I put my tiny home on a foundation and surrendered the wheels. I tried to refinance it as a house. The title company said, “We can’t issue title insurance because the DMV still lists this as a 2024 Utility Trailer.” When I had a fire claim, the insurance company was confused: “Is this a vehicle or a house? Who actually owns it?”
Key Takeaways
- Chattel vs. Real Property: A tiny home with a DMV Title (VIN) is personal property (Chattel). A home on a deed is Real Property. You cannot be both.
- Surrendering the Title: To make it “Real Estate” (and eligible for mortgages/homeowners insurance), you must formally “Surrender” the DMV title to the state and have the unit “affixed” to the land deed.
- The Insurance Conflict: If you insure it as a “Dwelling” but the DMV thinks it’s a “Vehicle,” a total loss payout gets messy. Who gets the title? The DMV requires the title to mark it “Salvage,” but if you surrendered it, there is no title.
- Tax Implications: Vehicles pay registration tags. Houses pay property tax. You can’t pick and choose.
The “Why” (The Trap)
The trap is “Bureaucratic Limbo.”
Insurance companies need a clean chain of title to pay a claim. They need to know they are paying the legal owner.
If you are paying Property Tax on the structure (as an improvement to the land) but you also hold a Title for it as a trailer, you have created a legal paradox.
In a total loss, the insurer wants the title in exchange for the check. If you can’t produce it (or if it’s tied up in a land deed), the payout stalls.
The Investigation (My Analysis of the Process)
I looked at the legal transition.
The “Affidavit of Affixture”
- The Document: This is the legal form (varies by state) that kills the VIN and merges the tiny home with the land deed.
- The Effect: Once filed, the DMV record is closed. The home is now “Real Estate.”
- Insurance: Now you can buy a standard Homeowners Policy (HO-3) with no confusion.
The “Double Dip” Risk
- The Mistake: Keeping the DMV title active while treating it as a house.
- The Result: You might be paying vehicle registration fees unnecessarily, and insurance might try to depreciate it like a car instead of appreciating it like a house.
[IMAGE: Photo of a “Certificate of Title” being stamped “SURRENDERED” next to a Deed of Trust]
Comparison Table
| Status | DMV Title (Active) | Affixed (Surrendered) |
| Asset Type | Personal Property | Real Estate |
| Insurance | RV / Tiny Home | Homeowners |
| Lending | Personal / RV Loan | Mortgage |
| Taxes | DMV Tags | Property Tax |
| Appreciation | Depreciates | Appreciates (usually) |
Step-by-Step Action Plan
- Decide Your Path: Are you moving it again? If yes, KEEP the title. Do not affix it.
- File the Affidavit: If staying forever, hire a real estate attorney to file the “Affidavit of Affixture.”
- Notify Insurance: Once affixed, send the recorded document to your insurer. “Please update policy to Real Property.”
- Cancel DMV Reg: Stop paying for tags. Send the plates back.
FAQ
Can I undo an affixture?
It is very hard. You have to “sever” the improvement from the land and apply for a new DMV title (Re-titling). It requires inspections and fees.
Does NOAH certification matter for the deed?
Yes. The building department will want to see the certification to approve the “permanent” status.
What if I don’t own the land?
You CANNOT affix it. You must keep it titled as a vehicle/chattel. You cannot merge your house with someone else’s land (unless you lease, but even then, it’s chattel).