Real Estate Principles Practice Question
Question
A buyer asks a licensee for an exam-focused explanation in a New York real estate transaction involving zoning and land use. Which answer best reduces transaction risk? (Item 30)
Answer choices
- A. The issue can be ignored if both parties want the transaction to close quickly.
- B. Apply public controls such as zoning, building codes, and land-use restrictions.
- C. The rule applies only to commercial property and never to residential property.
- D. The broker may mix client funds with business funds if the amount is small and later reconciled.
Correct Answer
B. Apply public controls such as zoning, building codes, and land-use restrictions.
Explanation
The correct answer is B because zoning and land use requires candidates to apply public controls such as zoning, building codes, and land-use restrictions. 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: medium
- Domain: Real Estate Principles
- Objective: zoning and land use