Principles, Property, and Land Use Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Indiana Real Estate Broker Exam involving market value and Indiana Real Estate Commission. Which response best applies the rule? (Item 75)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Identify the probable price under normal market conditions in a way that fits Indiana exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Identify the probable price under normal market conditions in a way that fits Indiana exam practice.
Explanation
The correct answer is C because market value requires candidates to identify the probable price under normal market conditions. The Indiana 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: market value