Question 60

A real estate licensee can prepare an appraisal for a lender when the licensee holds an appraiser license.

Only a licensed appraiser is qualified to prepare an appraisal for a lender, as this ensures the appraisal meets the required standards and regulations. Holding an appraiser license signifies that the individual has received the necessary training and certification to perform appraisals.

A) If the appraisal is identified as a comparative market analysis

This option is incorrect because a comparative market analysis (CMA) is not the same as a formal appraisal. While a CMA can provide valuable insights for pricing properties, it does not hold the same legal and regulatory weight as an appraisal performed by a licensed appraiser.

B) As long as the appraisal is done before an offer to purchase is accepted by the seller

This option is misleading and incorrect. The timing of the appraisal in relation to the acceptance of an offer does not exempt a licensee from needing the appropriate appraiser license to perform the appraisal. Without the license, the appraisal would still be considered invalid.

C) With proper disclosure to the lender about the licensee's qualifications

This option is incorrect because disclosing qualifications does not substitute for the necessary appraiser license. A real estate licensee must possess an appraiser license to legally prepare an appraisal for a lender, regardless of any disclosures made.

D) When the licensee holds an appraiser license

This option is correct. Only those who have obtained an appraiser license are authorized to prepare appraisals for lenders, ensuring compliance with legal standards and protecting the interests of all parties involved in the transaction.

Conclusion

The correct answer is D, as it emphasizes the importance of having an appraiser license for preparing appraisals for lenders. Options A, B, and C fail to recognize the legal requirements necessary for appraisals, which exist to maintain industry standards and protect consumers. Therefore, only a licensed appraiser can provide the necessary services to lenders in this context.