An Ontario lender needs a formal appraisal before approving a buyer's mortgage. Who would the lender typically require to prepare it?
Correct Answer
C) An AIC-designated appraiser (AACI or CRA)
Lenders set their own appraisal requirements and typically require a designated professional appraiser, such as an Appraisal Institute of Canada AACI or CRA. TRESA and its regulations do not deal with appraisals at all, so RECO registration, as a salesperson or a broker, does not qualify someone to prepare a lender's appraisal.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Valuation Question
Background Knowledge for Property Valuation
Real World Application in Property Valuation
Common Mistakes to Avoid on Property Valuation Questions
Key Terms
More Property Valuation Questions
When preparing a market analysis for a BC strata unit, which item best shows the major repair and replacement costs the building is likely to face?
A buyer relocating from Toronto is budgeting for closing costs on an Alberta home and asks about land transfer tax. Which statement is correct for an Alberta purchase?
An appraiser is valuing a 15-unit apartment building. The building generates $180,000 in annual rental income with operating expenses of $60,000. If the capitalization rate for similar properties is 8%, what is the estimated value using the income approach?
An appraiser is using the cost approach to value a custom-built heritage home. The reproduction cost new is estimated at $850,000, the land value is $300,000, and total depreciation is calculated at $180,000. What is the property's estimated value using this approach?
In Ontario, what is the key difference between an appraisal and a Comparative Market Analysis (CMA)?
- → What is the primary purpose of a Comparative Market Analysis (CMA) in Ontario real estate?
- → A qualifying first-time buyer purchases an $800,000 home in Toronto, so both the provincial Land Transfer Tax and the Toronto Municipal Land Transfer Tax apply. After the maximum first-time buyer rebates, what does the buyer owe?
- → When conducting a CMA, which properties should be given the MOST weight as comparables?
- → An income-producing property generates $120,000 in annual rental income and has operating expenses of $45,000. If investors in this market expect a 7% capitalization rate, what is the indicated value using the income approach?
- → In Ontario, how does the Land Transfer Tax affect property valuation considerations?
- → Which factor would have the LEAST direct impact on a residential property's market value?
- → What is the primary purpose of the comparison approach in property valuation?
- → Which appraisal method is most appropriate when valuing a unique heritage property with no comparable recent sales?
- → In conducting a Comparative Market Analysis (CMA), which property characteristic typically has the greatest impact on value adjustments?
- → When using the income approach to value a rental property, what does the capitalization rate represent?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions
Related Study Resources
Helpful Resources
Previous Question
Under Ontario's Land Titles system, how does title insurance affect property valuation and market confidence?
Next Question
An Ontario salesperson gives a seller client a CMA to help set the list price. Which obligation under the TRESA Code of Ethics (O. Reg. 365/22) most directly applies to the CMA?