Principles, Property, and Land Use Practice Question

Question

A license applicant is reviewing a practice scenario for the Massachusetts Real Estate Salesperson Exam involving income approach and lead paint and consumer disclosure awareness. What should the licensee understand? (Item 58)

Answer choices

1. A. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
2. B. Use income and capitalization concepts for income-producing property in a way that fits Massachusetts exam practice.
3. C. The client’s preference eliminates the need to disclose known material facts.
4. D. The party who complains first automatically receives the remedy requested.

Correct Answer

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

Explanation

The correct answer is B because income approach requires candidates to use income and capitalization concepts for income-producing property. The Massachusetts 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

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