Housing and Community Development (HCD) Practice Exam

When must the warranty document for a new manufactured home be provided to the purchaser?

1. Upon delivery of the home

2. When the retail purchaser signs the contract of sale

3. After the escrow steps are completed

4. Before the home is displayed for sale

The correct answer is: When the retail purchaser signs the contract of sale

The warranty document for a new manufactured home must be provided to the purchaser when the retail purchaser signs the contract of sale. This requirement is crucial as it ensures that buyers are fully informed of the warranty terms and conditions at the time they commit to purchasing the home. Providing the warranty at this stage allows consumers to understand their rights and protections under the warranty before any financial transactions occur, ensuring transparency and confidence in their purchase. By supplying the warranty document at the point of sale, consumers can assess the coverage and any limitations of the warranty, which is essential for informed decision-making. This timing is also significant as it aligns with the legal obligations of the seller to disclose relevant information that may affect the buyer's choices regarding the home. Other options, such as delivering the warranty upon delivery of the home or after escrow steps are completed, do not afford the same level of buyer protection and information, potentially leading to misunderstandings or disputes later in the process.