Housing and Community Development (HCD) Practice Exam

What is the standard of care owed by a salesperson to a purchaser under consumer protection provisions when selling a used manufactured home?

1. The degree of care that a reasonably prudent dealer would exercise

2. Measured by the degree of knowledge through education, experience, and examination required to obtain a license

3. Neither A nor B apply

4. Both A and B apply

The correct answer is: Both A and B apply

In this context, the standard of care owed by a salesperson under consumer protection provisions when selling a used manufactured home is indeed both about the actions of a reasonably prudent dealer and the knowledge and qualifications that come with licensing. The first aspect reflects that a salesperson is expected to act with the level of care and diligence that a reasonable dealer in the same position would exhibit. This means they are expected to ensure that the home is accurate in its representations, free of undisclosed defects, and that they provide the purchaser with necessary information that a typical prudent salesperson would convey. The second aspect relates to the specifics of knowledge and expertise that come from being a licensed professional. Salespeople in this position should possess a certain level of education and experience, along with the requisite examinations that validate their capability to make informed decisions and advise potential buyers properly. This means that both the practical and theoretical knowledge part of their profession contributes to the standard of care they should uphold. Thus, both aspects are integral to determining the appropriate standard of care in this context, making the combination of factors A and B essential for ensuring consumer protection in transactions involving used manufactured homes.