Housing and Community Development (HCD) Practice Exam

What payment is required before a dealer’s license is issued?

1. A $250 fee plus additional fees based on the number of business locations

2. A $100 fee for application processing

3. A $50 fee for a temporary license

4. No fee is required if completing an online course

The correct answer is: A $250 fee plus additional fees based on the number of business locations

The requirement for a dealer's license typically includes a base fee alongside additional costs that are determined by the number of business locations owned or operated by the applicant. This structure serves to cover the administrative expenses associated with processing the application and conducting necessary background checks or inspections related to multiple locations. In contrast, the option that mentions a flat application processing fee does not reflect the additional financial obligations that are applicable based on the business’s scale, which is a crucial aspect of licensing in this context. Similarly, the temporary license fee, while a valid charge, pertains to a different type of licensing scenario and does not reflect the overall requirements for a full dealer's license. Finally, suggesting that no fee is required simply for completing an online course overlooks the fundamental principle that a license, particularly in the context of commercial dealings, necessitates payment to ensure compliance and regulation oversight. Thus, the correct understanding emphasizes the comprehensive payment structure tied to the dealer's license issuance.