Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A real estate sales associate is preparing to conduct a comparative market analysis (CMA) for a potential seller client. Which of the following statements is TRUE regarding the sales associate's role in performing a CMA?
- AA sales associate can only prepare a CMA under the direct supervision of a licensed appraiser.
- BA sales associate can prepare a CMA and charge a fee for it, provided it is clearly labeled as an appraisal.
- CA sales associate can prepare a CMA, but it must include a disclaimer that it is not an appraisal.
- DA sales associate cannot prepare a CMA, as this constitutes unlicensed appraisal activity.
Show answer & explanationAnswer & explanation
Correct answer: C. A sales associate can prepare a CMA, but it must include a disclaimer that it is not an appraisal.
Florida law permits real estate licensees to prepare Comparative Market Analyses (CMAs) or Broker Price Opinions (BPOs) for compensation, provided they include a disclaimer stating that the report is not an appraisal and should not be considered as such.
Why the other options are wrong
- A. Supervision by an appraiser is not required for a sales associate to prepare a CMA.
- B. A CMA is not an appraisal, and labeling it as such would be misleading and illegal.
- D. Sales associates are permitted to prepare CMAs; it does not constitute unlicensed appraisal activity if done correctly.
Comparative Market Analysis (CMA)
An analysis of the prices of recently sold homes that are similar to a subject property in terms of location, style, and amenities.
- Prepared by real estate licensees.
- Used to help determine a listing price or offer price.
- Must include a disclaimer that it is not an appraisal.
Memory trick: CMA is a guide, Appraisal is the law's eye.