A buyer's lender asks for a formal appraisal of an Ontario home before approving the mortgage. Which statement about who may prepare it is accurate?
Correct Answer
D) A professional appraiser the lender accepts; TRESA is silent
TRESA and its regulations contain no rules on appraisals, so registration with RECO gives no authority to prepare one. The lender decides whose appraisal it will rely on and typically requires a designated professional appraiser, such as an Appraisal Institute of Canada AACI or CRA.
Why This Is the Correct Answer
This is correct because nothing in TRESA or its regulations governs appraisals, and the lender sets the standard for any appraisal it will rely on. In practice lenders require a designated professional appraiser, such as an AIC AACI or CRA.
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In British Columbia, a professional appraiser prepares a formal market value appraisal for a mortgage lender. How does the licensing regime under the Real Estate Services Act treat the appraiser?
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