Housing and Community Development (HCD) Practice Exam

Which document is not required to be in escrow prior to closing on a new manufactured home sale?

1. The original manufacturer's certificate of origin

2. A true and correct copy of the certificate of origin

3. The original manufacturer's invoice

4. All of the above are required

The correct answer is: The original manufacturer's invoice

In the context of a new manufactured home sale, the original manufacturer's invoice is not typically required to be in escrow prior to closing. The primary requirements often include the original manufacturer's certificate of origin and a true and correct copy of that certificate, which serve as proof of ownership and title. The manufacturer's certificate of origin is critical as it is necessary for registering the home and transferring ownership. While the invoice is important for the transaction, particularly for financial record-keeping and warranty purposes, it is not usually mandated to be placed in escrow. This allows the closing process to focus on the documents that directly affect the transfer of ownership and legal responsibilities. To clarify further, the original manufacturer's certificate of origin is crucial for the establishment of legal ownership, and the true copy ensures that all parties have a verified document for reference. Therefore, the correct understanding of the sales process and the associated documentation helps delineate which documents are essential for escrow and which function more as supporting information post-closing.