Free Pennsylvania Real Estate Practice Exam Practice Question
When can a real estate licensee prepare an appraisal for a lender?
Correct Answer: D
Rationale: A real estate licensee can prepare an appraisal for a lender only when they hold an appraiser license. This ensures compliance with legal standards and guarantees that the appraisal meets the required qualifications for accuracy and reliability.
Option A is incorrect because a comparative market analysis (CMA) is not a formal appraisal and does not meet the lender's requirements. Option B is misleading; the timing of the appraisal does not affect the need for proper licensing. Option C, while emphasizing disclosure, does not address the fundamental requirement of having an appraiser license, which is essential for conducting appraisals for lenders.
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