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.

What criteria must a use meet to be considered the highest and best use of a property?

Physically possible and aesthetically pleasing
Legally permissible, financially feasible, maximally productive
Environmentally friendly and sustainable
Publicly beneficial and profitable

The correct answer is: Legally permissible, financially feasible, maximally productive

The other options are incorrect because they do not meet all the necessary criteria for a property's highest and best use. Option A only addresses the physical and aesthetic aspects of a use, but does not take into account the legal and financial feasibility. Option C only focuses on the environmental and sustainability factors, while option D only considers the public benefit and profitability, but neglects the legal and financial considerations. Therefore, option B is the most comprehensive and accurate answer as it covers all the necessary elements for determining the highest and best use of a property.