A broker in Broken Arrow is preparing a Comparative Market Analysis (CMA) for a seller client to help price their home. The seller asks the broker to label the document as an 'appraisal' to give it more credibility with potential buyers. What should the broker do under Oklahoma law?
Correct Answer
B) The broker must refuse to label the CMA as an appraisal because Oklahoma rules prohibit licensees from representing a CMA as an appraisal.
Oklahoma rules specifically prohibit real estate licensees from representing a CMA or Broker Price Opinion (BPO) as an appraisal. Oklahoma appraisers are regulated separately by the Oklahoma Real Estate Appraiser Board, not OREC. A CMA prepared by a broker is not an appraisal, and labeling it as such would constitute a misrepresentation and a violation of OREC rules and potentially state appraisal licensing laws.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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