Which of the following best defines utility in terms of property valuation?

Utility, in terms of property valuation, refers to the performance of a property in serving its intended function. It reflects how well a property meets the needs or desires of those who use it, impacting its overall value. For example, a residential property that provides adequate space, comfort, and amenities is considered to have high utility for families looking for a home.

Valuation principles emphasize that a property’s worth is often correlated with how effectively it fulfills its purpose. This performance aspect encompasses various factors including location, design, and capacity to meet user expectations, all contributing to a property's desirability and market value.

The other options touch on concepts that, while relevant in real estate, do not capture the essence of utility as it relates to property valuation. Legal document accuracy, vacancy costs, and maintenance expenses are important, but they pertain to different aspects of property management, rather than the direct relationship between a property's functionality and its valuation.