Valuation and Financing Practice Question
Question
A broker is supervising a transaction file involving sales comparison approach. Which response best protects the client and keeps the transaction compliant? (Item 3)
Answer choices
- A. It allows a salesperson to act independently of the responsible broker.
- B. It shifts all responsibility to escrow and eliminates the broker’s duties.
- C. Apply comparable sales adjustments to estimate residential value.
- D. It makes oral promises enforceable in every real estate transaction.
Correct Answer
C. Apply comparable sales adjustments to estimate residential value.
Explanation
The correct answer is C because sales comparison approach requires candidates to apply comparable sales adjustments to estimate residential value. 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: sales comparison approach