Housing and Community Development (HCD) Practice Exam

Who is liable for civil penalties if a manufactured home is sold out of compliance?

1. The dealer who made the sale

2. The buyer of the home

3. The manufacturer of the home

4. The state government

The correct answer is: The dealer who made the sale

The dealer who made the sale is liable for civil penalties if a manufactured home is sold out of compliance because dealers are responsible for ensuring that the homes they sell meet all federal and state safety regulations and standards. When a manufactured home is sold, it is the dealer's obligation to verify that the home complies with the applicable codes and regulations, including safety and structural standards outlined under the National Manufactured Housing Construction and Safety Standards Act. If a dealer fails to follow these compliance requirements during a sale, they can face civil penalties as the entity directly involved in the transaction. This accountability acts as a regulatory measure to protect consumers from unsafe or non-compliant homes. The buyer typically is not liable since they are purchasing based on the assumption that the home meets required standards, and the manufacturer could only be held liable in cases where design flaws or manufacturing defects, rather than compliance lapses by a dealer, are evident. The state government may regulate and enforce compliance but isn’t personally liable in the same manner for individual sales transactions.