NEW MEXICO MHD-2 TEST BANK NEWEST
2026 | NM MANUFACTURED HOUSING
INSTALLER LICENSE EXAM | BUSINESS +
TRADE + INSTALLATION +RATIONALES | A+
BUNDLE 2026
Question
All of the following are required to be given to the customer at close EXCEPT:
A) Copy of purchase agreement
B) Sales contract
C) Credit Report
D) All of the above
Expert Rationale: A credit report is not required to be given to the customer at closing. Due
to company and national credit safety protections, dealers and brokers are not allowed to
offer credit information at any time. The purchase agreement and sales contract must be
provided to the customer.
Question
All conditions of a sales contract signed by a dealer or broker and homeowner must be
completed within how many days from the date of delivery, unless otherwise signed and
agreed to by both parties?
A) 30 Days
B) 45 Days
C) 60 Days
D) 90 Days
Expert Rationale: All conditions of a sales contract must be completed within 45 days
from the date of delivery, unless otherwise signed and agreed to by both parties. This
timeframe ensures timely completion of the transaction. Extensions must be documented
in writing.
,Question
A salesperson is entitled to be:
A) Licensed individually
B) Not employed for more than one dealer or broker at the same time
C) Not acting as a salesperson while license is in suspension
D) All of the above
Expert Rationale: A salesperson must be individually licensed, cannot be employed by
more than one dealer or broker simultaneously, and cannot act as a salesperson while
their license is suspended. All of these are requirements under the manufactured housing
act. Violations may result in disciplinary action.
Question
An elderly couple buys a home installed onto a permanent foundation. They decide to
move to an apartment for 18 months and want their original salesperson to handle the
resale. The salesperson marks the home as new. Why is this wrong?
A) The home is not new because it has a permanent foundation
B) The home is not new because it was previously occupied
C) The salesperson cannot handle the resale
D) The home must be sold by a different broker
Expert Rationale: The home cannot be marked as new because it has been installed on a
permanent foundation. Once a manufactured home is placed on a permanent foundation,
it is considered real property and no longer qualifies as new. The salesperson must
disclose the home's true status.
Question
A manufactured housing broker is going to resell a home but discovers a lien on it. Who is
responsible to get consent to sale?
A) Previous owner
B) The broker
C) The seller
D) The buyer
Expert Rationale: The broker is responsible for obtaining consent to sale when a lien is
discovered on a manufactured home. The broker must ensure clear title before resale.
,Failure to do so can result in legal and financial liability. The broker must also verify title
before listing.
Question
The HUD plate must consist of everything EXCEPT:
A) A 5-digit serial number
B) It must be 2" x 4"
C) It must be fastened permanently so if removed it will be damaged and not reusable
D) It must be made of metal
Expert Rationale: The HUD plate does not require a 5-digit serial number; it requires a 6-
digit serial number (manufacturer's serial number). The label must be 2" x 4", fastened
permanently, and made of metal. The HUD plate certifies that the home meets federal
construction standards.
Question
The time amount for a temporary license is:
A) 1 Week
B) 1 Month
C) 3 Months
D) 6 Months
Expert Rationale: A temporary license is valid for 1 month. Temporary licenses are issued
under specific circumstances and cannot be used in public schools. They allow an
individual to work while completing requirements for a permanent license.
Question
When your license expires, you must renew it:
A) Within the same month it was received a year later
B) Within 30 days of expiration
C) Within 60 days of expiration
D) Within 90 days of expiration
, Expert Rationale: When your license expires, it must be renewed within the same month it
was received a year later (during its anniversary month). Late renewals are subject to
penalties and may result in license suspension.
Question
If a manufactured home manual is lost, it must be built by:
A) New Mexico manufactured housing and construction standards
B) HUD standards
C) DAPIA standards
D) County standards
Expert Rationale: If the manual is lost, the home must be built according to HUD
standards (national standards for modular/manufactured homes). HUD standards ensure
safety, quality, and consistency. The home must also comply with local codes.
Question
If you obtain a temporary license, you can set up anywhere EXCEPT:
A) Private property
B) Public schools
C) Commercial lots
D) Dealerships
Expert Rationale: Temporary license holders cannot set up on public school property. They
may set up on private property, commercial lots, and dealerships, but public schools are
restricted. This restriction protects school environments and ensures safety.
Question
A customer orders a home with upgrades and custom designs, pays a deposit, and backs
out. How much of the deposit will they get back?
A) All of it
B) The cost of upgrades and repairs
C) All of the deposit minus the cost of upgrades and customs, not to exceed 10% of the
deposit
D) All of the deposit minus the cost of upgrades and customs, not to exceed 5% of the
deposit
2026 | NM MANUFACTURED HOUSING
INSTALLER LICENSE EXAM | BUSINESS +
TRADE + INSTALLATION +RATIONALES | A+
BUNDLE 2026
Question
All of the following are required to be given to the customer at close EXCEPT:
A) Copy of purchase agreement
B) Sales contract
C) Credit Report
D) All of the above
Expert Rationale: A credit report is not required to be given to the customer at closing. Due
to company and national credit safety protections, dealers and brokers are not allowed to
offer credit information at any time. The purchase agreement and sales contract must be
provided to the customer.
Question
All conditions of a sales contract signed by a dealer or broker and homeowner must be
completed within how many days from the date of delivery, unless otherwise signed and
agreed to by both parties?
A) 30 Days
B) 45 Days
C) 60 Days
D) 90 Days
Expert Rationale: All conditions of a sales contract must be completed within 45 days
from the date of delivery, unless otherwise signed and agreed to by both parties. This
timeframe ensures timely completion of the transaction. Extensions must be documented
in writing.
,Question
A salesperson is entitled to be:
A) Licensed individually
B) Not employed for more than one dealer or broker at the same time
C) Not acting as a salesperson while license is in suspension
D) All of the above
Expert Rationale: A salesperson must be individually licensed, cannot be employed by
more than one dealer or broker simultaneously, and cannot act as a salesperson while
their license is suspended. All of these are requirements under the manufactured housing
act. Violations may result in disciplinary action.
Question
An elderly couple buys a home installed onto a permanent foundation. They decide to
move to an apartment for 18 months and want their original salesperson to handle the
resale. The salesperson marks the home as new. Why is this wrong?
A) The home is not new because it has a permanent foundation
B) The home is not new because it was previously occupied
C) The salesperson cannot handle the resale
D) The home must be sold by a different broker
Expert Rationale: The home cannot be marked as new because it has been installed on a
permanent foundation. Once a manufactured home is placed on a permanent foundation,
it is considered real property and no longer qualifies as new. The salesperson must
disclose the home's true status.
Question
A manufactured housing broker is going to resell a home but discovers a lien on it. Who is
responsible to get consent to sale?
A) Previous owner
B) The broker
C) The seller
D) The buyer
Expert Rationale: The broker is responsible for obtaining consent to sale when a lien is
discovered on a manufactured home. The broker must ensure clear title before resale.
,Failure to do so can result in legal and financial liability. The broker must also verify title
before listing.
Question
The HUD plate must consist of everything EXCEPT:
A) A 5-digit serial number
B) It must be 2" x 4"
C) It must be fastened permanently so if removed it will be damaged and not reusable
D) It must be made of metal
Expert Rationale: The HUD plate does not require a 5-digit serial number; it requires a 6-
digit serial number (manufacturer's serial number). The label must be 2" x 4", fastened
permanently, and made of metal. The HUD plate certifies that the home meets federal
construction standards.
Question
The time amount for a temporary license is:
A) 1 Week
B) 1 Month
C) 3 Months
D) 6 Months
Expert Rationale: A temporary license is valid for 1 month. Temporary licenses are issued
under specific circumstances and cannot be used in public schools. They allow an
individual to work while completing requirements for a permanent license.
Question
When your license expires, you must renew it:
A) Within the same month it was received a year later
B) Within 30 days of expiration
C) Within 60 days of expiration
D) Within 90 days of expiration
, Expert Rationale: When your license expires, it must be renewed within the same month it
was received a year later (during its anniversary month). Late renewals are subject to
penalties and may result in license suspension.
Question
If a manufactured home manual is lost, it must be built by:
A) New Mexico manufactured housing and construction standards
B) HUD standards
C) DAPIA standards
D) County standards
Expert Rationale: If the manual is lost, the home must be built according to HUD
standards (national standards for modular/manufactured homes). HUD standards ensure
safety, quality, and consistency. The home must also comply with local codes.
Question
If you obtain a temporary license, you can set up anywhere EXCEPT:
A) Private property
B) Public schools
C) Commercial lots
D) Dealerships
Expert Rationale: Temporary license holders cannot set up on public school property. They
may set up on private property, commercial lots, and dealerships, but public schools are
restricted. This restriction protects school environments and ensures safety.
Question
A customer orders a home with upgrades and custom designs, pays a deposit, and backs
out. How much of the deposit will they get back?
A) All of it
B) The cost of upgrades and repairs
C) All of the deposit minus the cost of upgrades and customs, not to exceed 10% of the
deposit
D) All of the deposit minus the cost of upgrades and customs, not to exceed 5% of the
deposit
