Housing and Community Development (HCD) Practice Exam

What should be disclosed in sales transactions involving manufactured homes?

1. Only the sales price of the home

2. All facts known that materially affect the home's value

3. Only defects known to the seller

4. None, as sellers are not obligated to disclose

The correct answer is: All facts known that materially affect the home's value

In sales transactions involving manufactured homes, it is critical to disclose all facts known that materially affect the home's value. This principle exists to promote transparency and protect the interests of buyers. Material facts can include issues such as the condition of the home, any structural problems, history of repairs, or compliance with local zoning laws, which could significantly impact the buyer's decision and the fair market value of the home. Disclosure is essential not only for ethical sales practices but also to comply with legal obligations that require sellers to inform potential buyers about significant issues that could affect their purchase. By making sure that all material facts are disclosed, sellers help ensure that buyers can make informed decisions, reducing the likelihood of disputes after the sale. This practice aligns with the broader principles of real estate transactions, which prioritize honesty and transparency to foster trust between buyers and sellers.