License Examination Practice Questions And
Correct Answers (100%Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
Introduction
This authentic question-and-answer set reflects the content and difficulty level of
the New Mexico Manufactured Housing Dealer License Examination. It
includes 160 multiple-choice questions covering all key domains: dealer
licensing, sales contracts, consumer disclosures, installation standards, HUD
code requirements, warranties, title transfers, and regulatory enforcement.
Answer Format
All correct responses are clearly highlighted in bold and green. Where applicable,
concise rationales accompany key questions to reinforce understanding and
regulatory application.
NM Manufactured Housing Dealer License Exam Q&A | Verified 2026 High-Yield
Content | Precision-Crafted for Exam Success
1. What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To regulate apartment rentals
B) To ensure manufactured homes are safely installed
C) To establish zoning laws
D) To regulate the sale, lease, and installation of manufactured homes
D) To regulate the sale, lease, and installation of manufactured homes
Rationale: The Act is designed to protect consumers and establish licensing
requirements for dealers, salespersons, and installers.
,2. Which entity issues the Manufactured Housing Dealer License in New
Mexico?
A) New Mexico Department of Health
B) New Mexico Regulation and Licensing Department, Construction Industries
Division (CID)
C) New Mexico Taxation and Revenue Department
D) Local city government
B) New Mexico Regulation and Licensing Department, Construction Industries
Division (CID)
Rationale: CID oversees licensing, inspections, and enforcement for manufactured
housing dealers.
3. What is required to legally operate as a manufactured housing dealer in New
Mexico?
A) High school diploma
B) Vehicle registration
C) Dealer license issued by CID
D) Bank account in state
C) Dealer license issued by CID
Rationale: Operating without a dealer license is illegal under state law.
4. How long is a New Mexico manufactured housing dealer license valid before
renewal?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
C) 3 years
Rationale: Licenses must be renewed every three years to remain active.
5. Which of the following is a responsibility of a licensed dealer?
A) Installing utilities for homeowners
B) Ensuring compliance with state disclosure and warranty requirements
C) Drafting city zoning regulations
D) Inspecting public parks
B) Ensuring compliance with state disclosure and warranty requirements
,Rationale: Dealers must follow laws related to sales contracts, disclosures, and
warranties.
6. What must a dealer provide to a consumer at the time of sale?
A) Free home inspection
B) Written disclosure of warranty and condition of the home
C) Proof of insurance for the buyer
D) Loan pre-approval
B) Written disclosure of warranty and condition of the home
Rationale: Written disclosure ensures the buyer is informed of the home’s
condition and warranty coverage.
7. Who is responsible for the installation of a manufactured home?
A) The buyer
B) Local city inspectors
C) Licensed installer or dealer responsible for installation
D) County clerk
C) Licensed installer or dealer responsible for installation
Rationale: Installation must comply with HUD standards and state regulations.
8. A licensed dealer sells a manufactured home without providing required
disclosures. What can happen?
A) Nothing, if the buyer signs a contract
B) Only a warning is issued
C) License suspension, fines, or legal action
D) The installer is penalized instead
C) License suspension, fines, or legal action
Rationale: Non-compliance with disclosure laws exposes the dealer to regulatory
penalties.
9. Which document is essential for transferring ownership of a manufactured
home?
A) Building permit
B) Utility contract
C) Manufacturer’s certificate of origin (MCO) or title
D) Appraisal report
C) Manufacturer’s certificate of origin (MCO) or title
, Rationale: The MCO or title legally documents ownership and is required for
registration.
10. How should a dealer handle a consumer complaint regarding a home defect?
A) Ignore it
B) Investigate and work to resolve per warranty and state law
C) Refer to local police
D) Tell the buyer to contact the manufacturer directly
B) Investigate and work to resolve per warranty and state law
Rationale: Dealers have a duty to address complaints in good faith and in
accordance with warranty obligations and consumer protection laws.
11. Under New Mexico law, a manufactured home is considered:
A) Real property only
B) Personal property until permanently affixed to land
C) Always personal property
D) A vehicle
B) Personal property until permanently affixed to land
Rationale: Manufactured homes are treated as personal property until the title is
surrendered and the home is affixed to land owned by the homeowner.
12. What is the minimum age requirement to obtain a manufactured housing
dealer license in New Mexico?
A) 18 years
B) 21 years
C) 25 years
D) No age requirement
A) 18 years
Rationale: Applicants must be at least 18 years of age.
13. Which federal agency sets the construction standards for manufactured
homes?
A) EPA
B) HUD (U.S. Department of Housing and Urban Development)
C) OSHA
D) FEMA
B) HUD (U.S. Department of Housing and Urban Development)