Nova Scotia Real Estate Practice Exam 2025 – The Complete All-in-One Guide to Ace Your Licensing!

Question: 1 / 400

Which of the following is NOT one of the 4 Assumptions of Market Value?

Informed Buyer/Seller

Prudent Behavior

Legal Compliance

Legal compliance is indeed not one of the four assumptions of market value. In the context of real estate valuation, the four primary assumptions are that there is an informed buyer and seller, prudent behavior by both parties, the transaction occurs within a reasonable time frame, and the property is exposed to the market under normal conditions.

While legal compliance is certainly an important factor in real estate transactions (ensuring that the property meets zoning laws, building codes, and other regulations), it does not directly pertain to the assumptions that define how market value is determined. The focus of the assumptions is on the behavior and conditions surrounding the transaction itself, rather than the legal status of the property. Thus, this makes legal compliance distinct from the foundational concepts that guide market value assessments.

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Reasonable Time

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