California Real Estate Practice Exam

Which of the following may value real estate for a federally related loan transaction?

1. Certified Public Accountants

2. Chartered Evaluators

3. Licensed or Certified Real Estate Appraisers

4. Real Estate Brokers

The correct answer is: Certified Public Accountants

In the context of federally related loan transactions, the only professionals authorized to perform a valuation of real estate are licensed or certified real estate appraisers. These appraisers must comply with standards set by federal regulations, ensuring that valuations are performed with a high level of professionalism and accuracy. Certified Public Accountants and Chartered Evaluators do not hold the necessary credentials specific to real estate valuation under federal guidelines, so they are not recognized as qualified to appraise property for mortgage purposes. Real Estate Brokers may have knowledge of property values and market trends, but they are also not authorized to conduct appraisals unless they obtain additional certification specifically for that purpose. Therefore, the role of licensed or certified real estate appraisers is crucial in federally related loan transactions, as their evaluations provide the objective and reliable property assessments needed for lenders to make informed decisions.