![]() The committee accepts that the production of a CMA is not an exact science that it is not a valuation and should not be treated as such. This is captured in a CAC decision where the complainant alleged the market appraisal was misleading and inflated.īased on the appraisal and the advice from the licensee, the complainant entered into a sole listing agreement with the agency. You should explain why you have included some properties for comparison and be able to explain why you have excluded others. A licensee should explain how the property compares to other recent sales, and how they have arrived at the appraised amount. It's not enough to simply present the prospective client with a list of properties and data collected. This was lacking skill or care of both in our view (Rule 5.1).’Įvery agency agreement is required to be accompanied by a current market appraisal (CMA). She failed to carefully inspect the property before completing her appraisal. ‘The Committee looked at the actions of the licensee as a whole. 'the market appraisal did not realistically reflect the market conditions at the time as the licensee appeared to have considered the most favourable sales of properties that were of a similar size and ignored the less favourable comparisons'. The licensee was found guilty of unsatisfactory conduct as: The licensee did not take into consideration when appraising that it had been on the market for over 30 days and did not check the value against potential income that could be earned from the property. It was submitted to the vendors with a statement from the licensee that said they "have not been inside but had a good look through the windows" along with comparable property data. ![]() This case involves a licensee who provided an appraisal for a property that was listed under a general agency agreement. The following decision from a Complaints Assessment Committee (CAC) highlights the importance for you to view the property when conducting an appraisal. You are at risk of breaching rule 5.1 of the Code of Conduct if you do not visit a property or business before appraising it.ĥ.1 A licensee must exercise skill, care, competence, and diligence at all times when carrying out real estate agency work. Unless there are exceptional circumstances, you can expect to have access to the property or business you are appraising so you can ensure you have fully viewed the property or business before finalising the appraised amount.
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