Section 455.608f - 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 prepared in accordance with this act shall:(1) Not be deemed to be an appraisal within the scope of the act of July 10, 1990 ( P.L. 404, No.98), known as the "Real Estate Appraisers Certification Act," or a valuation of real estate for purposes of section 8(b)(1) of the act of February 2, 2012 ( P.L. 30, No.4), known as the "Appraisal Management Company Registration Act."(2) Be deemed to be a comparative market analysis for the purposes of the "Appraisal Management Company Registration Act."(c) 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 and the property interest to be priced.(3) The basis for the conclusion as to the price, including applicable market data or capitalization computation.(4) Any assumption or limiting condition.(5) Any existing or contemplated interest of the licensee who prepared the broker price opinion.(6) The effective date of the broker price opinion and the date that the document is signed.(7) The real estate license number of the preparer.(d) Any fees charged for a broker price opinion shall be paid to the broker.(e) A broker price opinion may be prepared by a broker, associate broker or salesperson only for use in conjunction with: (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; OR(4) an evaluation or monitoring of a portfolio of properties .
(f) 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; or(2) in connection with: (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 ; OR(vi) the distribution of a decedent's estate.(g) The provisions of this section shall not preclude the preparation of a broker price opinion to be used in conjunction with or in addition to an appraisal.(h) A registered appraisal management company may recruit, engage and negotiate fees with a broker to prepare broker price opinions and may receive orders for and submit broker price opinions to clients.(i) A broker, associate broker or salesperson may not prepare a broker price opinion, and a broker or associate broker may not sign a broker price opinion under subsection (j), unless the broker, associate broker or salesperson:(1) has satisfied the requirements prescribed by the rules of the commission to obtain education in the preparation of broker price opinions; and(2) has completed at least three hours of continuing education during the current or immediately preceding two-year license period in broker price opinion topics prescribed by the rules of the commission.(j) In addition to the requirements under subsection (i), a salesperson may not prepare a broker price opinion unless the salesperson has held an active license for the three years immediately preceding the effective date of the broker price opinion. A broker price opinion prepared by a salesperson must be signed by the broker or an associate broker designated by the broker in addition to the salesperson.(k) In order to facilitate the prompt implementation of this section, regulations promulgated by the commission shall be deemed temporary regulations which shall expire no later than three years following the effective date of this section. The commission may promulgate temporary regulations which shall not be subject to: (1) Sections 201, 202 and 203 of the act of July 31, 1968 ( P.L. 769, No.240), referred to as the Commonwealth Documents Law.(2) The act of June 25, 1982 ( P.L. 633, No.181), known as the "Regulatory Review Act."(l) The authority provided to the commission to adopt temporary regulations under subsection (k) shall expire three years from the effective date of this section. Regulations adopted after that date shall be promulgated as provided by law.Added by P.L. TBD 2018 No. 75, § 4, eff. 8/28/2018.