Preliminary Education for Manufactured Housing

These flashcards cover key terms and concepts related to the manufactured housing industry, focusing on regulations, practices, and requirements discussed in the lectures.

Preliminary Education

A six-hour class designed to inform on topics regarding manufactured housing units, including laws, regulations, sales, and more.

MH-Unit

Refers to manufactured housing units subject to specific regulations and guidelines for manufacturing and sales.

California Code of Regulations (CCR)

A set of regulations governing various aspects of manufactured home licensing and compliance in California.

Escrow

An arrangement where a neutral third party holds funds during a transaction, ensuring conditions are met before funds are released.

Registered Owner

The individual or entity that holds the legal title to the manufactured home, mobilehome, or commercial coach.

Disclosure of Information

The act of making certain information available to the public regarding license status, compliance, and other significant details.

Advertising Practices

Rules and regulations that dictate how manufactured homes may be marketed and the information that must be disclosed in advertisements.

Consumer Warranty Protection

Legal provisions ensuring that consumers receive certain guarantees regarding the quality and performance of purchased manufactured homes.

Taxation and Registration

Requirements for the registration and taxation of manufactured homes, ensuring compliance with state laws.

Continuing Education

Mandatory educational requirements for licensed dealers and salespersons to maintain their licenses.

Manufactured Home Recovery Fund

A fund established to assist consumers who suffer financial loss due to issues like warranties and misrepresentation regarding manufactured homes.

“As is” condition

A term indicating that the product is sold without any warranties against defects; buyers accept the product’s current state.

Disclosure Violations

False or incomplete information provided to consumers in transactions, which could lead to legal consequences.

Franchise

A written agreement granting a dealer the right to sell manufactured homes under a manufacturer's brand.

Implied Warranty

An unspoken guarantee that the products sold will meet certain standards of quality and performance.

Fraud in Advertising

Deceptive claims made in marketing materials that could mislead consumers regarding the features or pricing of manufactured homes.

Liability of Judgment Debtor

The responsibility of a debtor to repay claims, including those paid from the Manufactured Home Recovery Fund.

Consumer Complaint

A report filed by consumers regarding dissatisfaction or issues faced with manufactured home purchases.

California Health and Safety Code

A set of laws that govern health and safety standards, including those specifically related to manufactured homes.

Escrow Instructions

Specific guidelines provided to the escrow agent regarding how to handle funds and documents in a transaction.

A person operating as a dealer of both mobilehomes/manufactured homes and recreational vehicles is required to:

Be licensed by both the Department of Housing and Community Development and the Department of Motor Vehicles.

Which cash or cash equivalents received toward the purchase of a manufactured home is required to be deposited into escrow?

Deposits for the purchase of a manufactured home. Payments for uninstalled accessories included in the total sales price. Down payments for the purchase of a manufactured home.

No manufactured home dealer shall establish an escrow account:

With an escrow company where the dealer has more than a 5% ownership.

The California Civil Code requires that a manufactured home warranty document:

Contains reprints of all provisions of law relating to a manufactured home warranty

The California Civil Code requires that the warranty provision be displayed:

In each area where purchase orders and conditional sales contracts are written.

The Health and Safety Code requires a copy of the Warranty document for a new manufactured home to be given to the retail purchaser:

When the retail purchaser signs the contract of sale

The California Civil code requires the warranty for a new manufactured home to be:

One year from the date of delivery of the manufactured home to the buyer or his or her transferee.

The California Civil Code requires that:

The manufactured home manufacturer and the dealer or contractor shall be jointly and severally liable for the fulfillment of the terms of the warranty

All checks, money orders or similar payments submitted to a licensee by purchaser of a new or used manufactured home subject to registration shall be made payable to the:

Escrow agent

With respect to advertising of a manufactured home, it is unlawful for a licensee to make a misleading statement through:

Any manner or means whatsoever

Advertisement of a specific manufactured home for sale must include:

The manufactured home serial number(s) or the number on the Federal label(s)(HUD) or insignia of approval(s) by the Department.

A manufactured home may be sold "AS IS":

If it has been sold previously and registered but not occupied or used.

After the sale of a manufactured home a salesperson must:

Withdraw any advertisement for the sold manufactured home or commercial modular within 48 hours of the sale.

The standard of care owed by a salesperson to a purchaser under the consumer protection division of the California Health and Safety Code when listing and selling a used manufactured home:

is Measured by the degree of knowledge through education, experience and an examination required to obtain a license. The degree of care that a reasonably prudent dealer would exercise.

A licensee who acts in conjunction with others to find and obtain a purchaser for a used manufactured home:

Having the need to conduct a reasonably competent and diligent visual inspection. Must disclose all facts materially affecting the value or desirability of the home.

Although not working for a dealer a salesperson may show homes, quote prices, accept checks and write sales contracts.

FALSE

When advertising the size of a manufactured home the measurement:

Shall not include projections beyond the exterior walls.

Manufactured home sale for unit being placed on a foundation system subject to Health and Safety Code 18551(a) and installed by the buyer requiring a special document to be completed is called:

Declaration of delivery sale.

The term "Regulation Z" relates to:

Any rule, regulation or interpretation promulgated by the Board of Governors of the Federal Reserve System under the Federal Truth and Lending Act.

When acting as the Listing agent for a seller and after accepting a buyer's written offer to purchase a used manufactured home the dealer is required to:

Provide the seller written disclosure of the buyer's written offer within 3 days of the dealer accepting the offer, but no less than 48 hours from the close of escrow to include the exact amount of the offer and the specific amount of commission.

A license issued to a manufactured home dealer is automatically cancelled:

When any participating member of the dealership fails to meet the continuing education requirement . When the dealer moves the place of business without notifying the Department When the established place of business listed on the application is abandoned

Any lawfully authorized person proposing to move a manufactured home required to be registered:

Obtain written consent from the legal owner and any junior lien holder on forms approved by the Department

A licensee is responsible to conduct a reasonably competent and diligent visual inspection of a manufactured home offered for sale when:

The dealer has a written contract with the seller to obtain a purchaser.

The sale of manufactured homes registered with the Department through a Licensee shall:

Be subject to consumer protection as provided for in the Health and Safety Code.

The escrow instructions may provide for:

payments of license fees, property taxes and any applicable penalty.

The escrow period may extend:

For a period mutually agreed upon in writing or as extended by mutual consent and notice to the escrow agent.

For manufactured homes which are installed on a foundation system subject to Health and Safety Code 18551(a), the dealer report of sale form is required to be submitted to HCD when:

Installation of the manufactured home is complete and the Certificate of Occupancy is issued.

A dealer qualifies as a retail consumer and is afforded special tax treatment on the sale of a new manufactured home that he sells for occupancy:

As a residence only

Dealers licensed by the Department may sell park model RV's when?

• The Department insignia of approval has been removed.

• Under a certificate of authority issued to the manufacturer by the Department.

• The Department insignia of approval has been affixed. All of the choices are false.

Manufactured homes subject to local property taxation but not affixed to a foundation are

Subject to Department of Housing and Community Development registration only at the time of sale, resale or transfer of title.

Manufactured homes subject to local property taxation but not affixed to a foundation are:

Subject to Department of Housing and Community Development registration only at the time of sale, resale or transfer of title.

When reporting the sale of a manufactured home not being installed on a permanent foundation, a sale must be deemed complete when:

When all funds other than escrow fees and amounts for uninstalled or undelivered accessories are dispersed from escrow.

The Legislature has determined that in the public interest for consumer protection the following licensee comply with continuing education requirements:

Manufactured housing dealers and salespersons.

Any manufactured home or commercial modular manufactured after 9/1/1958 being offered for sale in California:

Must bear a California Housing and Community Development insignia of approval or HUD Labe

Any licensee knowingly violating the provisions of the regulations issued pursuant to the California Health and Safety Code, Division 13, Part 2 may be:

Subject to License disciplinary action including revocation, suspension or probation. - Subject to a civil penalty. - Charged with a criminal violation by The local District Attorney office.

Any lawfully authorized person proposing to move a manufactured home required to be registered shall:

Have requested consent of the legal owner and any junior lien holders on forms approved by the Department.

Prior to altering or converting structural, mechanical, plumbing, electrical or fire safety systems of a manufactured home bearing or required to bear the California Department insignia of approval or HUD Label must:

Obtain the approval of the Department of HCD prior to making any such alterations.

A person licensed by the Department of HCD is subject to administrative action to suspend or revoke the license for:

• Having an unsatisfied viable judgment lingering in connection with an activity licensed Under authority with The Health and Safety Code.

• Failing to pay over funds or property received in The course of employment to a dealer entitled there to.

• Failure to deliver The salesperson License to The employing dealer for display.

Acting in the capacity or engaging in the business of a manufactured home or commercial modular dealer within this state without a license in good standing with the Department and not otherwise exempt by law is:

Considered unlicensed activity and illegal, subject to civil penalty up to $2,000.00 and other civil and criminal remedies.

With respect to the sale of a manufactured home to be installed on foundation system to Health and Safety Code, Section 18551(a), a person licensed by the Department of HCD selling a new or used manufactured home intended to be installed on a 18551(a) foundation:

May not be involved as a licensee with the subsequent resale of the installed unit after it has received its Certificate of Occupancy.

Every person in a corporation who will participate in the direction or management of manufactured home or commercial modular sales:

Must have applied to the Department and successfully completed an examination for a manufactured home or commercial modular dealer license

If instructed by local authorities to alter electrical, plumbing, or mechanical systems of a manufactured home or commercial modular, to meet local standards, the licensee should:

Notify the Department of Housing and community Development as no local authorities may prescribe such manufactured home or commercial modular standards.

When a licensee repeats a violation of a type in which a citation for civil penalties have been issued, the Department:

May issue a citation that includes a civil penalty of $250

When a dealer fails to timely notify the Department of the sale or lease of a manufactured home, the Department may:

Issue a citation and assess a civil penalty of $100 in addition to a penalty for administrative service fees and administration fees.

A licensee may receive a citation and be assessed a $100 civil penalty for which type of violation?

• Required the buyer to sign a waiver of rights which is provided for in Division 13, Part 2, Chapter 5 of the Health and Safety Code.

• Failure to honor the warranty for a new manufactured home.

• Failure to post in plain view the license issued by the Department at the established place of business."

The Department of Housing and Community Development may allow the manufacturer, distributor, or dealer license to go into inactive status:

Six months, or for the remaining term of the original license, whichever is less.

The buyer of a manufactured home obligates himself or herself to purchase a manufactured home from a dealer and the dealer knows the buyer intends to obtain 3rd party financing without the assistance of the dealer and the buyer is unable to obtain such financing within 30 days of signing the contract:

The contract shall be deemed rescinded and all moneys except escrow fees shall be returned to the purchaser without demand.

The Department of Housing and Community Development may refuse to issue a manufactured home occupational license to someone if:

The applicant was previously a limited partner in a manufactured home dealership whose license was suspended and the terms of suspension have not been fulfilled.

Manufactured home purchase documents shall contain:

A notice that provides in part the current address and telephone number of the Department of Housing and Community Development.

Contemporaneous with or prior to receiving a purchasers deposit for the purchase of a new or used manufactured home, it is required:

That a mutually endorsed receipt for deposit and purchase document is executed.

Following receipt of cash or cash equivalent given toward the purchase of a manufactured home, how soon must they be placed in escrow?

Within 5 working days of receipt