HF 323

as introduced - 87th Legislature (2011 - 2012) Posted on 02/02/2011 09:14am

A bill for an act
relating to real estate professionals; regulating the provision of broker price
opinions on residential real estate; amending Minnesota Statutes 2010, sections
82.55, by adding subdivisions; 82.81, subdivision 9; 82B.021, subdivision 19;
82B.035, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 82.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Automated valuation model. new text end

new text begin For purposes of this chapter, "automated
valuation model" means a computerized model used by mortgage originators and
secondary market issuers to determine the collateral worth of a mortgage secured, or to be
secured, by a consumer's principal dwelling.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 82.55, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Broker price opinion (BPO); broker opinion of value (BOV).
new text end

new text begin For purposes of this chapter, "broker price opinion" means an estimate prepared by a
real estate broker or real estate salesperson that details the probable selling price of a
particular parcel of real property and provides a varying level of detail about the property's
condition, market, and neighborhood, and information on comparable sales, but does
not include an automated valuation model. "Broker price opinion" includes an opinion
referred to as a "broker opinion of value" if the opinion complies with this definition of a
"broker price opinion."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 3.

new text begin [82.735] BROKER PRICE OPINION: REQUIREMENTS; DUTIES OF
LICENSEE; REGULATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin A person licensed under this chapter may prepare
and provide a broker price opinion and may charge and collect a fee for it if the license of
that licensee is active and in good standing.
new text end

new text begin Subd. 2. new text end

new text begin Duties of licensee. new text end

new text begin Notwithstanding any provision of the laws of this state
to the contrary, a person licensed under this chapter may prepare a broker price opinion for:
new text end

new text begin (1) an existing or potential seller for the purposes of listing and selling a parcel of
real property;
new text end

new text begin (2) an existing or potential buyer of a parcel of real property;
new text end

new text begin (3) 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 when prepared as required by subdivision 3; or
new text end

new text begin (4) an existing or potential lienholder or other third party for any purpose other than
as the primary basis for determination of the value of a consumer's principal dwelling for
the purpose of a residential mortgage loan origination in connection with the purchase of
the property when prepared as required by subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Written report; requirement. new text end

new text begin (a) Unless the party requesting the opinion
requires a specific report, a broker price opinion prepared for a party under subdivision 2,
clause (3) or (4), must be in writing and contain the following:
new text end

new text begin (1) a statement of the intended purpose of the broker price opinion;
new text end

new text begin (2) a brief description of the subject property and property interest to be priced;
new text end

new text begin (3) the basis of reasoning used to reach the opinion on the price, including the
applicable market data and/or capitalization computation;
new text end

new text begin (4) any assumptions or limiting conditions;
new text end

new text begin (5) a disclosure of any existing or contemplated interest of the broker or salesperson
issuing the opinion;
new text end

new text begin (6) the name of the broker or salesperson issuing the price opinion;
new text end

new text begin (7) the name of the real estate brokerage that the broker or salesperson is acting
on behalf of;
new text end

new text begin (8) the date of the price opinion; and
new text end

new text begin (9) a disclaimer stating, "This opinion is not an appraisal of the market value of the
property, and may not be used in lieu of an appraisal in a federally related transaction. If
an appraisal is desired, the services of a licensed or certified appraiser must be obtained."
new text end

new text begin (b) A licensee may produce or transmit a written broker price opinion electronically
to any person entitled to receive it.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 82.81, subdivision 9, is amended to read:

Subd. 9.

Exclusive agreements.

(a) Except as provided in paragraph (c), a licensee
shall not negotiate the sale, exchange, lease, or listing of any real property directly with the
owner or lessor knowing that the owner or lessor has executed a written contract granting
exclusive representation or assistance new text begin for the same service new text end in connection with the property
to another real estate broker, buyer, or lessee, nor shall a licensee negotiate the purchase,
lease, or exchange of real property knowing that the buyer or lessee has executed a written
contract granting exclusive representation or assistance for the new text begin same service of new text end purchase,
lease, or exchange of the real property with another real estate broker.

(b) deleted text begin Licensees deleted text end new text begin A licensee new text end shall not induce any party to a contract of sale, purchase,
lease, or option, or to an exclusive listing agreement or buyer's agreement, or facilitator
services agreement, to breach the contract, option, or agreement.

(c) A licensee may discuss the terms upon which a listing or buyer representation
contract or a contract for facilitator services may be entered into after expiration of any
existing exclusive contract when the inquiry or discussion is initiated by the owner, lessor,
buyer, or lessee. The licensee must inquire of the owner, lessor, buyer, or lessee whether
such an exclusive contract exists.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 5.

Minnesota Statutes 2010, section 82B.021, subdivision 19, is amended to read:

Subd. 19.

Market analysis new text begin ; broker price opinion new text end .

"Market analysis" new text begin or "broker
price opinion" new text end means a price opinion new text begin or opinion of value new text end prepared by a licensed real estate
salesperson or broker deleted text begin for marketing purposes deleted text end new text begin in accordance with section 82.735 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, section 82B.035, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Broker price opinion. new text end

new text begin This chapter does not apply to a licensed real
estate salesperson or broker who prepares a broker price opinion in accordance with
section 82.735. In connection with the purchase of a consumer's principal dwelling, a
broker price opinion may not be used as the primary basis to determine the value of a
parcel of property for the purpose of a loan origination of a residential mortgage loan
secured by the parcel of property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end