Property Valuation Basics Practice Questions

Question 1 of 5

A salesperson in Ottawa is asked to act as an expert appraiser in an Ontario expropriation case under the Expropriations Act. What is the correct response?

• AAccept the engagement and prepare a CMA labelled as an appraisal
• BDecline the engagement because salespersons are not licensed appraisers and refer the client to an AACI or CRA member of the Appraisal Institute of Canada
• CUse MPAC's notice as the formal appraisal value
• DAsk the broker of record to sign the CMA as an appraisal

Question 2 of 5

Highest and best use is best described as the use that is which of the following?

• AThe most expensive use the owner can imagine
• BLegally permissible, physically possible, financially feasible, and maximally productive
• CWhatever the current owner is doing with the property
• DThe use favoured by the listing salesperson

Question 3 of 5

MPAC's current value assessment is most accurately described as which of the following?

• AA current market appraisal updated each time the property is sold
• BA mass-appraisal-based estimate of value as of a legislated valuation date used to apportion property taxes
• CAn accurate replacement cost estimate of the building
• DA formal appraisal report acceptable to lenders for mortgage funding

Question 4 of 5

In which scenario is a third-party formal appraisal most commonly required?

• AA salesperson preparing a listing presentation in Markham
• BA homeowner deciding whether to repaint the kitchen
• CA lender funding a high-ratio mortgage on a property in Kitchener
• DA buyer asking a friend's opinion at an open house

Question 5 of 5

Which of the following is the best example of a governmental force influencing value?

• AInclusionary zoning bylaws requiring affordable units in new developments
• BPopulation growth in the GTA
• CRising household incomes in Halton Region
• DProximity to Lake Ontario shoreline