Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A property being evaluated has a 40-foot frontage, whereas a comparable property sold recently has a 45-foot frontage. If frontage requires a $5,000 per foot adjustment, what adjustment is necessary?

Minus adjustment of $5,000
Minus adjustment of $25,000
No adjustment needed for frontage differences.
Plus adjustment of $25,000

The correct answer is: Minus adjustment of $25,000

The correct answer is the minus adjustment of $25,000. In this scenario, the property being evaluated has a frontage of 40 feet, while the comparable property has a frontage of 45 feet. The difference between the two properties is 5 feet. Since the adjustment rate for frontage is $5,000 per foot, we need to multiply this rate by the difference in frontage between the two properties (5 feet), which results in a total adjustment of $25,000. This adjustment is necessary to account for the difference in frontage between the two properties being compared. Option A is incorrect because a minus adjustment of $5,000 does not take into account the full difference in frontage between the two properties. Option C is incorrect as an adjustment is necessary due to the difference in frontage. Option D is incorrect because the adjustment is a minus adjustment, not a plus adjustment, as the property being evaluated has less frontage compared to the comparable property.