In the world of housing, there are different terms that can easily confuse buyers and sellers. Here’s a simple breakdown of the differences between traditional real estate and manufactured / mobile homes on lease land (also known as “chattel property”).

Buying a mobile home in a community is a different transaction than a real estate purchase, so it’s important to understand differences that may affect the sale and purchase of your next home.

What is real estate? 

There’s a Latin phrase that says: “quicquid plantur solo, solo cedit,” meaning anything that is fixed to the land becomes part of the land. Real property (real estate) is exactly that–a home that is built on the land and is permanently affixed by a foundation, which can only be removed through an act of severance. 

This includes land, anything that is built on the land, and things that are growing on the land or exist under the face of the land. To simplify, think of residential real estate as a home built on-site where you buy both the land and the home in your transaction. Real estate can only be sold by the owner or represented by a licensed real estate agent (or REALTORS® if they are a member of the local Board of Realtors) who are licensed through Florida Real Estate Commission (FREC). 

What is chattel?

Chattel is personal property that can easily be moved. Unlike real property, personal property is not permanently affixed to real property. However, chattel homes can become real estate if a home is affixed to the land in a permanent or meaningful way and sold with the land where it sits. 

Let’s take a manufactured home as an example. A manufactured home situated in a community where you own the home, but not the land, is considered personal property (chattel). Sales agents of chattel property do not need a real estate license, but in Florida they must work for a company that is a broker or dealer licensed through the Florida Department of Highway Safety and Motor Vehicles (FHSMV). 

A manufactured home is chattel

While real estate means that you own the land, chattel property sits on rented land. Therefore, manufactured homes on rented land are not considered real estate since the owner does not own the land, but instead leases the lot (in addition, the home can be moved, if desired). With these differences in mind, there are many benefits of purchasing a manufactured home on leased land:

While real estate means that you own the land, chattel property sits on rented land. Therefore, manufactured homes on rented land are not considered real estate since the owner does not own the land, but instead leases the lot (in addition, the home can be moved, if desired). With these differences in mind, there are many benefits of purchasing a manufactured home on leased land:

While real estate means that you own the land, chattel property sits on rented land. Therefore, manufactured homes on rented land are not considered real estate since the owner does not own the land, but instead leases the lot (in addition, the home can be moved, if desired). With these differences in mind, there are many benefits of purchasing a manufactured home on leased land:

• Quick and easy buy/sell process: chattel sales typically require a lot less paperwork, hence the process is shorter and more simple. 
• You will get a title tag for your manufactured home just like with your car.
• Lower closing costs: With real estate, a buyer will have to pay 2-5% of the purchase price in closing costs. With a chattel sale, a buyer only needs to pay the state sales tax and a county tax. Since the chattel homes are usually a lot less expensive, the closing costs would be much less than if a buyer bought real estate.
• Save money on property tax: With real estate you will pay property tax every year, while with chattel, you only need to pay a tag renewal fee each year–just like you do with your car. 

Let us help you

At Four Star Homes, we do our best to make this process as seamless and easy as possible. We have many beautiful properties in various communities throughout sunny Florida for you to view. 

With almost 40 years in business helping people save money and find their perfect mobile home match, we’re confident we can make it happen for you too. Contact us today to get started!