This is a follow up to my January 2, 2009 An Update on BPOs in Nevada and the October 26, 2007 Broker Price Opinions (BPOs) in Nevada.

**Effective July 1, 2009**

BPO – A BPO is defined as a, “written analysis, opinion or conclusion that a real estate license prepares for a person relating to the estimated price for a specified parcel of real property.”

Real Estate Licensees  In Nevada Are Allowed to Perform BPOs.

A real estate agent may, “prepare and provide a broker’s price opinion and charge and collect a fee” for this service.

BPO Files

BPOs (even those submitted electronically) must be stored for five (5) years.

Broker Responsibility.

The broker is responsible for all activities of a licensee who is associated with the broker and with the preparation of a BPO.

A BPO can be prepared for a:

1.         An existing or potential seller for the purposes of listing and selling a parcel of real property;

2.         An existing or potential buyer of a parcel of real property;

3.         A third party making decisions or performing due diligence related to the potential listing, offering, sale, exchange, option, lease or acquisition price of a parcel of real property; or

4.         An existing or potential lienholder, except that a broker’s price opinion prepared for an existing or potential lienholder may not be used in lieu of an appraisal for the purpose of determining whether to approve a mortgage loan.

A BPO must include:

1.         A statement of the intended purpose of the broker’s price opinion;

2.         A brief description of the real property and the interest in the real property for which the broker’s price opinion is being prepared;

3.         The basis used to determine the broker’s price opinion, including, without limitation, any applicable market data and the computation of capitalization;

4.         Any assumptions or limiting conditions used to determine the broker’s price opinion;

5.         The date of issuance of the broker’s price opinion;

6.         A disclosure of any existing or contemplated interest of every licensee who prepares or provides the broker’s price opinion, including, without limitation, the possibility of a licensee representing the seller or purchaser;

7.         The license number, name and signature of every licensee who prepares or provides the broker’s price opinion;

8.         If a licensee who prepares or provides the broker’s price opinion is a real estate salesman or a real estate broker-salesman, the name of the real estate broker with whom the licensee is associated; and

9.         In at least 14-point bold type, the following disclaimer: Notwithstanding any preprinted language to the contrary, this opinion is not an appraisal of the market value of the property.  If an appraisal is desired, the services of a licensed or certified appraiser must be obtained.

BPO submitted electronically or on bank forms.

If a broker’s price opinion is submitted electronically or on a form supplied by the requesting party:
1.         A signature required by #7 above may be an electronic signature, as defined by NRS 719.100.

2.         The disclaimer required in #9 above may be transmitted in a separate attachment if the electronic format or form supplied by the requesting party does not allow additional comments to be written by the licensee. The electronic format or the form supplied by the requesting party must:

a.         Reference the existence of a separate attachment; and

b.         Include a statement that the broker’s price opinion is not complete without the attachment.

The attached BPO Rider Form has been created to incorporate all requirements from the new law (as of July 1, 2009).  Questions on filling it out? Here is an example filled out BPO Rider Form.  This would be uploaded as a separate attachment if sent electronically and simply forwarded with the BPO if sent in hard copy to render the BPO complete in Nevada.

NOTE:  The NRED has information bulliten #14 which discussed this, but it now removed from the site.

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