[quote=Mr. Foreclosure]It may take a law suit, and from your description it might wind up being a class action of representing a lot of brokers, to determine if such a restriction is enforceable. I see the possibility that it might be considered a "restraint of trade" to forbid charging a fee for a service that the person is qualified to perform. [/quote]

In Michigan, as in all other States, through Federal Mandate, the valuation of Real Property is a licensed profession, reserved for the real estate appraisal industry. Our Occupational Code has defined certain instances where Licensed sales people and Brokers may take part, through the course of the lawfull practice of their licensed profession.

I may be qualified to practice law, or perform minor surgery, but how can forebiding me to do these without the proper license be considered a restraint of trade???

Perhaps I'm wrong but I believe brokers are adequately licensed to perform property valuations. I think the only threshhold that an appraiser crosses that is off limits to brokers is when the purpose of the valuation is for a loan product in excess of $250,000. Unfortunately I don't have a ready reference to cite in support of that, just one of the dangers of working from memory.

De Minimus allows local banks (non-fed regulated lenders) to not even require an appraisal for properties valued under $250,000 if the paper is to be held by them. A valuation of their choosing is sufficiant. There is no law or regulation preventing any institution from asking for a BPO in return for a fee, but IN MICHIGAN (and many other states) this service can not be legally performed except for aiding their realty clients and potential clients. That "potential" thing is where the less than ethical sales person and Broker hang their hat.

Your apparent concern over this issue can also be looked at in terms of why the BPO was requested. If it was to establish a value for the lender to buy a property that is in default (the "courthouse steps auction") that would seem to satisfy having the buyer as potential client. On the other hand if it was to eliminate PMI on a current loan then perhaps there is no potential.

With the majority of BPO requests coming through 3rd parties we don't always know the end purpose, I guess that means it is still "potential" until proven otherwise.

The only reason it's that way in Michigan and some other states, is that the Appraiser lobby has more influence than the REALTOR lobby.
I would say there is a major difference in an appraisal vs. a BPO. Look at the logic of the legal counsel of the N. Carolina appraisel board stating: "i.e. an opinion as to a property's probable sale price", which I think is total bs. But who can blame them for trying to protect their turf?

http://www.ncrec.state.nc.us/bulletin/winter97bulletin/broker.htm

Wrong is wrong, whether it is wrong according to the law or wrong according to ethics. We can always try to justify our actions, by saying it is legal, when it may be unethical, but if it is wrong, and as RE professionals and adults, we know what is wrong. If it is illegal or unethical, it is wrong.

If it is legal or considered ethical in another state, but not where you do business you can either accept the way it is where you do business OR move to where the laws/ethics suit you OR work to change the local laws/ethics guidelines where you do business.

If the original poster/question is referring to doing BPOs, and they are illegal in your state, I am sorry this is the way it is. Work to change the unjust laws, and until it is legal and ethical, obey the law/rule. Wrong is wrong, just the same as sometimes laws/rules are unfair/unjust but they are the law/rules we must obey.

For some people it's a predicament to obey unjust laws, for others it isn't, as the OP so accurately observed.

Very true, nothing in life is simple.

Unjust laws are one thing, but I'm talking about civil rights or acts of war here, we're talking about persons CHOOSING to disobey rules and laws laid out in their chosen profession, for the sole purpose of getting a check.

GreatLakesBroker - it seems this issue is bothering you quite a bit - have you inquired with your board about a possible ethics violation? What does your board attorney say?

...because of some politically established rule or law that prevents a licensed agent from making a living?
ie. they just raised the speed limit last week on our I-25 from 55mph to 65mph through the city, because no one was going 55 or less, what does that tell you?

[quote=pikes peak] [quote]we're talking about persons CHOOSING to disobey rules and laws laid out in their chosen profession, for the sole purpose of getting a check. [/quote]

...because of some politically established rule or law that prevents a licensed agent from making a living?
ie. they just raised the speed limit last week on our I-25 from 55mph to 65mph through the city, because no one was going 55 or less, what does that tell you? [/quote]

That the city police should have been fining a lot of people for BREAKING THE LAW!!

The better decision and just option was to raise the speed limit instead of enforcing an arbitrary law, that was to the detriment of the drivers.
Increasing the speed limit made the road safer.

http://www.gazette.com/articles/speed_45926___article.html/mph_limit.html

yes, but when an agent working under a broker's license performs some action or service at the broker's direction, it is the same as the broker performing the service. the agent is an extension of the broker. then, the broker has a right to pay his agent for work done by the agent. so, where's the big violation?

and don't count on the state licensing board getting involved in this on its own. are you aware of the TARP bailout? did you see how quickly our government caters to bankers?

I don't know about the legality of doing BPO but this statement is way off the mark in NC. An agent working under a broker can only do agent activities. An agent is not an extension of the broker.