West Virginia Mortgage Law Practice Test

If an appraiser is employed whose main office is more than how many miles in driving distance from the property to be appraised, the broker or lender must document the reasons why that appraiser was used instead of one with a main office closer to the property?

1. 100

2. 150

3. 200

4. 50

The correct answer is: 100

The requirement for documentation when employing an appraiser whose main office is a certain distance away from the property being appraised is designed to ensure transparency and accountability in the appraisal process. This specific regulation helps maintain the integrity of the appraisal process by requiring brokers and lenders to justify their choice of appraiser when a significant distance separates the appraiser's location from the property. In West Virginia, if the appraiser's main office is more than 100 miles away, lenders and brokers are mandated to document the rationale for selecting that appraiser over one located closer to the property. The purpose of this stipulation is to mitigate the risks of potential bias or conflicts of interest that might arise due to the appraiser not being familiar with the local market conditions. By necessitating a documented reason for the distance selection, the law promotes fair market practices and enhances the reliability of the appraisal process. Understanding this regulation reinforces the importance of local expertise in appraisals and ensures that clients receive accurate and fair valuations for their properties.