Principles, Property, and Land Use Practice Question
Question
A supervising broker is reviewing a transaction file for the Michigan Real Estate Salesperson Exam involving sales comparison approach and agency and trust-money compliance. Which statement is the best answer? (Item 56)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Use comparable sales adjustments for residential valuation in a way that fits Michigan exam practice.
Correct Answer
D. Use comparable sales adjustments for residential valuation in a way that fits Michigan exam practice.
Explanation
The correct answer is D because sales comparison approach requires candidates to use comparable sales adjustments for residential valuation. The Michigan 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