Housing and Community Development (HCD) Practice Exam

Which information is NOT required to be submitted for escrow preparation of a manufactured home?

1. A description and cash value of each accessory

2. Specific amounts of liquidated damages

3. Amounts designated for pre-installation disbursement

4. Details of the dealer's commission fees

The correct answer is: Details of the dealer's commission fees

In the process of escrow preparation for a manufactured home, certain specific details are generally required to ensure that all financial and logistical aspects are accounted for. The focus on the first three options highlights critical components of the transaction. A description and cash value of each accessory is essential because it helps establish the full value of the home being purchased, which can affect escrow calculations and payment distributions. Similarly, specifying amounts of liquidated damages is crucial since it sets clear terms for the consequences of any breach of contract, providing security for all parties involved. The amounts designated for pre-installation disbursement are necessary to ensure that funds are allocated for initial setup before the home is formally delivered, which is a common requirement in the sale of manufactured homes. Conversely, details of the dealer's commission fees, while important in the overall sales process, do not typically need to be submitted for escrow preparation. The escrow process is more focused on the conditions attributing to the home and its accessories rather than the agent's or dealer's individual compensation structure. Therefore, this information does not contribute directly to the escrow needs in the same way as the other aspects mentioned.