Bill Text: HI SB154 | 2011 | Regular Session | Amended
Bill Title: Real Estate Brokers and Salespersons; Broker Price Opinion
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2011-03-24 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on JUD with none voting no (0) and Har, Riviere, Wooley excused (3). [SB154 Detail]
Download: Hawaii-2011-SB154-Amended.html
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THE SENATE |
S.B. NO. |
154 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO BROKER PRICE OPINIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 467, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§467- Broker price opinions. (a) A real estate broker or real estate salesperson licensed pursuant to this chapter may prepare a broker price opinion that meets the requirements of this section relating to the estimated price of a specific parcel of real estate and information of varying levels of detail about the property's condition and relevant market factors, including the property's location, neighborhood, and recent comparable sales for use by:
(1) An existing or potential seller to list and sell real estate;
(2) An existing or potential buyer of real estate;
(3) A third party to determine the estimated potential listing, offering, sale, exchange, option, lease, or acquisition price of real estate; or
(4) An existing or potential lien holder;
provided that a broker price opinion shall not be referred to as an appraisal or substituted for an appraisal by a licensed or certified appraiser if an appraisal is required by applicable law.
(b) A real estate broker or real estate salesperson licensed pursuant to this chapter shall not represent that the licensee is a certified or licensed real estate appraiser or knowingly prepare a broker price opinion for use as an appraisal where an appraisal is required by law or otherwise unless the licensee is also so licensed under section 466-K.
(c) If a broker price opinion is provided for compensation or valuable consideration by a real estate broker or real estate salesperson licensed pursuant to this chapter, it shall be in writing and include:
(1) A statement of the intended purpose of the price opinion;
(2) A brief description of the subject property and the property interest to be priced;
(3) The basis of reasoning used to reach the conclusion of the price opinion, including the applicable market data or capitalization computation, or both;
(4) Any assumptions or limiting conditions used to determine the price opinion;
(5) A disclosure of any existing or contemplated interest of the broker or sales person issuing the price opinion;
(6) The licensee's name, signature, and license identification number;
(7) The date of issuance of the price opinion; and
(8) The following disclosure statement:
"Notwithstanding any language to the contrary contained in this document or elsewhere, this broker price opinion is not an appraisal. If an appraisal is desired, or if an appraisal is required by law, you must obtain the services of a real estate appraiser licensed or certified pursuant to chapter 466K, Hawaii Revised Statutes."
(d) A broker price opinion prepared under this section shall conform to the standards and guidelines published by a nationally recognized association of providers of broker price opinions. The commission shall adopt rules consistent with, but not limited to the standards and guidelines of a nationally recognized association of providers of broker price opinions.
(e) No real estate broker, real estate salesperson, or other person involved for compensation in the sale of a property shall charge additional compensation for a broker price opinion on that property.
(f) No person aggrieved by a broker price opinion shall be entitled to recovery under the real estate recovery fund established pursuant to section 467-16."
SECTION 2. Section 466K-1, Hawaii Revised Statutes, is amended to read as follows:
"§466K-1 Findings and purpose[.];
scope. (a) The legislature finds that the regulation of
real estate appraisers is reasonably necessary to protect consumers. The
legislature further finds that Title 12 United States Code [§3301] Section
3301 et seq. requires that real estate appraisals [utilized] used
in connection with federally related transactions be performed by individuals
who are certified appraisers. The purposes of this chapter are to implement
the requirements of Title 12 United States Code [§3301] Section 3301
et seq. and to require that all real estate appraisals be performed by licensed
or certified appraisers.
(b) The requirements of this chapter [do]
shall not apply to any real estate appraiser employed by any county for
purposes of valuing real property for ad valorem taxation.
(c) Nothing in this chapter shall be construed to permit the use of a broker price opinion under section 467- as an appraisal under this chapter."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2059.
Report Title:
Real Estate Brokers and Salespersons; Broker Price Opinion
Description:
Permits a licensed real estate broker or real estate sales person to prepare broker price opinions for use in real estate transactions where an appraisal is not required by law or otherwise; clarifies that recovery from the real estate recovery fund is not available for complaints regarding broker price opinions. Effective January 1, 2059. (SB154 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
