When settling an estate that includes a mobile home, it’s important to understand how these properties are classified under Canadian estate law. Unlike traditional real estate, mobile homes can either be considered personal property or real estate, depending on the circumstances. This classification affects how the estate is handled, including probate, ownership transfer, and taxation.
Is a Mobile Home Considered Real Estate or Personal Property?
Mobile homes may be considered real estate if they are permanently affixed to land that is owned by the deceased. However, if the mobile home is located on rented land (such as a mobile home park), it is usually classified as personal property.
How Mobile Homes Are Classified by Province
- Ontario: If the mobile home is on leased land, it is considered personal property and transferred through a Bill of Sale. If it is on owned land, it is real estate and subject to probate. (Ontario Land Titles)
- British Columbia: Mobile homes must be registered with the Manufactured Home Registry, unless they are on owned land, in which case they are classified as real property. (BC Registry Services)
- Alberta: Mobile homes are typically considered personal property but must be registered under the Alberta Personal Property Registry System (PPR). (Alberta Land Titles)
- Manitoba: Mobile homes are generally personal property but require registration with the Personal Property Registry unless permanently affixed to owned land. (Manitoba Land Titles)
- New Brunswick: Mobile homes on leased land are considered personal property, while those on owned land are real estate. (Service New Brunswick)
- Newfoundland and Labrador: Classification depends on land ownership; those on owned land are subject to real estate laws. (Service NL)
- Northwest Territories: Mobile homes require registration under personal property laws unless permanently affixed. (Department of Justice NWT)
- Nova Scotia: Mobile homes must be registered with the Registry of Deeds if on owned land. (Nova Scotia Land Registry)
- Nunavut: Mobile homes follow similar rules as Northwest Territories and require registration. (Nunavut Justice)
- Prince Edward Island: Classification depends on ownership of land. (PEI Land Registry)
- Quebec: Mobile homes are considered personal property unless they are permanently affixed to land. (Registraire des entreprises)
- Saskatchewan: Requires registration with the Personal Property Registry unless on owned land. (ISC Saskatchewan)
- Yukon: Similar classification rules as other territories. (Yukon Government Land Titles)
Probate Requirements for Mobile Homes
When Probate Is Required
- If the mobile home is real estate (on owned land), it is subject to probate and must be included in the estate’s total value.
- If the mobile home is personal property, probate may not be required, but the estate administrator must verify ownership before transferring the title.
When Probate May Not Be Necessary
- If the mobile home was jointly owned with a right of survivorship, the ownership passes directly to the surviving owner.
- If the home was registered in the name of a trust, it bypasses probate.
For details on probate fees, visit:
- Ontario – Estate Administration Tax
- British Columbia – Probate Fees and Estate Administration
- Alberta – Applying for Probate
Transferring Ownership of a Mobile Home
The method for transferring ownership of a mobile home depends on whether it is classified as real estate or personal property:
- For real estate: The executor must transfer the title through the provincial land registry.
- For personal property: The executor must transfer ownership through the personal property registry system or local registration authority.
Steps for Ownership Transfer
- Obtain a Grant of Probate (if required).
- Verify registration details with the appropriate land title office or personal property registry.
- Prepare a Bill of Sale if the mobile home is personal property.
- Pay any outstanding property taxes or lease fees.
- Update ownership records with the appropriate provincial registry.
Financial and Tax Considerations
Capital Gains Tax on Mobile Homes
- If the mobile home was the deceased’s primary residence, it may be exempt from capital gains tax.
- If it was a rental property or secondary residence, capital gains tax may apply upon transfer or sale.
For more information on estate taxes, visit the Canada Revenue Agency (CRA) Estate Tax Guide.
Outstanding Debts and Liens
- If the deceased had an outstanding loan or mortgage on the mobile home, the executor must settle these debts before transferring ownership.
- Check with the lender or financial institution for any secured loans or liens on the property.
Ensuring a Smooth Estate Settlement for Mobile Homes
Handling a mobile home in an estate requires careful attention to classification, probate laws, and ownership transfer procedures. Executors should verify registration status, consult provincial regulations, and, when necessary, seek legal advice to avoid complications.
For additional guidance, visit the Canadian Bar Association – Wills and Estates Law.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult a qualified professional for guidance on estate settlement matters in Canada.
