NJ Bill Permits RE Agents BPOs No Limits

[Frederick]

I received this yesterday

To: All Member Appraisers and Friends of the NAIFA

There will be a public hearing on the Broker Price Opinion Legislation that could have a drastic effect on our ability to perform as appraisers and to expand the ability of Real Estate Brokers, Real Estate Broker Salespersons, and Real Estate Salespersons to perform BPO's out of the normal real estate brokerage context of doing them in order to obtain listings. There will be a public hearing on Monday March 4, 2013 at 1:00 p.m. before the Senate Commerce Committee.

If this bill becomes a law BPO's would be able to completed by non-appraisers for such things as Litigation, Asset Management, Portfolio Valuation, Tax Appeals, Estate Valuation, Divorce Proceedings, etc ... These are all of the things that we, as appraisers, do, outside of the normal bank appraisals. Passage of this bill will cause a larger number of assignments to be rerouted outside of the Appraisal Industry and into the Real Estate Industry.

Instead of the language currently contained in S2551, the NAIFA is urging the General Assembly to enact legislation that is similar to the Advisory Opinion (AO) issued by the New Jersey Real Estate Appraiser Board on November 27, 2012. The AO limits the provision of broker price opinions (BPOs) by licensed real estate professionals to real estate sales transactions.


Please write to your State Senator TODAY to urge that they oppose S 2551 as it has been introduced.

Follow this link to find information about your state senator:
http://www.njleg.state.nj.us/members/abcroster.asp

Once you've found your state senator, navigate to their page and click on the
"Contact Your Legislator(s)" link on their page.
Then Copy the letter at the end of this email below and Paste it into the message box on your state senator's "Electronic Correspondence to your State Representative" page.

In addition to writing your Senator today, we need you to attend the meeting in person, as it would certainly be helpful for the committee to see the number of people that are opposed to this legislation and to hear why this is legislation should not be enacted. The meeting will be held in Committee Room 6, First Floor, State House Annex, Trenton, NJ.


NAIFA is urging the General Assembly to conform with the current Mandatory Licensing bill that was enacted in 1992 and to enact legislation that is similar to the Advisory Opinion (AO) issued by the New Jersey Real Estate Appraiser Board on November 27, 2012. The AO limits the provision of broker price opinions (BPOs) by licensed real estate professionals to real estate listing transactions.

Thank you in advance for your assistance and I look forward to seeing you in Trenton to help us defeat this ridicuous legislation.
Please let me know us know if you have any questions or comments.

Bob Solotist
NJ State Director
NAIFA

 

[Frederick]

I also got this from the American Guild of Appraisers:

Dear FREDERICK,

As many of you are aware, new Broker Price Opinion (BPO) legislation is being introduced.

This coming Monday (March 4th) at 1:00 pm there will be a senate committee hearing in Trenton regarding this bill. It is The Guild's stance that the bill, as currently written,could be interpreted to allow real estate agents and brokers to perform valuations in areas that infringe on our profession.

Please make every effort to attend!

All of the major appraisal organizations will be speaking but we need to demonstrate our commitment to the cause.

Where & When

Committee Room 6, First Floor

State House Annex

Trenton, NJ

March, 4, 2013

1:00PM

 

[Rick Kulman]

All appraisal organizations - AI - ASA -AGA - NAIFA - have been working together in fighting the legislation. There are two sets of bills A3718 / S2551 which is the BPO issue. The Senate Commerce Committee is hearing it on MondY....mORE ON THIS.

tHE SECOND BILL in the legislature is A3781 . To abolish the state appraisal board and transfer control to the real estate commission. (Yes both pending Assembly bills contain the digits 3 7 1 8).

There are 3,000+ appraisers in NJ and 97,000+ real estate licencees. The pending legislation appears to be retribution by NJAR for the advisory opinion of the NJ Appraisal Board.

We need to reach the unaffiliated appraisers and get them to show upn Monday. Please contact all independent appraisers you may know and implore them to show on Monday.

Later this morning I will be posting some sample emails for your use that will be sent to the members of the legislature through the AI's capwiz program.

 

[CindyR]

Wow - the second one is even scarier than the first. We had an appraiser here in AZ many years ago pushing the idea that appraisers should be folded into the control of the Real Estate Office. He was quite infatuated with the RE Director and had a beef with the Director of the AZBOA. But, no one ever took it seriously and proposed a law to do it. That just sounds like the final nail in the coffin for any NJ appraiser ever to escape pressure to hit the number and provide the specifically desired report. Eek. Creeps me out just to think about it.

 

[Rick Kulman]

The following was sent to all AI members in NJ

Please cut and past the following text into an email with the subject of and send it to:

senvandrew@njleg.org
senscutari@njleg.org

Please feel free to modify the text as you see fit, or to cut and past the text onto your company’s letterhead and send it as an email attachment.

Dear Senators Van Drew and Scutari:

I am a New Jersey licensed real estate appraiser and a member of the Appraisal Institute. I am writing to let you know that I strongly oppose S 2551 as you have introduced it.

S 2551 would permit real estate licensees to prepare broker price opinions and comparative market analyses outside of the real estate brokerage context or for federally or state regulated financial institutions. Under your bill, BPOs could also be performed for use in litigation, tax appeals, eminent domain, estate settlement, divorce proceedings, pre-nuptial agreements, land use planning, easements, etc. All areas where they were never intended to be used.

Passage of your bill would overturn existing laws that have been in place for decades that protect consumers and eliminate real estate broker conflicts and pressure in the real estate valuation process. Passage of your bill could create a breeding ground for conflicts and consumer fraud. The inherent conflict between the real estate sales community and valuation was the primary reason the real estate appraisal profession was created and regulated. This is no different than the reorganization of the major accounting firms where the mergers and acquisition departments were required to be separate from the auditing departments.

Senator Van Drew, would you and other dentists support similar legislation that permitted hygienists to perform root canals, extractions, and other complex dental procedures?

BPO’s have a place in the market - to establish a listing or purchase price as part of a real estate sales transaction. Limitations on the use of BPO’s were done for a very specific reason - to ensure that the users of real estate valuation services could be reasonably assured that they were receiving a credible and reliable opinion of the value of a parcel of real estate from a competent and qualified independent third-party. To allow brokers, broker-salespersons, and salespersons to perform real estate valuations outside of the brokerage context or federally or state regulated institutions would roll back the financial industry 100 years.

I strongly urge you to reconsider pursuing this legislation any further in its current form. The Appraisal Institute has a reasonable counter-proposal that would limit the use of BPOs to the real estate brokerage context and for state or federally regulated institutions, but would prohibit their use for any other purpose. I strongly encourage you to work with the Appraisal Institute to reach a compromise that is acceptable to the legislature and all stakeholders.

The Appraisal Institute will be well represented at the hearing on your bill on Monday, March 4, 2013 before the Senate Commerce Committee. We intend on highlighting to the Commerce Committee the risks that your bill as currently drafted present to home owners, consumers, and the economy. The AI also intends to prepare a package of amendments for the committee’s consideration.

Thank you for your consideration of my view points. If you should have any questions, please do not hesitate to contact me.

Sincerely,

 

[Rick Kulman]

MEMORANDUM

TO: Appraisal Institute Members in New Jersey

RE: Broker Price Opinion Legislation (S2551) To Be Considered by New Jersey Senate Committee on Monday, March 4, 2013


A public hearing on legislation (S 2551) that would dramatically expand the ability of real estate brokers, broker-salespersons, and salespersons to provide broker price opinions and comparative market analyses outside of the real estate brokerage context, or for federally or state regulated institutions, is scheduled for Monday, March 4, 2013 at 1:00 p.m. before the Senate Commerce Committee.

If enacted into law, S 2551 would significantly expand the ability of licensed real estate professionals to perform BPOs outside of the real estate brokerage context for purposes such as portfolio valuation, litigation, tax appeals, eminent domain, estate settlement, divorce proceedings, pre-nuptial agreements, land use planning, easements, etc. Passage of this bill will result in an exponential increase in the number of commercial and residential BPOs being ordered in New Jersey by valuation clients!

A copy of S 2551 can be viewed at [url]http://www.njleg.state.nj.us/2012/Bills/S3000/2551_I1.PDF[/URL]

Please write to your State Senator TODAY to urge that they oppose S 2551 as it has been introduced.

In order to write to your State Senator, please go to: [url]http://www.capwiz.com/appraisal/issues/alert/?alertid=62448321&type=ST[/URL]

At this website, you can input your name, address, and other contact information and your Senator will be automatically identified for you. A draft letter is available to make this process easier for you. Please feel free to customize and personalize this letter as you see fit.

In addition to writing your Senator today, if you are able to attend the meeting in person it would certainly be helpful for the committee to see the number of people that are opposed to this legislation and to hear your personal thoughts as to why this is legislation should not be enacted. The meeting will be held in Committee Room 6, First Floor, State House Annex, Trenton, NJ.

Instead of the language currently contained in S2551, the Appraisal Institute is urging the General Assembly to enact legislation that is similar to the Advisory Opinion (AO) issued by the New Jersey Real Estate Appraisers Board on November 27, 2012. The AO limits the provision of broker price opinions (BPOs) by licensed real estate professionals to real estate sales transactions, and for state or federally regulated institutions. In addition, the AI is requesting that the General Assembly prohibit the use of BPOs in any mortgage loan origination transaction and to enact additional requirements by which BPOs must be performed. A copy of the Advisory Opinion is available at [url]http://www.njconsumeraffairs.gov/real/agenda/realattch_112712.pdf[/URL]

Thanks in advance for your assistance in helping to defeat this appalling legislation.

 

[Rick Kulman]

A3718 the Assembly version is being heard by the Assembly Regulated Professions Committee at 1:00 PM on Thursday Committee Room 12, Fourth Floor, State House Annex, Trenton, New Jersey.

It is the third of four bills being heard that day.

Two hearings in one week where we need you. MONDAY and THURSDAY

The bill was posted at 5PM today. All organizations are aware and members are being notified

 

[Walter Kirk]

This is New Jersey where everything is political. Can someone identify the politicians pushing this. The fact that these two pieces of legislation were presented at the same time and have moved through the process so rapidly without any publicity indicates lots of coordination and money behind these efforts.

If we can clearly identify which political faction is pussing this we may be able to get help from their political opponents.

 

[coolhandluke]

This is New Jersey where everything is political. Can someone identify the politicians pushing this. The fact that these two pieces of legislation were presented at the same time and have moved through the process so rapidly without any publicity indicates lots of coordination and money behind these efforts.

If we can clearly identify which political faction is pussing this we may be able to get help from their political opponents.

Nicholas Scutari and Jeff Van Drew are the bills sponsors

the political faction is NJAR, of course.

 

[Rick Kulman]

Walter

A3718 is sponsored by Diegnan, Handlin and Stender as primary sponsors. The bill was introduced by Diegnan (D) on January 28. Handlin (R) became a primary sponsor and this week Stender (D) signed on as a primary sponsor. Both Diegnan and Handlin are members of the Assembly Regulated Professions committee which is hearing it on Thursday March 7. We only heard it was posted in the committee at 5PM on Friday.

Identical bill S2551 was introduced by Van Drew (D) on Februaty 7. Scutari (D) signed on as a primary sponsor this week. Scutari is a member of the senate Commerce committee which is acting on the bill tomorrow at 1PM.

As I understand it, the push behind these bills is one individual at the NJAR who got PO'd when he wasn't personally consulted with respect to the Appraisal Board's opinion regarding BPO's.

Hope to see you in Trenton tomorrow and Thursday. I know the AI, ASA, AGA and IFA will be represented locally as well as nationally.