Housing and Community Development (HCD) Practice Exam

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Who should checks or payments for a new or used Mh-Unit be made payable to?

HCD
Salesperson
Escrow agent
Dealership

The correct answer is: Escrow agent

The correct choice for making checks or payments for a new or used manufactured housing unit is the escrow agent. An escrow agent serves as a neutral third party in a real estate transaction, ensuring that both the buyer and seller fulfill their contractual obligations before the transfer of funds or property. When a purchase is made, the escrow agent holds the payment until all conditions of the sale are met, such as inspections, financing approvals, and any agreed-upon repairs. This protects both the buyer and the seller, creating a secure transaction process. Choosing another party, such as a dealership or salesperson, could lead to complications, such as mismanagement of funds or lack of proper documentation regarding the sale. Payments made to the dealership or salesperson might not ensure the same level of security and neutrality as going through an escrow agent.