I was contacted by a company Pacific Star Financial, they wanted to do an interior at one of my short sale listings in Miami. I received a business card from the person who came out, I looked the name up on the Florida Real Estate Commission, no person with that name has a Real Estate Licesnse.
When I called the company they said they are in Riverside CA. even though the phone number has a local area code.
What doesn't surprise me is that the BPO was being done for Evaluation Solutions!
I cannot seem to find any ruling if the person coming to the property has to have a Real Estate License, or only the person doing it. And then what about the company, can they a Real Estate License in California and do BPO's in Florida?

That's why I use online show assist and Supras

Makes me feel sad . . . . that must be one desperate Puppy !

It depends on your state law. We had a thread on here, awhile back, that contained a link to where you could look up your state's law regarding doing BPOs.

(And, of course, because I wanted to find that thread, I couldn't.)

I think most State Laws are pretty silent on this subject. They have enough on their plates to keep them busy just trying to protect the interest of the General Public. Why should the money of our Taxpayers get bogged down in worrying about BPOs when it doesn't involve the Public's buying or selling of Real Estate ?

It's probably incumbent upon the so-called Clients to insure that the BPO Mills are verifying that the BPO Providers or Vendors have some form of credential . . . . after all they're paying for a "Broker" Price Opinion so somebody ought have some kind of Real Estate or Appraiser's License someplace, somehow.

Most Mills ask for a PDF copy of a License to be uploaded; but most don't even check to verify that it is legitimate. You could upload a Certified Tattooist's License and if the dates checked out . . . . you'd be good to go.

Can't speak for FLA, but as the RE licensing laws there and in OH are somewhat similar, and why the states have reciprocity... Here's the story here.

You do not have to be licensed to do BPOs in Ohio. You do not even have to be licensed for appraisals (appraisal laws are changing, however) as long as they're not being done for guarenting a new loan. For example, an agent, loan officer, or a lawyer can do a BPO or appraisal (as long as they can show proof they have experience/knowledge/background) for an estate, a RELO, REO, short sale, or sheriff sale.

But check your own state laws to see what they say.

Maybe it's just a picture taker.

Maybe this is the link I was looking for:

http://www.appraisalinstitute.org/newsadvocacy/downloads/StateIssues/BPO_State_Laws_041811.pdf

Not sure if it will help or not.

That's an interesting website; however their issue there (the Appraisers') pertains to whether Licensed Real Estate Brokers and Sales People are prohibited from producing BPOs in certain jurisdictions.

But the OP is suggesting that he encountered someone WITH NO LICENSE whatsoever being engaged in producing a BPO on one of his listings.

That's different.

Most QCers do not have a license either. I asked for a copy from one once, they said they didn't have one.

I know that FL has a specific list of what a non-licensed person can do and not do. Just go to the FREC website and search for non-licensed assistants.

You ABSOLUTLY have to be licensed in Fl to do a BPO. Also, the person taking the photos MUST be the person that does the reports.

Unfortunately, there are many companies in Fl that have photo people taking the photos (many times unlicensed) and a separate person that does the actual BPO. Most of the time, the person doing the BPO isn't even familiar with the area.

I would contact the bank and let them know the BPO may have been done by an unlicensed person. These BPO mills must be shut down. They are ruining it for those of us that are doing things the correct and legal way!

Not necessarily true.

A part of the answer here may lie in how one defines "Doing a BPO". There are so very many steps to the process. Photos, pulling comps, data entry, final submission, etc. I read many comments here that indicate the poster believes "Only I am capable of preparing a quality BPO". To that I would inquire, if you went to work for another poster here, did you suddenly become stupid? Of course not. It follows that there are many parties qualified to properly prepare a quality product. That changes if the requester specifically requires the assigned agent to handle it from cradel to grave. (load the paper in the printer?). Taking that to the next level, consider this; Many of us function under a broker owner. As such the broker/owner actually owns the assignment. Does it follow that the BO is handling the process? I've posted elsewhere that I have staff and my clients know I utilize them, even to the point that the client will contact my staffers directly. Further, most of my staff are more qualified then I in their specific area of expertise. Perhaps I have a greater sphere of expertise in the overall process, but a closer that handles hundreds of closings certainly understands the nuances of the process better then I. A BPO person with a construction and appraisal background may also be more attuned to discovering and valuing a property deficiency then I.
In my opinion, delegating the responsibility is not a sign of weakness or indifference. Rather it's a sign of strong management skills, proper training and accepting responsibility for the actions of those we supervise.
Regarding a RE license as somehow indicating an increased level of expertise...There have been questions posted here by licensed parties such as "do you include bathrooms in room count". They may have a license, but they certainly don't have a clue. I fully accept responsibility for the actions of those I hire, but I'm not a typist(kind of obvious) and have no fear of delegating.

You can have someone enter info into the forms under your direction. This would be covered under the disability act for those who can't or need assistance as well. The end result if your name is on the report and you are responsible to the entries of another.

I can now complete a BPO on the new IP forms in 23 minutes start to finish excluding getting the subject photos.

Part of the problem is who can you contact at the Bank? In this case it is being done for a short sale at Chase.

neato?

Right BPOmaster. In Fl, you can have someone do the data entry and upload the photos, but you must take the photos, pull the comps, make (or dictate) the comments in the report and assign a market value. At least that is how it is for every company I've ever done a report for.

In Fl, you MUST be licensed to complete a BPO. Some companies will look the other way, but the banks require an agent to be licensed. If the banks find out that these companies are not complying, that could mean big trouble for them.

I haven't run into any companies at this point that will allow an unlicensed individual to pull comps, take the photos or give their opinions.

Again, that's not by LAW; but because the Clients expect the Mills to require it (everywhere); not the LAW.

Until they change the name to from broker price opinion to price opinion, I would say the answer is yes you ought to be licensed.

And you ought to possess sufficient market knowledge to form an opinion.

"you ought to possess sufficient market knowledge to form an opinion"..............

Why does this always seem to come into play when I have a value variance?..........lol.

To use that thought process that it's a broker price opinion,and thus requires a broker, then agents would be excluded since it's not an agent price opinion.

A lot of the mills require it be completed by the assigned agent. Most of the listing companies do understand that there are a number of teams out there that delegate the work and they have no issue with that.
In MA. some time ago there was a memo sent out as to what required a license and what didn't. Photos, pulling comps, and similar were excluded. The license was required when dealing with buyer's and seller's. As long as the final product was overseen by a licensed party it was legal. To quote Henry Ford, "I don't know how to design a car, but I know how to hire an engineer that can".

Hmmmm, considering in Fl, an unlicensed assistant is not allowed to offer any opinions on any properties or values, I am still going with the fact that is is against the law in Fl for an unlicensed individual to perform a Brokers Price Opinion.

It may not be against the law for someone that isn't licensed to take the photos (but it is by most banks) or do the data entry, but there is no way they can complete an entire BPO (from start to finish...including comp searches, comments and assigning a value) on their own.

This is a technicality, but agents give an opinion of price, while appraisers give an opinion of value.

By bringing up a bank or mill's requirements, doesn't make something a law.

Consider this. When you pull a comp, there's a good chance you never saw that house, thus you're relying on the talent of a party you never met. Just read the posting about goofy MLS comments....these are the dudes who's comps we're using. When you're searching MLS for comps, isn't the method we use to enter the search parameters and let the "unlicensed" computer do the search. Just because a mill requests the agent take the photo, it does not follow that the state law requires that. Provided the end result is approved by the responsible agent then the BPO was performed by that party and that party must be willing to stand behind and support the work product. If these banks want the process to be fool proof, they need only cease hiring fools. A license is not an indication of intelligence or ability. In many states it takes more study to get a driver's license then it takes to get a RE license. One needs a higher standard of talent to drive a client to a property then to sell the client the property.
And finially, Brokers don't determine value, the comps determine value. However, I do see the need for some to try and convince folks that performing BPO is akin to rocket science. Perhaps it's some form of self validation. To me, it's just another part of the job, and one of the more mundane tasks associated with REOs.

In FL an unlicensed assistant can do the BPO, but the agent has to give final review, approval, and sign off. Same as putting a listing into MLS, unlicensed assistant can do that as well but the agent has to review it and approve it. Same with a BPO for a regular resale.

Permissible Activities of an Unlicensed Assistant
Unlicensed assistant is defined as support staff for a real estate corporation or other licensed individuals.
•
Answer the phone and forward calls
•
Fill out and submit listings and changes to any multiple listing service
•
Follow-up on loan commitments after a contract has been negotiated and generally secure the status reports on the loan progress
•
Assemble documents for closing
•
Secure documents (public information) from courthouse, utility district, etc.
•
Have keys made for company listings, order surveys, termite inspections, home inspections and home warranties with the licensed employer’s approval
•
Write ads for approval of the licensee and the supervising broker, and place advertising (newspaper ads, update web sites, etc); prepare flyers and promotional information for approval by licensee and the supervising broker
•
Receive, record and deposit earnest money, security deposits and advance rents
•
Only type the contract forms for approval by licensee and supervising broker
•
Monitor licenses and personnel files
•
Compute commission checks
•
Place signs on property
•
Order items of repair as directed by licensee
•
Prepare flyers and promotional information for approval by licensee and supervising broker
•
Act as a courier service to deliver documents, pick-up keys
•
Place routine telephone calls on late rent payments
•
Schedule appointments for licensee to show a listed property


Revised and approved by FREC 09/15/2009

I think it would be easier to identify the activities which are prohibited than it is to identify those which are permissible.

In either case, it's a can of worms because both categories are constantly changing, and subject to update, as the industry evolves.

In the FREC list above, a Non-Licensee CAN answer the phone, and CAN forward calls . . . . but if asked, could they give the List Price of a Listing? or the number of Bedrooms? How about the Address? The FREC list doesn't say that they CAN . . . . so it must be that they CAN'T ?

In Vermont, we also have a list of activities which do not require a license:

1) Offering rental property for lease; or

2) Offering mobile homes or businesses for sale WITHOUT also offering a lot or other real property.

That's it. Similar; but different. They haven't thought about BPOs. I guess it's a judgment call until someone calls the Real Estate Police to investigate. Expressing an "opinion" is a form of free speech protected by the 1st Amendment.

Nealkl - There are about 10 states now which prohibit paid BPO's, and instead require a Appraiser Valuation for anything that has to do with a federally funded or backed mortgage. In Florida specifically, BPO's are allowed but the Agent and his Broker must be licensed in Florida.

A CA Firm can be dual-licensed in FL (I myself am licensed as a Broker in 2 states), but there are many rules which must be observed. Also, the CA company may not pay you directly The Bpo must be ordered and generated thru your Florida Brokerage, and payment must be made directly to them, after which the will provide you with your percentage of the fee.

Also some AMC's are silent on splitting the duties, but generally speaking anyone involved in determing the value of property for a fee in Florida must be licensed. You may use some administrative office help, but the agent must be the one to make the final selections and reviews of the entire BPO Report. Good luck in your endeavors!

HousegirlSOFL - I agree with you. With the exception of office staff to help an agent finalize his observations on paper, anyone still using unlicensed individuals in FL to go out and evaluate a subject, its conditions and repairs, and the differences that exist between the in the neighborhood is simply asking for trouble.

Jackreo - I do agree with you that the Title is just a bit misleading, but as we all know state laws allow an agent to conduct real estate business under the guidance and authority of a Broker, but they do not allow un-licensed individuals to list, sell, or show property, answer some specific questions, or to perform any service that is defined as reserved specifically for licensees.

BPO Couple - you just said it all.......... Have a great day!

Just went back through FL 475 (the law in FL that covers real estate) and it is fairly clear that you must be licensed to perform a function of real estate. A BPO is a function of real estate.

Thus, it appears that the person is performing a function of real estate without a license. FREC is fairly intent on stopping this so I can only recommend that you report it to FREC.

If you are not part of the solution.....