Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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!

Practice this question and more.

What determines a property's 'highest and best use'?

Its size and layout
Its location and price
Legal permissibility, profitability, and productivity
Its age and condition

The correct answer is: Legal permissibility, profitability, and productivity

Profitability and productivity play a key role in determining a property's 'highest and best use' because it takes into account not just physical characteristics, but also the potential value and income that the property can generate. Size, layout, location, price, age, and condition are also important factors to consider, but they are not the only determining factors. Legal permissibility is essential as well, as a property's use must comply with local zoning laws and regulations. Therefore, C is the most comprehensive and accurate choice. A, B, and D do not fully capture the complexity and importance of all the factors that go into determining a property's highest and best use.