Washington License Law
A Washington real estate licensee is asked to perform a broker's price opinion (BPO) for a client who wants to know the value of their home for estate planning. This is:
AProhibited for any purpose — only licensed appraisers can provide valuations
BPermissible for non-lending purposes, but the licensee must clarify it is not a licensed appraisal under USPAP✓ Correct
CRequired to be signed by a managing broker
DPermissible only if the licensee is also a certified appraiser
Explanation
Washington licensees may prepare broker price opinions (BPOs) for brokerage-related and non-lending purposes such as estate planning. However, the BPO must not be represented as a USPAP-compliant appraisal, and it cannot be used for federally related loan decisions.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
State-Specific Concepts
License Law
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