Tennessee Real Estate License Exam Practice Question

An appraisal made by a certified appraiser is required

Correct Answer: C

Rationale: An appraisal by a certified appraiser is essential when a buyer is using an FHA loan to ensure the property meets minimum standards and value requirements set by the Federal Housing Administration.

Option A is incorrect; while appraisals are common in property transfers, they are not universally required for all transactions. Option B is misleading; heirs may not need an appraisal unless the property is being sold or taxed. Option D is also incorrect; while appraisals can be helpful in divorce settlements, they are not mandatory for all property divisions. Thus, FHA loans specifically necessitate a certified appraisal.

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