BPO rules changed as of July 1, 2009.  Look for an update soon.

 

samwilsonThis is a follow up to my October 26, 2007 blog on Broker Price Opinions TGIF Legal Tip: Broker Price Opinions (BPOs) in Nevada

Are you performing Broker Price Opinions?  BPO’s remain legal to be performed by real estate licensees in Nevada.  However, as of December 22, 2008 the Nevada Real Estate Division (“NRED”) has opined in “Informational Bulletin #14 BROKER PRICE OPINIONS (BPOs)” that certain clarified requirements apply.  NRED declares:  

  • BPO’s are not appraisals.
  • Real estate licensees may complete BPOs for buyers and sellers of real property for the purposes of listings, sales, exchanges, options, purchases, rents or leases, but never for lending or appraisal purposes. The standards of practice and rules found in NRS 645 and NAC 645 apply to BPOs.
  • The BPO should include the following requirements:

(a) A statement of the intended purpose of the price opinion;

(b) A brief description of the subject property and property interest to be priced;

(c) The basis of reasoning used to reach the conclusion of the price, including the applicable market data and/or capitalization computation;

(d) Any assumptions or limiting conditions;

(e) A disclosure of any existing or contemplated interest of the licensee(s) issuing the opinion including the possibility of representing the seller or purchaser;

(f) The license number, name and signature of the licensee(s) and, if the licensee is a salesperson or broker salesperson, the name of the licensee’s broker issuing the price opinion and the date of its issuance.

(g) The following disclaimer in 14 point, boldface type:

“Notwithstanding any preprinted verbiage to the contrary, this opinion is not an appraisal of the market value of the property. It is intended only for the benefit of the requesting party for the purpose of assisting the requesting party in deciding the listing, offering, sale, exchange, option, lease or acquisition price of the real property and not for any other purpose, including, but not limited to, obtaining financing. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained.”

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