Manufactured Housing Practice Test

What is necessary to initiate disbursement of funds related to a manufactured home?

1. Escrow instructions must state the agreement

2. Only verbal agreements from the buyer and dealer

3. Completion of a written contract only

4. Deed of trust must be signed first

The correct answer is: Escrow instructions must state the agreement

To initiate the disbursement of funds related to a manufactured home, it is essential that escrow instructions clearly outline the agreement reached by all parties involved. These instructions serve as a formal guideline within the escrow process, detailing how and when the funds should be released based on the conditions and agreements established in the transaction. This ensures that both the buyer and seller are protected, as it lays out the specific parameters and requirements that must be met before any transfer of funds occurs. While a verbal agreement or a written contract might provide some level of understanding between the parties, they lack the formal structure and binding effect of escrow instructions. Additionally, although the signing of a deed of trust is crucial in securing financing and establishing the lender's interest, it does not directly pertain to the disbursement process itself. Therefore, without clear escrow instructions, funds cannot be disbursed properly and legally in a manufactured home transaction.