Minnesota Session Laws - 2011, Regular Session

CHAPTER 15--H.F.No. 323

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 or BPO. new text end

new text begin For purposes of this chapter, "broker price opinion" or "BPO" means an estimate prepared by a real estate broker, real estate salesperson, or licensed real estate appraiser 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. 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 or chapter 82B 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 or chapter 82B 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 to determine the value of a piece of property for the purpose of a loan origination of a residential mortgage loan secured by such piece of property, when done in conjunction with the purchase of a consumer's principal dwelling, 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; 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. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained." new text end

new text begin (b) A copy of the broker price opinion report required under this subdivision together with any supporting materials and documents used in its preparation shall be retained as required under section 82.72, subdivisions 3 and 4. new text end

new text begin (c) A licensee may produce or transmit a broker price opinion report 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 prepared by a licensed real estate salesperson deleted text begin or deleted text end new text begin , new text end broker deleted text begin for marketing purposes deleted text end new text begin , or real estate appraiser 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 (a) This chapter does not apply to a licensed real estate salesperson, broker, or real estate appraiser 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 (b) An appraiser preparing a broker price opinion shall disclose that the appraiser is not acting as an appraiser in preparing the broker price opinion and that the broker price opinion is not an appraisal or appraisal assignment and, therefore, is not subject to USPAP. new text end

new text begin EFFECTIVE DATE. new text end

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

Presented to the governor April 18, 2011

Signed by the governor April 20, 2011, 2:56 p.m.