Housing and Community Development (HCD) Practice Exam

Where must a dealer display warranty provisions for manufactured homes?

1. In each display home on the sales lot

2. In each area where purchase contracts are processed

3. Only at the main office of the dealer

4. In the dealer's customer service area

The correct answer is: In each area where purchase contracts are processed

The dealer is required to display warranty provisions for manufactured homes in each area where purchase contracts are processed to ensure that potential buyers can review this important information before making a purchase. This requirement is designed to promote transparency and protect consumers by allowing them to understand the warranty coverage and conditions associated with the manufactured home they are considering. By making the warranty provisions available in the area where contracts are handled, consumers have the opportunity to read and ask questions about the warranties just as they are about to enter into a legal agreement. This practice not only fosters informed decision-making but also aligns with regulatory standards that aim to safeguard consumer rights in real estate transactions. While the other locations mentioned may provide some visibility for the warranty provisions, they do not fulfill the essential requirement of ensuring that the information is accessible at the point of sale and contract execution, which is crucial for an informed purchasing process.