Recent legislative sessions saw six states modernize their laws affecting the ability of real estate brokers and sales agents to perform BPOs. REVAA played an active role and worked with state realtor associations to ensure passage of legislation reflecting market demand and reality.

Hawaii:

The old law only permitted real estate licensees to perform BPOs in the brokerage (listing and sale) context and did not allow the payment of any compensation for the service. The new law allows real estate licensees to render price opinions (and get paid for them) as long as they do not represent themselves as appraiser, and state that the BPO is not an appraisal. If the licensee gets paid a commission for the sale of property, they may not receive a fee for any price opinion rendered on that property.

Minnesota:

The old law allowed real estate licensees to render price opinions for “marketing” purposes and was interpreted by the regulators to permit BPOs only where the licensee may get a listing. The new law allows licensees to render BPOs except as the primary basis for a loan origination decision for a consumer’s principal residence, mirroring Dodd-Frank’s language.

Mississippi:

The old law only permitted real estate licensees to perform BPOs in the brokerage (listing and sale) context, and did not allow the payment of any compensation for the service. The new law allows real estate licensees to render price opinions (and get paid for them) except as the primary basis for loan originations.

Arkansas:

The old law limited the rendering of price opinions to the brokerage context. The new law allows licensees to render BPOs except as the primary basis for a loan origination decision for a consumer’s principal residence, mirroring the Dodd-Frank language.

Nebraska

The old law limited the rendering of price opinions to the brokerage context. The new law allows licensees to render BPOs except when used as the sole basis for a loan origination.

Nevada

The old law limited the rendering of price opinions to the brokerage context. The new law allows licensees to render BPOs except when used in lieu of an appraisal for a loan origination purpose.