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!

Practice this question and more.

Functional utility is best described as?

The cost to maintain a property
A measure of investment performance
Design features that meet market demand
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.