(a) If the owner of a manufactured home notifies the department that the owner intends to treat the home as real property or intends to treat the home as a salvaged manufactured home or reserve the home for a business use or another nonresidential use, the department shall indicate on the statement of ownership for the home that:
(1) the owner of the home has elected to treat the home as described by this subsection; and
(2) except as provided by § 1201.2055(h), the home is no longer a manufactured home for purposes of regulation under this chapter or of recordation of liens, including tax liens.
(b) On application and subject to Sections 1201.2076 and 1201.209, the department shall issue for the structure described in the application a new statement of ownership restoring the structure’s designation as a manufactured home only after an inspection and determination that the structure is habitable as provided by § 1201.453.