A real estate associate, David, is approached by a friend, Mark, who wants to list his acreage property near Cochrane for sale. Mark asks David to prepare an appraisal report for the property to determine the listing price, as David has experience in commercial real estate valuation. David has not taken any specific appraisal courses and is not a designated appraiser. What should David do?

Question: A real estate associate, David, is approached by a friend, Mark, who wants to list his acreage property near Cochrane for sale. Mark asks David to prepare an appraisal report for the property to determine the listing price, as David has experience in commercial real estate valuation. David has not taken any specific appraisal courses and is not a designated appraiser. What should David do?

Answer options:

• Prepare the appraisal report, as his commercial real estate experience provides sufficient expertise. ✅ Decline to prepare the appraisal report and advise Mark to hire a qualified and licensed appraiser.
• Prepare a Comparative Market Analysis (CMA) instead, which is within the scope of a real estate associate's expertise.
• Agree to prepare the appraisal report but disclose to Mark that he is not a designated appraiser.

Correct answer: Decline to prepare the appraisal report and advise Mark to hire a qualified and licensed appraiser.

Explanation: Under the RECA Rules regarding acting within authority, a real estate associate must not perform services they are not qualified or licensed to perform. Preparing an appraisal report requires specific designation and expertise beyond that of a general real estate associate.