Under what condition can a real estate licensee perform an appraisal without being a state certified appraiser?

A real estate licensee can perform an appraisal without being a state certified appraiser when the valuation is not used in a federally related transaction. This stems from the regulatory framework governing real estate and appraisal practices. Federally related transactions involve specific rules that require appraisals to be conducted by state-certified appraisers to safeguard the integrity of the appraisal process in financial transactions backed by federal funding.

When an appraisal is not for a federally related transaction, the real estate licensee can provide a valuation based on their knowledge and expertise in the field. This flexibility allows for more accessible and quicker assessments in contexts like private sales or local transactions where federal regulations do not necessitate certification.

In contrast, conditions based on transactions that are federally related or exceed monetary thresholds introduce stricter regulations, reinforcing the need for certified appraisers to ensure quality and compliance with federal standards. Therefore, the fundamental focus is on the applicability of federal regulations to specific transactions, permitting real estate licensees to operate within certain boundaries where certification is not mandated.