In Ontario, what is the key difference between an appraisal and a Comparative Market Analysis (CMA)?
Correct Answer
B) Appraisals need certified appraisers and specific standards; agents can prepare CMAs
Appraisals must be conducted by certified appraisers following Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), while CMAs can be prepared by licensed real estate professionals. Appraisals are required for mortgage lending and legal purposes.
Why This Is the Correct Answer
Option B correctly identifies the core regulatory distinction in Ontario. Under provincial regulations and professional standards, only certified appraisers can conduct formal appraisals following CUSPAP guidelines. These appraisals are required for mortgage lending and legal purposes. Real estate professionals licensed under REBBA 2002 and TRESA can prepare CMAs as part of their professional services, but these are market analyses, not formal appraisals. This distinction ensures appropriate professional qualifications match the intended use and regulatory requirements of each type of property valuation.
Why the Other Options Are Wrong
Deep Analysis of This Property Valuation Question
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A first-time buyer who qualifies for both first-time buyer rebates purchases a $600,000 home in the City of Toronto. What is the combined land transfer tax payable after both rebates?
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Ontario has no statutory regulator for real estate appraisers. Which body sets the professional standards and disciplines most appraisers practising in Ontario?