California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

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Functional utility is best described as?

  1. The cost to maintain a property

  2. A measure of investment performance

  3. Design features that meet market demand

  4. The ability to transfer ownership

The correct answer is: Design features that meet market demand

Functional utility is best described as design features that meet market demand. This means that the property or product has features that are appealing and in demand by the target market. Option A is incorrect because while maintenance costs may affect the overall value of a property, it is not the best description of functional utility. Option B is incorrect because while investment performance may be a result of having functional utility, it is not the best definition of it. Option D is incorrect because the ability to transfer ownership is not a defining characteristic of functional utility.

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