Principles, Property, and Land Use Practice Question

Question

A salesperson notices a possible compliance problem for the Georgia Real Estate Salesperson Exam involving income approach and community association and closing-attorney practice awareness. What should the licensee understand? (Item 178)

Answer choices

1. A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
2. B. Use income and capitalization concepts for income-producing property in a way that fits Georgia exam practice.
3. C. A verbal understanding always replaces a written real estate requirement.
4. D. The safest practice is to avoid written documentation so fewer questions are raised later.

Correct Answer

B. Use income and capitalization concepts for income-producing property in a way that fits Georgia exam practice.

Explanation

The correct answer is B because income approach requires candidates to use income and capitalization concepts for income-producing property. The Georgia reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.

Question details

• Difficulty: medium
• Domain: Principles, Property, and Land Use
• Objective: income approach

Practice more

Start Principles, Property, and Land Use practice

Back to Principles, Property, and Land Use