Relating to authorizing a beneficiary designation that transfers a manufactured home classified as personal property at the owner's death.

Contracts

• Sales Agreements: Add a disclosure clause informing buyers of their statutory right to designate a beneficiary on the SOL.
• Community Leases: Review "heir/successor" clauses. Clarify that while the *title* transfers to the beneficiary, the *right to occupy the lot* requires a separate application for tenancy.
• Lending Instruments: Ensure security agreements explicitly reference that "Transfer on Death" beneficiaries take title subject to the existing lien.

Hiring/Training

• Closing Agents: Train staff on the new SOL fields. They must understand that a Will does *not* override this designation; the SOL controls.
• Loan Servicing: Update "Successor in Interest" protocols. Staff must be trained to identify a "Beneficiary Designation" on the SOL immediately upon borrower death to direct collections and insurance notices correctly.

Reporting & Record-Keeping

• Statement of Ownership (SOL): The primary reporting mechanism. Applications mailed to TDHCA must be sent via Certified or Registered Mail, Return Receipt Requested. The postmark date is legally dispositive for validity if the owner dies shortly after mailing.
• Proof of Death: Beneficiaries must submit the SOL application and a death certificate within 365 days of the owner's death.

Fees & Costs

• Filing Fees: Standard SOL filing fees apply.
• Operational Costs: Minimal direct costs, though administrative time for title processing and verifying beneficiary status will increase.