Principles, Property, and Land Use Practice Question
Question
A supervising broker is reviewing a transaction file for the Illinois Real Estate Broker Exam involving sales comparison approach and Illinois broker licensing structure. Which statement is the best answer? (Item 196)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Client funds may be mixed with business funds if the broker reconciles the account later.
- C. The issue can be ignored if the parties want to close quickly.
- D. Use comparable sales adjustments for residential valuation in a way that fits Illinois exam practice.
Correct Answer
D. Use comparable sales adjustments for residential valuation in a way that fits Illinois exam practice.
Explanation
The correct answer is D because sales comparison approach requires candidates to use comparable sales adjustments for residential valuation. The Illinois 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: hard
- Domain: Principles, Property, and Land Use
- Objective: sales comparison approach