Manufactured Housing Practice Test

What documentation must be submitted to escrow before funds are released?

1. Bill of sale from the dealer

2. Signed documents indicating delivery completion

3. Only the receipt for the deposit

4. An agreement letter from the lender

The correct answer is: Signed documents indicating delivery completion

The requirement for submitting signed documents indicating delivery completion to escrow before funds are released is crucial in the context of manufactured housing transactions. This documentation serves as proof that the buyer has received the home as per the terms of the purchase agreement. It confirms that the seller has fulfilled their obligation concerning the delivery, ensuring the transaction is legitimate and protecting the interests of both parties involved. By requiring these signed documents, escrow can verify that all conditions of the sale have been met, which is essential for disbursing funds safely. This practice minimizes the risk of disputes arising after the funds have been released, as all parties have acknowledged that the delivery process was completed satisfactorily. This emphasis on documentation helps maintain trust and accountability in the transaction, crucial in real estate dealings, especially with manufactured homes. The other options do not provide the same level of assurance about the completion of the sale process. For instance, a bill of sale might confirm the transaction but does not necessarily prove that the buyer accepted the delivery. A receipt for the deposit indicates a financial commitment but does not address the fulfillment of delivery terms. An agreement letter from the lender is important for financing but does not pertain directly to the delivery and acceptance aspects that the signed documents cover.