Can an agent perform a BPO? I explained that a BPO is a “Broker Price Opinion,” not to be confused with Business Process Outsourcing. A Nevada real estate licensee is in fact allowed to perform this function and for a fee, but with some parameters.
First, it needs to be an opinion and can only be for the purpose of assisting a seller in determining a listing price. Which means . . . it is not meant to take the place of an appraisal. NRS 645C.150 (the appraisal statute) declares that only appraisers may perform appraisals, but if you have a Nevada real estate license under NRS 645 you are exempt from the appraisal statute so long as you are performing the BPO within the scope of your real estate license, namely to aid a seller in determining a list price. The Nevada Real Estate Division has just recently published a clear explanation on the BPOs do’s and don’ts. [http://www.red.state.nv.us/publications/bulletins/bpo.pdf]
Here is the most recent BPO Clarification from NVAR.
Janet’s always got such good questions.
Oh . . . and happy Nevada Day!!
November 7, 2007 at 4:36 pm
BPO’s are great. I found a list of companies for free if anybody needs it go to bpo4agent.com
November 9, 2007 at 2:52 am
Do you know if it’s legal for a Nevada licensed Realtor salesperson to perform a BPO and receive compensation from an institution such as Countrywide or Freddie Mac? The sole purpose of the BPO is to prepare bidding instruction for foreclosure sale.
November 9, 2007 at 9:09 am
I believe it is legal to perform the BPO even if the Seller may use it for a foreclosure sale, as the foreclosure sale may fail and you may be hired as the listing broker. According to the NRED, the BPO must be performed with the aim of gaining the listing.
November 17, 2007 at 4:02 pm
I think you need to reread 645C.
It clearly states that in order to collect any type of fee for an opinion of value. You must be a licensed appraiser. The real estate division is clear on this point with their most recent posting. I’d also like to point out that not only are the agents and brokers breaking the law by collecting a fee for their bpos, but the clients that hire them are too.
November 17, 2007 at 4:45 pm
I believe it is legal, remember the NRED’s words, ‘assisting a seller in determining a listing price.’ The bank is typically the seller or will become the seller post foreclosure. If that is your aim, it is legal. Statutes appear to contradict each other often. A lawyer must be licensed by statute to perform legal services, yet an NRS 645 licensee can write contracts within their scope as a licensee. The same analogy applies. Various disciplines often overlap.
December 5, 2007 at 3:58 am
I noticed that someone named Jim posted the same response to this exact same question on a different website. I would love to know the answer to this question. Is it legal or not? Some people seem to think it is legal and some do not.
December 5, 2007 at 12:48 pm
http://www.laborlawtalk.com/showthread.php?p=936791#post936791
So who is correct Jim or Darren. I want to know that answer.
December 30, 2007 at 5:40 pm
I would just call my state’s real estate agency to be sure.
January 23, 2008 at 3:13 pm
Is your name Jim Martin by any chance.
http://www.red.state.nv.us/Appraisal/Minutes/2007/ap_minutes_082807.pdf
March 3, 2008 at 1:29 pm
where to we sign a peititon to have this dumb law changed so it is not illegal for brokers to make an extra $ for our time giving an opinion. I am licensed in ca.
March 26, 2008 at 1:33 pm
http://www.nvar.org/index.php?option=com_remository&Itemid=140&func=startdown&id=238
June 29, 2008 at 10:31 am
If NV real estate agents can do BPO, I chave compiled free list of BPO companies http://www.garypedia.com/realest/rebpoinf.php
August 3, 2008 at 1:23 pm
AUGUST 6TH, 2008 AT 10AM
NEVADA REAL ESTATE COMMISSION WILL HOLD A “BPO TASK FORCE” MEETING.
http://www.red.state.nv.us/realestate/agendas/2008/bpo_agenda_080608.pdf
September 11, 2008 at 12:00 am
The meeting was great! The real estate division is going to propose to the commission that real estate agents are able to complete BPO’s for the purpose of listing, selling real property and for parties making real estate decisions regarding the disposition of real property (short sale, preforeclosure) but never for lending purposes or appraisal purposes.
January 2, 2009 at 9:06 am
[…] Darren Welsh under BPO, TGIF Legal Tips This is a follow up to my October 26, 2007 blog on Broker Price Opinions TGIF Legal Tip: Broker Price Opinions (BPOs) in Nevada […]
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