Housing and Community Development (HCD) Practice Exam

When is a dealer report of sale for a Mh-Unit required to be issued?

1. When the escrow agent disburses funds

2. When the installation is complete and the Certificate of Occupancy is issued

3. When the buyer makes a payment

4. After the buyer has lived in the home for ten days

The correct answer is: When the installation is complete and the Certificate of Occupancy is issued

A dealer report of sale for a manufactured home (MH-Unit) is required to be issued when the installation is complete and the Certificate of Occupancy is issued. This is because the Certificate of Occupancy signifies that the home has been properly installed and meets all required building codes and safety standards. It marks the point at which the home can be considered ready for occupancy, indicating a formal transition of the home from dealer to buyer. The issuance of the dealer report of sale at this stage serves to document that the sale process is complete and that the manufactured home has been installed and approved for use. This step is crucial for compliance with regulations surrounding manufactured home sales and installations, ensuring that all necessary permits and inspections have been finalized before a buyer takes possession. In contrast, the other choices pertain to different stages of the transaction that do not fulfill the requirement for issuing the dealer report of sale. The escrow agent disbursing funds, the buyer making a payment, or the buyer living in the home for ten days do not indicate the completion of installation and approval by regulatory bodies, which are vital for the report's issuance.