Property Ownership and Land Use Practice Question

Question

An escrow officer requests clarification from the broker involving property taxation. Which statement best describes property taxation? (Item 74)

Answer choices

1. A. It shifts all responsibility to escrow and eliminates the broker’s duties.
2. B. Recognize property tax as an exercise of the government power to tax.
3. C. It makes oral promises enforceable in every real estate transaction.
4. D. It is optional whenever both parties verbally agree to proceed.

Correct Answer

B. Recognize property tax as an exercise of the government power to tax.

Explanation

The correct answer is B because property taxation requires candidates to recognize property tax as an exercise of the government power to tax. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.

Question details

• Difficulty: medium
• Domain: Property Ownership and Land Use
• Objective: property taxation

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