CRPA Stakeholder Roles & Service Delivery 4 — Questions and Answers
Question 1: A corporate policy caps relocation home purchase assistance at a fixed dollar amount. The appraisal comes in above the cap. Whose responsibility is it to communicate the policy limitation to the transferee?
- The appraiser, in the appraisal report addendum
- The listing agent assigned by the RMC
- The relocation coordinator or counselor (Correct answer)
- The mortgage lender at loan application
Correct answer: The relocation coordinator or counselor
The relocation coordinator is responsible for explaining program benefit limits and caps to the transferee throughout the process.
Question 2: When a relocation appraiser signs a report, the appraiser is certifying that the opinion of value was NOT influenced by which of the following?
- The number of comparable sales available in the market
- Stipulated value requirements from the client or any other party (Correct answer)
- The square footage of the subject property
- The days-on-market trend in the subject's neighborhood
Correct answer: Stipulated value requirements from the client or any other party
USPAP certification requires the appraiser to attest that the value conclusion was not influenced by requests for a specific value from any party.
Question 3: Which of the following best characterizes the 'direct reimbursement' home sale program used in relocation?
- The employer buys the home directly from the transferee at the appraised value
- The employer reimburses the transferee for actual closing costs and losses after the transferee sells the home independently (Correct answer)
- The employer pays an outside buyer's agent commission directly to expedite sale
- The employer provides a bridge loan so the transferee can purchase before selling
Correct answer: The employer reimburses the transferee for actual closing costs and losses after the transferee sells the home independently
Under direct reimbursement, the transferee sells their own home on the open market and is then reimbursed for documented costs and losses.
Question 4: A relocation coordinator asks the appraiser to provide an 'anticipated sale price' rather than a formal appraisal. Under ERC standards, what is this assignment typically called?
- A broker price opinion (BPO)
- A listing price recommendation (LPR) (Correct answer)
- A restricted appraisal report
- A desk review
Correct answer: A listing price recommendation (LPR)
The ERC term for an informal price recommendation from a real estate professional is a Listing Price Recommendation (LPR), distinct from a formal appraisal.
Question 5: Which scenario most clearly represents a conflict of interest for a relocation appraiser?
- Appraising a property in a neighborhood where the appraiser has never worked before
- Appraising a property the appraiser previously appraised three years ago for an unrelated purpose
- Appraising a property owned by a family member of the appraiser's relative at the RMC (Correct answer)
- Appraising a property in a declining market without access to recent sales
Correct answer: Appraising a property owned by a family member of the appraiser's relative at the RMC
A familial connection between the appraiser and the property owner creates a direct conflict of interest that must be disclosed or avoided.
Question 6: When the RMC assigns a property management company to maintain a vacant transferee home prior to resale, which stakeholder bears primary responsibility for the property's condition?
- The original transferee remains fully liable as title holder
- The property management company under its service contract with the RMC (Correct answer)
- The corporate employer as the entity that initiated the relocation
- The listing real estate agent who holds the marketing contract
Correct answer: The property management company under its service contract with the RMC
Once the RMC engages a property management company, that firm bears contractual responsibility for maintenance and condition of the vacant property.
Question 7: Under the ERC appraisal guidelines, what is the significance of the 'most probable sale price' standard used in relocation appraisals?
- It produces a higher value than market value to protect the transferee
- It reflects the price most likely to result from a competitive and open marketing process within the forecasting period (Correct answer)
- It averages the two independent appraisal values to produce a neutral result
- It adjusts market value upward for corporate tax purposes
Correct answer: It reflects the price most likely to result from a competitive and open marketing process within the forecasting period
The most probable sale price standard identifies the price a property is most likely to actually sell for under normal market conditions within the defined period.
CRPA Stakeholder Roles & Service Delivery 4
A corporate policy caps relocation home purchase assistance at a fixed dollar amount.
The appraisal comes in above the cap.
Whose responsibility is it to communicate the policy limitation to the transferee?