26 April Is it legal for a Maryland real estate licensee to prepare a Broker Price Opinion for a fee? April 26, 2017By Cindy Sellers License Law 0 A Broker Price Opinion (BPO) is typically requested of a real estate licensee when a property has been foreclosed on, is about to be foreclosed, or has in some other way entered ownership inventory of a "third party" such as a lender, etc., and the new or prospective owner seeks a valuation. To quote Juliet Capulet, "What's in a name? That which we call a rose, by any other name would smell as sweet." Here, although you may believe you are being asked to produce a BPO, the information requested is clearly a Competitive Market Analysis (CMA). Neither the Maryland Real Estate Brokers Act nor the Code of Maryland Regulations (COMAR) makes any reference to a BPO. Under Maryland law if a licensee visits and photographs property, and compares it to other properties that have recently sold to recommend a marketing price, it is a CMA. In our opinion, these requests are for a CMA and are no different from any other request for a market analysis. According to COMAR, an appraiser’s license is not required for a real estate licensee to prepare a CMA. As you are probably aware, a CMA must comply with Maryland law, which includes the disclosure provided below for all CMA’s: “(1) A licensee may prepare a competitive market analysis of a specific property for a client, prospective client, or customer. The analysis shall include the following statement printed conspicuously and without change on the first page: COMPETITIVE MARKET ANALYSIS DISCLOSURE This analysis is not an appraisal. It is intended only for the purpose of assisting buyers or sellers or prospective buyers or sellers in deciding the listing, offering, or sale price of the real property. (2) If a licensee includes a property in which the licensee has an interest as one of the comparables, that fact shall be disclosed to the client, prospective client, or customer.” Such requests are no different from any other consumer's request for a market analysis. It makes no difference if this is being done within or outside of the listing process. The agent's analysis is identical, using the same tools and data that an agent would use for any CMA. If a REALTOR® prepares a CMA for a seller or buyer, which sets forth the price range of the property, we highly recommend she keep in her files a copy of the CMA and documentation of the properties used in preparing it. This is good business practice. Finally, because the licensee is paid a fee for this service, under Maryland law, as with any other salesperson or associate broker compensation, the fee must run through the broker. Related Posts Does the Broker’s Act require real estate licensees to list their license category in all advertising that involves the sale, rent, or offer to purchase real property? Does the Broker’s Act require real estate licensees to list their license category in all advertising that involves the sale, rent, or offer to purchase real property? I understand that real estate licensees may provide ministerial acts in a residential real estate transaction. I understand that real estate licensees may provide ministerial acts in a residential real estate transaction. What is a ministerial act? A licensed Illinois real estate broker has developed an interactive website that generates buyer and seller leads. The company enters into a referral agreement with a licensed broker in Maryland to participate in the program. Upon a closing the company collects a referral fee paid from the Maryland broker to the Illinois broker per the referral agreement. The Illinois broker is not licensed in Maryland, are there any restrictions regarding payment of the referral fee from the Maryland broker to the Illinois broker? My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. Is my broker right? As a real estate licensee, am I required to advise potential purchasers of the property as to the occurrence of the suicide upon the premises? As a real estate licensee, am I required to advise potential purchasers of the property as to the occurrence of the suicide upon the premises? What are the requirements for real estate advertisements in the state of Maryland? What are the requirements for real estate advertisements in the state of Maryland? Am I required to use the Equal Housing Opportunity and REALTOR® logos? Comments are closed.