Mobile home titles in Alabama

Alabama titles a manufactured home through the Department of Revenue and taxes it either by annual registration (on a rented lot) or as real property (on the owner's land). The information below describes how the law generally works; anyone with a specific title or tax question should consider consulting a licensed attorney in Alabama.

What the statute says

A manufactured home is titled by the Alabama Department of Revenue under the state's certificate-of-title law (Ala. Code Title 32, Chapter 20), and ownership transfers by reassigning the certificate of title. For taxation, Ala. Code §40-12-255 provides that a manufactured home located on land the owner does not own is registered annually — an issuance fee and decal — in lieu of ad valorem property tax, while a manufactured home situated on land the owner owns is assessed and taxed as real property. When a home is assessed as real property, the certificate of title can be cancelled so the home is treated as part of the real estate.

How it works in general

An Alabama manufactured home starts as titled personal property: the owner holds a Department of Revenue certificate of title, and a sale transfers that title. While the home sits on a rented park lot, it is generally registered each year — an issuance fee and a decal — in place of ordinary property tax. When the owner places the home on land they own, it is assessed and taxed as real property, and the certificate of title can be cancelled so the home becomes part of the real estate, conveyed with the land. The certificate of title, the annual registration (or real-property assessment), and the county records are the key documents.

Common scenarios

General examples Alabama residents commonly encounter:

• A home sits on a rented park lot. It is titled personal property and registered annually with a decal (Ala. Code §40-12-255).
• An owner places the home on land they own. It is assessed as real property and the title can be cancelled (Ala. Code §40-12-255; title 32, ch. 20).
• A home changes hands. Ownership transfers by reassigning the Department of Revenue certificate of title.

Other authorities that may apply

The certificate-of-title law (Ala. Code Title 32, Chapter 20) and §40-12-255 govern titling and taxation, administered by the Alabama Department of Revenue and the county; the Alabama Manufactured Housing Commission oversees installation, and the home is built to the federal HUD code. The certificate of title, the registration or assessment records, and any financing documents also control.