Housing and Community Development (HCD) Practice Exam

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What is required from the buyer before a dealer can charge for a deposit on a Mh-Unit?

Delivery of the Mh-Unit
Signing of a finance contract
Receipt of interest costs
None of the above

The correct answer is: Delivery of the Mh-Unit

Before a dealer can charge a buyer for a deposit on a manufactured home (MH-Unit), the delivery of the MH-Unit is a crucial factor. This requirement is rooted in ensuring that the buyer is fully informed of the product and its specifications before committing financially. The rationale is that a deposit typically serves as a sign of intent to purchase, which is often based on having seen and assessed the unit in question. When the MH-Unit is delivered, it allows the buyer to physically inspect it and confirm that it meets their needs and expectations. This approach protects the interests of both parties by ensuring transparency and reducing the likelihood of disputes regarding the condition or suitability of the home after the deposit has been made. It emphasizes the importance of clear communication and thorough evaluation before any financial commitments are undertaken. Other choices, like signing a finance contract or receipt of interest costs, don't directly relate to the deposit process in the same way, as those steps usually follow the buyer's commitment to purchase rather than precede it.