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New Mexico Manufactured Housing Dealer License Exam: 100 Practice Questions with
Answers & Rationales
Section 1: Regulatory Framework & The Manufactured Housing Act (Questions 1–25)
Q1. What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To regulate agricultural land use
B) To protect public health and safety concerning manufactured homes
C) To provide tax incentives for home builders
D) To increase state revenue through licensing fees
Correct Answer: B
Rationale: The Act's main goal is to ensure that manufactured housing is safe and does not
jeopardize public health or safety. It was enacted to protect consumers by guaranteeing
health and safety standards and promoting equitable business conduct in the manufactured
housing industry .
Q2. Which New Mexico agency administers the Manufactured Housing Act and issues
dealer licenses?
A) New Mexico Real Estate Commission
B) New Mexico Regulation and Licensing Department (RLD) – Manufactured Housing
Division (MHD)
C) New Mexico Attorney General's Office
D) New Mexico Department of Finance and Administration
Correct Answer: B
Rationale: The Manufactured Housing Division (MHD) within the Regulation and Licensing
Department administers the Manufactured Housing Act, handles licensing, inspections, and
consumer complaint resolution .
Q3. Under NMSA 60-14-2, a "manufactured home" is defined as:
A) Any factory-built dwelling constructed before 1976
B) A factory-built dwelling constructed on or after June 15, 1976, that meets HUD code
standards
C) Any dwelling built on site
D) A recreational vehicle used for permanent residence
Correct Answer: B
Rationale: NMSA 60-14-2 defines a manufactured home as a factory-built dwelling
constructed on or after June 15, 1976, that meets the HUD code standards. Pre-1976 units
are classified as "mobile homes." The June 15, 1976 date is critical—this is when the HUD
Code took effect .
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Q4. A "mobile home" under New Mexico law is distinguished from a "manufactured
home" by:
A) The manufacturer
B) The date of manufacture (pre-June 15, 1976)
C) The presence of wheels
D) Whether it is owner-occupied or rented
Correct Answer: B
Rationale: NMSA 60-14-2 distinguishes mobile homes as factory-built dwellings constructed
before June 15, 1976. The presence of wheels is not the legal distinction—many
manufactured homes are transported on wheels but classified by manufacture date .
Q5. The National Manufactured Housing Construction and Safety Standards Act of 1974
(HUD Code) applies to:
A) All housing in New Mexico
B) Manufactured homes built on or after June 15, 1976
C) Modular homes only
D) Recreational vehicles
Correct Answer: B
Rationale: The HUD Code established federal construction and safety standards effective
June 15, 1976. It applies to manufactured homes (not modular homes or RVs) built on or
after that date .
Q6. No person shall engage in business as a manufacturer, dealer, broker, repairman,
installer, or salesperson unless:
A) They have a business license from the county
B) They are licensed as provided in the Manufactured Housing Act
C) They have a real estate license
D) They have a contractor's license
Correct Answer: B
Rationale: NMSA 60-14-7 states that no person shall engage in business as a manufacturer,
dealer, broker, repairman, installer, or salesperson unless licensed as provided in the
Manufactured Housing Act or the Construction Industries Licensing Act .
Q7. The primary purpose of licensing manufactured housing dealers is to:
A) Increase state revenue
B) Protect consumers
C) Limit competition
D) Support manufacturers
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Correct Answer: B
Rationale: Licensing ensures dealers meet legal and ethical standards, protecting buyers
from fraud, unsafe practices, and misrepresentation .
Q8. A dealer operating without a license may face:
A) Warning only
B) Criminal and civil penalties
C) No consequences
D) Only a small fine
Correct Answer: B
Rationale: Unlicensed activity is a serious violation that may result in fines, penalties, and
possible criminal charges .
Q9. Under 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
Rationale: Under NMAC 14.12.2.10, any person who 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. The statutory definition specifies "two or more" transactions .
Q10. The Manufactured Housing Committee is primarily tasked with which of the
following?
A) Setting interest rates for home loans
B) Advising the Governor on housing policy
C) Reviewing and recommending rule changes to the MHD
D) Issuing building permits for new construction
Correct Answer: C
Rationale: The Committee reviews regulations, proposes amendments, and provides
guidance to the MHD on policy matters .
Q11. An application for a license under the Manufactured Housing Act shall be denied if
the applicant has been convicted of:
A) Any misdemeanor
B) A felony enumerated as a disqualifying criminal conviction
New Mexico Manufactured Housing Dealer License Exam: 100 Practice Questions with
Answers & Rationales
Section 1: Regulatory Framework & The Manufactured Housing Act (Questions 1–25)
Q1. What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To regulate agricultural land use
B) To protect public health and safety concerning manufactured homes
C) To provide tax incentives for home builders
D) To increase state revenue through licensing fees
Correct Answer: B
Rationale: The Act's main goal is to ensure that manufactured housing is safe and does not
jeopardize public health or safety. It was enacted to protect consumers by guaranteeing
health and safety standards and promoting equitable business conduct in the manufactured
housing industry .
Q2. Which New Mexico agency administers the Manufactured Housing Act and issues
dealer licenses?
A) New Mexico Real Estate Commission
B) New Mexico Regulation and Licensing Department (RLD) – Manufactured Housing
Division (MHD)
C) New Mexico Attorney General's Office
D) New Mexico Department of Finance and Administration
Correct Answer: B
Rationale: The Manufactured Housing Division (MHD) within the Regulation and Licensing
Department administers the Manufactured Housing Act, handles licensing, inspections, and
consumer complaint resolution .
Q3. Under NMSA 60-14-2, a "manufactured home" is defined as:
A) Any factory-built dwelling constructed before 1976
B) A factory-built dwelling constructed on or after June 15, 1976, that meets HUD code
standards
C) Any dwelling built on site
D) A recreational vehicle used for permanent residence
Correct Answer: B
Rationale: NMSA 60-14-2 defines a manufactured home as a factory-built dwelling
constructed on or after June 15, 1976, that meets the HUD code standards. Pre-1976 units
are classified as "mobile homes." The June 15, 1976 date is critical—this is when the HUD
Code took effect .
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Q4. A "mobile home" under New Mexico law is distinguished from a "manufactured
home" by:
A) The manufacturer
B) The date of manufacture (pre-June 15, 1976)
C) The presence of wheels
D) Whether it is owner-occupied or rented
Correct Answer: B
Rationale: NMSA 60-14-2 distinguishes mobile homes as factory-built dwellings constructed
before June 15, 1976. The presence of wheels is not the legal distinction—many
manufactured homes are transported on wheels but classified by manufacture date .
Q5. The National Manufactured Housing Construction and Safety Standards Act of 1974
(HUD Code) applies to:
A) All housing in New Mexico
B) Manufactured homes built on or after June 15, 1976
C) Modular homes only
D) Recreational vehicles
Correct Answer: B
Rationale: The HUD Code established federal construction and safety standards effective
June 15, 1976. It applies to manufactured homes (not modular homes or RVs) built on or
after that date .
Q6. No person shall engage in business as a manufacturer, dealer, broker, repairman,
installer, or salesperson unless:
A) They have a business license from the county
B) They are licensed as provided in the Manufactured Housing Act
C) They have a real estate license
D) They have a contractor's license
Correct Answer: B
Rationale: NMSA 60-14-7 states that no person shall engage in business as a manufacturer,
dealer, broker, repairman, installer, or salesperson unless licensed as provided in the
Manufactured Housing Act or the Construction Industries Licensing Act .
Q7. The primary purpose of licensing manufactured housing dealers is to:
A) Increase state revenue
B) Protect consumers
C) Limit competition
D) Support manufacturers
, 3
Correct Answer: B
Rationale: Licensing ensures dealers meet legal and ethical standards, protecting buyers
from fraud, unsafe practices, and misrepresentation .
Q8. A dealer operating without a license may face:
A) Warning only
B) Criminal and civil penalties
C) No consequences
D) Only a small fine
Correct Answer: B
Rationale: Unlicensed activity is a serious violation that may result in fines, penalties, and
possible criminal charges .
Q9. Under 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
Rationale: Under NMAC 14.12.2.10, any person who 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. The statutory definition specifies "two or more" transactions .
Q10. The Manufactured Housing Committee is primarily tasked with which of the
following?
A) Setting interest rates for home loans
B) Advising the Governor on housing policy
C) Reviewing and recommending rule changes to the MHD
D) Issuing building permits for new construction
Correct Answer: C
Rationale: The Committee reviews regulations, proposes amendments, and provides
guidance to the MHD on policy matters .
Q11. An application for a license under the Manufactured Housing Act shall be denied if
the applicant has been convicted of:
A) Any misdemeanor
B) A felony enumerated as a disqualifying criminal conviction
