Manufactured Housing Practice Test

What must occur concurrent with the receipt of a buyer's cash for the purchase of a unit?

1. A) The dealer establishes an escrow account

2. B) A mutually endorsed purchase order and receipt for deposit shall be executed

3. C) The dealer must place funds in his trust account

4. D) A credit check must be completed

The correct answer is: B) A mutually endorsed purchase order and receipt for deposit shall be executed

The action that must occur concurrent with the receipt of a buyer's cash for the purchase of a unit is the execution of a mutually endorsed purchase order and receipt for deposit. This ensures that both the dealer and the buyer have a clear and documented agreement regarding the transaction. By executing a purchase order and a receipt, both parties acknowledge the terms of the sale, including the amount of the deposit received, the unit being purchased, and any other relevant details. This documentation serves multiple purposes: it provides a record of the transaction, helps prevent disputes by clarifying expectations, and establishes a binding agreement for the sale of the unit. This process is essential in the manufactured housing industry as it protects both the dealership's and the buyer's interests and lays the foundation for the subsequent steps in the purchasing process. The other options, while important in their own contexts, do not specifically address the immediate requirement following the receipt of cash and the formal acknowledgment of that receipt by both parties.