Tennessee Real Estate Exam Practice Question
The best description of covenants and conditions is
Correct Answer: B
Rationale: Covenants and conditions primarily relate to income capitalization, which involves evaluating the potential income generated by a property and the obligations tied to it. This approach assesses how these stipulations impact property value and investment returns.
Option A, cost, refers to the expenses associated with property development or acquisition, which does not encompass the concept of covenants and conditions.
Option C, market data, involves analyzing comparable sales and trends in the market, lacking the focus on contractual obligations.
Option D, sales comparison, assesses property value based on similar sales, but does not address the specific implications of covenants and conditions on income potential.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now