Manufactured Housing Practice Test

When can funds be disbursed from an escrow account during the installation of a manufactured home?

1. Once the dealer finishes the installation

2. After the installation complies with escrow instructions

3. After delivery to the proper site

4. Upon completion and inspection acceptance

The correct answer is: Upon completion and inspection acceptance

Funds can be disbursed from an escrow account upon completion and inspection acceptance because this ensures that the installation process has not only been completed but also meets the stipulated requirements and standards set forth in the escrow agreement. This condition protects both the buyer and the seller by ensuring that the installation is satisfactory before any funds are released. When the installation is fully completed, an inspection is typically required to verify that everything has been executed correctly, following all local codes and regulations. This protects the interests of those involved in the transaction, ensuring that the manufactured home is safely and correctly installed before the transfer of funds takes place. The other choices do not provide the necessary safeguarding measures. Simply finishing the installation or delivering to the site does not guarantee that the installation has been done well or that it follows the relevant guidelines. While escrow instructions can be important, disbursing funds specifically after a thorough inspection offers a more robust layer of protection by confirming compliance with all necessary standards.