Housing and Community Development (HCD) Practice Exam

For manufactured home escrow, what triggers the need for a report of sale?

1. Approval by the department of housing

2. Verification of payment methods

3. The installation completion and issuance of a Certificate of Occupancy

4. Completion of buyer’s background check

The correct answer is: The installation completion and issuance of a Certificate of Occupancy

The correct answer is centered around the concept that the completion of a manufactured home's installation, along with the issuance of a Certificate of Occupancy (CO), signifies that the home is ready for use and meets necessary safety and zoning standards. This is a critical step because the Certificate of Occupancy is an official document that confirms a building's compliance with applicable building codes and other laws. When a new manufactured home is installed on a property, it must go through various inspections and regulatory approvals. Once these are satisfied, and the CO is issued, it triggers the need for a report of sale. This report is essential in documenting the transaction and ensuring that all parties involved—especially in financing and legal aspects—are aware of the change in ownership and status of the manufactured home. The other choices do not directly correlate to the formal requirement for a report of sale. Approval by the department of housing, for instance, may be a necessary step in the regulatory process but does not itself indicate that the home is ready for sale or use. Verification of payment methods and completion of a buyer's background check are more procedural elements related to the sale process rather than indicators of the home's readiness for occupancy and ownership transfer.