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Dual License (appraiser & Agent) In Nys

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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
upload_2017-10-19_17-14-59.png

This is from our agency agreements here.

As you can see, your interest in writing appraisals, is in conflict. Because it's only the appraiser with an interest in writing appraisals.

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azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
I'm not worried.
But,
If you have an agency agreement for services as a sales person, and then you perform services as an appraiser, you have a "contract" issue, which is a binary issue, not only because some states require fee splits with brokers, and some brokers require fee splits with them and some brokers E&O is supposed to cover everything you do and say, but also because,

as an "agent" you are the "agent" of the broker. Not of yourself, Not of buyers and sellers. That is your agency agreement, and now because of it, your broker is now an interested party to your appraisal.

So, as I said, you need to read the agency agreements in your state, especially the fine print to know, if you are going to have an issue with the RE Board. if you go and write an appraisal, as an interested party with an agency agreement for a transaction both you and your broker have an interest in.

But for what reason or purpose would you write an appraisal? will the buyers and sellers claim you tried to sway them? Heck you appraised the property and they only wanted an agent,

Don't invent issues for yourself because you like writing values in a specific format and want to continue that.

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You'reu nder the assumption I have an agency agreement with the party selling their home. No such agreement exists. I'm speaking particularly about doing the appraisal, then being engaged to sell the home after you complete the appraisal. At that point, the broker has no jurisdiction over your appraisal practice, nor would they anyways, as you are your own "agent" when performing appraisal services. The RE board and the broker are two different issues as well.

I would never complete an appraisal for someone when acting as their realtor, just to price their home. Yeah, a CMA is the right way to go there. i think we just need to understand the context to which both of us are referring.
 

azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
I'm not worried.
But,
If you have an agency agreement for services as a sales person, and then you perform services as an appraiser, you have a "contract" issue, which is a binary issue, not only because some states require fee splits with brokers, and some brokers require fee splits with them and some brokers E&O is supposed to cover everything you do and say, but also because,

as an "agent" you are the "agent" of the broker. Not of yourself, Not of buyers and sellers. That is your agency agreement, and now because of it, your broker is now an interested party to your appraisal.

So, as I said, you need to read the agency agreements in your state, especially the fine print to know, if you are going to have an issue with the RE Board. if you go and write an appraisal, as an interested party with an agency agreement for a transaction both you and your broker have an interest in.

But for what reason or purpose would you write an appraisal? will the buyers and sellers claim you tried to sway them? Heck you appraised the property and they only wanted an agent,

Don't invent issues for yourself because you like writing values in a specific format and want to continue that.

.
You're under the assumption I have an agency agreement with the party selling their home. No such agreement exists. I'm speaking particularly about doing the appraisal, then being engaged to sell the home after you complete the appraisal. At that point, the broker has no jurisdiction over your appraisal practice, nor would they anyways, as you are your own "agent" when performing appraisal services. The RE board and the broker are two different issues as well.

I would never complete an appraisal for someone when acting as their realtor, just to price their home. Yeah, a CMA is the right way to go there. i think we just need to understand the context to which both of us are referring.
 

azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
View attachment 33438

This is from our agency agreements here.

As you can see, your interest in writing appraisals, is in conflict. Because it's only the appraiser with an interest in writing appraisals.

.
As long as you put the buyer's interested before yours, it sounds like you are ok. Again, disclosure and ethics. As an appraiser, you have no financial interest in the property. You have been hired to do a job concerning the property. If you own a roofing company on the side and fix the roof before selling it, are you subject to the same conflict of interest?

I get what you're saying, and I'm not saying to go appraise properties you're going to sell and not worry about the repercussions, however I think there is something to be said for disclosure and acting in an ethical manner.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
You'reu nder the assumption I have an agency agreement with the party selling their home. No such agreement exists. I'm speaking particularly about doing the appraisal, then being engaged to sell the home after you complete the appraisal. At that point, the broker has no jurisdiction over your appraisal practice, nor would they anyways, as you are your own "agent" when performing appraisal services. The RE board and the broker are two different issues as well.

I would never complete an appraisal for someone when acting as their realtor, just to price their home. Yeah, a CMA is the right way to go there. i think we just need to understand the context to which both of us are referring.
I'm under the assumption of nothing.
Your agency with the broker is set by your state law.
You, as the broker's agent, is somewhat like the AMC as the agent of the lender,
Except in most state laws, sales agents have better laws that define your responsibilities to the broker, visa-versa, and to customers.
So,
in the real estate sales game, if your brokerage has, or is attempting to get a listing, or a buyer's agreement, and you, as an agent tell a customer of the brokerage, you will write an appraisal for a property involved in that transaction, or proposed transaction, you additionally make the broker liable for both the service not sought and the report itself.

Read your state laws concerning sales brokerage, and your brokers E&O and your consumer notice - if your state has one, and your agency agreements, which are contracts. Speak to your broker, see what they tell you. Sales is not appraising, and appraising is not sales.

.

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azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
I'm under the assumption of nothing.
Your agency with the broker is set by your state law.
You, as the broker's agent, is somewhat like the AMC as the agent of the lender,
Except in most state laws, sales agents have better laws that define your responsibilities to the broker, visa-versa, and to customers.
So,
in the real estate sales game, if your brokerage has, or is attempting to get a listing, or a buyer's agreement, and you, as an agent tell a customer of the brokerage, you will write an appraisal for a property involved in that transaction, or proposed transaction, you additionally make the broker liable for both the service not sought and the report itself.

Read your state laws concerning sales brokerage, and your brokers E&O and your consumer notice - if your state has one, and your agency agreements, which are contracts. Speak to your broker, see what they tell you. Sales is not appraising, and appraising is not sales.

.

.
You're contradicting yourself a bit here, and yes it sounded like you were under the assumption I was completing the appraisal in lieu of a CMA. I appreciate the input, but I think you're missing the point. I'll handle it with my brokerage, but I don't see any way the broker has any authority over me completing an appraisal if I have not engaged this party as a realtor to sell their home, and am completing the appraisal in complete disclosure that it's strictly an appraisal, not tied to any potential listing.

If sales is not appraising, and appraising is not sales, then we agree, however why are you trying to comingle the two? I completed the appraisal as an appraiser. Nothing has been determined or agreed upon in terms of a potential sale.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
You're contradicting yourself a bit here, and yes it sounded like you were under the assumption I was completing the appraisal in lieu of a CMA. I appreciate the input, but I think you're missing the point. I'll handle it with my brokerage, but I don't see any way the broker has any authority over me completing an appraisal if I have not engaged this party as a realtor to sell their home, and am completing the appraisal in complete disclosure that it's strictly an appraisal, not tied to any potential listing.

If sales is not appraising, and appraising is not sales, then we agree, however why are you trying to comingle the two? I completed the appraisal as an appraiser. Nothing has been determined or agreed upon in terms of a potential sale.
It will depend upon how you came into contact with the HO. If the HO called your appraisal phone number and asked for an appraisal, you are in the clear. If the HO called the RE office and said they wanted to list their home and you offered them an appraisal, you've just stepped in do-do.

If, your neighbor says I want to buy the house down the road, can you help me?, you have to ask, if they are needing your help as a sales person, or as an appraiser. Therein lies the key to which hat you are wearing. If the response is "both", you now have a conflict of interest, because as a salesperson, you represent the broker. So in similar situations, you offer your "help to buy" as an agent, with a back up of a really good CMA. But, explain that if your neighbor finances the house, the lender will send their appraiser and that's the appraisal which is the unbiased opinion of value, that you can not provide if you are going to "help them" buy the property.

If your neighbor says I just want an appraisal to know if I'm offering a fair price, you need to ask which office their agent works at, Also, you need to know if the property is listed with your brokerage. If neither the neighbors agent, nor the property, have any contract (agency agreement/listing), or pending contract (spoke to an agent and expressed intrest but have not yet contracted) with your brokerage, you are free to appraise. If the neighbor is working through another agent in your office, they are contracted with the brokerage, as you are, and you must decline the appraisal, and defer the CMA back to their agent. If the property is listed for sale with your brokerage, you must decline the assignment, unless you get written permission from your broker, who, you owe a fudiciary responsbility to, via your contract with them as your brokerage.

It is slightly more research before you can accept an assignment of private work, just to make sure you aren't crossing the RE sales line. The big conflicts come in when the broker asks you to appraise either their property or one of the brokerages listings, as you have a contracted bias, as the fudicary responsibility to the broker and brokerage. You can still do the appraisal, but you must fully disclose that via your brokerage you are not an unbiased party, as your brokerage agreement includes an interest in all properties listed, sold and owned by the brokerage/broker.

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Sid Holderly

Senior Member
Gold Supporting Member
Joined
Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
The majority of appraisers I know have dual licenses, some do a significant amount RE and others just dabble. Just be sure you know what hat you are wearing for your customer.
In Indiana, Brokers can also appraise and some office managing brokers also have appraisal licenses. If there is a possible conflict on a particular property disclose in writing.
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
I wish in Illinois, they would demand that brokerage offices remove their signs offering free appraisals. We all know what they are providing for free.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I wish in Illinois, they would demand that brokerage offices remove their signs offering free appraisals. We all know what they are providing for free.
HQ of AI allowed that to happen?

PA is a 100% appraisal state with appraisal license required.

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