New Mexico Manufactured Housing
Dealer License Examination Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of the New Mexico Manufactured
Housing Act?
A. To regulate apartment rentals
B. To ensure manufactured homes are safely installed
C. To establish zoning laws
D. To regulate the sale, lease, and installation of manufactured
homes
Rationale: The Act is designed to protect consumers and establish
licensing requirements for dealers, salespersons, and installers.
,2. Which entity issues the Manufactured Housing Dealer License in New
Mexico?
A. New Mexico Department of Health
B. New Mexico Regulation and Licensing Department, Construction
Industries Division (CID)
C. New Mexico Taxation and Revenue Department
D. Local city government
Rationale: CID oversees licensing, inspections, and enforcement for
manufactured housing dealers.
3. What is required to legally operate as a manufactured housing dealer
in New Mexico?
A. High school diploma
B. Vehicle registration
C. Dealer license issued by CID
D. Bank account in state
Rationale: Operating without a dealer license is illegal under state
law.
4. How long is a New Mexico manufactured housing dealer license valid
before renewal?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
, Rationale: Licenses must be renewed every three years to remain
active.
5. Which of the following is a responsibility of a licensed dealer?
A. Installing utilities for homeowners
B. Ensuring compliance with state disclosure and warranty
requirements
C. Drafting city zoning regulations
D. Inspecting public parks
Rationale: Dealers must follow laws related to sales contracts,
disclosures, and warranties.
6. What must a dealer provide to a consumer at the time of sale?
A. Free home inspection
B. Written disclosure of warranty and condition of the home
C. Proof of insurance for the buyer
D. Loan pre-approval
Rationale: Written disclosure ensures the buyer is informed of the
home’s condition and warranty coverage.
7. Who is responsible for the installation of a manufactured home?
A. The buyer
B. Local city inspectors
C. Licensed installer or dealer responsible for installation
D. County clerk
, Rationale: Installation must comply with HUD standards and state
regulations.
8. A licensed dealer sells a manufactured home without providing
required disclosures. What can happen?
A. Nothing, if the buyer signs a contract
B. Only a warning is issued
C. License suspension, fines, or legal action
D. The installer is penalized instead
Rationale: Non-compliance with disclosure laws exposes the dealer
to regulatory penalties.
9. Which document is essential for transferring ownership of a
manufactured home?
A. Building permit
B. Utility contract
C. Manufacturer’s certificate of origin (MCO) or title
D. Appraisal report
Rationale: The MCO or title legally documents ownership and is
required for registration.
10. How should a dealer handle a consumer complaint regarding a
home defect?
A. Ignore it
B. Investigate and work to resolve per warranty and state law
C. Refer to local police
Dealer License Examination Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of the New Mexico Manufactured
Housing Act?
A. To regulate apartment rentals
B. To ensure manufactured homes are safely installed
C. To establish zoning laws
D. To regulate the sale, lease, and installation of manufactured
homes
Rationale: The Act is designed to protect consumers and establish
licensing requirements for dealers, salespersons, and installers.
,2. Which entity issues the Manufactured Housing Dealer License in New
Mexico?
A. New Mexico Department of Health
B. New Mexico Regulation and Licensing Department, Construction
Industries Division (CID)
C. New Mexico Taxation and Revenue Department
D. Local city government
Rationale: CID oversees licensing, inspections, and enforcement for
manufactured housing dealers.
3. What is required to legally operate as a manufactured housing dealer
in New Mexico?
A. High school diploma
B. Vehicle registration
C. Dealer license issued by CID
D. Bank account in state
Rationale: Operating without a dealer license is illegal under state
law.
4. How long is a New Mexico manufactured housing dealer license valid
before renewal?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
, Rationale: Licenses must be renewed every three years to remain
active.
5. Which of the following is a responsibility of a licensed dealer?
A. Installing utilities for homeowners
B. Ensuring compliance with state disclosure and warranty
requirements
C. Drafting city zoning regulations
D. Inspecting public parks
Rationale: Dealers must follow laws related to sales contracts,
disclosures, and warranties.
6. What must a dealer provide to a consumer at the time of sale?
A. Free home inspection
B. Written disclosure of warranty and condition of the home
C. Proof of insurance for the buyer
D. Loan pre-approval
Rationale: Written disclosure ensures the buyer is informed of the
home’s condition and warranty coverage.
7. Who is responsible for the installation of a manufactured home?
A. The buyer
B. Local city inspectors
C. Licensed installer or dealer responsible for installation
D. County clerk
, Rationale: Installation must comply with HUD standards and state
regulations.
8. A licensed dealer sells a manufactured home without providing
required disclosures. What can happen?
A. Nothing, if the buyer signs a contract
B. Only a warning is issued
C. License suspension, fines, or legal action
D. The installer is penalized instead
Rationale: Non-compliance with disclosure laws exposes the dealer
to regulatory penalties.
9. Which document is essential for transferring ownership of a
manufactured home?
A. Building permit
B. Utility contract
C. Manufacturer’s certificate of origin (MCO) or title
D. Appraisal report
Rationale: The MCO or title legally documents ownership and is
required for registration.
10. How should a dealer handle a consumer complaint regarding a
home defect?
A. Ignore it
B. Investigate and work to resolve per warranty and state law
C. Refer to local police
