Housing and Community Development (HCD) Practice Exam

If a manufactured home used as a lot model is refurbished, what must be disclosed to prospective purchasers?

1. It may be offered as new without disclosure

2. It must clearly disclose the previous use in advertisements

3. It does not require prior use disclosure if refurbished

4. The previous use can be hidden if warranty is provided

The correct answer is: It must clearly disclose the previous use in advertisements

In the context of the sale of refurbished manufactured homes, it is important to maintain transparency with potential buyers. The correct choice reflects the ethical and regulatory standards that require sellers to disclose the previous use of the home when it has served as a lot model. Disclosing that a manufactured home was previously used as a model ensures that potential purchasers have complete information regarding the home's history. This is crucial because the home's past usage could potentially affect its value, condition, and future performance. Transparency helps buyers make informed decisions and safeguards against any potential legal issues that could arise from nondisclosure. While the other options might suggest alternative approaches to disclosure, they would not meet the requirements for honesty and integrity in the real estate market. It's critical to hold sellers accountable for sharing this information to foster trust and protect consumer rights.