Q&A with the Real Estate
Commission/Appraiser Board
Questions and Answers from the State Board of
Certified Real Estate Appraisers and State Real Estate Commission Joint Forum – January 24, 2005
Appraisers
Q:With what states does the board have signed reciprocal agreements? Can you provide an update on how many individuals have applied for a Pennsylvaniareciprocal license?
A: Alabama, Arkansas, Colorado, Georgia, Hawaii, Kentucky, Maine, Missouri, Nebraska, New Jersey, New York, North Dakota, Ohio, South Carolina, West Virginia, Wyoming.
At this time we are unable to provide information regarding the number of individuals who have applied for reciprocity.
Q:How many audits has the board completed with respect to verifying continuing education credits in the last renewal cycle?
A:333, with 11 violations found.
Q:What are the major revisions to the 2005 edition of Uniform Standards of Professional Appraisal Practice (USPAP)?
A:Among other changes, new language requires “clear and conspicuous” disclosure of extraordinary assumptions and hypothetical conditions.
No longer is the appraiser required to indicate the condition’s “impact on value”. Edits were made throughout the document wherever the word “purpose” appeared. Where possible, more specific terms like “type and definition of value”, “intended use” and “problem to be solved” were substituted.
Q:Why won’t an appraiser send a real estate licensee a copy of the appraisal report, even though they are the buyer’s agent and work on behalf of the buyer?
A:Under USPAP, the appraiser may only disclose confidential information to the client, parties authorized by the client, third parties authorized by due process of law, and professional peer review committees.
In most residential mortgage transactions, the appraiser’s client is the lender. Thus, the appraiser would not be permitted to provide a copy of the appraisal report or disclose assignment results to the borrower, even if the borrower paid for the appraisal.
Commissioners
Can you provide an update on how many individuals have applied for a Pennsylvaniareciprocal license?
A:The Commission has entered into reciprocal agreements with Arkansas, Georgia, Oklahoma, Massachusetts, Nebraska, New York, West Virginiaand Wyoming. The Commission is still awaiting a response from Floridaand other states. As of January 12, 2005, 32 individuals have applied for a reciprocal license—4 associate brokers, 4 sole proprietors, 3 brokers and 21 salespersons.
Editor’s note: Since the January Forum, PAR has learned that Coloradoand Louisianahave also recently signed reciprocal agreements.
Q:What is the correct procedure when a real estate office receives a call from a third party company asking that an agent perform a “Broker Price Opinion – BPO”?
A: Real estate licensees are not permitted to perform BPOs under their real estate licenses. A BPO is an appraisal and can only be performed by someone who holds an appraisal license—such as an appraiser or a broker/appraiser.
That being said, however, sometimes companies ask for a BPO when all they really just desire is a Comparative Market Analysis (CMA). Real estate licensees may provide CMAs if the CMA is being performed in order to obtain the listing. Remember, the CMA must have the disclaimer language contained in the RELRA.
Check out the Commission’s newsletter for an article about CMAs. A discussion about BPOs and CMAs appears on the Commission’s web site at www.dos.state.pa.us
Q:What is the procedure for reporting real estate advertisements that may not be in compliance with the Commission’s guidelines?
A:Advertisements as well as any other violations of the RELRA and the regulations should be sent directly to the Complaints Office.
As the Commission has advised previously, these advertisements should not be given to Commission members because the members will have to recuse themselves from participation in any cases. The advertisements can be sent to the Complaints Office anonymously. Sometimes, they also can be sent to the local REALTOR® Boards.
The Commission has been seeing an increasing number of advertising violations again. Both in personal and company advertisements and in team advertisements. Under Section 305(c) of the regulations, the broker’s name and number must appear on each salesperson’s advertisement in at least equal prominence.
Similarly, on team advertisements, the broker’s name and number as well as all members of the team must be on the advertisement. The reason for this requirement is that the Commission does not license teams—only individuals and companies.
More information about the Commission’s team advertisement guideline is also available on the Commission’s web page, www.dos.state.pa.us.
Disclaimer: This information is not to be construed as legal advice by the Commission/Board, the Bureau of Professional and Occupational Affairs, the Department of State or the Office of General Counsel. Rather it is being listed for informational purposes only. For responses to any factual situations, contact your attorney.