Subchapter I. BROKER PRICE OPINIONS
35.402. Broker price opinion.
35.403. Use of broker price opinion.
35.404. Broker price opinion education.
The temporary provisions of this Subchapter I issued under the act of June 29, 2018 (P.L. 500, No. 75) that amended the Real Estate Licensing and Registration Act (63 P.S. § § 455.101455.902), unless otherwise noted.
§ 35.401. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Automated valuation modelAny computerized model used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumers principal dwelling.
Broker price opinionAn estimate prepared by a broker, associate broker or salesperson that details the probable selling price of a particular parcel of real property and provides a varying level of detail about the propertys condition, market and neighborhood, and information on comparable sales, but does not include an automated valuation model.
Short saleA sale of real property in which the sellers proceeds are less than the amount required to pay off all liens secured by the property.
§ 35.402. Broker price opinion.
(a) A broker price opinion must contain the following statement displayed conspicuously and without change:
This analysis has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.
(b) A broker price opinion must be signed manually or electronically by the person who prepared it and must contain all of the following information:
(1) An identification of the intended users and intended uses of the broker price opinion, if known.
(2) A brief description of the subject property.
(3) A brief description of the property interest to be priced.
(4) The basis for the conclusion as to the price, including applicable market data, cost data or capitalization computation.
(5) Any assumption or limiting condition.
(6) Any existing or contemplated interest of the licensee who prepared the broker price opinion.
(7) The effective date of the broker price opinion.
(8) The date that the document is signed.
(9) The real estate license number of the preparer and, if applicable, the reviewing broker or associate broker.
(c) A fee or valuable consideration for a broker price opinion shall be paid directly to the employing broker.
(d) A salesperson may not prepare a broker price opinion unless the salesperson has held an active license for the 3 years immediately preceding the effective date of the broker price opinion and has satisfied the educational requirements in § 35.404 (relating to broker price opinion education).
§ 35.403. Use of broker price opinion.
(a) A broker price opinion may be prepared by a broker, associate broker or salesperson only for use in conjunction with any of the following:
(1) A property owned by a lender after an unsuccessful sale at a foreclosure auction.
(2) A modification of a first or junior mortgage or equity line of credit.
(3) A short sale of a property.
(4) An evaluation or monitoring of a portfolio of properties.
(b) A broker price opinion may not be prepared by a broker, associate broker or salesperson for use:
(1) As the basis to determine the value of a parcel of real property for a mortgage loan origination, including a first or junior mortgage, refinancing or equity line of credit.
(2) In connection with any of the following:
(i) An eminent domain proceeding.
(ii) A Federal, State or local tax appeal.
(iii) A bankruptcy or insolvency proceeding.
(iv) An action or proceeding involving divorce or equitable distribution of property.
(v) Any other action or proceeding before a court of record.
§ 35.404. Broker price opinion education.
(a) A broker, associate broker or salesperson may not prepare a broker price opinion unless the broker, associate broker or salesperson has completed a Commission-approved initial education course in the preparation of broker price opinions.
(b) A broker or associate broker may not sign a broker price opinion prepared by a salesperson unless the broker or associate broker has completed a Commission-approved initial education course in the preparation of broker price opinions.
(c) A broker, associate broker or salesperson may not prepare a broker price opinion unless the broker, associate broker or salesperson has completed at least 3 hours of Commission-approved continuing education in broker price opinion topics during the current or immediately preceding 2-year license period.
(d) A broker, associate broker or salesperson who has completed a Commission-approved initial education course, a broker prelicensure course listed in subsection (e) or continuing education referenced in subsection (c) shall retain the transcript or certificate of instruction and provide a copy to the Commission upon request.
(e) The following broker prelicensure courses have been approved to satisfy the initial education requirement in subsections (a) and (b):
(1) Valuation of residential property.
(2) Valuation of income-producing property.
(3) Basic appraisal principles.
(4) Basic appraisal procedures.
This section cited in 49 Pa. Code § 35.402 (relating to broker price opinion).
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