman license is not required when selling a manufactured home or building which has not been affixed to real estate; however, in some cases, licensure may be required through the Division of Motor Vehicles and the Manufactured Housing Board. When a manufactured home or modular home becomes a part of real property (and the manufactured home's Certificate of Title has been canceled), a real estate license is required to list, sell, lease, etc. the home and land combination
Subdivision Covenants
Subdivision covenants which restrict or prohibit manufactured homes have been in effect for many years. If properly drawn and recorded, they have been considered legally enforceable. On the other hand, North Carolina courts have recently ruled that modular homes are permitted in subdivisions where covenants bar manufactured homes. Of course, some subdivisions may have different language in their covenants that could prohibit all manufactured housing.
Subdivision covenants and local zoning codes restricting manufactured housing are now being challenged by the manufactured home industry. This issue is still undecided in the courts.
Caveat
When you are aware that a prospective purchaser is seeking vacant land on which to install any type of manufactured construction, or when you list or show an improved property where there is a question as to the type of its construction, you should exercise extreme care.
Look at the label to help you identify whether the structure is a manufactured home or a manufactured [modular] building. It will likely affect its appraised value and the amount, if any, a lender will lend on its purchase.
Contact the Department of Motor Vehicles, the North Carolina Manufactured Housing Board and the North Carolina Licensing Board for General Contractors to determine what licenses may be required before you sell or construct a manufactured home or building.
If an owner of a manufactured ho or building wishes to locate it on a lot that you are offering for sale, check for subdivision covenants or zoning codes that prohibit manufactured housing.
Be careful to avoid making an inaccurate claim that a particular type of construction is present or permitted on the property; or you may be subject to disciplinary action by the Commission and possible civil liability.