Housing and Community Development (HCD) Practice Exam

Which statement is true regarding the sale of new manufactured homes?

1. Only homes less than 5 years old can be sold as new

2. Homes can be sold as new if they have never been registered

3. All manufactured homes can be sold as new regardless of registration

4. Newly manufactured homes must be sold with a special discount

The correct answer is: Homes can be sold as new if they have never been registered

The statement that homes can be sold as new if they have never been registered is accurate because the definition of a "new" manufactured home primarily hinges on its registration status, rather than its age. If a manufactured home has not been previously registered, it can still be considered new despite the passage of time since it was manufactured. This means that even if a home is technically several years old, it qualifies as new if it hasn't been put in service or registered with the relevant authorities. The other statements do not hold true within the context of manufactured home sales. For instance, limiting sales to homes less than 5 years old does not reflect the broader understanding of what constitutes a new home. Similarly, the idea that all manufactured homes can be sold as new regardless of their registration status is incorrect because it negates the critical factor of registration. Lastly, the requirement of a special discount for newly manufactured homes is not a general rule and does not align with the standard definition of new homes according to the registration aspect.