Valuation and Financing Practice Question
Question
A broker is supervising a transaction file involving market value. Which response best protects the client and keeps the transaction compliant? (Item 41)
Answer choices
- A. Identify market value as the most probable price under normal conditions.
- B. It is controlled only by local custom rather than by law, contract, or professional duty.
- C. It is valid only when the buyer pays cash and no lender is involved.
- D. It prevents any later disclosure, even when new facts become known.
Correct Answer
A. Identify market value as the most probable price under normal conditions.
Explanation
The correct answer is A because market value requires candidates to identify market value as the most probable price under normal conditions. 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: easy
- Domain: Valuation and Financing
- Objective: market value