Housing and Community Development (HCD) Practice Exam

Under what condition may a Mh-Unit or ComMod be sold as new?

1. If it has never been sold to a retail purchaser or registered

2. If the model year is current and the warranty still applies

3. If it had been sold previously but not occupied or used

4. Only if the year of manufacture is current

The correct answer is: If it has never been sold to a retail purchaser or registered

A manufactured home (Mh-Unit) or a commercial modular (ComMod) can be sold as new if it has never been sold to a retail purchaser or registered. This means that the unit must not have gone through any previous ownership or be recorded in any system as having been sold. If it remains undelivered to an end-user, it retains its status as a new unit, which can be attractive for buyers looking for a fresh start without any prior reviews or potential issues associated with used homes. In contrast, other conditions, such as having a current model year and applicable warranty, while important to consider in the overall sale process, do not necessarily mean the unit can be classified as new. Similarly, if a unit had been sold previously but remained unoccupied or unused, it wouldn’t qualify as new since the key condition of never having been sold would not be met. The year of manufacture does play a role in determining aspects such as compliance with current standards or regulations but alone does not suffice to label a unit as new if it has been sold before. The fundamental requirement centers on the status of ownership and registration, which is encapsulated in the condition highlighted above.