BPO CMA – Always Include in Report to Avoid LLR Appraisers Board Issues

Magic words to use in all your BPO’s and CMA’s:

I have presented the dollars for this property as PRICE, not VALUE.

The SC LLR Appraisers Board has stated that only licensed appraisers can use the terms APPRAISAL and VALUE.

While real estate licensees are exempt from appraiser licensing laws, real estate licensees have to use some "magic words" to avoid problems with the SC LLR appraisers board.

#1: Real estate licensees never use the word VALUE.

Go ahead and strike the word VALUE from your vocabulary.

ONLY use the word PRICE in your vocabulary.

Reports are that LLR Appraisers Board will vigorously enforce this word difference between PRICE (non-appraisers use) and VALUE (appraisers use). So, this word choice is a big deal.

#2: Never refer to your Broker Price Opinion (BPO) and Comparative Market Analysis (CMA) as an appraisal.

#3: Magic words disclaimer upfront on all BPO/CMA work…
Before performing a market analysis, the real estate licensee must disclose to the requesting party: "This market analysis may not be used for the purposes of obtaining financing in a federally related transaction".

One way to remember #1 is:
"The PRICE IS RIGHT, value is wrong"

Also, there are magic words to go on all BPO’s and CMA’s to avoid SC LLR appraisers board enforcement

BPO CMA always use the term PRICE never value

Never refer to BPO or CMA as an appraisal

https://www.scstatehouse.gov/code/t40c060.php

SC Code 40-60-30 excerpt:

SECTION 40-60-30. License requirement; exceptions.

It is unlawful for an individual to assume or use a title, designation, or abbreviation likely to create the impression that the person is a real estate appraiser or to engage in real estate appraisal activity or advertise as an appraiser without a valid license issued by the department. However, nothing in this chapter may be construed to apply to:

(1) A real estate licensee licensed in accordance with Chapter 57, Title 40 who performs a market analysis or gives an opinion as to the price of real estate on the condition that the market analysis or opinion is not referred to as an appraisal. Before performing a market analysis, the real estate licensee must disclose to the requesting party: "This market analysis may not be used for the purposes of obtaining financing in a federally related transaction".

Magic words to use in all your BPO’s and CMA’s:

I am a licensed real estate salesperson exempt from SC appraisal license law per SC Code 40-60-30.

SCR supports this real estate licensee exemption and real estate licensees need to support this exemption as well by complying with the terms of the SC appraisers licensing laws.

Posted by: Byron King on 4/12/21 (This information is only accurate as of 4/12/21. You must contact SCR for updates and changes to this information after 4/12/21 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)