Housing and Community Development (HCD) Practice Exam

When must a licensee conduct a reasonably competent and diligent inspection of a Mh-Unit offered for sale?

1. When the licensee decides to inspect

2. Only when requested by the purchaser

3. When the dealer has a written contract with the seller

4. Only when requested by the seller

The correct answer is: When the dealer has a written contract with the seller

The requirement for a licensee to conduct a reasonably competent and diligent inspection of a manufactured home unit (Mh-Unit) comes into play specifically when the dealer has a written contract with the seller. This reflects a professional standard of care that protects not only the interests of the buyer but also upholds the integrity of the real estate transaction process. By having a written contract, there is a clear obligation established between the parties involved, making it the licensee's responsibility to ensure that the unit meets certain standards and is represented accurately. This due diligence is not just a best practice; in many jurisdictions, it is a legal obligation to ensure that potential buyers are making informed decisions based on a thorough understanding of the property condition. Additionally, the other options suggest scenarios where an inspection might happen but do not reflect the professional or legal requirement that exists when there is a formal agreement. Relying solely on the buyer or seller to request an inspection would create gaps in accountability, whereas having a contractual obligation elevates the standard expected from the licensee. This is critical in maintaining trust and transparency in the housing market.