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1. What must be agreed upon in writing for the escrow period to be extended?
Oral agreement
Written notice from the buyer only
Dealer's discretion
Mutual written consent
2. The escrow instruction must identify fixed amount of deposit, down payment
and balance due consistent with
The requirements of "regulation Z"
The agreement between the parties and the requirement of the
lending financial institution.
The purchase document and receipt for deposit
All of the above apply
3. Which entity must approve alterations to the structural systems of a
manufactured home with a HUD label?
HCD
Local government
HUD
The manufacturer
4. Discuss the implications of a retail purchaser removing the manufacturer's
label from a manufactured home.
, The label can be removed at any time without consequences.
It is a common practice that does not affect compliance.
Only dealers are responsible for maintaining the label.
Removing the manufacturer's label can lead to violations of
regulations and affect the home's compliance status.
5. If a buyer discovers that their conditional sales contract is unenforceable due
to incorrect installment amounts, what steps should they take to ensure
compliance with California regulations?
They should rescind the contract, return the unit, and recover any
payments made to the dealer.
They should ignore the errors and keep the unit.
They should continue making payments until the dealer corrects the
contract.
They should contact the dealer for a new contract without returning
the unit.
6. If an escrow agent is faced with a dispute and cannot obtain a release
assignment from either party, what should the agent do to comply with legal
standards?
Notify the dealer to resolve the dispute directly with the buyer.
Return the funds to the buyer immediately.
Hold the funds indefinitely until both parties reach an agreement.
Seek a court order to determine the appropriate handling of the
funds.
,7. If a dealer wants to modify the plumbing system of a manufactured home,
what steps must they take to comply with regulations?
Obtain approval from HCD before making any modifications.
Notify the manufacturer and proceed with the modifications.
Consult with HUD for guidance on modifications.
Make the modifications without any approval.
8. In a scenario where a buyer has paid for an accessory but the installation has
not yet occurred, what implications does this have for the escrow process?
The funds cannot be released from escrow until the accessory is
actually installed.
The funds can be released if construction work on the home has
begun.
The funds can be released at escrow closing regardless of installation.
The funds can be released if the installation acceptance is pending.
9. If a buyer makes a down payment and a deposit for accessories but does not
deposit the total amount into escrow, what could be the potential
consequence according to California regulations?
The transaction may be deemed non-compliant with escrow account
regulations.
The seller can keep the accessories without refunding the deposit.
The buyer will automatically lose their down payment.
The transaction will proceed without any issues.
, 10. Describe the implications of a dealer selling a manufactured/mobile home
that has been altered and is no longer compliant with federal standards.
The dealer can continue selling homes without any consequences.
The dealer is only responsible for state penalties, not federal.
The dealer is rewarded for making alterations to the home.
The dealer faces multiple penalties including fines and civil
liabilities for violating federal regulations.
11. Escrow agents must I. treat information as confidential.II. strictly
comply with the escrow instructions.
Neither I nor II
I only
Both I and II
II only
12. If a dealer fails to supervise their salespersons adequately, what potential
consequences could arise under California regulations for manufactured
homes?
Mandatory training for all employees
No consequences as supervision is not mandatory
Increased sales commissions for salespersons
Penalties for violations of the law
13. What is the primary agency that dealers must notify regarding alterations to
manufactured/mobile homes?
Department of Housing and Community Development