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California Manufactured Housing Salesperson License
EXAM COMPLETE QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
California Manufactured Housing Salesperson License
POINT-FORM SUMMARIZED EXAM COVERAGE
Based on HCD Study Guide for Obtaining a Dealer or Salesperson License & California Health and
Safety Code
I. Exam Logistics & Administration
• Provider: California Department of Housing and Community Development (HCD), administered
through Pearson VUE testing centers
• Number of Questions: 50 multiple-choice questions
• Time Limit: 1.5 hours (90 minutes)
• Passing Score: 35 correct answers (70%)
• Exam Fee: $86 per attempt
• Retake Policy: No limit on number of attempts; exam fee applies each time
• Preliminary Education: 6-hour HCD-approved course required within 6 months of taking MH-
Unit exam
II. General Licensing Requirements (37% of exam)
• Definition of Dealer (HSC §18013): Person who sells, exchanges, leases, buys, offers for sale, or
negotiates sale of manufactured/mobile homes for commission or profit
• Definition of Salesperson (HSC §18013(a)): Person who performs same activities as dealer but
must be employed by/under contract with licensed dealer
• Physical Place of Business (POB): Dealers must have physical location in California (HSC
§18045.5(b))
• Exemptions from Dealer License: Banks selling repossessed units, licensed real estate brokers
selling used units (with registration), sales conducted entirely outside California
• Exemptions from Salesperson License: Bank employees selling repossessed units as official
duty, licensed manufacturers selling to dealers, persons selling own personal unit
III. Preliminary & Continuing Education (18% of exam)
• Preliminary Education (PE): 6-hour HCD-approved course required for MH-Unit salesperson
applicants; must be completed within 6 months of taking exam
• Continuing Education (CE): Required to maintain HCD license; specific hour requirements apply
• Time Limit: If more than 6 months lapse before taking exam, PE course must be taken again
IV. Advertising Regulations (7% of exam)
• Prohibited Practices: Deceptive advertising, misleading claims, "free" offers without qualifying
conditions
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• False Advertising: Advertising features the home does not have constitutes misrepresentation
• Truthful Claims: Advertising must be accurate, not misleading, and include all material
information
V. Consumer Protection & Disclosures
• Material Fact Definition: Information that significantly affects value or desirability of home;
must be disclosed
• Known Defects: Must be disclosed regardless of whether buyer asks
• Truth-in-Lending: Requires full disclosure of credit terms, APR, finance charges, payment
schedule
• Written Purchase Agreement: Legally required for enforceability; must outline all terms,
conditions, and obligations
• Deposit Handling: Must be deposited into properly designated trust or escrow account; not to
be commingled with personal funds
VI. Registration and Titling (7% of exam)
• Certificate of Origin (MCO): Legal document establishing ownership; issued by manufacturer;
used to transfer title
• HUD Label: Certification that home meets federal construction and safety standards
• Title Transfer: Required for ownership change; processed through HCD
VII. Warranty (approx. 7% of exam)
• New Home Warranty: Statutory warranty provided for new manufactured homes
• Warranty Coverage: Provides assurance regarding condition and performance of home
• Warranty Period: Typically covers major structural components and defects
VIII. Sales and Use Tax Regulations (7% of exam)
• Sales Tax: Generally applicable to purchase of new manufactured homes; collected at point of
sale
• Tax Application: California imposes sales tax unless specific exemptions apply
• Personal Property vs. Real Property: Distinction affects tax treatment; chattel (movable) vs.
affixed/permanent
IX. Federal Manufactured Home Regulations (3% of exam)
• HUD Code: National construction and safety standards for manufactured homes
• HUD Label/Insignia: Certification of compliance with federal standards
• Regulatory Agency: U.S. Department of Housing and Urban Development (HUD)
X. Ethics & Professional Conduct
• Fiduciary Duties: Loyalty, confidentiality, reasonable care, disclosure, accounting
• Dual Agency: Representing both buyer and seller requires full disclosure and consent
• Fair Housing Act: Prohibits discrimination based on race, color, religion, sex, familial status,
disability
• California FEHA: Provides additional protections beyond federal law
• Penalties for Violations: HCD may issue citations, suspend, or revoke licenses
• Unlicensed Activity: Operating without valid license is illegal and subject to penalties
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XI. Penalties (5% of exam)
• Disciplinary Actions: License suspension, revocation, fines
• Recordkeeping Violations: Failure to maintain required transaction records results in regulatory
penalties
• Misrepresentation: Fraudulent statements can lead to disciplinary action by HCD
Section 1: General Licensing Requirements & Definitions (Questions 1–50)
1. According to California Health and Safety Code, what is the primary definition of a manufactured
home salesperson?
A) A person who owns a manufactured home dealership
B) A person who supervises multiple dealership locations
C) A person who performs selling activities on behalf of a licensed dealer and receives compensation
D) A person who installs manufactured homes on foundations
Answer: C
Rationale: HSC §18013(a) defines a salesperson as any person who performs the same activities as a
dealer (selling, exchanging, negotiating) and is employed by or under contract with a licensed dealer .
2. Which California agency is responsible for licensing manufactured housing salespersons?
A) California Department of Motor Vehicles (DMV)
B) California Bureau of Real Estate (BRE)
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C) California Department of Housing and Community Development (HCD)
D) California Department of Consumer Affairs (DCA)
Answer: C
Rationale: HCD administers the Occupational Licensing Program for manufactured home, mobilehome,
and commercial modular salespersons and dealers .
3. Under HSC §18013(a), which of the following activities requires a manufactured housing
salesperson license?
A) Installing a manufactured home on a foundation
B) Transporting a manufactured home from factory to dealership
C) Inducing a person to buy a manufactured home for commission
D) Financing a manufactured home purchase through a bank
Answer: C
Rationale: A salesperson license is required for anyone who induces or attempts to induce any person to
buy or exchange an interest in a manufactured/mobile home and receives or expects to receive a
commission .
California Manufactured Housing Salesperson License
EXAM COMPLETE QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
California Manufactured Housing Salesperson License
POINT-FORM SUMMARIZED EXAM COVERAGE
Based on HCD Study Guide for Obtaining a Dealer or Salesperson License & California Health and
Safety Code
I. Exam Logistics & Administration
• Provider: California Department of Housing and Community Development (HCD), administered
through Pearson VUE testing centers
• Number of Questions: 50 multiple-choice questions
• Time Limit: 1.5 hours (90 minutes)
• Passing Score: 35 correct answers (70%)
• Exam Fee: $86 per attempt
• Retake Policy: No limit on number of attempts; exam fee applies each time
• Preliminary Education: 6-hour HCD-approved course required within 6 months of taking MH-
Unit exam
II. General Licensing Requirements (37% of exam)
• Definition of Dealer (HSC §18013): Person who sells, exchanges, leases, buys, offers for sale, or
negotiates sale of manufactured/mobile homes for commission or profit
• Definition of Salesperson (HSC §18013(a)): Person who performs same activities as dealer but
must be employed by/under contract with licensed dealer
• Physical Place of Business (POB): Dealers must have physical location in California (HSC
§18045.5(b))
• Exemptions from Dealer License: Banks selling repossessed units, licensed real estate brokers
selling used units (with registration), sales conducted entirely outside California
• Exemptions from Salesperson License: Bank employees selling repossessed units as official
duty, licensed manufacturers selling to dealers, persons selling own personal unit
III. Preliminary & Continuing Education (18% of exam)
• Preliminary Education (PE): 6-hour HCD-approved course required for MH-Unit salesperson
applicants; must be completed within 6 months of taking exam
• Continuing Education (CE): Required to maintain HCD license; specific hour requirements apply
• Time Limit: If more than 6 months lapse before taking exam, PE course must be taken again
IV. Advertising Regulations (7% of exam)
• Prohibited Practices: Deceptive advertising, misleading claims, "free" offers without qualifying
conditions
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• False Advertising: Advertising features the home does not have constitutes misrepresentation
• Truthful Claims: Advertising must be accurate, not misleading, and include all material
information
V. Consumer Protection & Disclosures
• Material Fact Definition: Information that significantly affects value or desirability of home;
must be disclosed
• Known Defects: Must be disclosed regardless of whether buyer asks
• Truth-in-Lending: Requires full disclosure of credit terms, APR, finance charges, payment
schedule
• Written Purchase Agreement: Legally required for enforceability; must outline all terms,
conditions, and obligations
• Deposit Handling: Must be deposited into properly designated trust or escrow account; not to
be commingled with personal funds
VI. Registration and Titling (7% of exam)
• Certificate of Origin (MCO): Legal document establishing ownership; issued by manufacturer;
used to transfer title
• HUD Label: Certification that home meets federal construction and safety standards
• Title Transfer: Required for ownership change; processed through HCD
VII. Warranty (approx. 7% of exam)
• New Home Warranty: Statutory warranty provided for new manufactured homes
• Warranty Coverage: Provides assurance regarding condition and performance of home
• Warranty Period: Typically covers major structural components and defects
VIII. Sales and Use Tax Regulations (7% of exam)
• Sales Tax: Generally applicable to purchase of new manufactured homes; collected at point of
sale
• Tax Application: California imposes sales tax unless specific exemptions apply
• Personal Property vs. Real Property: Distinction affects tax treatment; chattel (movable) vs.
affixed/permanent
IX. Federal Manufactured Home Regulations (3% of exam)
• HUD Code: National construction and safety standards for manufactured homes
• HUD Label/Insignia: Certification of compliance with federal standards
• Regulatory Agency: U.S. Department of Housing and Urban Development (HUD)
X. Ethics & Professional Conduct
• Fiduciary Duties: Loyalty, confidentiality, reasonable care, disclosure, accounting
• Dual Agency: Representing both buyer and seller requires full disclosure and consent
• Fair Housing Act: Prohibits discrimination based on race, color, religion, sex, familial status,
disability
• California FEHA: Provides additional protections beyond federal law
• Penalties for Violations: HCD may issue citations, suspend, or revoke licenses
• Unlicensed Activity: Operating without valid license is illegal and subject to penalties
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XI. Penalties (5% of exam)
• Disciplinary Actions: License suspension, revocation, fines
• Recordkeeping Violations: Failure to maintain required transaction records results in regulatory
penalties
• Misrepresentation: Fraudulent statements can lead to disciplinary action by HCD
Section 1: General Licensing Requirements & Definitions (Questions 1–50)
1. According to California Health and Safety Code, what is the primary definition of a manufactured
home salesperson?
A) A person who owns a manufactured home dealership
B) A person who supervises multiple dealership locations
C) A person who performs selling activities on behalf of a licensed dealer and receives compensation
D) A person who installs manufactured homes on foundations
Answer: C
Rationale: HSC §18013(a) defines a salesperson as any person who performs the same activities as a
dealer (selling, exchanging, negotiating) and is employed by or under contract with a licensed dealer .
2. Which California agency is responsible for licensing manufactured housing salespersons?
A) California Department of Motor Vehicles (DMV)
B) California Bureau of Real Estate (BRE)
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C) California Department of Housing and Community Development (HCD)
D) California Department of Consumer Affairs (DCA)
Answer: C
Rationale: HCD administers the Occupational Licensing Program for manufactured home, mobilehome,
and commercial modular salespersons and dealers .
3. Under HSC §18013(a), which of the following activities requires a manufactured housing
salesperson license?
A) Installing a manufactured home on a foundation
B) Transporting a manufactured home from factory to dealership
C) Inducing a person to buy a manufactured home for commission
D) Financing a manufactured home purchase through a bank
Answer: C
Rationale: A salesperson license is required for anyone who induces or attempts to induce any person to
buy or exchange an interest in a manufactured/mobile home and receives or expects to receive a
commission .
