California Manufactured Housing Salesperson: 125
Exam Questions & Correct Answers (Verified) Plus
Rationales | 2026 Q&A | Instant Download
1. A salesperson receives a signed purchase agreement for a manufactured home located in a
mobile home park. The buyer has provided a deposit of $5,000. Under California Health and
Safety Code §18035.5, which of the following actions is the salesperson REQUIRED to take
regarding the deposit within three business days of receipt?
A. Deposit the funds into the salesperson's personal account and hold them until closing.
B. Place the deposit in a trust account or give it to the escrow holder.
C. Return the deposit to the buyer immediately to avoid liability.
D. Transfer the deposit to the park owner as a security deposit for the buyer's tenancy.
Answer: B
Rationale: Under California Health and Safety Code §18035.5, any deposit received by a manufactured
home salesperson must be placed in a trust account or delivered to an escrow holder within three
business days. Option A violates trust fund rules. Option C is not required unless the offer is rejected.
Option D is not allowed as the deposit is for the purchase, not tenancy.
2. A salesperson is listing a manufactured home that was originally installed in 1980. The home has
never been retrofitted with earthquake-resistant bracing. Under California law, which disclosure is
mandatory regarding the seismic safety of the home?
A. No disclosure is required because the home was built before current standards.
B. The salesperson must disclose that the home does not comply with current seismic standards and may require
retrofitting.
C. The salesperson must obtain a retrofit permit before listing.
D. Only the manufacturer's original specifications need to be disclosed.
Answer: B
Rationale: California Health and Safety Code §18032 requires sellers to disclose known defects,
including lack of seismic retrofitting. Option A is incorrect because older homes still require disclosure.
Option C is not a prerequisite for listing. Option D is insufficient as the seller must disclose known
material defects.
3. A buyer signs a contract to purchase a used manufactured home from a dealer. The contract
includes a clause stating that the dealer has no obligation to repair any defects discovered after the
sale. Under the California Song-Beverly Consumer Warranty Act, which of the following is
correct?
A. The clause is enforceable because the home is sold 'as-is'.
Page 1
,B. The clause is void because implied warranties of merchantability and fitness cannot be waived for used goods
sold by a dealer.
C. The clause is valid only if the buyer signs a separate waiver acknowledging the 'as-is' condition.
D. The clause is enforceable if the home is more than 10 years old.
Answer: B
Rationale: The Song-Beverly Consumer Warranty Act (Civil Code §1790 et seq.) applies to manufactured
homes sold by dealers, and implied warranties cannot be disclaimed. Option A is incorrect because
'as-is' waivers are generally invalid for dealer sales. Option C is not sufficient. Option D is incorrect;
age does not allow waiver of implied warranties.
4. In a transaction involving a new manufactured home, the dealer provides the buyer with a
disclosure statement that lists the manufacturer's suggested retail price (MSRP) but omits the
actual dealer markup. Which statement best describes the dealer's obligation under California
Business and Professions Code §10131.6?
A. The dealer must disclose the actual dealer markup only if the buyer requests it in writing.
B. The dealer must disclose the MSRP and any additional charges, including markup, in the contract.
C. The dealer may provide a range of possible markups instead of the specific amount.
D. The dealer is not required to disclose markup because it is proprietary information.
Answer: B
Rationale: Under California Business and Professions Code §10131.6, dealers must disclose all charges,
including dealer markup, in the contract. Option A is incorrect because disclosure is mandatory, not
optional. Option C is insufficient. Option D is incorrect; markup is not proprietary and must be
disclosed.
5. A salesperson is representing a seller of a manufactured home located in a park. The buyer
intends to remove the home from the park and relocate it. Which of the following must the
salesperson advise the seller to provide to the buyer?
A. A copy of the park's rules and regulations regarding removal.
B. A written statement from the park owner consenting to the removal.
C. A disclosure that the home may be subject to park-imposed removal fees.
D. All of the above.
Answer: D
Rationale: California Health and Safety Code §18035.3 requires the seller to provide the buyer with a
copy of park rules, written consent from the park owner (if required), and disclosure of any removal
fees. All three items are mandatory, making D the correct answer.
6. A salesperson receives an offer on a listed manufactured home from a buyer who is represented
by another broker. The offer includes an unusual contingency that the seller's agent believes could
be illegal under California law. What is the salesperson's ethical and legal obligation?
A. Present the offer as-is because the salesperson must not interfere with the buyer's agent's duties.
B. Advise the seller to reject the offer without explanation.
C. Disclose the potential illegality to the seller and recommend consulting legal counsel.
D. Modify the contingency to make it legal before presenting the offer.
Page 2
,Answer: C
Rationale: Under California Civil Code §2079.16 and fiduciary duties, the salesperson must disclose
material facts to the seller, including potential illegality. Option A is incorrect because the salesperson
owes a duty to the seller. Option B is insufficient. Option D would be unauthorized modification of the
offer.
7. A dealer sells a manufactured home with a defective water heater that was not disclosed. The
buyer discovers the defect after closing and sues. Under the California Legal Remedies Act (Civil
Code §1750 et seq.), which of the following is a potential remedy for the buyer if the dealer
intentionally misrepresented the condition?
A. Rescission of the contract and recovery of the purchase price.
B. Damages equal to three times the actual damages suffered.
C. Both A and B.
D. Only repair costs.
Answer: C
Rationale: The California Legal Remedies Act allows for rescission and restitution (A) and, in cases of
intentional misrepresentation, punitive damages up to three times actual damages (B). Therefore, both
remedies are available, making C correct. Option D is insufficient as it does not cover intentional
misconduct.
8. A salesperson is preparing a comparative market analysis (CMA) for a manufactured home. The
home is in a park where most homes are owned by the residents, but the subject home is on a
rental pad. What adjustment must the salesperson make in the CMA?
A. No adjustment is needed because pad rental does not affect value.
B. Adjust downward for the rental pad compared to owned lots.
C. Adjust upward for the rental pad because it offers flexibility.
D. Adjust only for the monthly rent amount, not the type of ownership.
Answer: B
Rationale: In appraising manufactured homes, homes on owned lots typically have higher value than
those on rental pads due to land ownership and control. Option A is incorrect. Option C is contrary to
market evidence. Option D is incomplete; the type of ownership is a key factor.
9. A buyer signs a purchase agreement for a new manufactured home, and the dealer provides a
warranty that covers the home for one year. The home is delivered with significant installation
errors that cause water damage. The dealer refuses to repair, claiming the warranty does not cover
installation. Under California law, is the dealer liable?
A. No, because installation is not covered by the manufacturer's warranty.
B. Yes, because the dealer is responsible for proper installation under the implied warranty of workmanlike
installation.
C. Yes, but only if the buyer purchased an extended warranty.
D. No, because the buyer accepted delivery.
Answer: B
Page 3
, Rationale: California law implies a warranty of workmanlike installation for new manufactured homes (Health and Safety
Code §18035). The dealer is responsible for installation errors. Option A is incorrect; the dealer's obligation is independent
of the manufacturer's warranty. Option C is incorrect. Option D is incorrect; acceptance does not waive implied warranties.
10. A salesperson is asked by a buyer to recommend a specific escrow company. The salesperson
knows that the escrow company is owned by the salesperson's spouse. What disclosure must the
salesperson make?
A. No disclosure is needed because the salesperson is not a party to the escrow.
B. The salesperson must disclose the relationship to the buyer in writing before the buyer selects the escrow
company.
C. The salesperson must only disclose the relationship if the buyer asks.
D. The salesperson must avoid recommending the company altogether.
Answer: B
Rationale: Under California Business and Professions Code §10176, a salesperson must disclose any
direct or indirect interest in a recommended third-party service provider. Option A is incorrect. Option
C is insufficient. Option D is overly restrictive; disclosure allows the buyer to make an informed choice.
11. A salesperson is preparing a disclosure package for a manufactured home that was originally
constructed in 1990 and placed on a permanent foundation in a mobilehome park in 1995. The
salesperson has a copy of the original HUD label, but the label is partially illegible. Which of the
following best describes the salesperson's obligation under California law?
A. The salesperson must obtain a replacement HUD label from the manufacturer or HUD before marketing the
home.
B. The salesperson may rely on the original HUD label if it is affixed and partially legible, but must also
provide a written statement explaining the illegibility.
C. The salesperson must obtain a certified statement from the Department of Housing and Community
Development (HCD) confirming the home's compliance with federal standards.
D. The salesperson is not required to provide any additional documentation because the home was constructed
before 1994 and is exempt from HUD label requirements.
Answer: C
Rationale: Under California Health and Safety Code §18027, if the HUD label is missing or illegible, the
salesperson must obtain a certified statement from HCD verifying the home's compliance with federal
construction standards. Option A is incorrect because the manufacturer or HUD may not provide a
replacement for an existing label. Option B is incorrect because illegibility requires formal verification.
Option D is incorrect because the exemption for pre-1994 homes applies only to certain
park-constructed homes, not HUD-labeled homes.
12. A prospective buyer signs a purchase agreement for a manufactured home located in a
mobilehome park. The agreement includes a contingency that the buyer will obtain financing
within 30 days. The buyer's loan application is denied due to the home's age (30 years old). The
buyer notifies the salesperson on day 25. The seller refuses to cancel the agreement, claiming the
buyer did not diligently pursue financing. Which of the following is the most accurate legal
analysis?
Page 4
Exam Questions & Correct Answers (Verified) Plus
Rationales | 2026 Q&A | Instant Download
1. A salesperson receives a signed purchase agreement for a manufactured home located in a
mobile home park. The buyer has provided a deposit of $5,000. Under California Health and
Safety Code §18035.5, which of the following actions is the salesperson REQUIRED to take
regarding the deposit within three business days of receipt?
A. Deposit the funds into the salesperson's personal account and hold them until closing.
B. Place the deposit in a trust account or give it to the escrow holder.
C. Return the deposit to the buyer immediately to avoid liability.
D. Transfer the deposit to the park owner as a security deposit for the buyer's tenancy.
Answer: B
Rationale: Under California Health and Safety Code §18035.5, any deposit received by a manufactured
home salesperson must be placed in a trust account or delivered to an escrow holder within three
business days. Option A violates trust fund rules. Option C is not required unless the offer is rejected.
Option D is not allowed as the deposit is for the purchase, not tenancy.
2. A salesperson is listing a manufactured home that was originally installed in 1980. The home has
never been retrofitted with earthquake-resistant bracing. Under California law, which disclosure is
mandatory regarding the seismic safety of the home?
A. No disclosure is required because the home was built before current standards.
B. The salesperson must disclose that the home does not comply with current seismic standards and may require
retrofitting.
C. The salesperson must obtain a retrofit permit before listing.
D. Only the manufacturer's original specifications need to be disclosed.
Answer: B
Rationale: California Health and Safety Code §18032 requires sellers to disclose known defects,
including lack of seismic retrofitting. Option A is incorrect because older homes still require disclosure.
Option C is not a prerequisite for listing. Option D is insufficient as the seller must disclose known
material defects.
3. A buyer signs a contract to purchase a used manufactured home from a dealer. The contract
includes a clause stating that the dealer has no obligation to repair any defects discovered after the
sale. Under the California Song-Beverly Consumer Warranty Act, which of the following is
correct?
A. The clause is enforceable because the home is sold 'as-is'.
Page 1
,B. The clause is void because implied warranties of merchantability and fitness cannot be waived for used goods
sold by a dealer.
C. The clause is valid only if the buyer signs a separate waiver acknowledging the 'as-is' condition.
D. The clause is enforceable if the home is more than 10 years old.
Answer: B
Rationale: The Song-Beverly Consumer Warranty Act (Civil Code §1790 et seq.) applies to manufactured
homes sold by dealers, and implied warranties cannot be disclaimed. Option A is incorrect because
'as-is' waivers are generally invalid for dealer sales. Option C is not sufficient. Option D is incorrect;
age does not allow waiver of implied warranties.
4. In a transaction involving a new manufactured home, the dealer provides the buyer with a
disclosure statement that lists the manufacturer's suggested retail price (MSRP) but omits the
actual dealer markup. Which statement best describes the dealer's obligation under California
Business and Professions Code §10131.6?
A. The dealer must disclose the actual dealer markup only if the buyer requests it in writing.
B. The dealer must disclose the MSRP and any additional charges, including markup, in the contract.
C. The dealer may provide a range of possible markups instead of the specific amount.
D. The dealer is not required to disclose markup because it is proprietary information.
Answer: B
Rationale: Under California Business and Professions Code §10131.6, dealers must disclose all charges,
including dealer markup, in the contract. Option A is incorrect because disclosure is mandatory, not
optional. Option C is insufficient. Option D is incorrect; markup is not proprietary and must be
disclosed.
5. A salesperson is representing a seller of a manufactured home located in a park. The buyer
intends to remove the home from the park and relocate it. Which of the following must the
salesperson advise the seller to provide to the buyer?
A. A copy of the park's rules and regulations regarding removal.
B. A written statement from the park owner consenting to the removal.
C. A disclosure that the home may be subject to park-imposed removal fees.
D. All of the above.
Answer: D
Rationale: California Health and Safety Code §18035.3 requires the seller to provide the buyer with a
copy of park rules, written consent from the park owner (if required), and disclosure of any removal
fees. All three items are mandatory, making D the correct answer.
6. A salesperson receives an offer on a listed manufactured home from a buyer who is represented
by another broker. The offer includes an unusual contingency that the seller's agent believes could
be illegal under California law. What is the salesperson's ethical and legal obligation?
A. Present the offer as-is because the salesperson must not interfere with the buyer's agent's duties.
B. Advise the seller to reject the offer without explanation.
C. Disclose the potential illegality to the seller and recommend consulting legal counsel.
D. Modify the contingency to make it legal before presenting the offer.
Page 2
,Answer: C
Rationale: Under California Civil Code §2079.16 and fiduciary duties, the salesperson must disclose
material facts to the seller, including potential illegality. Option A is incorrect because the salesperson
owes a duty to the seller. Option B is insufficient. Option D would be unauthorized modification of the
offer.
7. A dealer sells a manufactured home with a defective water heater that was not disclosed. The
buyer discovers the defect after closing and sues. Under the California Legal Remedies Act (Civil
Code §1750 et seq.), which of the following is a potential remedy for the buyer if the dealer
intentionally misrepresented the condition?
A. Rescission of the contract and recovery of the purchase price.
B. Damages equal to three times the actual damages suffered.
C. Both A and B.
D. Only repair costs.
Answer: C
Rationale: The California Legal Remedies Act allows for rescission and restitution (A) and, in cases of
intentional misrepresentation, punitive damages up to three times actual damages (B). Therefore, both
remedies are available, making C correct. Option D is insufficient as it does not cover intentional
misconduct.
8. A salesperson is preparing a comparative market analysis (CMA) for a manufactured home. The
home is in a park where most homes are owned by the residents, but the subject home is on a
rental pad. What adjustment must the salesperson make in the CMA?
A. No adjustment is needed because pad rental does not affect value.
B. Adjust downward for the rental pad compared to owned lots.
C. Adjust upward for the rental pad because it offers flexibility.
D. Adjust only for the monthly rent amount, not the type of ownership.
Answer: B
Rationale: In appraising manufactured homes, homes on owned lots typically have higher value than
those on rental pads due to land ownership and control. Option A is incorrect. Option C is contrary to
market evidence. Option D is incomplete; the type of ownership is a key factor.
9. A buyer signs a purchase agreement for a new manufactured home, and the dealer provides a
warranty that covers the home for one year. The home is delivered with significant installation
errors that cause water damage. The dealer refuses to repair, claiming the warranty does not cover
installation. Under California law, is the dealer liable?
A. No, because installation is not covered by the manufacturer's warranty.
B. Yes, because the dealer is responsible for proper installation under the implied warranty of workmanlike
installation.
C. Yes, but only if the buyer purchased an extended warranty.
D. No, because the buyer accepted delivery.
Answer: B
Page 3
, Rationale: California law implies a warranty of workmanlike installation for new manufactured homes (Health and Safety
Code §18035). The dealer is responsible for installation errors. Option A is incorrect; the dealer's obligation is independent
of the manufacturer's warranty. Option C is incorrect. Option D is incorrect; acceptance does not waive implied warranties.
10. A salesperson is asked by a buyer to recommend a specific escrow company. The salesperson
knows that the escrow company is owned by the salesperson's spouse. What disclosure must the
salesperson make?
A. No disclosure is needed because the salesperson is not a party to the escrow.
B. The salesperson must disclose the relationship to the buyer in writing before the buyer selects the escrow
company.
C. The salesperson must only disclose the relationship if the buyer asks.
D. The salesperson must avoid recommending the company altogether.
Answer: B
Rationale: Under California Business and Professions Code §10176, a salesperson must disclose any
direct or indirect interest in a recommended third-party service provider. Option A is incorrect. Option
C is insufficient. Option D is overly restrictive; disclosure allows the buyer to make an informed choice.
11. A salesperson is preparing a disclosure package for a manufactured home that was originally
constructed in 1990 and placed on a permanent foundation in a mobilehome park in 1995. The
salesperson has a copy of the original HUD label, but the label is partially illegible. Which of the
following best describes the salesperson's obligation under California law?
A. The salesperson must obtain a replacement HUD label from the manufacturer or HUD before marketing the
home.
B. The salesperson may rely on the original HUD label if it is affixed and partially legible, but must also
provide a written statement explaining the illegibility.
C. The salesperson must obtain a certified statement from the Department of Housing and Community
Development (HCD) confirming the home's compliance with federal standards.
D. The salesperson is not required to provide any additional documentation because the home was constructed
before 1994 and is exempt from HUD label requirements.
Answer: C
Rationale: Under California Health and Safety Code §18027, if the HUD label is missing or illegible, the
salesperson must obtain a certified statement from HCD verifying the home's compliance with federal
construction standards. Option A is incorrect because the manufacturer or HUD may not provide a
replacement for an existing label. Option B is incorrect because illegibility requires formal verification.
Option D is incorrect because the exemption for pre-1994 homes applies only to certain
park-constructed homes, not HUD-labeled homes.
12. A prospective buyer signs a purchase agreement for a manufactured home located in a
mobilehome park. The agreement includes a contingency that the buyer will obtain financing
within 30 days. The buyer's loan application is denied due to the home's age (30 years old). The
buyer notifies the salesperson on day 25. The seller refuses to cancel the agreement, claiming the
buyer did not diligently pursue financing. Which of the following is the most accurate legal
analysis?
Page 4
