Unauthorized Practice of Appraisal (The Price is Right)

//Unauthorized Practice of Appraisal (The Price is Right)

Unauthorized Practice of Appraisal (The Price is Right)

At recent 2018 law firm training events, a law firm stated that they have received reports of real estate licensees facing discipline at the SC LLR Appraisers Board for "unauthorized practice of appraisal" arising when county tax assessors report real estate licensees for providing BPO/CMA/similar documents to property owners and property owners use these documents as part of their property tax valuation appeals, sometimes without the knowledge of the real estate licensee.

Only use the term PRICE in your BPO and CMA.

Never use the term VALUE.

Never use BOV (e.g Broker Opinion of VALUE).

Always use the term PRICE.

BPO: Broker Price Opinion

CMA: Comparative Market Analysis.

The SC LLR Appraisers Board has stated that only licensed appraisers can use the terms APPRAISAL and VALUE, and appraiser license exempted real estate licensees cannot use the term VALUE and cannot use the term APPRAISAL and should only use the term PRICE.

SCR defends the real estate licensee exemption to SC appraiser license law.

"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 say 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:

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:

"This market analysis may not be used for the purposes of obtaining financing in a federally related transaction".

THIS IS NOT AN APPRAISAL.

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

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

Posted by : Byron King on 6/8/18 (This information is only accurate as of 6/8/18. You must contact SCR for updates and changes to this information after 6/8/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)

By |2018-06-08T10:04:36+00:00June 8th, 2018|Legal FAQs|0 Comments

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