Manufactured Housing Practice Test

What must a purchaser obtain if they are to assume existing indebtedness on the unit?

1. A) Legal counsel’s approval

2. B) The legal owner's approval

3. C) A document consenting to the assumption delivered into escrow by the dealer

4. D) A release of all liens on the unit

The correct answer is: C) A document consenting to the assumption delivered into escrow by the dealer

In the scenario where a purchaser is assuming existing indebtedness on a manufactured housing unit, obtaining a document consenting to the assumption delivered into escrow by the dealer is essential. This document serves as formal confirmation that the necessary parties acknowledge and agree to the transfer of financial responsibilities associated with the existing loan or indebtedness. This process protects all involved parties—ensuring the current legal owner has legally consented to the assumption, thus preventing any potential disputes regarding liability for the debt. The escrow procedure adds an extra layer of security, ensuring that the consent is properly executed and held until all appropriate conditions are met in the transaction. Additionally, while legal counsel, the legal owner's approval, and a release of liens may be relevant in other contexts of a property transaction, the specific requirement in this situation emphasizes the importance of the consent document related directly to the assumption of indebtedness.