Arkansas Administrative Code › Agency 076 - Real Estate Commission › Rule 076.00.11-002 - Broker?s Price Opinion

Current through Register Vol. 49, No. 6, June, 2024
ARKANSAS REAL ESTATE COMMISSION
612 SOUTH SUMMIT STREET
LITTLE ROCK, AR 72201
Regulations for Broker Price Opinions
1. A "broker's price opinion" means an
		  estimate prepared by a licensee that details the probable selling price of real
		  estate and provides a varying level of detail about the real estate's
		  condition, market, and neighborhood, and information about sales of comparable
		  real estate. A "market analysis" is similar to a broker price opinion but is
		  usually limited to comparison to other real property currently or recently in
		  the market place; whereas, the preparer of a broker price opinion may utilize
		  other basis for the report. In the preparation or issuance of a broker price
		  opinion or market analysis, usage of the terms "market value", "appraised
		  value" or "appraisal", shall be presumed to be in violation of Ark. Code. Ann.
		  §
							17-42-110(d)
		  and subject to appropriate sanctions. It is highly recommended that a licensee
		  avoid other general references to "value" of the property when preparing or
		  issuing a broker price opinion or market analysis.
A report in which a broker price opinion is prepared or issued by
			 a real estate licensee must include within the body of the written report or in
			 a separate cover letter the following:
(a) A brief description of the subject
		  property.
(b) The basis used to
		  determine the broker's price opinion to include any applicable market data and
		  with regard to commercial properties, the computation of capitalization,
		  including the capitalization rate;
(c) Any assumptions or limiting conditions
		  used to determine the broker price opinion (Examples: repairs, items to be
		  removed from property, zoning change, new or different access other than what
		  is currently available, special financing, hazardous waste, nuisance removal,
		  etc.)
(d) A disclosure of any
		  existing or contemplated interest of every licensee who prepares or provides
		  the broker price opinion, including, without limitation, the possibility of a
		  licensee representing the seller or lessor, or the buyer or lessee;
(e) The names and signatures of the licensee
		  who prepared or issued the broker price opinion and of the principal broker or
		  designated executive broker with whom the licensee is associated;
(f) The name of the real estate firm with
		  whom the licensee who prepared or issued the broker price opinion is licensed;
		  and
(g) The date of issuance of the
		  broker price opinion;
(h) In at
		  least 14-point bold type, the following disclaimer:
Notwithstanding any preprinted language to the
			 contrary, this opinion is not an appraisal of the market value of the property.
			 If an appraisal is desired, the services of a licensed or certified appraiser
			 must be obtained. Pursuant to Ark. Code. Ann. §
											17-42-110(d),
			 a broker price opinion or market analysis issued by a real estate licensee
			 shall not contain the terms "market value", "appraised value", or
			 "appraisal".
Any reference in the report to a specific marketing
			 time period is for illustrative purposes only and does not obligate the
			 licensee or broker to sell the property within the stated timeframe or act as a
			 representation or guarantee that the property will be sold within such
			 timeframe.
Unless otherwise indicated, the broker price
			 opinion assumes without investigation a fee simple title ownership interest
			 without any reservation of minerals, subsurface rights, or
			 otherwise.
This broker price opinion report is to be used
			 solely for purposes allowed by state and federal law. If the report is to be
			 used for any purpose not specifically allowed by state and federal law, legal
			 counsel should be consulted.