AIC Canada CRA Sample Questions

Canadian Residential Appraiser (CRA) preparation should emphasize supported valuation reasoning, not just appraisal terminology. The strongest answers usually connect property facts, market evidence, adjustment logic, reporting support, and professional independence.

Sample Exam Questions

Try these 12 original CRA sample questions. They are not official Appraisal Institute of Canada questions.

Question 1

Topic: Comparable sales

An appraiser uses a sale from a different neighbourhood because it is recent, but ignores three older sales from the subject’s immediate area. What is the main concern?

• A. Recency automatically outweighs location
• B. The appraiser should explain why the selected comparable is more relevant than nearby market evidence
• C. Older sales can never be used
• D. Neighbourhood is irrelevant in residential appraisal

Best answer: B

Explanation: Comparable selection requires judgment and support. Recency matters, but location and market similarity often matter too. The report should explain the choice.

Question 2

Topic: Highest and best use

What does highest and best use analysis help determine?

• A. The physically possible, legally permissible, financially feasible, and maximally productive use
• B. The owner’s preferred renovation
• C. The lender’s desired value
• D. The highest sale price ever recorded nearby

Best answer: A

Explanation: Highest and best use is a disciplined test. It is not a wish list or target value.

Question 3

Topic: Adjustment support

An appraiser adjusts a comparable upward for a finished basement. What should support the adjustment?

• A. Market evidence or reasoned analysis showing the feature’s contribution to value
• B. The appraiser’s personal preference only
• C. The homeowner’s renovation cost alone
• D. No support if the adjustment is small

Best answer: A

Explanation: Adjustments should be supportable. Cost can inform analysis but may not equal market value contribution.

Question 4

Topic: Report clarity

Why should an appraisal report describe assumptions and limiting conditions?

• A. To help intended users understand the basis and limits of the opinion
• B. To hide weak evidence
• C. To guarantee market value
• D. To remove professional responsibility

Best answer: A

Explanation: Clear assumptions and limits help users interpret the opinion appropriately. They do not excuse unsupported work.

Question 5

Topic: Market value

Which factor is most relevant to a market value opinion?

• A. Typical market participant behavior under the stated definition of value
• B. The owner’s sentimental value
• C. A value needed to approve the loan
• D. A tax assessment from any year without analysis

Best answer: A

Explanation: Market value focuses on the defined market and typical participants. Sentimental or target values are not appraisal evidence by themselves.

Question 6

Topic: Independence

A lender pressures the appraiser to “meet the purchase price” before seeing the report. What should the appraiser do?

• A. Maintain independence and complete the assignment based on evidence
• B. Adjust the opinion to satisfy the lender
• C. Ask the borrower to choose the value
• D. Delete contrary comparable sales

Best answer: A

Explanation: Appraisal credibility depends on independence and support. Pressure to hit a target value should not drive the opinion.

Question 7

Topic: Property inspection

What is the risk of relying on incomplete property information?

• A. Material features or conditions may be missed, weakening the valuation support
• B. Incomplete information always increases value
• C. It makes comparable analysis unnecessary
• D. It removes the need for assumptions

Best answer: A

Explanation: Appraisers need adequate information for the scope of work. Missing property facts can affect comparability and value.

Question 8

Topic: Time adjustment

When might a time adjustment be needed?

• A. When market conditions changed between the comparable sale date and effective date
• B. Whenever the appraiser wants a higher value
• C. Only when the sale is in another province
• D. Never, because sale dates do not matter

Best answer: A

Explanation: Time adjustments address market movement. They should be based on market evidence, not a desired conclusion.

Question 9

Topic: Functional utility

A house has an unusual layout that buyers in the market generally discount. What should the appraiser consider?

• A. Functional utility and market reaction to the layout
• B. Only the number of bedrooms
• C. The owner’s opinion that the layout is unique
• D. Ignoring the issue if square footage is high

Best answer: A

Explanation: Functional utility can affect value when market participants react to layout, design, or usability.

Question 10

Topic: Scope of work

Why does scope of work matter?

• A. It defines the research and analysis needed for credible results
• B. It lets the appraiser skip all analysis
• C. It is unrelated to intended use
• D. It guarantees a specific value

Best answer: A

Explanation: Scope of work should fit the problem, intended use, users, property, and assignment conditions.

Question 11

Topic: Reconciliation

What is reconciliation in an appraisal?

• A. Weighing the indications and evidence to reach a supported final opinion
• B. Averaging all comparables mechanically
• C. Selecting the highest possible value
• D. Ignoring inconsistent data

Best answer: A

Explanation: Reconciliation is reasoned weighting, not mechanical averaging or value targeting.

Question 12

Topic: Intended use

Why should intended use be clear?

• A. It helps determine scope, reporting, and what analysis is necessary
• B. It always changes the property rights appraised
• C. It lets any user rely on the report for any purpose
• D. It removes the need for intended users

Best answer: A

Explanation: Intended use shapes the appraisal problem and reporting needs. A report prepared for one purpose may not be appropriate for another.

Related pages

• AIC Canada AACI
• Appraisal and USPAP hub
• Real estate and mortgage pages