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Summary of state laws RE BPO

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by JSmith43, Dec 26, 2008.

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  1. JSmith43

    JSmith43 Elite Member

    18
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Here you go: http://narblog1.realtors.org/mvtype/appraisalinsight/BPO State Laws.pdf


    Example:

    For MN: 82B.035 EXEMPTION.

    Subdivision 1.Market analysis. This chapter does not apply to a licensed real estate salesperson or broker who, in the ordinary course of the licensee's business, gives a market analysis of the price of real estate, if the market analysis is not referred to or construed as an appraisal.


    It looks like a 2 hatter could do BPO's left and right without the appraisal board doing much if exempt really means exempt.

    Even if NAR ethics rule would have brokers and agents follow USPAP, brokers and agents don't have to be NAR members, although it sure comes in handy.
     
  2. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    NOTE: I edited this comment after I thought about it awhile. I looked over the NC law and could not find where the NCAB got there information.

    This is great when you think about it.

    Mentor,

    That AI should have pressed the NCAB on their comment. That is not the law in regards to collecting fees from lenders.

    AI probably solicted this from each state and witout reading the law completely may not have caught the NCAB's misinformation.
     
    Last edited: Dec 27, 2008
  3. JSmith43

    JSmith43 Elite Member

    18
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    I only checked MN. It was accurate per the 2008 Ch 82B.

    It isn't a complete picture, of course.

    Would you characterize the extent of the error for NC? I'm curious.

    AI and NAR have this posted and I figured that this leak of services is what should be common knowledge among appraisers and help form their competitive strategy.
     
  4. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    CA is very clear. The opinion of real estate licensee, engineer or land surveyor is not considered appraisal and should not be called appraisal.

     
  5. Bama Bayou

    Bama Bayou Senior Member

    0
    Oct 19, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Alabama
    Two hatters in AL are exempt from appraisal regs when working as an agent/broker. It is the only exception since we are a mandatory state.
     
  6. Midwest1

    Midwest1 Sophomore Member

    0
    Jan 25, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    It really makes me wonder why I became a member of AI. I honestly don't think they are in touch with what is going on in the trenches of residential real estate. How could they possibly offer support for BPO's completed by licened brokers and agents offering a value for a fee with absolutely no guildeline limitations, USPAP rules etc....

    Why did I spend the last 15 years honing my craft, performing up to the highest standards and ethics just to be put the same place in line as a trainee real estate agent?

    I was really looking forward to moving towards a SRA and moving my career to the the next level but frankly I don't see the point. Other than lining the pockets of the folks at the AI who have done nothing to help my buiness grow. It would cost a lot of money and time and for what? to be forced to work for the half of my current fees?

    If there are any AI members on this forum perhaps you can give me a bit of pep talk as to what the orginization is really doing to help experienced residential appraisers and why the deserve any more of my money.
     
  7. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Mentor

    I should rephrase my comment, but AI should have pressed the NCAB on their comment. The part in RED(belo) is what is wrong. It may be wishful thinking by the board but its not the law.

    This is plain ole BS. Although I also wish it was true because Agents would cease BPO's fro lenders overnight.

    "Notes: Guidance from the North Carolina Appraisers Board states that “the law specifically exempts a licensed real estate broker or salesperson performing a CMA from mandatory appraiser licensing, provided that the person does not represent himself or herself as being state-licensed or state certified as a real estate appraiser and that the CMA is done for prospective or actual brokerage clients, or for real property involved in an employee relocation program. A CMA cannot be performed for a fee when the client is a lender.”
     
  8. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    9
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    What is the intended use? IN MY STATE a BPO is not an appraisal and the person doing the BPO is not an appraiser.

    A BPO (Broker's Price Opinion) is a service provided by a real estate broker. An appraisal is a service performed by an appraiser. Until the users of valuations fall under The Uniform Standards of Professional Appraisal Practice (USPAP) and state appraisal statutes or regulations the problem will never be solved.
     
  9. EVAUSA

    EVAUSA Junior Member

    0
    Jan 26, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    In CA, the broker cant be paid for their service. Are brokers really doing them for FREE or are they getting paid up front to list the property, which will cover their BPO expenses?
     
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