Which of these transactions must comply with Appraiser Independence Requirements?

The requirement for Appraiser Independence primarily applies to transactions that involve federally related mortgage loans. This is essential to ensure that the integrity of the appraisal process remains intact and is not influenced by parties with a vested interest in the transaction.

In the case of a four-unit residence being purchased with a conventional loan, this transaction typically involves a federally related mortgage, which triggers compliance with the Appraiser Independence Requirements. These requirements establish that the appraiser must operate free from undue influence and ensure that the valuation is based solely on the property’s characteristics and market conditions.

Other transactions, such as purchasing a single-family home with a cash offer, selling a luxury property through an auction, or buying a condominium under a government program, may not fall under the same scrutiny or federal guidelines regarding appraisal independence. These scenarios do not necessarily involve a conventional loan, which means they may not be subject to the same regulatory requirements aimed at maintaining the objectivity of appraisals in transactions involving federally regulated mortgage insurance or government-backed loans.