Real Estate Analysis and Commentary in Hampton Roads

eal estate Board in VA gives Guidance on BPOs
March 18th, 2010 8:30 AM

Real Estate Board Broker Price Opinion Guidance Document

The Real Estate Board is issuing this guidance document in order to assist its licensees in understanding

the requirements of § 54.1-2010.A.1 of the Code of Virginia as a means of providing information

or guidance of general applicability to the public:

To ensure that the Real Estate Board’s broker and salesperson licensees comply with § 54.1-

2010.A.1 of the Code of Virginia, the Board prohibits any licensee who provides a valuation or

analysis of real estate (such as a Broker Price Opinion) for a fee in the ordinary course of business

from holding himself out as a real estate appraiser. Such valuation or analysis shall not be referred

to as an appraisal, and it shall not be used in lieu of an appraisal performed by a certified or licensed

appraiser when an appraisal is required by federal or state law or regulation.

Further, in accordance with 18 VAC 135-20-300.8 of the Board’s Regulations, any licensee who

knowingly makes any false statement or report, or willfully misstates the value of any land, property

or security for the purpose of influencing in any way the action of a lender may be in violation of the

Board’s regulation prohibiting misrepresentation or omission.

Further, in accordance with 18 VAC 135-20-160 of the Board’s Regulations, every principal broker

or supervising broker of a place of business or branch office shall exercise reasonable and adequate

supervision of the provision of real estate brokerage services (to include the valuation or

analysis of real estate, e.g., Broker Price Opinions) by associate brokers and salespersons assigned

to the place of business or branch office.

Further, in accordance with 18 VAC 135-20-280.2 of the Board’s regulations, it is improper to accept

a commission or other valuable consideration (including fees for Broker Price Opinions), as a real

estate salesperson or associate broker, from any person except the licensee’s principal broker at

the time of the transaction, for performance of any of the acts specified in Chapter 21 (§54.1-2100

et seq.) of the Code of Virginia or the regulations of the board or related to any real estate transaction

without the consent of the broker.

Further, in accordance with 18 VAC 135-20-330 of the Board’s Regulations, principal and supervising

brokers may be held responsible for failing to take reasonable action to remedy situations that

lead to unlawful acts or regulatory violations by licensees and employees under their supervision.

Posted in:General
Posted by Woody Fincham, SRA on March 18th, 2010 8:30 AMPost a Comment

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