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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What term best describes the added value when two lots, each valued at $50,000, are combined to have a value of $125,000?

Plottage
Aggregation
Consolidation
Amalgamation

The correct answer is: Plottage

Plottage is the term that describes added value when two or more parcels of land are combined to have a higher overall value than their individual values. In this scenario, combining two parcels valued at $50,000 each results in a total value of $125,000, making plottage the most appropriate term. Aggregation may be confused with plottage, but it actually refers to the act of bringing together multiple items or sources of data. In this context, it would not accurately describe the added value resulting from combining the two parcels of land. Consolidation typically refers to the merging of two or more businesses or organizations, and does not apply to the situation described in the question. Amalgamation means the combination of two or more entities into a new, unified entity, and would not accurately describe the added value resulting from combining the land parcels.