A Florida real estate broker is preparing a BPO for a lender client. During the property inspection, the broker discovers significant undisclosed damage that affects the property's value. The lender has indicated they need the BPO to show a value that supports their loan amount. What should the broker do?
Correct Answer
A) Report the actual condition and provide an accurate value opinion despite the lender's preference
Correct: Florida law requires licensees to provide honest and accurate opinions of value based on actual property conditions, regardless of client preferences. Why not B: The BPO must reflect current property condition, not past condition. Why not C: While referral is an option, the broker can complete an accurate BPO if competent to do so. Why not D: Providing inaccurate value opinions to satisfy client preferences violates professional standards and could constitute fraud.
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Previous Question
A Florida licensee is preparing a CMA for a 2,200 square foot home. Comparable A sold for $440,000 (2,100 sq ft), Comparable B sold for $462,000 (2,300 sq ft), and Comparable C sold for $455,000 (2,250 sq ft). Using the price per square foot method, what is the estimated value range for the subject property?
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In Florida real estate practice, what is a Broker Price Opinion (BPO) primarily used for?