Tennessee Real Estate Exam Practice Question
An appraisal made by a certified appraiser is required
Correct Answer: C
Rationale: An appraisal is essential in option C, as FHA loans require a certified appraisal to ensure the property's value meets the loan criteria and protects both the lender and borrower.
Option A is incorrect because property transfers can occur without an appraisal, depending on the circumstances. Option B is not accurate since heirs may receive property without an appraisal, especially if it is part of an estate settlement. Lastly, option D is misleading; while appraisals can be helpful in divorce settlements, they are not mandated before property division. Thus, an FHA loan specifically necessitates an appraisal.
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