Kevin is a licensed sales associate in Oklahoma City who prepares a Comparative Market Analysis (CMA) for a seller client. The seller asks Kevin to label the CMA as an 'appraisal' on the purchase agreement so it appears more credible to potential buyers. Under Oklahoma law and OREC regulations, what should Kevin do?
Correct Answer
C) Kevin must refuse, because Oklahoma rules prohibit licensees from representing a CMA as an appraisal
Under OREC regulations and Oklahoma law, there is a clear regulatory separation between OREC-licensed real estate licensees and appraisers regulated by the Oklahoma Real Estate Appraiser Board. Oklahoma rules specifically prohibit real estate licensees from representing a CMA or Broker Price Opinion (BPO) as an appraisal. A CMA is a market analysis tool, not a regulated appraisal. Labeling it as an appraisal would constitute a misrepresentation and could expose Kevin to disciplinary action by OREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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