NORTH CAROLINA CERTIFIED MANUFACTURED
HOME SALES PROFESSIONAL EXAM
1. What is the primary purpose of the North Carolina
Manufactured Housing Board?
A. To finance manufactured home purchases
B. To regulate the manufactured housing industry in North
Carolina
C. To construct manufactured homes
D. To provide home insurance policies
Correct Answer: B. To regulate the manufactured housing
industry in North Carolina
Rationale: The North Carolina Manufactured Housing Board
oversees licensing, compliance, consumer protection, and
enforcement of laws governing the manufactured housing
industry within the state.
2. Which federal standard governs the construction and
safety of manufactured homes built after June 15, 1976?
A. Fair Housing Act
B. Uniform Residential Code
C. HUD Code
D. National Electrical Code
Correct Answer: C. HUD Code
Rationale: The HUD Code, established by the U.S. Department
of Housing and Urban Development, sets national construction
and safety standards for manufactured homes built after June
15, 1976.
, 3. A manufactured home differs from a modular home
because a manufactured home:
A. Is always larger
B. Is built to HUD standards
C. Must be placed on a basement foundation
D. Cannot be financed
Correct Answer: B. Is built to HUD standards
Rationale: Manufactured homes are constructed according to
the federal HUD Code, while modular homes are built to state
or local building codes.
4. What document verifies ownership of a manufactured
home in North Carolina?
A. Warranty deed
B. Certificate of Occupancy
C. Certificate of Title
D. Bill of Sale only
Correct Answer: C. Certificate of Title
Rationale: A Certificate of Title issued by the North Carolina
DMV establishes legal ownership of a manufactured home
unless the title has been canceled for real property conversion.
5. Which law prohibits discrimination in housing based on
race, color, religion, sex, national origin, disability, or
familial status?
A. Truth in Lending Act
B. Fair Housing Act
C. Dodd-Frank Act
D. Equal Credit Opportunity Act
,Correct Answer: B. Fair Housing Act
Rationale: The Fair Housing Act prohibits discrimination in
housing-related transactions and practices involving protected
classes.
6. What must a salesperson do before engaging in
manufactured home sales activity in North Carolina?
A. Obtain a contractor license
B. Become a licensed real estate broker
C. Obtain a manufactured home salesperson license
D. Register with HUD
Correct Answer: C. Obtain a manufactured home salesperson
license
Rationale: North Carolina law requires individuals selling
manufactured homes to hold a valid manufactured home
salesperson license.
7. What is the minimum age requirement to become a
licensed manufactured home salesperson in North
Carolina?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B. 18
Rationale: Applicants must generally be at least 18 years old to
qualify for licensure.
8. Earnest money provided by a buyer should be:
, A. Deposited into the salesperson’s personal account
B. Held according to state trust account requirements
C. Given directly to the manufacturer
D. Ignored until closing
Correct Answer: B. Held according to state trust account
requirements
Rationale: Earnest money must be properly safeguarded and
handled according to applicable trust account and dealership
procedures.
9. Which disclosure is required when selling a used
manufactured home built before 1978?
A. Flood insurance disclosure
B. Radon disclosure
C. Lead-based paint disclosure
D. Septic tank disclosure
Correct Answer: C. Lead-based paint disclosure
Rationale: Federal law requires disclosure of potential lead-
based paint hazards in residential properties built before 1978.
10. What is “chattel financing”?
A. Financing for commercial buildings
B. Financing secured by personal property
C. Government-backed financing only
D. Financing for modular homes exclusively
Correct Answer: B. Financing secured by personal property
Rationale: Chattel financing involves loans secured by movable
personal property, including manufactured homes not attached
to real estate.
HOME SALES PROFESSIONAL EXAM
1. What is the primary purpose of the North Carolina
Manufactured Housing Board?
A. To finance manufactured home purchases
B. To regulate the manufactured housing industry in North
Carolina
C. To construct manufactured homes
D. To provide home insurance policies
Correct Answer: B. To regulate the manufactured housing
industry in North Carolina
Rationale: The North Carolina Manufactured Housing Board
oversees licensing, compliance, consumer protection, and
enforcement of laws governing the manufactured housing
industry within the state.
2. Which federal standard governs the construction and
safety of manufactured homes built after June 15, 1976?
A. Fair Housing Act
B. Uniform Residential Code
C. HUD Code
D. National Electrical Code
Correct Answer: C. HUD Code
Rationale: The HUD Code, established by the U.S. Department
of Housing and Urban Development, sets national construction
and safety standards for manufactured homes built after June
15, 1976.
, 3. A manufactured home differs from a modular home
because a manufactured home:
A. Is always larger
B. Is built to HUD standards
C. Must be placed on a basement foundation
D. Cannot be financed
Correct Answer: B. Is built to HUD standards
Rationale: Manufactured homes are constructed according to
the federal HUD Code, while modular homes are built to state
or local building codes.
4. What document verifies ownership of a manufactured
home in North Carolina?
A. Warranty deed
B. Certificate of Occupancy
C. Certificate of Title
D. Bill of Sale only
Correct Answer: C. Certificate of Title
Rationale: A Certificate of Title issued by the North Carolina
DMV establishes legal ownership of a manufactured home
unless the title has been canceled for real property conversion.
5. Which law prohibits discrimination in housing based on
race, color, religion, sex, national origin, disability, or
familial status?
A. Truth in Lending Act
B. Fair Housing Act
C. Dodd-Frank Act
D. Equal Credit Opportunity Act
,Correct Answer: B. Fair Housing Act
Rationale: The Fair Housing Act prohibits discrimination in
housing-related transactions and practices involving protected
classes.
6. What must a salesperson do before engaging in
manufactured home sales activity in North Carolina?
A. Obtain a contractor license
B. Become a licensed real estate broker
C. Obtain a manufactured home salesperson license
D. Register with HUD
Correct Answer: C. Obtain a manufactured home salesperson
license
Rationale: North Carolina law requires individuals selling
manufactured homes to hold a valid manufactured home
salesperson license.
7. What is the minimum age requirement to become a
licensed manufactured home salesperson in North
Carolina?
A. 16
B. 18
C. 21
D. 25
Correct Answer: B. 18
Rationale: Applicants must generally be at least 18 years old to
qualify for licensure.
8. Earnest money provided by a buyer should be:
, A. Deposited into the salesperson’s personal account
B. Held according to state trust account requirements
C. Given directly to the manufacturer
D. Ignored until closing
Correct Answer: B. Held according to state trust account
requirements
Rationale: Earnest money must be properly safeguarded and
handled according to applicable trust account and dealership
procedures.
9. Which disclosure is required when selling a used
manufactured home built before 1978?
A. Flood insurance disclosure
B. Radon disclosure
C. Lead-based paint disclosure
D. Septic tank disclosure
Correct Answer: C. Lead-based paint disclosure
Rationale: Federal law requires disclosure of potential lead-
based paint hazards in residential properties built before 1978.
10. What is “chattel financing”?
A. Financing for commercial buildings
B. Financing secured by personal property
C. Government-backed financing only
D. Financing for modular homes exclusively
Correct Answer: B. Financing secured by personal property
Rationale: Chattel financing involves loans secured by movable
personal property, including manufactured homes not attached
to real estate.
