Principles, Property, and Land Use Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Utah Real Estate Sales Agent Exam involving sales comparison approach and Utah Division of Real Estate. Which statement is the best answer? (Item 76)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. Use comparable sales adjustments for residential valuation in a way that fits Utah exam practice.
Correct Answer
D. Use comparable sales adjustments for residential valuation in a way that fits Utah exam practice.
Explanation
The correct answer is D because sales comparison approach requires candidates to use comparable sales adjustments for residential valuation. The Utah 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: hard
- Domain: Principles, Property, and Land Use
- Objective: sales comparison approach