Is a Mobile Home Considered Real Property in Tennessee?

Mobile homes are a popular housing choice in Tennessee, but their legal classification raises questions for homeowners. Are they considered real property, or is there a distinction? In this guide, we will unravel the classification of mobile homes in Tennessee’s legal framework and discuss its implications.

Mobile Home Considered Real Property in Tennessee
Mobile Home Considered Real Property in Tennessee

1. Mobile Homes: Personal Property or Real Property?

Legal Distinction

In Tennessee, the classification of a mobile home often depends on whether it meets certain criteria that align it with real property. A manufactured home that is permanently affixed to a foundation is more likely to be classified as real property. Also If you own the land beneath your mobile home, it’s more likely to be considered real property. However, if you rent a lot in a mobile home park, it’s often classified as personal property. Additionally, your intent to permanently attach the manufactured home to the land plays a role. If you intend to move it in the future, it may still be considered personal property.

2. Implications of Classification

Impact on Financing

The classification of your manufactured home can have financial implications. If your manufactured home is considered real property, you may be eligible for a traditional mortgage to finance it. If it’s categorized as personal property, you may need a chattel loan, which typically has different terms and interest rates.

Property Taxes

The classification of a manufactured home as real property or personal property significantly impacts its property tax obligations in Tennessee. Here are some key points to consider:

Real Property Taxation: When a mobile home is classified as real property, it is typically subject to property taxes in a manner similar to that of traditional site-built homes. This means that the assessed value of the mobile home and the land it sits on is combined, and property taxes are levied based on this total value. These taxes contribute to local government revenues and support services like schools, roads, and public safety.

Personal Property Taxation: Conversely, when a manufactured home is classified as personal property, its tax liabilities may be lower. In this scenario, the mobile home is assessed as personal property separate from the land it occupies. Personal property taxes are generally lower than property taxes, as they are primarily based on the value of the mobile home itself and do not include the land value.

Differences in Tax Burden: The difference in tax burden between real and personal property classification can be substantial. Mobile homeowners who classify their homes as personal property may benefit from reduced annual tax obligations compared to those whose mobile homes are considered real property. This can be particularly advantageous for individuals looking to minimize their tax expenses while maintaining the flexibility of relocating their mobile home if needed.

Impact on Budgeting: Property tax considerations play a vital role in the financial planning of mobile homeowners. Those with mobile homes classified as real property should budget for property taxes similar to homeowners of site-built houses. On the other hand, individuals with mobile homes classified as personal property can expect relatively lower tax bills, which may free up funds for other expenses or savings.

Consultation and Legal Advice: Given the potential tax implications and complexities surrounding mobile home classification, it is advisable for homeowners to seek legal and tax advice. Consulting with professionals who are well-versed in Tennessee’s tax laws and regulations can help homeowners make informed decisions regarding the classification of their mobile homes and plan their finances accordingly.

Mobile Home in Tennessee
Mobile Home in Tennessee

3. Converting to Real Property

Permanent Foundation

If you want to convert your mobile home from personal property to real property, consider these steps:

1. Foundation: Have your mobile home permanently affixed to a foundation, complying with local building codes.

2. Titles: If your mobile home has a title, surrender it to the Tennessee Department of Revenue’s Motor Vehicle Division.

3. Deed: Create a deed that legally attaches the mobile home to the land.

4. Assessment: Contact your local property assessor’s office to ensure proper assessment and taxation.

5. Lender: You may also need to consult with your lender if you have the mobile home financed as they may have certain processes or criteria that needs to be met to de-title the home in order for it to become real property. Additionally, some lenders may not surrender the title of the mobile home until the loan is paid in full.

4. Legal Advice


Given the complexity of mobile home classification, it’s wise to consult a real estate attorney or tax professional. They can provide guidance on how to navigate the legal aspects and ensure compliance with Tennessee’s regulations.

In Tennessee, the classification of a mobile home as real property or personal property depends on various factors, including its foundation, land ownership, and your intent to permanently attach it. This classification has implications for financing and property taxes.

Understanding the distinction between real property and personal property is essential for homeowners and potential buyers. If you wish to convert your mobile home to real property, follow the necessary steps, consult legal professionals, and ensure compliance with local regulations.

Navigating the legal framework surrounding mobile homes in Tennessee can be intricate, but with the right guidance, you can make informed decisions about your home’s classification and related matters.

Helpful Links:

Tennessee Department of Revenue – Mobile Homes

Tennessee Code Annotated, Title 67, Chapter 5, Part 20 – Classification and Appraisal of Mobile and Manufactured Homes

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