Which government power allows property to be taken for public use if legal requirements are met and just compensation is paid?
A. Police power
B. Escheat
C. Taxation
D. Eminent domain
Source: Cornell Legal Information Institute — U.S. Constitution, Fifth Amendment, text prohibiting a taking for public use without just compensation; https://www.law.cornell.edu/constitution/fifth_amendment
An agent learns a fact that could materially affect the principal's decision in a transaction. Under basic agency principles, what should the agent do?
A. Keep the fact private unless the other party asks directly
B. Share it only after closing
C. Decide personally whether the principal would care
D. Disclose the material information to the principal promptly
Source: National Association of REALTORS® — 'Fiduciary Duties,' headings 'Loyalty,' 'Confidentiality,' 'Disclosure,' 'Obedience,' 'Reasonable Care and Diligence,' and 'Accounting'; https://www.nar.realtor/sites/default/files/handouts-and-brochures/2014/nar-fiduciary-duty-032213.pdf?mod=article_inline
A listing agent represents the seller, not the buyer. Which duty does the agent still owe to the buyer as a non-client?
A. A fiduciary duty to put the buyer's interests ahead of the seller's
B. A duty to guarantee the buyer gets the lowest possible price
C. A duty to treat the buyer honestly and avoid material misrepresentation
D. A duty to disclose the seller's confidential bottom-line price
Source: National Association of REALTORS® Code of Ethics — Article 2, obligation not to exaggerate, misrepresent, or conceal pertinent facts; https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/2026-code-of-ethics-standards-of-practice
Which valuation approach is most directly based on comparing a subject property with similar properties that recently sold?
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Depreciation-only approach
Source: Fannie Mae Selling Guide — B4-1.3-07, heading 'Overview,' sales comparison and factors affecting value; https://selling-guide.fanniemae.com/sel/b4-1.3-07/sales-comparison-approach-section-appraisal-report
The income approach is generally most useful when valuing which type of property?
A. A property primarily purchased for its ability to produce rental income
B. A vacant residential lot with no income history and no projected rent
C. A newly built owner-occupied house with no rental market comparison
D. A family heirloom with sentimental rather than market value
Source: Fannie Mae Selling Guide — B4-1.3-10, headings 'Cost Approach to Value' and 'Income Approach to Value'; https://selling-guide.fanniemae.com/sel/b4-1.3-10/cost-and-income-approach-value
