Broker Sarah prepares a Broker Price Opinion (BPO) for a lender who is considering whether to approve a short sale. Sarah charges $150 for the BPO. Later, Sarah mentions to a client that the BPO she prepared is equivalent to an appraisal and can be used to establish the property's fair market value for financing purposes. Under Oklahoma law, which of the following best describes Sarah's conduct?
Correct Answer
B) Sarah's conduct is permissible for the BPO preparation but impermissible for representing it as equivalent to an appraisal
Under Oklahoma rules, a licensed Broker may prepare a Broker Price Opinion (BPO) for compensation — this is a permissible activity within a broker's scope of practice. However, Oklahoma rules expressly prohibit licensees from representing a BPO or CMA as an appraisal. Telling a client that the BPO is equivalent to an appraisal usable for financing purposes crosses this line and constitutes a violation. The two activities (preparing the BPO and misrepresenting it) must be evaluated separately.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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