California Real Estate Practice Exam

Under the Manufactured Home Act, which of the following would NOT be grounds for disciplinary action?

1. Agent advertises new manufactured home as used, since he can only work with units that have been registered with DRE for at least one year

2. Agent fails to withdraw advertising on unit within 48 hrs. after receipt of notice of its sale

3. Agent represents that the manufactured home is capable of being operated as a vehicle on California roads, if the unit does not meet all applicable equipment requirements for such operation

4. None of the above

The correct answer is: Agent advertises new manufactured home as used, since he can only work with units that have been registered with DRE for at least one year

The correct response regarding what does not constitute grounds for disciplinary action under the Manufactured Home Act is that an agent advertises a new manufactured home as used, assuming he is limited to working with units registered with the Department of Real Estate (DRE) for at least one year. This action could stem from a misunderstanding or misrepresentation of the regulations regarding manufactured homes but might not inherently reflect dishonesty or unethical behavior. The key aspect is that the agent's attempt to comply with the limitation of only working with registered units does not directly violate any specific rule of conduct that would warrant disciplinary action. In contrast, failing to withdraw advertising after a unit is sold or misrepresenting the operational capabilities of a manufactured home both run the risk of misleading consumers or violating regulatory standards. Such actions could result in disciplinary measures because they directly impact customer trust and the integrity of the real estate practice. Thus, the agent's advertising of a new home as used is a misstep but not one that typically triggers disciplinary consequences, unlike the other scenarios presented.