Mississippi Real Estate Commission

Broker’s price opinion; preparation, contents, and use of opinion

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(1) A person licensed under this chapter may prepare a broker’s price
opinion and charge and collect a fee for such opinion if:
(a) The license of that licensee is active and in good standing; and
(b) The broker’s price opinion meets the requirements of subsections
(3) and (4) of this section.

(2) Notwithstanding any provision to the contrary, a person licensed under
this chapter may prepare a broker’s price opinion for:
(a) An existing or potential seller for the purposes of listing and
selling a parcel of real property;
(b) An existing or potential buyer of a parcel of real property;
(c) A third-party making decisions or performing due diligence
related to the potential listing, offering, sale, exchange, option,
lease or acquisition price of a parcel of real property; or
(d) An existing or potential lienholder or other third party for any
purpose other than as the basis to determine the value of a parcel
of real property, for a mortgage loan origination, including first
and second mortgages, refinances, or equity lines of credit.
(e) The provisions of this subsection do not preclude the preparation
of a broker’s price opinion to be used in conjunction with or in
addition to an appraisal.


(3) A broker’s price opinion prepared under the authority granted in this
section shall be in writing and shall conform to the standards and
guidelines published by a nationally recognized association of
providers of broker price opinions. The Mississippi Real Estate
Commission shall promulgate regulations that are consistent with, but
not limited to, the standards and guidelines of a nationally recognized
association of providers of broker price opinions.


(4) A broker’s price opinion shall be in writing and contain the following:
(a) A statement of the intended purpose of the price opinion;
(b) A brief description of the subject property and property interest
to be priced;
(c) The basis of reasoning used to reach the conclusion of the price,
including the applicable market data and/or capitalization
computation;
(d) Any assumptions or limiting conditions;
(e) A disclosure of any existing or contemplated interest of the
broker or salesperson issuing the opinion;
(f) The effective date of the price opinion;
(g) The name and signature of the broker or salesperson issuing the
price opinion;
(h) The name of the real estate brokerage firm for which the broker
or salesperson is acting;
(i) The signature date;
(j) A disclaimer stating that “This opinion is not an appraisal of the
the market value of the property and may not be used in lieu of an
appraisal. If an appraisal is desired, the services of a licensed or
A certified appraiser must be obtained. This opinion may not be
used by any party as the primary basis to determine the value of
a parcel of real property for a mortgage loan origination,
including first and second mortgages, refinances, or equity lines
of credit.”;
(k) A certification that the licensee is covered by errors and
omissions insurance, to the extent required by state law, for all
liability associated with the preparation of the broker’s price
opinion.

(5) If a broker’s price opinion is submitted electronically or on a form
supplied by the requesting party:
(a) A signature required by paragraph (g) of subsection (4) may be
an electronic signature, as defined in Section 75-12-3.
(b) A signature required by paragraph (g) of subsection (4) and the
disclaimer required by paragraph (j) of subsection (4) may be
transmitted in a separate attachment if the electronic format or
form supplied by the requesting party does not allow additional
comments to be written by the licensee. The electronic format or
the form supplied by the requesting party must:
(i) Reference the existence of a separate attachment; and
(ii) Include a statement that the broker’s price opinion is not
complete without the attachment.


(6) Notwithstanding any provisions to the contrary, a person licensed
pursuant to this chapter may not prepare a broker’s price opinion for
any purpose in lieu of an appraisal when an appraisal is required by
federal or state statute. A broker’s price opinion which estimates value
or worth of a parcel of real estate rather than sales price shall be deemed
to be an appraisal and may not be prepared by a licensed broker or sales
agent under the authority of their licensee but may only be prepared by
a duly licensed appraiser and must meet the regulations promulgated
by the Mississippi Real Estate Appraiser Licensing and Certification
Board. A broker’s price opinion may not under any circumstances be
referred to as a valuation or appraisal.

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