HCD Test #2 Question and answers
already passed 2025/2026
Every person in a partnership, limited liability company, or corporation who will participate in the
direction or management of manufactured home or commercial modular sales: - correct answer ✔C.
Must have applied to the department and successfully completed an examination for a manufactured
home or commercial modular dealer license
The Manufactured Home Recovery Fund is available to provide a last chance remedy for: - correct
answer ✔B. Purchasers, sellers, and investors of manufactured homes with losses due to failure to
honor warranties, fraud, willful misrepresentation, or conversion
The Health and Safety Code requires that before a dealer or salespersons license is issued: - correct
answer ✔B. A one-time Manufactured Home Recovery Fund Fee of $250 plus $100 for each additional
dealer place of business is due from dealers, and $25 from salespersons
A person who induces or attempts to induce any other person to buy or exchange an interest in a
manufactured home or commercial modular and who receives or expects to receive a commission from
either the seller or the purchaser of the manufactured home or commercial modular is: - correct
answer ✔C. Required to possess a valid manufactured home or commercial modular salesperson or
dealer license
The manufactured home or commercial modular salesperson license held by a salesperson: - correct
answer ✔A. Must be delivered to the employing dealer and displayed at all the dealer's place of
business in a place conspicuous to the public
Every manufactured home or commercial modular salesperson license issued by the Department of
Housing and Community Development shall expire: - correct answer ✔D. On the last day of the 24th
month following the date of issuance of the temporary permit or license if a temporary permit was not
issued
, If a dealer has made an alteration which took the manufactured home out of compliance with the
Federal Manufactured Housing Construction and Safety Standards and sold the manufactured home, the
dealer: - correct answer ✔A. Has violated the Federal Regulations by selling a manufactured home
containing failure to conform to the Federal Manufactured Housing Construction and Safety Standards
B. May be fined $1,000 for each violation
C. Is liable to the Federal Government for civil penalties
D. All of the above statements are true (correct answer)
Any advertisements by a dealer for a specific manufactured home or commercial modular must include:
- correct answer ✔A. The manufactured home or commercial modular serial number or the number on
its U.S. Department of Housing and Urban Development federal label or insignia of approval issued by
the department
With respect to advertising manufactured homes and commercial modulars, it is unlawful and therefore
grounds for license action to make a false or misleading statement through: - correct answer ✔A.
Advertisements in newspapers, shoppers guides, flyers or other publications
B. Verbal communication including statements made by salespersons
C. Public broadcasting
D. Any manner or means whatsoever; thus all of the above (correct answer)
In a transaction for the sale, lease, or exchange of a mobile home, manufactured home, or commercial
modular, facts known to the licensee that materially affect the value or desirability of the mobile home,
manufactured home, or commercial modular shall be disclosed: - correct answer ✔C. When the dealer
or salesperson has a reason to believe that such facts are not known to, nor readily observable by a
prospective purchaser or lessee
When advertising credit terms for a manufactured home or commercial modular available for purchase
on a time payment basis: - correct answer ✔B. Finance disclosure must be in compliance with
Regulation Z requirements
already passed 2025/2026
Every person in a partnership, limited liability company, or corporation who will participate in the
direction or management of manufactured home or commercial modular sales: - correct answer ✔C.
Must have applied to the department and successfully completed an examination for a manufactured
home or commercial modular dealer license
The Manufactured Home Recovery Fund is available to provide a last chance remedy for: - correct
answer ✔B. Purchasers, sellers, and investors of manufactured homes with losses due to failure to
honor warranties, fraud, willful misrepresentation, or conversion
The Health and Safety Code requires that before a dealer or salespersons license is issued: - correct
answer ✔B. A one-time Manufactured Home Recovery Fund Fee of $250 plus $100 for each additional
dealer place of business is due from dealers, and $25 from salespersons
A person who induces or attempts to induce any other person to buy or exchange an interest in a
manufactured home or commercial modular and who receives or expects to receive a commission from
either the seller or the purchaser of the manufactured home or commercial modular is: - correct
answer ✔C. Required to possess a valid manufactured home or commercial modular salesperson or
dealer license
The manufactured home or commercial modular salesperson license held by a salesperson: - correct
answer ✔A. Must be delivered to the employing dealer and displayed at all the dealer's place of
business in a place conspicuous to the public
Every manufactured home or commercial modular salesperson license issued by the Department of
Housing and Community Development shall expire: - correct answer ✔D. On the last day of the 24th
month following the date of issuance of the temporary permit or license if a temporary permit was not
issued
, If a dealer has made an alteration which took the manufactured home out of compliance with the
Federal Manufactured Housing Construction and Safety Standards and sold the manufactured home, the
dealer: - correct answer ✔A. Has violated the Federal Regulations by selling a manufactured home
containing failure to conform to the Federal Manufactured Housing Construction and Safety Standards
B. May be fined $1,000 for each violation
C. Is liable to the Federal Government for civil penalties
D. All of the above statements are true (correct answer)
Any advertisements by a dealer for a specific manufactured home or commercial modular must include:
- correct answer ✔A. The manufactured home or commercial modular serial number or the number on
its U.S. Department of Housing and Urban Development federal label or insignia of approval issued by
the department
With respect to advertising manufactured homes and commercial modulars, it is unlawful and therefore
grounds for license action to make a false or misleading statement through: - correct answer ✔A.
Advertisements in newspapers, shoppers guides, flyers or other publications
B. Verbal communication including statements made by salespersons
C. Public broadcasting
D. Any manner or means whatsoever; thus all of the above (correct answer)
In a transaction for the sale, lease, or exchange of a mobile home, manufactured home, or commercial
modular, facts known to the licensee that materially affect the value or desirability of the mobile home,
manufactured home, or commercial modular shall be disclosed: - correct answer ✔C. When the dealer
or salesperson has a reason to believe that such facts are not known to, nor readily observable by a
prospective purchaser or lessee
When advertising credit terms for a manufactured home or commercial modular available for purchase
on a time payment basis: - correct answer ✔B. Finance disclosure must be in compliance with
Regulation Z requirements
