Final answer:
No, the licensee should not have referred to the estimate as an appraisal, as an appraisal is a formal process conducted by a licensed appraiser, whereas an estimate is a less formal evaluation often given by a real estate agent.
Step-by-step explanation:
In the context of real estate, the terms estimate and appraisal have distinct meanings and should not be used interchangeably. An estimate is a general idea of the value of a property, often given by real estate agents. This is based on market trends and comparisons to similar properties. An appraisal, on the other hand, is a formal, impartial evaluation of a property's value conducted by a licensed appraiser. Appraisals are often required by lenders before a mortgage is approved to ensure the property's market value supports the loan amount.
Therefore, the answer to the question is 2) No, the licensee should not have referred to the estimate as an appraisal unless it was conducted by a qualified appraiser in a formal manner.