Which of the following situations would be classified as a psychologically affected property?

Prepare for the Indiana Real Estate Commission Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The classification of a property as psychologically affected stems from events or conditions that may impact a buyer's perception of the property, rather than its physical condition. In this context, a property previously used as a methamphetamine lab is indeed classified as psychologically affected because it carries a stigma associated with illegal drug production. This stigma can lead potential buyers to have concerns about safety, health risks, and the potential need for further remediation, despite any physical repairs that may have been completed after the lab was shut down.

Properties associated with more common issues, like mold remediation or minor repairs, typically do not carry the same level of psychological impact since they are not linked to significant criminal activity or social stigma. A new roof, while an improvement, similarly does not have any negative connotations that would psychologically affect a buyer's decision.

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