Certified Residential Appraiser Practice Exam

Which of the following can be classified as public services affecting real estate?

1. Economic growth and job creation

2. Building codes and zoning regulations

3. Property owners' personal legal issues

4. Trade laws and international agreements

The correct answer is: Building codes and zoning regulations

Building codes and zoning regulations are fundamental aspects of public services that have a direct impact on real estate. These regulations are established by local governments to ensure the health, safety, and welfare of the community. Building codes set the minimum standards for construction quality, safety, and energy efficiency, protecting future occupants of the properties. Zoning regulations dictate how land can be used, including residential, commercial, and industrial purposes, which affects property values, the type of development that can occur, and the overall character of a neighborhood. In contrast, economic growth and job creation, while influential on real estate trends, do not constitute direct public services. Personal legal issues faced by property owners are individual matters, not public services that impact the real estate market as a whole. Trade laws and international agreements influence economic conditions, yet they are not inherently linked to the local public services that regulate real estate directly. Thus, building codes and zoning regulations stand out as the core public services that affect real estate.