Manufactured Homes Exam Prep Test
Bank with Practice Questions and
Correct Answers/ California
Manufactured Homes (MOST
RECENT) GRADED A+
Regulatory and Licensing Questions
Q1. A person who induces or attempts to induce any other person to
buy or exchange an interest in a manufactured/mobile home or
receives or expects to receive a commission from either the seller or
purchaser is:
A. Guilty of a misdemeanor
B. Required to possess a valid manufactured/mobile home manufacturer's
license
C. Required to possess a valid manufactured/mobile home dealer's or
salesperson's license
D. May have their license suspended or revoked
Correct Answer: C - This activity constitutes acting as a dealer or
salesperson, requiring proper licensure.
Q2. It is unlawful for a dealer to sell, offer to sell, rent, or lease within
this state any manufactured/mobile home or commercial coach that:
,A. Is not located in CA at time of sale
B. Is not licensed by HUD
C. Is not licensed by the Department of Housing and Community
Development
D. Is not licensed by DMV
Correct Answer: C - All manufactured homes sold in California must be
licensed by the Department of Housing and Community Development
(HCD).
Q3. A licensed salesperson is subject to license revocation or
suspension for:
A. Failing to turn over funds or property received in the course of business
to an employing dealer
B. Failing to deliver his/her license or 90-day certificate or temporary permit
to the employing dealer for display
C. Failing to satisfy a final court judgment in connection with an activity
licensed under the authority of the Health and Safety Code
D. All the above
Correct Answer: D - All listed actions are grounds for license revocation or
suspension.
Q4. The license issued to a dealer is automatically cancelled when:
A. The approved established place of business is abandoned
B. The approved place of business is changed without notifying the
department
C. Notification that the person designated as the licensee has changed
D. All the above
,Correct Answer: D - Any of these changes automatically cancels the
dealer's license.
Q5. What is the minimum number of continuing education hours
required for the first license renewal period?
A. 6 hours
B. 12 hours
C. 24 hours
D. 36 hours
Correct Answer: C - The first renewal requires 24 hours of continuing
education.
Q6. How many continuing education hours are required for the second
license renewal period?
A. 6 hours
B. 12 hours
C. 24 hours
D. 18 hours
Correct Answer: B - The second renewal period requires 12 hours.
Escrow and Sales Transaction Questions
Q7. An amount charged for a transfer fee which is in excess of the
actual fee shall:
A. Be returned to the purchaser without demand
B. Be returned to the purchaser immediately upon his/her demand
, C. Be returned to the purchaser less incurred expenses
D. Be cleared and surrendered to the State of CA
Correct Answer: A - Excess transfer fees must be returned to the purchaser
without requiring demand.
Q8. No dealer shall establish an escrow account:
A. With an escrow company in which the dealer has more than a 10%
ownership interest
B. With an escrow company in which the dealer has more than a 5%
ownership interest
C. With an escrow company in which the dealer has any ownership interest
D. With an escrow company which will become the legal owner
Correct Answer: C - Dealers cannot establish escrow with any company in
which they have ownership interest.
Q9. An agreement whereby the buyer of a manufactured/mobile home
waives escrow provisions is:
A. Permissible in the case of a cash purchase
B. Void and unenforceable
C. Permissible if the agreement is in writing signed by both dealer and
buyer
D. Permissible for purchasers of used units only
Correct Answer: B - Escrow waiver agreements are void and unenforceable
under California law.
Bank with Practice Questions and
Correct Answers/ California
Manufactured Homes (MOST
RECENT) GRADED A+
Regulatory and Licensing Questions
Q1. A person who induces or attempts to induce any other person to
buy or exchange an interest in a manufactured/mobile home or
receives or expects to receive a commission from either the seller or
purchaser is:
A. Guilty of a misdemeanor
B. Required to possess a valid manufactured/mobile home manufacturer's
license
C. Required to possess a valid manufactured/mobile home dealer's or
salesperson's license
D. May have their license suspended or revoked
Correct Answer: C - This activity constitutes acting as a dealer or
salesperson, requiring proper licensure.
Q2. It is unlawful for a dealer to sell, offer to sell, rent, or lease within
this state any manufactured/mobile home or commercial coach that:
,A. Is not located in CA at time of sale
B. Is not licensed by HUD
C. Is not licensed by the Department of Housing and Community
Development
D. Is not licensed by DMV
Correct Answer: C - All manufactured homes sold in California must be
licensed by the Department of Housing and Community Development
(HCD).
Q3. A licensed salesperson is subject to license revocation or
suspension for:
A. Failing to turn over funds or property received in the course of business
to an employing dealer
B. Failing to deliver his/her license or 90-day certificate or temporary permit
to the employing dealer for display
C. Failing to satisfy a final court judgment in connection with an activity
licensed under the authority of the Health and Safety Code
D. All the above
Correct Answer: D - All listed actions are grounds for license revocation or
suspension.
Q4. The license issued to a dealer is automatically cancelled when:
A. The approved established place of business is abandoned
B. The approved place of business is changed without notifying the
department
C. Notification that the person designated as the licensee has changed
D. All the above
,Correct Answer: D - Any of these changes automatically cancels the
dealer's license.
Q5. What is the minimum number of continuing education hours
required for the first license renewal period?
A. 6 hours
B. 12 hours
C. 24 hours
D. 36 hours
Correct Answer: C - The first renewal requires 24 hours of continuing
education.
Q6. How many continuing education hours are required for the second
license renewal period?
A. 6 hours
B. 12 hours
C. 24 hours
D. 18 hours
Correct Answer: B - The second renewal period requires 12 hours.
Escrow and Sales Transaction Questions
Q7. An amount charged for a transfer fee which is in excess of the
actual fee shall:
A. Be returned to the purchaser without demand
B. Be returned to the purchaser immediately upon his/her demand
, C. Be returned to the purchaser less incurred expenses
D. Be cleared and surrendered to the State of CA
Correct Answer: A - Excess transfer fees must be returned to the purchaser
without requiring demand.
Q8. No dealer shall establish an escrow account:
A. With an escrow company in which the dealer has more than a 10%
ownership interest
B. With an escrow company in which the dealer has more than a 5%
ownership interest
C. With an escrow company in which the dealer has any ownership interest
D. With an escrow company which will become the legal owner
Correct Answer: C - Dealers cannot establish escrow with any company in
which they have ownership interest.
Q9. An agreement whereby the buyer of a manufactured/mobile home
waives escrow provisions is:
A. Permissible in the case of a cash purchase
B. Void and unenforceable
C. Permissible if the agreement is in writing signed by both dealer and
buyer
D. Permissible for purchasers of used units only
Correct Answer: B - Escrow waiver agreements are void and unenforceable
under California law.
