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An appraisal made by a certified appraiser is required

Rationale

An appraisal made by a certified appraiser is required when the buyer is using an FHA loan to purchase.

FHA loans typically mandate an appraisal to assess the property's value and ensure it meets specific standards for safety and livability. This requirement is designed to protect both the lender's investment and the borrower's financial interests.

A (before real property can transfer from one owner to another.) YOUR ANSWER

While appraisals can be helpful during property transfers, they are not universally required for all transactions. Many cash purchases or private sales do not necessitate an appraisal, as buyers and sellers may agree on a price without this formal assessment.

B (when heirs receive property.) YOUR ANSWER

When property is inherited, an appraisal is not typically required unless the heirs choose to sell the property or need to determine the value for estate tax purposes. This situation does not impose a legal requirement for a certified appraisal at the point of inheritance.

D (before any property settlement in a divorce.) YOUR ANSWER

Appraisals can assist in determining the fair market value of a property for division during a divorce, but they are not mandated by law. Couples can negotiate settlements without an official appraisal, relying instead on mutual agreement or other valuation methods.

Conclusion

An FHA loan specifically requires a certified appraisal to ensure that the property meets necessary standards and is appropriately valued. This requirement protects all parties involved in the transaction. While appraisals may be useful in other scenarios, such as property transfers, inheritances, or divorce settlements, they are not compulsory in those contexts. Understanding this distinction is crucial for buyers seeking FHA financing.

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