Practice of Real Estate Practice Questions

Which of the following is an example of functional obsolescence?

Functional obsolescence is a loss in value from outdated design or features WITHIN the property (poor layout, one bathroom, no closets). Peeling paint is physical deterioration; a factory next door is external obsolescence. Common trap: students confuse functional (internal design flaw) with external (outside influence) obsolescence.

A licensee should disclose their licensee status when:

A licensee must disclose their license status when dealing in real estate for their own account, so the other party knows they are dealing with a professional. Common trap: students think personal transactions exempt the licensee from disclosure; the status must still be revealed.

Which of the following is personal property?

Emblements — annual crops produced by labor (corn, wheat) — are treated as personal property even while attached to the land. Built-in appliances, timber, and pools are fixtures (real property). Common trap: students think anything attached to land is real property; emblements are an exception.