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  • The Newport Plain Talk

    More Concerns: Incredible Tiny Homes use of 'open' title paperwork questioned

    By Kathy Barnes News Writer,

    7 days ago

    https://img.particlenews.com/image.php?url=3luPos_0u58naSf00

    NEWPORT — The Newport Plain Talk has learned more about the tiny home building process at Incredible Tiny Homes (ITH) from its former operations manager, James Stevens.

    Stevens explained trailers for the tiny homes are bought from Hurst Trailers and the documentation for every trailer is “open” as there is no VIN (vehicle identification number) on the paperwork when it is received from the manufacturer.

    “The paperwork is totally open. It doesn’t indicate the trailer size or the specific details,” Stevens said. He said the paperwork is in a manila envelope that is given to the homebuyer.

    He further explained the VIN is then written in and the title is signed, just as one would sign off on a car title. He said the previous trailer manufacturer ITH used would send the title with the VIN number already typed in.

    He explained sometimes a trailer is in the assembly line where tiny homes are being made. He said that they may have the materials necessary to complete one specific tiny home model and not the other, so they built a tiny home on a trailer that was registered to another person. He said that the Hurst paperwork makes it easier to just fill in the VIN number after the home is complete while other manufacturers may mean that the paperwork would have to be redone when a home is completed.

    “The assembly line has houses from front to back. The different models require different amenities and materials, so a house could be put on a wrong trailer. The flip-flop happens all the time, so having the open-ended paperwork makes the process easier, so they can put down the trailer VIN when the house is complete,” Stevens said.

    He said the certificate of origin should be registered with the county clerk’s office because otherwise it is being left open like a car title would, and the owner would not have the proof needed to show that they owned the trailer and tiny home in question.

    Cocke County Clerk Shaleè McClure explained that when someone buys a tiny home they should take the certificate of origin to the clerk’s office in the courthouse to apply for a title.

    “The title shows ownership,” she explained. “Just like the title for any car or vehicle shows ownership, the same is true with the title for a tiny home.”

    According to the Tennessee Department of Revenue (TDR), tiny homes should be registered as Class (D)(ii) mobile homes. “Tiny homes constitute vehicles and therefore should be titled and registered if operated on Tennessee highways,” the TDR documentation states. It indicates there are two relevant classes for tiny homes, those are Class (D)(i), which is for trailers limited to vacationing and camping purposes and Class (D)(ii) which are mobile homes or house trailers with dimensions not exceeding eight feet in width.

    The TDR states, “Tiny homes constitute tangible personal property, and therefore the sales and use tax applies on the sales price of the tiny homes when sold at retail in Tennessee, unless an exemption applies.”

    Tiny homes are on trailers, which have wheels that allow them to be moved from one place to another. Mobile homes are moved to their location on a trailer, but are underpinned and/or put on a permanent foundation. Thus, the classification of a tiny home is not the same as the classification for a mobile home.

    “Without your title, someone could hook up to your tiny home and pull it away,” Stevens said. “Getting your title for your tiny home is important.”

    The Plain Talk previously reported that several employees were let go from ITH at the end of May. The employees alleged Randy Jones, who founded the company, told them he did not have the money to pay them.

    Jones canceled a scheduled interview with the Plain Talk that had been requested by his office and has not rescheduled.

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