Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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How should a sale of a highly similar property between relatives be viewed for market comparisons?

The price might reflect an inaccurate market value
Family sales are ideal comparables
Family sales must always reflect market rates
Such transactions are not legally valid
These sales are accurate market reflections
Must be considered as standard market transactions

The correct answer is: The price might reflect an inaccurate market value

When a sale of a highly similar property between relatives occurs, it is important to view it with caution when using it for market comparisons. This is because the price paid in a family sale may not necessarily reflect the true market value of the property due to the relationship between the buyer and seller. There could be emotional or financial considerations involved in the transaction that do not align with typical market conditions. Therefore, it is likely that the price paid in such a sale might not accurately represent the market value of the property. It is crucial to be mindful of these potential inaccuracies when using family sales as comparables in real estate transactions.