Principles, Property, and Land Use Practice Question

Question

A closing coordinator flags an issue before settlement for the New Jersey Real Estate Salesperson Exam involving cost approach and New Jersey Real Estate Commission. Which statement is most accurate for exam purposes? (Item 77)

Answer choices

1. A. Combine land value with replacement cost less depreciation in a way that fits New Jersey exam practice.
2. B. The client’s preference eliminates the need to disclose known material facts.
3. C. The party who complains first automatically receives the remedy requested.
4. D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.

Correct Answer

A. Combine land value with replacement cost less depreciation in a way that fits New Jersey exam practice.

Explanation

The correct answer is A because cost approach requires candidates to combine land value with replacement cost less depreciation. The New Jersey 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: easy
• Domain: Principles, Property, and Land Use
• Objective: cost approach

Practice more

Start Principles, Property, and Land Use practice

Back to Principles, Property, and Land Use