Valuation and Financing Practice Question
Question
An escrow officer requests clarification from the broker involving market value. Which response best protects the client and keeps the transaction compliant? (Item 121)
Answer choices
- A. Identify market value as the most probable price under normal conditions.
- B. It is optional whenever both parties verbally agree to proceed.
- C. It allows a salesperson to act independently of the responsible broker.
- D. It shifts all responsibility to escrow and eliminates the broker’s duties.
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