The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5567 September 21, 1979 MOBILE HOMES: License to handle sale of REAL ESTATE BROKERS AND SALESMEN: Sale of mobile homes A licensed real estate broker or salesperson may handle the sale of a mobile home affixed to a permanent foundation as part of the sale of real property on which the mobile home is situated without obtaining additional licensure pursuant to the Mobile Home Commission Act. Honorable William Faust State Senator The Capitol Lansing, Michigan 48909 You have requested my opinion as to whether a licensed real estate broker or salesperson, without obtaining a license as a mobile home dealer, may handle the sale of a mobile home affixed to a permanent foundation. A person who sells real estate for others must be licensed pursuant to 1919 PA 306, MCLA 451.201 et seq; MSA 19.791 et seq. 1919 PA 306, supra, Sec. 2 contains in pertinent part the following definitions of real estate broker and salesperson: 'A real estate broker . . . is a person . . . who with intent to . . . receive a fee . . . sells, or offers for sale, buys or offers to buy . . . real estate or the improvements thereon for others, as a whole or partial vocation, or who sells or offers for sale, buys or offers to buy . . . or who, as owner or otherwise, engages in the sale of real estate as a principal vocation. A real estate salesperson . . . is a person who for compensation . . . is employed . . . by a licensed real estate broker to sell or offer to sell, or buy or offer to buy . . . real estate, or who sells or offers for sale, buys or offers buy . . .' [Emphasis added] The Mobile Home Commission Act, 1976 PA 419, Sec. 2(f) and (g), MCLA 125.1102(f), 125.1102(g); MSA 19.855(2)(f), 19.855(2)(g), define 'mobile hone' and 'mobile home dealer' as follows: '(f) 'Mobile home' means a structure, transportable in 1 or more sections, which is built on a chassis and designed to be used as a dwelling with or without permanent foundation, when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained in the structure. Mobile home does not include a recreational vehicle. '(g) 'Mobile home dealer' means a person other than a manufacturer engaged in the business of buying mobile homes for resale, exchange, lease, or rent or offering mobile homes for sale, lease, rent, or exchange to customers.' It must also be noted that ownership of a mobile home, whether new or used, and whether permanently affixed to the soil or not, is transferred by transfer of a certificate of title pursuant to 1976 PA 419, supra, Sec. 30. The title to land on which a mobile home is fixed, however, is conveyed by execution and delivering of a deed. RS 1846, ch 65, MCLA 561.1 et seq; MSA 26.521 et seq. Therefore, inasmuch as real estate brokers and salespersons are licensed to sell real estate, the response to your question depends upon whether the property is realty or personalty. When a new mobile home is purchased and before it is affixed to the soil, it is personal property. After purchase, a mobile home may be installed on a leased lot or on a lot owned by the person who owns the mobile home. Also, subsequent to being affixed to realty, a mobile home may be severed from the soil and sold separately from the real property on which it is located. However, a mobile home assessable as real property for taxation purposes is considered real property, whether or not permanently affixed to the soil. 1893 PA 206, Sec. 2a, as amended by 1978 PA 379, MCLA 211.2a; MSA 7.2(1) (1). With this understanding of the classification of mobile homes as personalty or realty, it will be seen that if a mobile home is offered for sale as personal property by a broker or dealer, the person handling the sale is required to be licensed under the Mobile Home Commission Act, supra, in which case the transfer of the certificate of title and not a deed is required. Conversely, a mobile home offered for sale with the land on which it is located by a person other than the owner is a sale of real property subject to the real estate license law, supra, and an additional license required by the Mobile Home Commission Act, supra, is not needed by a person handling the sale. In summary, in determining which license is required by a person handling the sale of a mobile home for another, a functional test is employed. If the mobile home is sold as personal property, the person handling the sale is required to be licensed pursuant to the Mobile Home Commission Act, supra, and, because only personalty is sold, no real estate license is necessary. However, when a mobile home is taxed as real property, a real estate license is required because the property being transferred is realty. Therefore, it is my opinion that a licensed real estate broker or salesperson may handle the sale of a mobile home affixed to a permanent foundation as part of the sale of real property upon which the mobile home is situated without obtaining additional licensure pursuant to the Mobile Home Commission Act, supra. Frank J. Kelley Attorney General (1)