Ace the California Real Estate Exam 2025 – Your Key to Property Success!

The correct choice regarding "economic obsolescence" pertains to external factors that affect the value of a property, rather than physical deterioration or outdated features within the property itself. Legislative acts can have significant impacts on property values, such as zoning changes, environmental regulations, or taxation laws which may influence the desirability or usefulness of a property. These external forces can lead to a decrease in property value, as they are often beyond the control of the property owner.

In contrast, the other options presented are related to physical aspects of a property or its direct condition. Massive cornices, outdated fixtures, and worn-out stairs are all examples of physical obsolescence or functional obsolescence, as they pertain to the property's age, wear, or design rather than external economic factors. Economic obsolescence, therefore, specifically refers to influences outside the property that can impact its market value negatively.