License Actual Exam Questions And Correct
Answers (Verified Answers) Plus Rationales 2026
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Section 1: Licensing Requirements and Regulations
Question 1
What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To regulate the sale of all residential real estate in New Mexico
B) To establish construction standards for all buildings in the state
C) To regulate the sale, lease, and installation of manufactured homes and establish
licensing requirements
D) To provide tax incentives for manufactured home buyers
Correct Answer: C
Explanation: The Manufactured Housing Act (Chapter 60, Article 14 NMSA 1978) serves as
the foundational statute for the manufactured housing industry in New Mexico. It is
designed to protect consumers and establish comprehensive licensing requirements for
dealers, salespersons, and installers, covering all aspects of sale, lease, and installation of
manufactured homes .
Question 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, Manufactured Housing Division
C) New Mexico Taxation and Revenue Department
D) Local city government
Correct Answer: B
,Explanation: The Manufactured Housing Division (MHD) within the New Mexico
Regulation and Licensing Department is the state authority that oversees licensing,
inspections, and enforcement for manufactured housing dealers. The division is
responsible for preparing, administering, and grading examinations for licensure under the
Manufactured Housing Act .
Question 3
According to New Mexico law, how many manufactured home transactions in a 12-
month period require a person to be licensed as a dealer?
A) One transaction
B) More than one transaction
C) Three transactions
D) Five transactions
Correct Answer: B
Explanation: Under NMAC 14.12.2.10, any person who in any manner acts as a dealer in
the transaction of more than one manufactured home in any consecutive 12-month
period is required to be licensed as a dealer. This ensures that individuals engaged in the
business of selling manufactured homes are properly licensed and regulated .
Question 4
Which of the following best describes the license classification system under the
Manufactured Housing Act?
A) A single license covers all manufactured housing activities
B) The committee adopts regulations creating a system of license classifications
covering dealer, broker, manufacturer, repairman, installer, and salesperson
C) Only dealers and manufacturers require licensing
D) Licensing is optional for salespersons
Correct Answer: B
Explanation: The Manufactured Housing Act requires the committee to adopt regulations
creating a system of license classifications covering the occupations of dealer, broker,
,manufacturer, repairman, installer, and salesperson, with provisions for qualifications and
examinations for each class of license .
Question 5
What must each dealer's location have according to licensing regulations?
A) A qualifying party and each location must have a separate license
B) At least three salespersons
C) A showroom of at least 2,000 square feet
D) A physical office in every county where homes are sold
Correct Answer: A
Explanation: NMAC 14.12.2.10 requires that each dealer's location shall have a qualifying
party, and each physical location must have a separate license. This ensures that each
dealership location is properly supervised and accountable to the division .
Question 6
What constitutes an "actual physically established location" for a manufactured housing
dealer?
A) A post office box with a telephone answering service
B) A secretarial service that handles business correspondence
C) An actual place of business where documents can be inspected during normal
business hours
D) A virtual office with a mailing address
Correct Answer: C
Explanation: NMAC 14.12.2.10 specifically states that a post office box, secretarial service,
telephone answering service, or similar entity does not constitute an actual physically
established location. A dealer must maintain a place of business that is an actual
physically established location from which business can be conducted and where all
documents directly related to the purchase, sale, trade, and installation of a manufactured
home within the preceding three years shall be available for inspection during normal
business hours .
, Question 7
Which of the following is a power and duty of the Manufactured Housing Division?
A) Setting property tax rates for manufactured homes
B) Preparing, administering, and grading examinations for licensure
C) Issuing building permits for all residential construction
D) Enforcing federal environmental regulations
Correct Answer: B
Explanation: NMSA 60-14-4 specifically grants the division the authority to prepare,
administer, and grade examinations for licensure under the classification sought by each
applicant. The division also has numerous other duties including issuing licenses,
establishing fees, and adopting rules and regulations relating to manufactured housing .
Question 8
A real estate broker acting as an agent in the sale of a mobile home that is not attached
to real property must:
A) Operate under their real estate license only
B) Be licensed as a manufactured housing dealer under the Manufactured Housing Act
C) Obtain a special endorsement on their real estate license
D) Register with the local county clerk
Correct Answer: B
Explanation: When a real estate broker or salesperson acts as the agent for another person
in the sale, exchange, lease, or purchase of a mobile housing unit which is not attached to
real property, they are engaged in the business of acting as an agent for another in the
sale of a mobile housing unit and must be licensed as a dealer under the Manufactured
Housing Act .