[jeffcumbee]

Under 323.3(a) it lists 12 exemptions from getting an appraisal from a certified or licensed appraiser. My question is, does the $250,000 exemption [323.3(a)(1)] apply to any transaction, not just a consumer transaction? If so, this means that a rental property transaction, under $250K, would not require a certified appraisal but we could get an evaluation as required under 323.3(b).

Topic

[rcooper]

Yes, the rules will apply to a real estate-related transaction, unless one of the exceptions apply.
A real estate-related financial transaction means any transaction involving:
(1) The sale, lease, purchase, investment in or exchange of real property, including interests in property, or the financing thereof; or
(2) The refinancing of real property or interests in real property; or
(3) The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.

Here is a link to the exceptions: https://www.law.cornell.edu/cfr/text/12/323.3

[jeffcumbee]

Thanks Robin! We are having some confusion based on the exception(s) in 323.3 (a)(5) and 323.3 (a)(1), for a business loan. If it is a business loan under $250,000 are we covered under (a)(1) without regard to (a)(5)? Do these exemptions stand alone?

[rcooper]

Correct. If it is a loan with a transaction value of $250,000 or less you can utilize an evaluation. The business loan exemption allows for certain higher dollar business transactions that don’t rely on the sale of real estate or rental income to repay the loan to utilize an evaluation.

[Author]

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