Bill Text: MN SF167 | 2011-2012 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Broker price opinions (BPO) on residential real estate regulation
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-07 - HF substituted on General Orders HF323 [SF167 Detail]
Download: Minnesota-2011-SF167-Introduced.html
Bill Title: Broker price opinions (BPO) on residential real estate regulation
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-07 - HF substituted on General Orders HF323 [SF167 Detail]
Download: Minnesota-2011-SF167-Introduced.html
1.2relating to real estate professionals; regulating the provision of broker price
1.3opinions on residential real estate;amending Minnesota Statutes 2010, sections
1.482.55, by adding subdivisions; 82.81, subdivision 9; 82B.021, subdivision 19;
1.582B.035, by adding a subdivision; proposing coding for new law in Minnesota
1.6Statutes, chapter 82.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision
1.9to read:
1.10 Subd. 1a. Automated valuation model. For purposes of this chapter, "automated
1.11valuation model" means a computerized model used by mortgage originators and
1.12secondary market issuers to determine the collateral worth of a mortgage secured, or to be
1.13secured, by a consumer's principal dwelling.
1.14EFFECTIVE DATE.This section is effective August 1, 2011.
1.15 Sec. 2. Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision to
1.16read:
1.17 Subd. 1b. Broker price opinion (BPO); broker opinion of value (BOV).
1.18For purposes of this chapter, "broker price opinion" means an estimate prepared by a
1.19real estate broker or real estate salesperson that details the probable selling price of a
1.20particular parcel of real property and provides a varying level of detail about the property's
1.21condition, market, and neighborhood, and information on comparable sales, but does
1.22not include an automated valuation model. "Broker price opinion" includes an opinion
1.23referred to as a "broker opinion of value" if the opinion complies with this definition of a
1.24"broker price opinion."
2.1EFFECTIVE DATE.This section is effective August 1, 2011.
2.2 Sec. 3. [82.735] BROKER PRICE OPINION: REQUIREMENTS; DUTIES OF
2.3LICENSEE; REGULATIONS.
2.4 Subdivision 1. Requirements. A person licensed under this chapter may prepare
2.5and provide a broker price opinion and may charge and collect a fee for it if the license of
2.6that licensee is active and in good standing.
2.7 Subd. 2. Duties of licensee. Notwithstanding any provision of the laws of this state
2.8to the contrary, a person licensed under this chapter may prepare a broker price opinion for:
2.9(1) an existing or potential seller for the purposes of listing and selling a parcel of
2.10real property;
2.11(2) an existing or potential buyer of a parcel of real property;
2.12(3) a third party making decisions or performing due diligence related to the
2.13potential listing, offering, sale, exchange, option, lease, or acquisition price of a parcel of
2.14real property when prepared as required by subdivision 3; or
2.15(4) an existing or potential lienholder or other third party for any purpose other than
2.16as the primary basis for determination of the value of a consumer's principal dwelling for
2.17the purpose of a residential mortgage loan origination in connection with the purchase of
2.18the property when prepared as required by subdivision 3.
2.19 Subd. 3. Written report; requirement. (a) Unless the party requesting the opinion
2.20requires a specific report, a broker price opinion prepared for a party under subdivision 2,
2.21clause (3) or (4), must be in writing and contain the following:
2.22(1) a statement of the intended purpose of the broker price opinion;
2.23(2) a brief description of the subject property and property interest to be priced;
2.24(3) the basis of reasoning used to reach the opinion on the price, including the
2.25applicable market data and/or capitalization computation;
2.26(4) any assumptions or limiting conditions;
2.27(5) a disclosure of any existing or contemplated interest of the broker or salesperson
2.28issuing the opinion;
2.29(6) the name of the broker or salesperson issuing the price opinion;
2.30(7) the name of the real estate brokerage that the broker or salesperson is acting
2.31on behalf of;
2.32(8) the date of the price opinion; and
2.33(9) a disclaimer stating, "This opinion is not an appraisal of the market value of the
2.34property, and may not be used in lieu of an appraisal in a federally related transaction. If
2.35an appraisal is desired, the services of a licensed or certified appraiser must be obtained."
3.1(b) A licensee may produce or transmit a written broker price opinion electronically
3.2to any person entitled to receive it.
3.3EFFECTIVE DATE.This section is effective August 1, 2011.
3.4 Sec. 4. Minnesota Statutes 2010, section 82.81, subdivision 9, is amended to read:
3.5 Subd. 9. Exclusive agreements. (a) Except as provided in paragraph (c), a licensee
3.6shall not negotiate the sale, exchange, lease, or listing of any real property directly with the
3.7owner or lessor knowing that the owner or lessor has executed a written contract granting
3.8exclusive representation or assistance for the same service in connection with the property
3.9to another real estate broker, buyer, or lessee, nor shall a licensee negotiate the purchase,
3.10lease, or exchange of real property knowing that the buyer or lessee has executed a written
3.11contract granting exclusive representation or assistance for the same service of purchase,
3.12lease, or exchange of the real property with another real estate broker.
3.13(b)Licensees A licensee shall not induce any party to a contract of sale, purchase,
3.14lease, or option, or to an exclusive listing agreement or buyer's agreement, or facilitator
3.15services agreement, to breach the contract, option, or agreement.
3.16(c) A licensee may discuss the terms upon which a listing or buyer representation
3.17contract or a contract for facilitator services may be entered into after expiration of any
3.18existing exclusive contract when the inquiry or discussion is initiated by the owner, lessor,
3.19buyer, or lessee. The licensee must inquire of the owner, lessor, buyer, or lessee whether
3.20such an exclusive contract exists.
3.21EFFECTIVE DATE.This section is effective August 1, 2011.
3.22 Sec. 5. Minnesota Statutes 2010, section 82B.021, subdivision 19, is amended to read:
3.23 Subd. 19. Market analysis; broker price opinion. "Market analysis" or "broker
3.24price opinion" means a price opinion or opinion of value prepared by a licensed real estate
3.25salesperson or brokerfor marketing purposes in accordance with section 82.735.
3.26EFFECTIVE DATE.This section is effective August 1, 2011.
3.27 Sec. 6. Minnesota Statutes 2010, section 82B.035, is amended by adding a subdivision
3.28to read:
3.29 Subd. 1a. Broker price opinion. This chapter does not apply to a licensed real
3.30estate salesperson or broker who prepares a broker price opinion in accordance with
3.31section 82.735. In connection with the purchase of a consumer's principal dwelling, a
3.32broker price opinion may not be used as the primary basis to determine the value of a
4.1parcel of property for the purpose of a loan origination of a residential mortgage loan
4.2secured by the parcel of property.
4.3EFFECTIVE DATE.This section is effective August 1, 2011.
1.3opinions on residential real estate;amending Minnesota Statutes 2010, sections
1.482.55, by adding subdivisions; 82.81, subdivision 9; 82B.021, subdivision 19;
1.582B.035, by adding a subdivision; proposing coding for new law in Minnesota
1.6Statutes, chapter 82.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision
1.9to read:
1.10 Subd. 1a. Automated valuation model. For purposes of this chapter, "automated
1.11valuation model" means a computerized model used by mortgage originators and
1.12secondary market issuers to determine the collateral worth of a mortgage secured, or to be
1.13secured, by a consumer's principal dwelling.
1.14EFFECTIVE DATE.This section is effective August 1, 2011.
1.15 Sec. 2. Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision to
1.16read:
1.17 Subd. 1b. Broker price opinion (BPO); broker opinion of value (BOV).
1.18For purposes of this chapter, "broker price opinion" means an estimate prepared by a
1.19real estate broker or real estate salesperson that details the probable selling price of a
1.20particular parcel of real property and provides a varying level of detail about the property's
1.21condition, market, and neighborhood, and information on comparable sales, but does
1.22not include an automated valuation model. "Broker price opinion" includes an opinion
1.23referred to as a "broker opinion of value" if the opinion complies with this definition of a
1.24"broker price opinion."
2.1EFFECTIVE DATE.This section is effective August 1, 2011.
2.2 Sec. 3. [82.735] BROKER PRICE OPINION: REQUIREMENTS; DUTIES OF
2.3LICENSEE; REGULATIONS.
2.4 Subdivision 1. Requirements. A person licensed under this chapter may prepare
2.5and provide a broker price opinion and may charge and collect a fee for it if the license of
2.6that licensee is active and in good standing.
2.7 Subd. 2. Duties of licensee. Notwithstanding any provision of the laws of this state
2.8to the contrary, a person licensed under this chapter may prepare a broker price opinion for:
2.9(1) an existing or potential seller for the purposes of listing and selling a parcel of
2.10real property;
2.11(2) an existing or potential buyer of a parcel of real property;
2.12(3) a third party making decisions or performing due diligence related to the
2.13potential listing, offering, sale, exchange, option, lease, or acquisition price of a parcel of
2.14real property when prepared as required by subdivision 3; or
2.15(4) an existing or potential lienholder or other third party for any purpose other than
2.16as the primary basis for determination of the value of a consumer's principal dwelling for
2.17the purpose of a residential mortgage loan origination in connection with the purchase of
2.18the property when prepared as required by subdivision 3.
2.19 Subd. 3. Written report; requirement. (a) Unless the party requesting the opinion
2.20requires a specific report, a broker price opinion prepared for a party under subdivision 2,
2.21clause (3) or (4), must be in writing and contain the following:
2.22(1) a statement of the intended purpose of the broker price opinion;
2.23(2) a brief description of the subject property and property interest to be priced;
2.24(3) the basis of reasoning used to reach the opinion on the price, including the
2.25applicable market data and/or capitalization computation;
2.26(4) any assumptions or limiting conditions;
2.27(5) a disclosure of any existing or contemplated interest of the broker or salesperson
2.28issuing the opinion;
2.29(6) the name of the broker or salesperson issuing the price opinion;
2.30(7) the name of the real estate brokerage that the broker or salesperson is acting
2.31on behalf of;
2.32(8) the date of the price opinion; and
2.33(9) a disclaimer stating, "This opinion is not an appraisal of the market value of the
2.34property, and may not be used in lieu of an appraisal in a federally related transaction. If
2.35an appraisal is desired, the services of a licensed or certified appraiser must be obtained."
3.1(b) A licensee may produce or transmit a written broker price opinion electronically
3.2to any person entitled to receive it.
3.3EFFECTIVE DATE.This section is effective August 1, 2011.
3.4 Sec. 4. Minnesota Statutes 2010, section 82.81, subdivision 9, is amended to read:
3.5 Subd. 9. Exclusive agreements. (a) Except as provided in paragraph (c), a licensee
3.6shall not negotiate the sale, exchange, lease, or listing of any real property directly with the
3.7owner or lessor knowing that the owner or lessor has executed a written contract granting
3.8exclusive representation or assistance for the same service in connection with the property
3.9to another real estate broker, buyer, or lessee, nor shall a licensee negotiate the purchase,
3.10lease, or exchange of real property knowing that the buyer or lessee has executed a written
3.11contract granting exclusive representation or assistance for the same service of purchase,
3.12lease, or exchange of the real property with another real estate broker.
3.13(b)
3.14lease, or option, or to an exclusive listing agreement or buyer's agreement, or facilitator
3.15services agreement, to breach the contract, option, or agreement.
3.16(c) A licensee may discuss the terms upon which a listing or buyer representation
3.17contract or a contract for facilitator services may be entered into after expiration of any
3.18existing exclusive contract when the inquiry or discussion is initiated by the owner, lessor,
3.19buyer, or lessee. The licensee must inquire of the owner, lessor, buyer, or lessee whether
3.20such an exclusive contract exists.
3.21EFFECTIVE DATE.This section is effective August 1, 2011.
3.22 Sec. 5. Minnesota Statutes 2010, section 82B.021, subdivision 19, is amended to read:
3.23 Subd. 19. Market analysis; broker price opinion. "Market analysis" or "broker
3.24price opinion" means a price opinion or opinion of value prepared by a licensed real estate
3.25salesperson or broker
3.26EFFECTIVE DATE.This section is effective August 1, 2011.
3.27 Sec. 6. Minnesota Statutes 2010, section 82B.035, is amended by adding a subdivision
3.28to read:
3.29 Subd. 1a. Broker price opinion. This chapter does not apply to a licensed real
3.30estate salesperson or broker who prepares a broker price opinion in accordance with
3.31section 82.735. In connection with the purchase of a consumer's principal dwelling, a
3.32broker price opinion may not be used as the primary basis to determine the value of a
4.1parcel of property for the purpose of a loan origination of a residential mortgage loan
4.2secured by the parcel of property.
4.3EFFECTIVE DATE.This section is effective August 1, 2011.
