West Virginia Mortgage Law Practice Test

If an appraiser is employed whose main office is more than ____ miles in driving distance from the property to be appraised, the broker or lender must document the reasons why that appraiser was used:

1. 25

2. 50

3. 75

4. 100

The correct answer is: 25

In the context of mortgage law and appraisal standards, particularly in West Virginia, there are specific guidelines regarding the distance an appraiser can be from the property they are evaluating. When the appraiser's main office is more than 25 miles from the property in question, brokers or lenders are required to provide proper documentation explaining why that particular appraiser was chosen for the job. This regulation is in place to ensure that appraisals are conducted by professionals who are familiar with the local market conditions and property values. By mandating documentation when the appraiser is further away, it helps maintain the integrity and quality of the appraisal process. The requirement serves as a safeguard against potential bias or lack of familiarity with the area, ensuring that the appraiser has a valid reason for being engaged despite the distance. Understanding this threshold is important for compliance with state regulations and to ensure that all parties involved in the mortgage process are acting with due diligence and care.