Manufactured Housing Practice Test

Which of the following can the escrow instructions provide for?

1. Pro-ration of local property taxes

2. Payment of delinquent license fees

3. Payment of delinquent registration fees

4. All the above

The correct answer is: All the above

The correct answer encompasses all the options provided, meaning that escrow instructions can specify arrangements for various financial obligations related to a manufactured housing transaction. When it comes to pro-rating local property taxes, this means that the escrow can establish how property taxes will be allocated or split between the buyer and seller depending on the time of year the property is transferred. This is essential to ensure that both parties are responsible for their share of the taxes, preventing future disputes over property tax payments. In addition, the escrow instructions can include payments for delinquent license fees. This ensures that any fees related to the registration or operation of the manufactured home that have not been paid are settled as part of the transaction. This protects the buyer from assuming liabilities associated with the property that could have otherwise been overlooked. Lastly, the escrow can also facilitate the payment of delinquent registration fees. Like the previous fees mentioned, this ensures that any outstanding fees related to the registration of the manufactured home are cleared, providing peace of mind to the buyer regarding the status of the home's title and legal standing. Overall, the ability to include these various financial arrangements in the escrow instructions ensures a smooth transaction by addressing potential liabilities and ensuring that all costs are accounted for before the transfer of ownership occurs. This comprehensive