California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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Appraisers paid on the basis of a percentage of the value of a property are

Acting in accordance with appraisal standards
In violation of appraisal ethical standards
Demonstrating negligence
Working under a common appraisal practice

The correct answer is: In violation of appraisal ethical standards

Appraisers who are paid based on a percentage of the value of a property are in violation of appraisal ethical standards because it creates a conflict of interest. This practice may incentivize appraisers to deliberately inflate the value of the property in order to earn a higher commission, leading to inaccurate appraisals. Options A, C, and D are incorrect because they do not address the issue of ethical standards and instead focus on other aspects such as negligence or common practice. It is important for appraisers to adhere to ethical standards in order to maintain the integrity and accuracy of their appraisals.