California Real Estate Practice Exam

Manufactured homes in California are considered real property under which condition?

1. When built with a permit

2. When placed on a foundation with proper documentation

3. When purchased through a licensed dealer

4. When they exceed a certain square footage

The correct answer is: When built with a permit

In California, manufactured homes are classified as real property primarily when they are placed on a permanent foundation and the proper documentation is secured. This involves obtaining the appropriate permits and ensuring that the home complies with local building codes and regulations. When a manufactured home is placed on a foundation, it often involves a process to convert it from personal property (which is the classification it most often holds) to real property. This transition is significant because it changes how the home is treated in regards to financing, taxation, and ownership rights. The correct focus on the foundation and documentation aspect represents a key legal and practical condition for a manufactured home to be deemed real property in this context, which is not solely dependent on the initial construction with a permit or any features like size or dealer affiliation.