California Real Estate Practice Exam

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Which of the following best describes a ‘turn-key’ project in real estate?

A project that is ready for immediate occupancy
A project that needs minor construction
A project that requires major renovations
A project that has been foreclosed

The correct answer is: A project that is ready for immediate occupancy

A ‘turn-key’ project in real estate refers to a property that is ready for immediate occupancy. This means that all necessary work has been completed, and the buyer can move in without needing to undertake any renovations or repairs. Essentially, it is a hassle-free situation for the buyer, as they are able to enjoy the property right away without additional investment of time or resources. In contrast, options that involve properties needing either minor or major renovations do not meet the definition of turn-key. These projects require further work before occupancy, meaning the buyer would need to put in effort and possibly significant capital to make the property livable or market-ready. A project that has been foreclosed typically refers to a property that is in a state of distress, often requiring extensive work or investment to restore it, which also does not align with the turn-key concept.