Real Estate Principles Practice Question

Question

A seller is preparing to list a residential property in a Florida real estate transaction involving appraisal approaches. Which response best applies the rule? (Item 272)

Answer choices

1. A. A verbal understanding always replaces any written requirement in a real estate transaction.
2. B. The licensee should avoid documenting the issue to reduce the chance of later questions.
3. C. A licensee may give legal conclusions instead of recommending qualified legal advice when the issue is uncertain.
4. D. Distinguish sales comparison, cost, and income approaches.

Correct Answer

D. Distinguish sales comparison, cost, and income approaches.

Explanation

The correct answer is D because appraisal approaches requires candidates to distinguish sales comparison, cost, and income approaches. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.

Question details

• Difficulty: hard
• Domain: Real Estate Principles
• Objective: appraisal approaches

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