Housing and Community Development (HCD) Practice Exam

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What is required of the purchaser when trading in a manufactured home?

The dealer must assume all debts without consent
The purchaser must release all rights from the legal owner
The dealer does not need documentation for the trade-in
The purchaser does not need to provide any ownership proof

The correct answer is: The purchaser must release all rights from the legal owner

When trading in a manufactured home, it is essential for the purchaser to release all rights from the legal owner. This step is necessary to ensure a smooth transition of ownership and to clear any claims or liens that may exist on the manufactured home being traded in. By releasing these rights, the purchaser enables the dealer to take full ownership and responsibility of the home, which is critical for the proper processing of the trade-in and subsequent sale. The other options reflect misunderstandings about the procedures involved in a trade-in. For instance, the dealer is typically required to have documentation and proof of ownership rather than not needing any documentation at all. Similarly, assumptions about the dealer taking over debts or the purchaser releasing ownership without proper consent do not align with standard trade-in processes, which prioritize legal clarity and the protection of both parties' rights in the transaction.