CRPA Tax, Legal, & Financial Considerations 4

Question 1

Which ERC-recommended appraisal practice helps ensure consistency when two appraisers produce divergent value opinions on a relocation property?

Accepted Answer

Conducting a field review appraisal to reconcile differences

Answer

A field review appraisal examines the subject property and both original appraisals to identify errors and reconcile significant value discrepancies.

Question 2

For federal income tax purposes, points paid by an employer on behalf of a relocating employee to obtain a mortgage on the new home are generally:

Accepted Answer

Taxable income to the employee in the year received

Answer

Points paid by an employer on the employee's behalf constitute additional compensation and are included in the employee's taxable income.

Question 3

A 'homesale loss protection' policy in a corporate relocation program is designed to reimburse employees for:

Accepted Answer

The difference between original purchase price and net sale proceeds

Answer

Homesale loss protection covers the gap when an employee must sell at a price below what they originally paid, protecting against market depreciation.

Question 4

Under RESPA, which disclosure must be provided to a borrower within three business days of loan application?

Accepted Answer

Loan Estimate

Answer

RESPA as amended by TRID requires lenders to provide the Loan Estimate within three business days of receiving a completed loan application.

Question 5

A relocation appraiser who also acts as a buyer's agent in purchasing the subject property would violate which principle?

Accepted Answer

Independence and impartiality required by USPAP Ethics Rule

Answer

USPAP's Ethics Rule prohibits an appraiser from having a financial interest in the outcome of an appraisal, and acting as a buyer's agent creates an obvious conflict.

(CRPA) Certified Relocation Professional Appraiser Practice Test

(CRPA) Certified Relocation Professional Appraiser Practice Test

CRPA Tax, Legal, & Financial Considerations 4