Housing and Community Development (HCD) Practice Exam

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How soon must cash toward the purchase of a Mh-Unit be placed in escrow?

Within seven working days
Not more than ten calendar days
Within 5 working days of receipt
Within 3 business days

The correct answer is: Within 5 working days of receipt

The requirement for cash toward the purchase of a manufactured home (MH-Unit) to be placed in escrow within five working days of receipt ensures a timely and organized transaction process. This timeframe protects both the buyer and the seller, as it establishes a clear expectation for when funds should be secured in the escrow account, facilitating a smoother transfer of ownership. Quick placement of cash into escrow minimizes the risk of disputes or misunderstandings about the availability and commitment of funds, which is critical in real estate transactions. Other options suggest different timeframes for the escrow placement, which do not align with the regulatory requirements. Emphasizing the specific five-working-day window reinforces the importance of adhering to established timelines in real estate dealings, thus ensuring regulatory compliance and trust between the parties involved in the transaction.