The Gift Transfer Process
- Complete the standard title transfer application — Use your state's form. On the "purchase price" line, enter $0 or "gift." Some states have a specific checkbox for gift transfers.
- Complete a Gift Affidavit (if required) — Some states require a notarized affidavit confirming the transfer is a gift with no consideration paid. This protects against future claims that you actually sold the home and owe transfer taxes on a sale price.
- Handle any outstanding liens — A home with an outstanding loan cannot be gifted without the lender's involvement. Either pay off the loan first, or structure a formal loan assumption with the lender's approval.
- Submit to state title agency — File the transfer application, gift affidavit, and original title. Pay applicable fees (often reduced for family gifts — see below).
- Recipient receives new title — The state issues a new title in the recipient's name.
Federal Gift Tax Considerations
For 2025, the federal annual gift tax exclusion is $18,000 per recipient per year. If the home's fair market value exceeds this, the gift technically requires filing a federal gift tax return (Form 709) — though actual gift tax is only owed if your lifetime exemption ($13.61 million in 2025) is exceeded. Most people gifting a manufactured home will not owe gift tax, but the filing requirement may apply. Consult a tax professional if the home's value is significant.
State Transfer Fee Reductions for Family Gifts
Many states reduce or waive certain fees for family gift transfers:
- Texas: Reduced sale tax rate for gifts between qualifying family members (parent/child, spouses). TDHCA charges the standard $55 transfer fee.
- California: HCD typically waives the VLF equivalent for transfers between parents and children or grandparents and grandchildren.
- Florida: The standard $75.75 title fee applies regardless, but sales tax does not apply to gifts.
Frequently Asked Questions
Generally, no. Recipients of gifts do not owe income tax on the gift itself. However, if the recipient later sells the home, their cost basis for capital gains purposes is the original donor's cost basis — not the fair market value at the time of the gift. This is called a carryover basis and can result in higher capital gains when the home is eventually sold.
Yes, but you likely won't qualify for any family gift fee reductions. The process is the same as a standard transfer — complete the transfer application with $0 or the gifted value noted. All standard fees apply.
Adding a Transfer on Death (TOD) beneficiary designation to the title — available in states that allow it (Ohio, for example, allows TOD on vehicle titles) — lets the home pass directly to the named beneficiary at your death without going through the gift process while you are alive. Otherwise, a clear will or trust specifying who receives the home, combined with a post-death heirship affidavit, is the standard approach.
Related: After-Death Transfers · Divorce Transfers · Path Finder Tool