New Jersey Real Estate Practice 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 purchase property, as it ensures the property's value meets the loan requirements 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 universally required; heirs may not need an appraisal for property distribution. Option D is also inaccurate; while appraisals can be helpful in divorce settlements, they are not mandatory for all property settlements. Thus, FHA loans specifically necessitate a certified appraisal.

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