Ace the California Real Estate Exam 2026 – Unlock Your Dream Career Today!

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.