A licensee who is taking a listing on a property find a number of problems that need to be fixed, such as several faucets and faulty electrical outlets. This would be an example of:
A. economic obsolescence
B. external obsolescence
C. functional obsolescence
D. curable depreciation
Answer: D. curable depreciation
Physical deterioration is a loss in value caused by wear and tear or by damage. The depreciation mentioned In the question would probably be classified as curable physical deterioration (deferred maintenance). Since it's likely that the cost of correcting the problems could be recovered in the sales price when the property is sold.
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A contract that is a promise for a promise is known as a:
a. voidable contract b. unilateral contract c. bilateral contract d. void contract
To place a For Sale sign on a listed property, a broker must first
A) list the property. B) obtain the written consent of the owner of the property. C) get permission from the neighbors. D) sell the property.