What must a dealer notify the Department about regarding an assumption of a loan?

The requirement for a dealer to notify the Department upon a loan assumption is grounded in the need for regulatory oversight and compliance. Choosing to notify the Department using prescribed forms of assumption before closing ensures that all parties are aware of the transaction and that it is processed in accordance with legal and regulatory standards.

This notice is important as it helps maintain transparency in financing practices and safeguards the interests of both the buyer and the lender. By notifying the Department before the closing of the transaction, the dealer is facilitating a smoother loan assumption process and adhering to the regulatory framework established for mobile and manufactured home transactions in California. This advance notification allows the Department to maintain accurate records and ensures that all necessary parties are adequately informed of the loan assumption status.

The other options represent practices that do not align with regulatory requirements. For instance, notifying only after the transaction completes could lead to complications if there are issues that arise during the transaction process. Stating that notification is not necessary undermines the importance of regulatory compliance. Additionally, waiting to notify once the loan is assumed may restrict the ability of the Department to oversee the transaction effectively. Thus, the need to notify upon prescribed forms of assumption before closing is vital for maintaining accountability and ensuring proper adherence to regulations.