Principles, Property, and Land Use Practice Question

Question

A license applicant is reviewing a practice scenario for the North Carolina Real Estate Broker Exam involving cost approach and material facts and due diligence practice. Which statement is most accurate for exam purposes? (Item 57)

Answer choices

1. A. Combine land value with replacement cost less depreciation in a way that fits North Carolina exam practice.
2. B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
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

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

Explanation

The correct answer is A because cost approach requires candidates to combine land value with replacement cost less depreciation. The North Carolina 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

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