Arizona Manufactured Housing Dealer License
Examination | Manufactured Housing Test | Questions &
Answers | Latest Update 2026 | Exam Prep | Graded A+
1. If a dealer discovers an error that increases the balance due on a conditional
sales contract after 25 days, what steps should they take to ensure
compliance with regulations?
Inform the buyer verbally about the error.
Cancel the contract and start over.
Correct the error without any notification.
Notify the department and obtain the buyer's written concurrence.
2. If a dealer receives a cash deposit for a manufactured home but does not
endorse the purchase documents, what is the implication regarding the
escrow account?
The escrow account should not be opened.
The escrow account must be opened only after the sale is finalized.
The escrow account must be opened immediately.
The escrow account can be opened at the dealer's discretion.
3. A commercial modular may only be sold as new:
If it has never been sold or registered.
If the model year is current and if the warranty is still in effect.
If the year model is current.
If it had been previously registered but not occupied.
,4. If a dealer fails to notify the Department of Housing and Community
Development about required alterations, what potential consequence could
they face?
Increased sales tax on transactions.
Mandatory training for staff.
Loss of sales license.
Penalties for violations of the law.
5. Describe the role of escrow in the delivery of manufactured or mobile homes
according to California regulations.
Escrow acts as a mediator to resolve disputes between the dealer and
buyer after delivery.
Escrow is only necessary if the buyer is financing the purchase.
Escrow ensures that both the dealer and buyer have agreed to the
terms of delivery and installation responsibilities before funds are
disbursed.
Escrow guarantees that the home will be installed by a licensed
contractor.
6. 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
7. No dealer shall establish an escrow account:
, with an escrow company in which the dealer has any ownership
interest
with an escrow company which will become the legal owner
with an escrow company in which the dealer has more than a 5%
ownership interest
with an escrow company in which the dealer has more than a 10%
ownership interest
8. If a buyer accepts delivery of a manufactured home at the dealer's location
without proper escrow documentation, what potential issues could arise?
The buyer will receive a discount on future purchases from the dealer.
The buyer may face legal penalties for non-compliance with state
regulations.
The dealer will be required to refund the purchase price immediately.
The home will be automatically considered a new home for warranty
purposes.
9. What is required for funds to be disbursed from the escrow account for a
manufactured/mobile home installation?
Installation acceptance inspection by the enforcement agency with
written notice to escrow
Completion of installation by the dealer
Compliance with escrow instructions
Delivery of the unit to the proper site by the manufacturer
10. A dealer's failure to transfer registration of a mobile/manufactured home or
commercial coach when required and in the manner required by law may:
Result in administrative action to revoke or suspend the dealer's
, license
Result in penalties being charged
All of the above are correct
Result in a misdemeanor conviction
11. A dealer shall, upon the sale of:
Mobile homes only report the sale to the dept on forms provided by
the dept
New or used mobile home, manufactured homes or commercial
coaches report the sale to the Dept of Housing and Community
Development, on forms provided by the Dept
Report the sale to the Dept of Real Estate if the unit is on a Section
18851 foundation
Report the sale to the Dept only if the unit is going on a 18613
foundation system
12. When a conditional sales contract is deemed unenforceable due to errors
relating to installments or balance due, the buyer may elect to:
Retain the unit and continue the contract
Recover from the dealer the amount paid to the dealer
Rescind the contract and return the unit
All of the above
13. 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.
Examination | Manufactured Housing Test | Questions &
Answers | Latest Update 2026 | Exam Prep | Graded A+
1. If a dealer discovers an error that increases the balance due on a conditional
sales contract after 25 days, what steps should they take to ensure
compliance with regulations?
Inform the buyer verbally about the error.
Cancel the contract and start over.
Correct the error without any notification.
Notify the department and obtain the buyer's written concurrence.
2. If a dealer receives a cash deposit for a manufactured home but does not
endorse the purchase documents, what is the implication regarding the
escrow account?
The escrow account should not be opened.
The escrow account must be opened only after the sale is finalized.
The escrow account must be opened immediately.
The escrow account can be opened at the dealer's discretion.
3. A commercial modular may only be sold as new:
If it has never been sold or registered.
If the model year is current and if the warranty is still in effect.
If the year model is current.
If it had been previously registered but not occupied.
,4. If a dealer fails to notify the Department of Housing and Community
Development about required alterations, what potential consequence could
they face?
Increased sales tax on transactions.
Mandatory training for staff.
Loss of sales license.
Penalties for violations of the law.
5. Describe the role of escrow in the delivery of manufactured or mobile homes
according to California regulations.
Escrow acts as a mediator to resolve disputes between the dealer and
buyer after delivery.
Escrow is only necessary if the buyer is financing the purchase.
Escrow ensures that both the dealer and buyer have agreed to the
terms of delivery and installation responsibilities before funds are
disbursed.
Escrow guarantees that the home will be installed by a licensed
contractor.
6. 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
7. No dealer shall establish an escrow account:
, with an escrow company in which the dealer has any ownership
interest
with an escrow company which will become the legal owner
with an escrow company in which the dealer has more than a 5%
ownership interest
with an escrow company in which the dealer has more than a 10%
ownership interest
8. If a buyer accepts delivery of a manufactured home at the dealer's location
without proper escrow documentation, what potential issues could arise?
The buyer will receive a discount on future purchases from the dealer.
The buyer may face legal penalties for non-compliance with state
regulations.
The dealer will be required to refund the purchase price immediately.
The home will be automatically considered a new home for warranty
purposes.
9. What is required for funds to be disbursed from the escrow account for a
manufactured/mobile home installation?
Installation acceptance inspection by the enforcement agency with
written notice to escrow
Completion of installation by the dealer
Compliance with escrow instructions
Delivery of the unit to the proper site by the manufacturer
10. A dealer's failure to transfer registration of a mobile/manufactured home or
commercial coach when required and in the manner required by law may:
Result in administrative action to revoke or suspend the dealer's
, license
Result in penalties being charged
All of the above are correct
Result in a misdemeanor conviction
11. A dealer shall, upon the sale of:
Mobile homes only report the sale to the dept on forms provided by
the dept
New or used mobile home, manufactured homes or commercial
coaches report the sale to the Dept of Housing and Community
Development, on forms provided by the Dept
Report the sale to the Dept of Real Estate if the unit is on a Section
18851 foundation
Report the sale to the Dept only if the unit is going on a 18613
foundation system
12. When a conditional sales contract is deemed unenforceable due to errors
relating to installments or balance due, the buyer may elect to:
Retain the unit and continue the contract
Recover from the dealer the amount paid to the dealer
Rescind the contract and return the unit
All of the above
13. 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.
