Humber/Ontario Real Estate Course 3 Exam Practice

Form report appraisals are often used for what purpose in real estate?

1. Completing appraisals for mortgage objectives

2. Conducting a detailed and complex appraisal

3. Fulfilling the requirements of the Appraisal Institute of Canada

4. Including all three approaches to value

5. Summarizing appraisal market data

6. Establishing neighborhood comparables

The correct answer is: Completing appraisals for mortgage objectives

Completing appraisals for mortgage objectives is a primary use of form report appraisals. These appraisals provide lenders with a standardized, efficient way to assess property value, which is crucial when deciding whether to approve a mortgage application. The format of these reports allows for quick analysis and comparison among properties, directly supporting the lending process and helping ensure that the loan amount aligns with the property's market value. In this context, other options focus on specific areas that may not pertain directly to the primary purpose of form report appraisals. While they have relevance in the broader spectrum of appraisals, these details are not the main focus when a lender requires a straightforward evaluation.