Michigan Real Estate Exam Practice Question
An appraisal by a certified appraiser is required:
Correct Answer: C
Rationale: An appraisal by a certified appraiser is essential when the buyer is using an FHA loan, as the FHA requires this to ensure the property's value meets the loan amount.
Option A is incorrect; while appraisals are common in property transfers, they are not universally required for all transactions. Option B is also incorrect; heirs may not need an appraisal to receive property, especially if it’s inherited. Option D is misleading; while appraisals can be useful in divorce settlements, they are not a mandatory requirement before property settlement. Thus, the FHA loan stipulation stands out as the key scenario necessitating an appraisal.
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