Question 97

No, real property appraisal is not an authorized activity for a real estate broker.

A real estate licensee cannot prepare an appraisal for a new loan on property that the broker has listed for sale, as this activity falls outside the authorized functions of a real estate broker.

A) Yes, if the appraisal is identified as a comparative market analysis.

While a comparative market analysis (CMA) may provide useful insights into property values, it is not equivalent to a formal appraisal. A CMA is generally not legally recognized as a formal appraisal and does not meet the regulatory standards required for appraisals, thus making this option incorrect.

B) Yes, if the appraisal is done before an offer to purchase is accepted by the seller.

The timing of the appraisal does not change the fact that a real estate broker is not authorized to conduct formal appraisals. Even if performed before an offer is accepted, the act of preparing an appraisal remains outside the broker's scope of practice, rendering this option inaccurate.

C) Yes, with proper disclosure to the lender about the broker's qualifications.

Disclosing qualifications does not grant a real estate broker the authority to conduct appraisals, as this activity requires specific licensing and credentials that brokers do not possess. Hence, this option is also incorrect.

D) No, real property appraisal is not an authorized activity for a real estate broker.

This statement accurately reflects the regulatory framework governing real estate practices. Appraisals are strictly regulated and must be performed by licensed appraisers, not real estate brokers, making this option the correct choice.

Conclusion

The correct answer is D, as it underscores the regulatory limitations placed on real estate brokers regarding appraisal activities. Options A, B, and C misinterpret the legal boundaries of a broker's role in the appraisal process, while D correctly identifies that real property appraisal is not permitted for licensed brokers.