Principles, Property, and Land Use Practice Question

Question

A supervising broker is reviewing a transaction file for the Oregon Real Estate Broker Exam involving income approach and broker supervision and disclosure practice. What should the licensee understand? (Item 98)

Answer choices

1. A. The issue can be ignored if the parties want to close quickly.
2. B. Use income and capitalization concepts for income-producing property in a way that fits Oregon exam practice.
3. C. The rule applies only to commercial transactions and never to residential transactions.
4. D. Client funds may be mixed with business funds if the broker reconciles the account later.

Correct Answer

B. Use income and capitalization concepts for income-producing property in a way that fits Oregon exam practice.

Explanation

The correct answer is B because income approach requires candidates to use income and capitalization concepts for income-producing property. The Oregon 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: medium
• Domain: Principles, Property, and Land Use
• Objective: income approach

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