Principles, Property, and Land Use Practice Question

Question

A license applicant is reviewing a practice scenario for the Utah Real Estate Sales Agent Exam involving cost approach and Utah Division of Real Estate. Which statement is most accurate for exam purposes? (Item 17)

Answer choices

1. A. Combine land value with replacement cost less depreciation in a way that fits Utah exam practice.
2. B. A verbal understanding always replaces a written real estate requirement.
3. C. The safest practice is to avoid written documentation so fewer questions are raised later.
4. D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.

Correct Answer

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

Explanation

The correct answer is A because cost approach requires candidates to combine land value with replacement cost less depreciation. 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: easy
• Domain: Principles, Property, and Land Use
• Objective: cost approach

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