Under California law, who is authorized to prepare a certified appraisal for federally related transactions?
Why A California-licensed or certified appraiser holding a credential issued by the Bureau of Real Estate Appraisers (BREA) Is Correct
Answer B: A California-licensed or certified appraiser holding a credential issued by the Bureau of Real Estate Appraisers (BREA)
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
People Also Study
Related California Questions
- Which federal law requires federally regulated lenders to use licensed or certified appraisers for most real estate transactions above a certain threshold?Property Valuation
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California real estate transactions?Finance
- What is the standard appraisal form used for a single-family residential property in a federally related mortgage transaction?Property Valuation
- Which California state agency is responsible for licensing and regulating real estate brokers and salespersons?DRE & Licensing
- Which California law requires sellers and agents to provide specific disclosures about property condition to buyers in residential transactions?Fair Housing
- Which appraisal approach is most commonly used for single-family homes?Property Valuation
- What is 'depreciation' in real estate appraisal?Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →