Housing and Community Development (HCD) Practice Exam

What is required of a licensee who cooperates with others to find a purchaser for a used manufactured home?

1. Has a duty to conduct a reasonably competent and diligent visual inspection

2. Must disclose all facts materially affecting the value or desirability of the home

3. Neither A nor B apply

4. Both A and B apply

The correct answer is: Both A and B apply

A licensee who cooperates with others to find a purchaser for a used manufactured home has specific legal obligations aimed at ensuring transparency and safeguarding the interests of all parties involved in the transaction. Conducting a reasonably competent and diligent visual inspection is essential as it helps the licensee identify any potential defects or issues with the manufactured home that could affect its value or safety. This responsibility ensures that the licensee is providing accurate information to potential buyers, which aligns with professional standards and ethical practices in real estate. Additionally, the requirement to disclose all facts that materially affect the value or desirability of the home is critical. This duty encompasses a broad range of information, including structural issues, previous damage, and other elements that could influence a purchaser's decision. By fulfilling this obligation, the licensee not only protects consumers from making uninformed decisions but also upholds the integrity of the real estate profession. Thus, both requirements reflect the comprehensive duty of care a licensee holds in their professional role when facilitating a sale, ensuring that all parties are well-informed and protected during the transaction process.