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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Why might a sale between family members not be used as a comparable for market value assessment?

The sale may reflect an inaccurate market price
Sales between family members must be at market value
Family sales are always at arm's length
Such sales are not legally recognized transactions
These transactions are typically market-valid
Such sales ensure accurate price estimation

The correct answer is: The sale may reflect an inaccurate market price

Sales between family members may not be used as a comparable for market value assessment because the sale may reflect an inaccurate market price. Transactions between family members could involve special circumstances or motivations that do not accurately represent the true market value of the property. The prices may be influenced by emotional ties or external factors that do not align with typical market conditions. This can skew the comparables and lead to inaccurate assessments of the property's value. On the other hand, options B, C, D, E, and F are incorrect because sales between family members are not always at market value, they are not always at arm's length, they are generally recognized as legal transactions, not always market-valid, and they do not always ensure accurate price estimation.