Real Estate Principles Practice Question

Question

A buyer and seller disagree about a closing issue in a New York real estate transaction involving appraisal approaches. Which statement is most accurate for exam purposes? (Item 20)

Answer choices

1. A. The salesperson may handle the matter independently without broker involvement when compensation is expected.
2. B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
3. C. The requirement matters only if the buyer uses lender financing.
4. D. Distinguish sales comparison, cost, and income approaches to value.

Correct Answer

D. Distinguish sales comparison, cost, and income approaches to value.

Explanation

The correct answer is D because appraisal approaches requires candidates to distinguish sales comparison, cost, and income approaches to value. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound New York exam practice.

Question details

• Difficulty: hard
• Domain: Real Estate Principles
• Objective: appraisal approaches

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