New Mexico Manufactured Housing Dealer License Exam
Practice Questions and Correct Answers (Verified Answers)
Plus Rationales
1: 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 - Housing and Consumer Affairs Division
C. New Mexico Attorney General's Office
D. New Mexico Department of Finance and Administration
CORRECT ANSWER: B. New Mexico Regulation and Licensing Department - Housing and
Consumer Affairs Division
Rationale: The Housing and Consumer Affairs Division (HCD) within the Regulation and Licensing
Department administers the Manufactured Housing Act (NMSA 1978, Chapter 61, Article 8),
including licensing dealers, installers, and transporters, and enforcing compliance.
2: What is the minimum age requirement to obtain a manufactured housing dealer license in
New Mexico?
A. 18 years
B. 21 years
C. 25 years
D. No age requirement
CORRECT ANSWER: A. 18 years
Rationale: Per 14.10.7.8 NMAC, an applicant for a manufactured housing dealer license must be
at least 18 years of age, be of good moral character, and meet other statutory qualifications.
3: Which of the following is REQUIRED for a manufactured housing dealer license application
in New Mexico?
A. Proof of a high school diploma
B. A surety bond in the amount of $25,000
C. A college degree in business
D. Proof of prior sales experience
CORRECT ANSWER: B. A surety bond in the amount of $25,000
,Rationale: NMSA 1978 §61-8-12 and 14.10.7.9 NMAC require dealers to file a $25,000 surety
bond to protect consumers against fraud, misrepresentation, or failure to comply with the
Manufactured Housing Act.
4: How long is a New Mexico manufactured housing dealer license valid before renewal is
required?
A. 1 year
B. 2 years
C. 3 years
D. Indefinitely
CORRECT ANSWER: A. 1 year
Rationale: Per 14.10.7.11 NMAC, manufactured housing dealer licenses expire annually on
December 31 and must be renewed with payment of renewal fees and compliance with
continuing requirements.
5: Which document MUST be provided to a buyer BEFORE signing a manufactured home sales
contract in New Mexico?
A. The manufacturer's warranty only
B. A written disclosure of the home's HUD certification label and data plate information
C. The dealer's personal financial statement
D. A list of previous buyers
CORRECT ANSWER: B. A written disclosure of the home's HUD certification label and data
plate information
Rationale: Federal HUD regulations (24 CFR 3280) and New Mexico law require disclosure of the
HUD certification label (proving compliance with federal construction standards) and data plate
(showing home specifications) to ensure buyer awareness of the home's compliance and
specifications.
6: What is the primary purpose of the HUD Certification Label on a manufactured home?
A. To indicate the home's market value
B. To certify the home was built in compliance with federal construction and safety standards
C. To show the home's energy efficiency rating
D. To indicate the home's warranty status
CORRECT ANSWER: B. To certify the home was built in compliance with federal construction
and safety standards
,Rationale: The HUD Certification Label (often called the "HUD tag") is affixed to each
transportable section of a manufactured home and certifies compliance with the Federal
Manufactured Home Construction and Safety Standards (24 CFR Part 3280).
7: Which of the following is a prohibited practice for a licensed manufactured housing dealer
in New Mexico?
A. Advertising homes with accurate pricing
B. Failing to disclose known material defects in a used manufactured home
C. Providing a written warranty for new homes
D. Offering financing options through affiliated lenders
CORRECT ANSWER: B. Failing to disclose known material defects in a used manufactured
home
Rationale: New Mexico law (NMSA 1978 §61-8-20) and consumer protection principles require
dealers to disclose known material defects. Concealing defects constitutes fraud or deceptive
trade practice and can result in license discipline.
8: What is the required retention period for a dealer's sales records under New Mexico law?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
CORRECT ANSWER: B. 3 years
Rationale: Per 14.10.9.6 NMAC, manufactured housing dealers must maintain complete records
of each sale, including contracts, disclosures, and financing documents, for at least 3 years from
the date of sale, available for inspection by HCD.
9: Which of the following MUST be included in a written manufactured home sales contract
in New Mexico?
A. The dealer's favorite color
B. A description of the home including make, model, serial number, and HUD label number
C. The buyer's social security number
D. The dealer's personal home address
CORRECT ANSWER: B. A description of the home including make, model, serial number, and
HUD label number
, Rationale: 14.10.8.4 NMAC requires sales contracts to include specific identifying information
about the home (make, model, serial number, HUD label) to ensure clarity, prevent fraud, and
facilitate titling/registration.
10: What is the primary purpose of a manufactured home's Data Plate?
A. To display the home's sales price
B. To provide installation instructions and design specifications
C. To list the dealer's contact information
D. To show the home's warranty terms
CORRECT ANSWER: B. To provide installation instructions and design specifications
Rationale: The Data Plate (required by 24 CFR 3280.5) is permanently affixed inside the home
and contains critical information: design specifications, roof load zone, wind zone, thermal zone,
and installation instructions essential for proper setup.
11: Which of the following is TRUE about advertising manufactured homes in New Mexico?
A. Dealers may advertise "below HUD code" homes as compliant
B. All advertisements must clearly identify the dealer's license number
C. Financing terms may be advertised without disclosing APR
D. Used homes may be advertised as "new" if recently refurbished
CORRECT ANSWER: B. All advertisements must clearly identify the dealer's license number
Rationale: 14.10.8.7 NMAC requires all advertising to include the dealer's license number to
ensure transparency and allow consumers to verify licensure. Misrepresenting compliance,
condition, or financing terms is prohibited.
12: What is the legal requirement for a dealer regarding the installation of a manufactured
home they sell?
A. The dealer must perform the installation themselves
B. The dealer must ensure installation is performed by a licensed installer per HUD and state
standards
C. Installation is the buyer's sole responsibility
D. Installation is optional for single-section homes
CORRECT ANSWER: B. The dealer must ensure installation is performed by a licensed installer
per HUD and state standards
Practice Questions and Correct Answers (Verified Answers)
Plus Rationales
1: 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 - Housing and Consumer Affairs Division
C. New Mexico Attorney General's Office
D. New Mexico Department of Finance and Administration
CORRECT ANSWER: B. New Mexico Regulation and Licensing Department - Housing and
Consumer Affairs Division
Rationale: The Housing and Consumer Affairs Division (HCD) within the Regulation and Licensing
Department administers the Manufactured Housing Act (NMSA 1978, Chapter 61, Article 8),
including licensing dealers, installers, and transporters, and enforcing compliance.
2: What is the minimum age requirement to obtain a manufactured housing dealer license in
New Mexico?
A. 18 years
B. 21 years
C. 25 years
D. No age requirement
CORRECT ANSWER: A. 18 years
Rationale: Per 14.10.7.8 NMAC, an applicant for a manufactured housing dealer license must be
at least 18 years of age, be of good moral character, and meet other statutory qualifications.
3: Which of the following is REQUIRED for a manufactured housing dealer license application
in New Mexico?
A. Proof of a high school diploma
B. A surety bond in the amount of $25,000
C. A college degree in business
D. Proof of prior sales experience
CORRECT ANSWER: B. A surety bond in the amount of $25,000
,Rationale: NMSA 1978 §61-8-12 and 14.10.7.9 NMAC require dealers to file a $25,000 surety
bond to protect consumers against fraud, misrepresentation, or failure to comply with the
Manufactured Housing Act.
4: How long is a New Mexico manufactured housing dealer license valid before renewal is
required?
A. 1 year
B. 2 years
C. 3 years
D. Indefinitely
CORRECT ANSWER: A. 1 year
Rationale: Per 14.10.7.11 NMAC, manufactured housing dealer licenses expire annually on
December 31 and must be renewed with payment of renewal fees and compliance with
continuing requirements.
5: Which document MUST be provided to a buyer BEFORE signing a manufactured home sales
contract in New Mexico?
A. The manufacturer's warranty only
B. A written disclosure of the home's HUD certification label and data plate information
C. The dealer's personal financial statement
D. A list of previous buyers
CORRECT ANSWER: B. A written disclosure of the home's HUD certification label and data
plate information
Rationale: Federal HUD regulations (24 CFR 3280) and New Mexico law require disclosure of the
HUD certification label (proving compliance with federal construction standards) and data plate
(showing home specifications) to ensure buyer awareness of the home's compliance and
specifications.
6: What is the primary purpose of the HUD Certification Label on a manufactured home?
A. To indicate the home's market value
B. To certify the home was built in compliance with federal construction and safety standards
C. To show the home's energy efficiency rating
D. To indicate the home's warranty status
CORRECT ANSWER: B. To certify the home was built in compliance with federal construction
and safety standards
,Rationale: The HUD Certification Label (often called the "HUD tag") is affixed to each
transportable section of a manufactured home and certifies compliance with the Federal
Manufactured Home Construction and Safety Standards (24 CFR Part 3280).
7: Which of the following is a prohibited practice for a licensed manufactured housing dealer
in New Mexico?
A. Advertising homes with accurate pricing
B. Failing to disclose known material defects in a used manufactured home
C. Providing a written warranty for new homes
D. Offering financing options through affiliated lenders
CORRECT ANSWER: B. Failing to disclose known material defects in a used manufactured
home
Rationale: New Mexico law (NMSA 1978 §61-8-20) and consumer protection principles require
dealers to disclose known material defects. Concealing defects constitutes fraud or deceptive
trade practice and can result in license discipline.
8: What is the required retention period for a dealer's sales records under New Mexico law?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
CORRECT ANSWER: B. 3 years
Rationale: Per 14.10.9.6 NMAC, manufactured housing dealers must maintain complete records
of each sale, including contracts, disclosures, and financing documents, for at least 3 years from
the date of sale, available for inspection by HCD.
9: Which of the following MUST be included in a written manufactured home sales contract
in New Mexico?
A. The dealer's favorite color
B. A description of the home including make, model, serial number, and HUD label number
C. The buyer's social security number
D. The dealer's personal home address
CORRECT ANSWER: B. A description of the home including make, model, serial number, and
HUD label number
, Rationale: 14.10.8.4 NMAC requires sales contracts to include specific identifying information
about the home (make, model, serial number, HUD label) to ensure clarity, prevent fraud, and
facilitate titling/registration.
10: What is the primary purpose of a manufactured home's Data Plate?
A. To display the home's sales price
B. To provide installation instructions and design specifications
C. To list the dealer's contact information
D. To show the home's warranty terms
CORRECT ANSWER: B. To provide installation instructions and design specifications
Rationale: The Data Plate (required by 24 CFR 3280.5) is permanently affixed inside the home
and contains critical information: design specifications, roof load zone, wind zone, thermal zone,
and installation instructions essential for proper setup.
11: Which of the following is TRUE about advertising manufactured homes in New Mexico?
A. Dealers may advertise "below HUD code" homes as compliant
B. All advertisements must clearly identify the dealer's license number
C. Financing terms may be advertised without disclosing APR
D. Used homes may be advertised as "new" if recently refurbished
CORRECT ANSWER: B. All advertisements must clearly identify the dealer's license number
Rationale: 14.10.8.7 NMAC requires all advertising to include the dealer's license number to
ensure transparency and allow consumers to verify licensure. Misrepresenting compliance,
condition, or financing terms is prohibited.
12: What is the legal requirement for a dealer regarding the installation of a manufactured
home they sell?
A. The dealer must perform the installation themselves
B. The dealer must ensure installation is performed by a licensed installer per HUD and state
standards
C. Installation is the buyer's sole responsibility
D. Installation is optional for single-section homes
CORRECT ANSWER: B. The dealer must ensure installation is performed by a licensed installer
per HUD and state standards
