New Mexico Manufactured Housing
Dealer License Examination Practice
Questions And Correct Answers (Verified
Answers) Plus Rationales 2025- 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To increase state tax revenue from home sales
B) To ensure the health, safety, and fair business practices in the industry
C) To promote tourism in rural New Mexico communities
D) To subsidize the cost of site-built home construction
Answer: B
Rationale: The Act protects consumers through safety standards and ethical business
practices.
2. How many homes can an unlicensed individual sell in a single year in New Mexico?
A) 0
B) 1
C) 3
D) 5
Answer: B
Rationale: Selling more than one manufactured home per year requires a dealer's
license.
3. What is the standard warranty period for a used manufactured home sold by a licensed
dealer?
A) 30 days
B) 90 days
, C) 6 months
D) 1 year
Answer: B
Rationale: New Mexico law mandates a minimum 90-day warranty on used
manufactured homes sold via a dealer.
4. A customer reports a warranty issue in the 10th month of their 1-year new home
warranty. How long is the specific repair work covered?
A) 30 days
B) 90 days
C) Until the original 1-year warranty expires
D) 90 days or until the 1-year warranty expires, whichever is later
Answer: A
Rationale: Warranty repairs often carry an additional 30-day coverage if the main
warranty is near expiration.
5. What must be prominently displayed at a dealer's primary place of business?
A) The dealer’s original birth certificate
B) The manufactured housing license
C) A list of all previous customers
D) The dealer's personal tax returns
Answer: B
Rationale: 14.12.2.8 NMAC requires displaying the license in public view.
6. How long does a customer have to file a written complaint for warranty items?
A) 30 days
B) 60 days
C) 90 days
D) 180 days
Answer: C
Rationale: Customers generally have 90 days to provide written notice of defects.
7. When must a dealer deposit a customer's funds into an escrow account?
A) Within 24 hours of receipt
B) Within 5 business days
C) Within 2 business days
D) Immediately upon signing the final closing documents
Answer: C
, Rationale: Regulations require deposits in escrow within two business days to protect
funds.
8. What federal agency regulates the construction and safety standards for manufactured
homes?
A) EPA
B) HUD
C) OSHA
D) FTC
Answer: B
Rationale: HUD establishes national construction standards.
9. If a dealer moves to a new business location, when can they legally resume sales?
A) Immediately after signing a new lease
B) After notifying the Division by phone
C) Only after the license is physically reissued for the new location
D) 30 days after the move
Answer: C
Rationale: Licenses are tied to a specific location, requiring updates for moves.
10. A salesperson leaves Dealership A to work for Dealership B. What happens to their
license?
A) It is voided and they must retest
B) It is automatically transferred by the state
C) It must be transferred to the new employer through the Division
D) It remains active with the first employer
Answer: C
Rationale: Salesperson licenses are employer-specific and must be transferred.
11. What information is strictly required in all dealership advertisements?
A) The owner's home phone number
B) The dealer’s name and license number
C) The lowest interest rate available in the state
D) A photo of the manufacturer's CEO
Answer: B
Rationale: NM regulations necessitate including the licensed name and number.
, 12. Under Regulation Z, what is the primary purpose of the required disclosure?
A) To prove the home is fireproof
B) To disclose the true cost of lending and finance charges
C) To list the names of all subcontractors
D) To verify the home's serial number
Answer: B
Rationale: Truth in Lending disclosures clarify the full cost of credit.
13. What is the primary function of the steel chassis (frame) in a manufactured home?
A) To provide a surface for carpet installation
B) To act as a decorative base
C) To provide structural integrity and a base for transportation
D) To house the HVAC ductwork exclusively
Answer: C
Rationale: The chassis acts as the permanent structural foundation and supports
transport.
14. How many days does the Division allow for a licensee to renew their license without
penalty?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C
Rationale: A 30-day grace period is provided for annual license renewal.
15. What is the "HUD Tag" or certification label?
A) A temporary sticker used for shipping
B) A permanent metal plate certifying the home meets federal safety standards
C) A tax document for the IRS
D) A warranty card for the appliances
Answer: B
Rationale: This tag verifies compliance with federal standards.
16. Who is ultimately responsible for verifying the title on a pre-owned manufactured home?
A) The buyer
B) The manufacturer
C) The dealer/broker
Dealer License Examination Practice
Questions And Correct Answers (Verified
Answers) Plus Rationales 2025- 2026
Q&A | Instant Download Pdf
1. What is the primary purpose of the New Mexico Manufactured Housing Act?
A) To increase state tax revenue from home sales
B) To ensure the health, safety, and fair business practices in the industry
C) To promote tourism in rural New Mexico communities
D) To subsidize the cost of site-built home construction
Answer: B
Rationale: The Act protects consumers through safety standards and ethical business
practices.
2. How many homes can an unlicensed individual sell in a single year in New Mexico?
A) 0
B) 1
C) 3
D) 5
Answer: B
Rationale: Selling more than one manufactured home per year requires a dealer's
license.
3. What is the standard warranty period for a used manufactured home sold by a licensed
dealer?
A) 30 days
B) 90 days
, C) 6 months
D) 1 year
Answer: B
Rationale: New Mexico law mandates a minimum 90-day warranty on used
manufactured homes sold via a dealer.
4. A customer reports a warranty issue in the 10th month of their 1-year new home
warranty. How long is the specific repair work covered?
A) 30 days
B) 90 days
C) Until the original 1-year warranty expires
D) 90 days or until the 1-year warranty expires, whichever is later
Answer: A
Rationale: Warranty repairs often carry an additional 30-day coverage if the main
warranty is near expiration.
5. What must be prominently displayed at a dealer's primary place of business?
A) The dealer’s original birth certificate
B) The manufactured housing license
C) A list of all previous customers
D) The dealer's personal tax returns
Answer: B
Rationale: 14.12.2.8 NMAC requires displaying the license in public view.
6. How long does a customer have to file a written complaint for warranty items?
A) 30 days
B) 60 days
C) 90 days
D) 180 days
Answer: C
Rationale: Customers generally have 90 days to provide written notice of defects.
7. When must a dealer deposit a customer's funds into an escrow account?
A) Within 24 hours of receipt
B) Within 5 business days
C) Within 2 business days
D) Immediately upon signing the final closing documents
Answer: C
, Rationale: Regulations require deposits in escrow within two business days to protect
funds.
8. What federal agency regulates the construction and safety standards for manufactured
homes?
A) EPA
B) HUD
C) OSHA
D) FTC
Answer: B
Rationale: HUD establishes national construction standards.
9. If a dealer moves to a new business location, when can they legally resume sales?
A) Immediately after signing a new lease
B) After notifying the Division by phone
C) Only after the license is physically reissued for the new location
D) 30 days after the move
Answer: C
Rationale: Licenses are tied to a specific location, requiring updates for moves.
10. A salesperson leaves Dealership A to work for Dealership B. What happens to their
license?
A) It is voided and they must retest
B) It is automatically transferred by the state
C) It must be transferred to the new employer through the Division
D) It remains active with the first employer
Answer: C
Rationale: Salesperson licenses are employer-specific and must be transferred.
11. What information is strictly required in all dealership advertisements?
A) The owner's home phone number
B) The dealer’s name and license number
C) The lowest interest rate available in the state
D) A photo of the manufacturer's CEO
Answer: B
Rationale: NM regulations necessitate including the licensed name and number.
, 12. Under Regulation Z, what is the primary purpose of the required disclosure?
A) To prove the home is fireproof
B) To disclose the true cost of lending and finance charges
C) To list the names of all subcontractors
D) To verify the home's serial number
Answer: B
Rationale: Truth in Lending disclosures clarify the full cost of credit.
13. What is the primary function of the steel chassis (frame) in a manufactured home?
A) To provide a surface for carpet installation
B) To act as a decorative base
C) To provide structural integrity and a base for transportation
D) To house the HVAC ductwork exclusively
Answer: C
Rationale: The chassis acts as the permanent structural foundation and supports
transport.
14. How many days does the Division allow for a licensee to renew their license without
penalty?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C
Rationale: A 30-day grace period is provided for annual license renewal.
15. What is the "HUD Tag" or certification label?
A) A temporary sticker used for shipping
B) A permanent metal plate certifying the home meets federal safety standards
C) A tax document for the IRS
D) A warranty card for the appliances
Answer: B
Rationale: This tag verifies compliance with federal standards.
16. Who is ultimately responsible for verifying the title on a pre-owned manufactured home?
A) The buyer
B) The manufacturer
C) The dealer/broker
