Manufactured Housing Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Manufactured Housing Exam with confidence. Utilize flashcards and multiple-choice questions with explanations to excel in your test. Get equipped to succeed!

Practice this question and more.

When can funds for an accessory be released from escrow?

When the accessory is installed
When the installation acceptance is issued
When escrow closes
During escrow providing construction is completed

The correct answer is: When the accessory is installed

Funds for an accessory can be released from escrow when the accessory is installed. This is because the installation of the accessory signifies that the work related to that item is complete and can be deemed satisfactory. Releasing funds at this point ensures that the buyer receives the accessory as agreed upon and that the seller or contractor is compensated for their work. The timing of the fund release is crucial in the escrow process, as it protects both the buyer and the seller by tying the payment to the completion of the installation. It ensures that funds are not prematurely released before the buyer receives the installed accessory, which could lead to disputes regarding the quality or completion of the work. This practice is in line with construction financing protocols, where payments are often tied to specific milestones in a project to ensure accountability and satisfaction with the work done.