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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 - ANSWER-C. Required to possess a valid manufactured/ mobile home dealer's or salesperson's license A manufactured/mobile home may be sold as new: A. Even if it has been sold previously but only if occupied for six months or less B. Even if it has been sold and registered bu the model and year are current C. If it has never been sold to a retail purchaser or registered D. Only if the model year is current - ANSWER-C. If it has never been sold to a retail purchaser or registered Any person knowingly violating the provisions of the regulations issued pursuant to CA Health and Safety Code Division 13, Part 2: A. May be found guilty of a felony B. Is subject to fines C. Is guilty of a Civil Offense D. Is guilty of a misdemeanor - ANSWER-D. Is guilty of a misdemeanor Willful violations of the regulations adopted by the department governing mobile home escrows, advertising, warranty or alterations by a dealer or salesperson may: A. Result in suspension of the license issued by the department B. May cause the dealer/salesperson to be found guilty of a felony C. May cause the dealer/ salesperson to be found guilty of a misdemeanor D. Result in both A and C above - ANSWER-D. Result in both A and C above: Result in suspension of the license issued by the department -AND- May cause the dealer/ salesperson to be found guilty of a misdemeanor Anybody who violates any provision of the federal manufactured home construction and safety standards act in this state shall be liable to the state for a civil penalty not to exceed: A. $500.00 for each violation B. $1,000.00 for each violation C. $1,000,000.00 D. $200.00 for each violation but not over $1,000.00 total - ANSWER-B. $1,000.00 for each violation Dealers are required to exercise reasonable supervision over the activities of: A. Salespersons B. Employees negotiating or promoting the sale of a manufactured/mobile homes C. General managers who exercise control over the dealer's business D. All of those listed above - ANSWER-D. All of those listed above The department insignia or federal label will not be required on a manufactured/mobile home when: A. The manufactured/mobile home is being sold by a private owner B. The manufactured/mobile home was manufactured prior to September 1, 1958 B. Immediately notify the Department of Housing and Community Development C. Submit the alteration plans and required fees to the local authorities D. Obtain the services of a licensed contractor to develop the pans and perform the work - ANSWER-B. Immediately notify the Department of Housing and Community Development If a dealer alters a manufactured/mobile home which takes it out of compliance with the federal standards and then sell it, the dealer: A. Has violated the federal regulations B. May be fined $1000.00 for each violation C. Is liable to the federal government for Civil Penalties D. Is subject to all the above - ANSWER-D. Is subject to all the above Alterations to the structural, mechanical, plumbing, or electrical systems of a manufactured/mobile home bearing a HUD label must first be approved by: A. HCD B. The manufacturer C. Both B and D D. HUD - ANSWER-A. HCD New manufactured/mobile homes may be altered by dealers: A. In order to comply with local ordinances or regulations which are more stringent than the state's requirements B. If approved by the city or county having jurisdiction C. If approved by the purchaser D. If approved by HCD first - ANSWER-D. If approved by HCD first The manufacturer is required to affix a label to each manufactured/mobile home which includes: A. The make, model, serial number, name location of dealer where it is being delivered and the suggested retail price B. The design speeds, limitations, and other information pertinent to the unit's transportation C. The estimated energy requirements needed to heat or cool the unit D. All the above - ANSWER-A. The make, model, serial number, name location of dealer where it is being delivered and the suggested retail price Removal of the manufacturer's label, as required, is prohibited, except by: A. The dealer B. The retail purchaser C. The installer D. The inspecting authority - ANSWER-B. The retail purchaser Which of the following are required to be deposited by the dealer into an escrow account which are received toward the purchase of a manufactured/mobile home? A. Cash, checks, money orders, bank drafts B. Promissory notes, bills of sale or certificates of ownership C. Assignments of proceeds, contracts, rights or other negotiable interest D. All the above - ANSWER-D. All the above An escrow account shall be opened when the contract of sale, purchase order, or other document evidencing the sale of a manufactured/mobile home is signed by: A. dealers, upon receipt of cash only toward the purchase of new or used units B. dealers of new or used units upon mutual endorsement of purchase documents, receipts for deposit for any cash or cash equivalent received at any time prior to close of escrow C. resale dealers, upon the receipt of cash for the purchase of a resale unit D. new dealer upon receipt of cash for the purchase of a new unit prior to delivery - ANSWER-B. Dealers of new or used units upon mutual endorsement of purchase documents, receipts for deposit for any cash or cash equivalent received at any time prior to close of escrow Any cash or cash equivalent received toward the purchase of a manufactured/mobile home is required to be deposited into escrow when received for: A. down payments for the purchase of the unit B. deposits toward the purchase of the unit D. the dealer notifies escrow of the cancellation of the sale submits a written demand on escrow for the deposit - ANSWER-C. the agent receives a release assignment from the disputing party or an assignment by Court of Law The escrow instructions must identify the fixed amounts of deposit, down payment, and balance due consistent with: A. the purchase documents and receipt for deposit B. the receipt for deposit only C. the oral agreements between the parties to escrow D. an order from the lending institution - ANSWER-A. the purchase documents and receipt for deposit When a manufactured/ mobile home is to be installed, funds may be disbursed from the escrow account when: A. the dealer completes installation of the unit B. the installation has complied with the escrow instructions C. the unit has been delivered to the proper site by the manufacturer D. installation is completed and after the unit has received an installation acceptance inspection by the enforcement agency with written notice to escrow - ANSWER-D. installation is completed and after the unit has received an installation acceptance inspection by the enforcement agency with written notice to escrow The length of escrow shall be for: A. a period of time mutually agreed upon by dealer and buyer, or as may extended for 30-day increments B. a period of 120 days or as extended in writing C. the time necessary for the unit to be delivered to the buyer and the buyer to notify the escrow agent D. a period of time mutually agreed upon in writing by the buyer and dealer or as may be extended by mutual written consent with notice to the escrow agent - ANSWER-D. a period of time mutually agreed upon in writing by the buyer and dealer or as may be extended by mutual written consent with notice to the escrow agent A manufactured/mobile home may be delivered to a buyer at the dealer's location providing the buyer agrees to accept full responsibility for installation and providing: A. escrow instructions state such an agreement and the dealer and buyer submit to escrow signed documentation indicating that delivery has been accomplished, in order to initiate disbursement of funds B. escrow is required because no installation inspection is required C. escrow may close upon the mutual endorsement of the documents by the dealer and buyer D. escrow may close upon the mutual endorsement of the documents by the dealer and buyer - ANSWER-A. escrow instructions state such an agreement and the dealer and buyer submit to escrow signed documentation indicating that delivery has been accomplished, in order to initiate disbursement of funds 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 - ANSWER- B. with an escrow company in which the dealer has more than a5% ownership interest The escrow instructions may provide for: A. pro-ration of any local property taxes due B. payment of any delinquent license fees C. payment of any delinquent registration fees D. all the above - ANSWER-D. all the above 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 B. the funds for the accessories and their installation need not be deposited into escrow if the dealer and buyer enter into a separate contract for the accessories and their installation C. the dealer will have no responsibility for the delivery, installation, workmanship, or quality of the materials used by the contracted person. D. all the accessories must be installed prior to occupancy - ANSWER-A. all funds for the accessories and their installation must be placed in escrow In the event of a breach by a dealer of a purchase agreement where the buyer traded in a manufactured/ mobile home toward the purchase of another manufactured/mobile home and the dealer is unable to return the unit used toward the purchase, the dealer must: A. refund to the buy either the value designated in the purchase agreement or the fair market value of the unit used as a trade-in within five days of the breach B. refund to the buyer the fair market value of the trade-in within 30 days of the breach C. refund to the buyer the value designated in the purchase agreement of the trade-in within 30 days of the breach D. replace the trade-in with a manufactured/ mobile home of equal or greater value within 30 days - ANSWER-A. refund to the buy either the value designated in the purchase agreement or the fair market value of the unit used as a trade-in within five days of the breach If the buyer of a manufactured/ mobile home is to arrange for financing without the assistance of the dealer and the buyer is unable to obtain financing: A. escrow shall terminate, and the dealer is entitled to the deposit B. escrow shall terminate, and all money shall be returned to the buyer, unless a letter of commitment of financing is delivered into escrow C. the dealer is entitled to the deposit if the unit has been delivered D. the dealer is entitled to the deposit if the unit has been delivered from the manufacturer - ANSWER-B. escrow shall terminate, and all money shall be returned to the buyer, unless a letter of commitment of financing is delivered into escrow A dealer may solicit, obtain listings, engage in multiple listings or engage in payments: A. with other licensed dealers for the sale of new or used manufactured/ mobile homes B. with real estate brokers and other dealers for units that are titled C. with other dealers for the sale of units placed on a foundation system D. with other dealers for the sale of units which have not been titled - ANSWER-B. with real estate brokers and other dealers for units that are titled Errors on a conditional sales contract which affects the installment payment or balance due may be corrected within 30 days of the execution of the contract or 20 days of the date of sale, whichever is later, and: A. the dealer notifies the department and provides the department and buyer a replacement conditional sales contract B. the dealer agrees to pay any increase in payments or balance due created by the error C. if there are no increases to the payments or balance due shown on the conditional sales contract D. where the correction increases the payments or balance due, the buyer must concur in writing - ANSWER-D. where the correction increases the payments or balance due, the buyer must concur in writing When a conditional sales contract is deemed unenforceable due to errors relating to installments or balance due, the buyer may elect to: A. retain the unit and continue the contract B. recover form the dealer the amount paid the dealer C. rescind the contract and return the unit D. all the above - ANSWER-D. all the above When a buyer has elected to return a manufactured/ mobile home because of errors made by the dealer in a conditional sales contract which have affected the payments or balance due that renders the contract unenforceable: A. the value of the unit shall be deemed restitution without any decrease resulting from the passage of time B. the value of the unit may be discounted from the amount shown in the contract due to the passage of time A. when the license, temporary permit, or certificate has expired B. when the license, temporary permit, or certificate has been cancelled C. when the license, temporary permit, or certificate has been suspended or revoked D. all the above are true and correct - ANSWER-D. all the above are true and correct Every manufactured/ mobile home sold for the first time after July 1, 1980 must be placed on the country tax rolls and taxed the same as real property. If the unit was first sold prior to July 1, 1980, itis: A. taxed and licensed annually B. taxed and licensed annually unless converted to property taxes as any other county property C. converted to property tax at the time of resale D. taxed and licensed annually when placed on a permanent foundation - ANSWER-B. taxed and licensed annually unless converted to property taxes as any other county property A dealer is required to employ only those salespersons who have a valid license or 90 day certificate and must: A. require each salesperson to maintain the license or certificate on their person while performing as a salesperson B. maintain the license or certificate on file at the dealer's established place of business while that person is employed as a salesperson C. be certain that all salespersons renew their license or certificate as required D. display the license or certificate for each salesperson in a place conspicuous to the public - ANSWER-D. display the license or certificate for each salesperson in a place conspicuous to the public Within 10 days after the close of escrow, the dealer must submit a new or used report of the sale to: A. the Department of Housing and Community Development B. the purchaser of the manufactured/ mobile home C. the assessor of the county where the unit is sited D. all the above - ANSWER-D. all the above Manufactured/ mobile homes subject to property taxes and not ona permanent foundation must be: A. registered annually with the Department of Housing and Community Development B. registered with HCD on sale or transfer only C. registered annually with DMV D. registered with the county where it is sited - ANSWER-B. registered with HCD on sale or transfer only Dealers may display manufactured/ mobile homes at fairs, expositions, or similar exhibits provided: A. the dealer license is current, the display does not exceed 30 days and each displayed unit has a sign identifying the dealer and his established place of business B. the event does not exceed 60 days C. at least five other dealers are allowed to display also and that each unit bears a sign identifying the dealer and his place of business D. no actual sales take place at the event even though no branch license is required - ANSWER-A. the dealer license is current, the display does not exceed 30 days and each displayed unit has a sign identifying the dealer and his established place of business The mobile home recovery fund has been created to eliminate the need for posting $5,000 bonds by licensed dealers. It is maintained by: A. by receipt of a one-time fee of $250 for every dealer's license issued or renewed after January 1, 1985 B. by receipt of a one-time fee of $25 for every salesperson's license issued or renewed after January 1, 1985 C. the payment of a fee not to exceed $10 for every sale of a manufactured/ mobile home reported to the department, prior to issuance of a new registration D. all the above - ANSWER-D. all the above The department may refuse to issue a dealer's license to an applicant who: A. all of the following are correct A. may do so if both dealers are aware of the salesperson's activities B. may do so if both dealers sign a statement acknowledging the salesperson's employment pursuant to the Business Administrative Code C. is in violation of the law and the department may take administrative action to obtain a revocation or suspension of the salesperson's license D. none of the above are correct - ANSWER-C. is in violation of the law and the department may take administrative action to obtain a revocation or suspension of the salesperson's license Every person of a corporation who will participate in the direction or management of manufactured/ mobile home sales: A. need not be licensed if in the employment of a licensed dealer B. need not be licensed if under the supervision of a licensed dealer C. must have applied to the department and successfully completed an examination for the dealer's license D. need not be licensed if that person is only a limited partner - ANSWER- C. must have applied to the department and successfully completed an examination for the dealer's license Every salesperson's license shall expire: A. on the last day of the 24th month following date of issuance of a license or temporary permit B. on the licensee's third birthday following the date of the application C. on the licensee's birthday each year D. every other year on or before December 31st - ANSWER-A. on the last day of the 24th month following date of issuance of a After notice and hearings, the department may revoke or suspend a dealer's or salesperson's license for: A. willfully violating any law or rule or regulation adopted by the department relating to manufactured/ mobile homes or their sales B. for failing to comply with any written order of the department within a reasonable time C. violating any terms or provisions of Part 5, Division 2 of the Revenue and Taxation Code D. all the above are correct - ANSWER-D. all the above are correct A licensed dealer must notify: A. the department within 10 days of any change of ownership or corporate structure of the dealership B. the DMV of the sale of a used unit C. the department of the sale of any commercial coach D. the department within 10 days of making an alteration to a unit - ANSWER-A. the department within 10 days of any change of ownership or It is unlawful to make a misleading statement when advertising a manufactured/ mobile home, or commercial coach by: A. advertisements in newspapers or other publications B. verbal communications C. public broadcasting D. all the above - ANSWER-D. all the above After the sale of an advertised manufactured/ mobile home, a dealer must A. notify DMV of the sale within 20 days B. open an escrow account if the unit requires delivery C. withdraw any advertisement for that unit within 48 hours D. all the above are false - ANSWER-C. withdraw any advertisement for that unit within 48 hours A cause for the department to revoke or suspend a dealer's license is: A. employing unlicensed, non-certificated salespersons, or those without temporary permits B. selling used units without offering an express warranty C. selling new units below the manufacturer's suggested retail price D. all the above - ANSWER-A. employing unlicensed, non-certificated salespersons, or those without temporary permits It's unlawful for a salesperson to: A. fail to deliver his/her license or 90-day certificate to the employing dealer at the time of employment 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 - ANSWER-D. all the above An amount charged for 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 - ANSWER-A. be returned to the purchaser without demand Manufactured/ mobile homes sold with the intent of being placed on a permanent foundation are: A. subject to local property tax and DMV registration B. subject to local property tax and HCD registration C. subject to registration by the county assessor D. subject to local property tax but not subject to HCD registration - ANSWER-D. subject to local property tax but not subject to HCD registration Manufactured / mobile homes part of a dealer's inventory is: A. subject to annual registration by HCD B. subject to local property tax if held more than 120 C. not subject to registration until sold to a retail customer D. subject to registration is displayed as a model in a mobile home park - ANSWER-C. not subject to registration until sold to a retail customer Manufactured/ mobile homes sold to governmental agencies are: A. required to be registered but are exempt from fees B. required to be registered but the dealer shall collect the fees at time of sale C. not required to be registered D. required to be registered except for units sold to the federal government - ANSWER-A. required to be registered but are exempt from fees On and after July 1, 1981, the Department became responsible for titling and registration of: A. Manufactured / mobile homes, commercial coaches, and recreation vehicles B. Manufactured / mobile homes and recreation vehicles C. Manufactured / mobile homes only D. Manufactured / mobile homes and commercial coaches - ANSWER-D. Manufactured / mobile homes and commercial coaches Manufactured / mobile homes, and floating homes subject to local property tax, and not on a permanent foundation shall be: A. all of the following B. subject to registration by the department C. subject to fees and penalties paid to the department as prescribed in the Health and Safety Code D. subject to registration with the department at the time of sale, resale, or transfer of title - ANSWER-A. all of the following When moving a registered Manufactured/ mobile home, the registered owner must: A. apply for an amended registration card B. provide the department with the new situs address C. obtain the written consent of any legal owner, or if not obtainable submit an approved notice to the department D. all the above - ANSWER-D. all the above If a dealer or salesperson changes the year model provided on the manufacturer's certificate of origin, it is: A. only permissible for units not previously sold to a retail purchaser B. only permissible for units not previously sold at retail 
