Q: Can I refer to a broker price opinion (BPO) or comparative market analysis (CMA) as an “appraisal” if I’m not also a licensed appraiser under Part II, Chapter 475?
A: No. Per Section 475.01, Florida Statutes, the presence of the terms appraise or appraising in the definition of broker services specifically excludes those services that must be done by a state-licensed, state-certified or registered trainee appraiser. Although a real estate licensee is authorized to perform a BPO or CMA for a customer, under section 475.25(1)(t) the CMA or BPO should not be referred to as an appraisal. A violation of this provision could result in disciplinary action against your license.
Q: I just received a copy of an appraisal in which the appraiser didn’t analyze prior sales of the subject property. Aren’t appraisers required to analyze prior sales?
A: Yes. Standards Rule 1-5, USPAP, states that when the value opinion to be developed is market value, an appraiser must analyze all available agreements of sale, options and listings of the subject property current as of the effective date of the appraisal and analyze all sales of the subject property that occurred within the three years prior to the effective date of the appraisal.
Q: A property owner has requested an appraisal report that I, a certified residential appraiser, prepared for a lender. May I give the owner a copy of the appraisal report?
A: An appraiser who receives from any party a request for a copy of an appraisal report must comply with the confidentiality section of the Ethics Rules of USPAP. That section states in part that an appraiser must protect the confidential nature of the appraiser-client relationship. Additionally, an appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and individuals specifically authorized by the client.
Q: May I receive continuing education credit for attending a Florida Real Estate Appraisal Board meeting?
A: Yes. Trainees as well as licensed and certified appraisers may attend a meeting where disciplinary cases are heard and receive seven hours of specialty CE credit per renewal cycle. To receive the credit, fax, to (407) 317-7245, your written request including your name, license number and current address, to the Division of Real Estate at least seven days prior to the meeting. Your name will be placed on a roster, and you will have to sign into and out of the meeting.
Q: I’m a certified residential appraiser but not a real estate licensee. May I still perform Broker Price Opinions?
A: No. In order to perform BPOs, you must have an active real estate license, and as with other services of real estate, you must perform this activity under the direction and control of a broker. Additionally, payment for BPOs must be made to the broker.
Q: I just received a copy of a desktop appraisal for which the appraiser did not inspect the property that is the subject of the appraisal. May a licensed appraiser perform an appraisal without inspecting the property?
A: Yes. The Uniform Standards of Professional Appraisal Practice (USPAP) state that an appraiser may use any combination of a property inspection and documents to identify the relevant characteristics of the subject property. The extent of the inspection process is an aspect of the scope of work, which may vary based on assignment conditions and intended use of the assignment results. It’s up to the appraiser to determine the degree of inspection necessary to produce credible assignment results for the intended use of the appraisal.