Humber/Ontario Real Estate Course 4 Exam Practice

When analyzing a property's highest and best use, which factor is least likely to be considered?

1. Economic feasibility

2. Environmental sustainability

3. Legal permissibility

4. Seasonal trends in property use

The correct answer is: Seasonal trends in property use

The analysis of a property's highest and best use involves determining the most profitable, legally permissible, and sustainable use for that property. Among the factors usually considered, economic feasibility assesses whether a proposed use can generate sufficient financial return. Legal permissibility evaluates whether zoning and land-use regulations allow the intended use. Environmental sustainability looks at how the use affects and respects the ecosystem and natural resources. Seasonal trends in property use, while they can influence certain aspects of real estate decisions (especially in tourism or seasonal markets), are not core to the analysis of highest and best use. This analysis is more focused on the enduring and intrinsic attributes of a property rather than fluctuating seasonal demand. Therefore, this factor would be the least likely to be considered when determining a property's highest and best use.