Housing and Community Development (HCD) Practice Exam

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What is required of someone who receives commissions from sales of manufactured homes?

  1. They can sell up to 10 homes per year without a license

  2. They must have a valid salesperson or dealer license

  3. They must register with the Department of Consumer Affairs

  4. They need only to submit an application to the local government

The correct answer is: They must have a valid salesperson or dealer license

Receiving commissions from the sales of manufactured homes necessitates having a valid salesperson or dealer license. This requirement is in place to ensure that individuals engaging in these transactions have met certain regulatory standards, are knowledgeable about the industry, and are compliant with laws governing the sale of manufactured homes. Licensing typically involves undergoing training, passing exams, and adhering to ethical standards, all of which are designed to protect consumers and maintain the integrity of the housing market. While there may be provisions regarding exemptions for casual sales or limitations on the number of homes sold without a license, these do not apply in the context of commission-based sales. Thus, possessing the appropriate licensing is essential for anyone receiving commissions in this field to operate legally and effectively.