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Broker’s price opinion
¬ß73-35-4. Broker’s price opinion; preparation, contents and use of opinion
- A person licensed under this chapter may prepare a broker’s price opinion and charge and collect a fee for such opinion if:
- The license of that licensee is active and in good standing; and
- The broker’s price opinion meets the requirements of subsections
(3) and (4) of this section.
- Notwithstanding any provision to the contrary, a person licensed under this chapter may prepare a broker’s price opinion for:
- An existing or potential seller for the purposes of listing and selling a parcel of real property;
- An existing or potential buyer of a parcel of real property;
- 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
- An existing or potential lienholder or other third party for any purpose other than as the basis to determine the value of a parcel of real property, for a mortgage loan origination, including first and second mortgages, refinances, or equity lines of credit.
- The provisions of this subsection do not preclude the preparation of a broker’s price opinion to be used in conjunction with or in addition to an appraisal.
- A broker’s price opinion prepared under the authority granted in this section shall be in writing and shall conform to the standards and guidelines published by a nationally recognized association of providers of broker price opinions. The Mississippi Real Estate Commission shall promulgate regulations that are consistent with, but not limited to, the standards and guidelines of a nationally recognized association of providers of broker price opinions.
- A broker’s price opinion shall be in writing and contain the following:
- A statement of the intended purpose of the price opinion;
- A brief description of the subject property and property interest to be priced;
- The basis of reasoning used to reach the conclusion of the price, including the applicable market data and/or capitalization computation;
- Any assumptions or limiting conditions;
- A disclosure of any existing or contemplated interest of the broker or salesperson issuing the opinion;
- The effective date of the price opinion;
- The name and signature of the broker or salesperson issuing the price opinion;
- The name of the real estate brokerage firm for which the broker or salesperson is acting;
- The signature date;
- A disclaimer stating that, “This opinion is not an appraisal of the market value of the property and may not be used in lieu of an appraisal. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained. This opinion may not be used by any party as the primary basis to determine the value of a parcel of real property for a mortgage loan origination, including first and second mortgages, refinances or equity lines of credit.”;
- A certification that the licensee is covered by errors and omissions insurance, to the extent required by state law, for all liability associated with the preparation of the broker’s price opinion.
- If a broker’s price opinion is submitted electronically or on a form supplied by the requesting party:
- A signature required by paragraph (g) of subsection (4) may be an electronic signature, as defined in Section 75-12-3.
- A signature required by paragraph (g) of subsection (4) and the disclaimer required by paragraph (j) of subsection (4) 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:
- Reference the existence of a separate attachment; and
- Include a statement that the broker’s price opinion is not complete without the attachment.
- Notwithstanding any provisions to the contrary, a person licensed pursuant to this chapter may not prepare a broker’s price opinion for any purpose in lieu of an appraisal when an appraisal is required by federal or state statute. A broker’s price opinion which estimates value or worth of a parcel of real estate rather than sales price shall be deemed to be an appraisal and may not be prepared by a licensed broker or sales agent under the authority of their licensee but may only be prepared by a duly licensed appraiser and must meet the regulations promulgated by the Mississippi Real Estate Appraiser Licensing and Certification Board. A broker’s price opinion may not under any circumstances be referred to as a valuation or appraisal.