David, a licensed Oklahoma broker, is preparing a comparative market analysis (CMA) for a seller client to help price a home for listing. The seller asks David to label the CMA as an 'appraisal' on the written report so it looks more official to potential buyers. Under Oklahoma rules governing the distinction between CMAs and regulated appraisals, what should David do?
Correct Answer
D) David 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 OREC-licensed brokers and sales associates from representing a Broker Price Opinion (BPO) or Comparative Market Analysis (CMA) as an appraisal. Appraisers are regulated separately by the Oklahoma Real Estate Appraiser Board, not OREC. Labeling a CMA as an appraisal would misrepresent the nature of the document, violate Oklahoma licensing rules, and potentially constitute the unauthorized practice of appraisal. David must refuse the seller's request.
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Related Topics & Key Terms
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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