Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate broker is asked by a client to prepare a valuation of their commercial property for an estate planning purpose. The client specifically states they do not intend to list the property for sale. What type of valuation can the broker legally provide?
- AA comparative market analysis (CMA).
- BA formal opinion of value.
- CA certified appraisal.
- DA broker's price opinion (BPO).
Show answer & explanationAnswer & explanation
Correct answer: A. A comparative market analysis (CMA).
In Florida, a real estate broker cannot provide a certified appraisal unless they are also a licensed appraiser. A broker can provide a Comparative Market Analysis (CMA) for purposes other than obtaining a listing, such as for estate planning, as long as it is not presented as an appraisal and does not charge a fee if not related to a potential listing.
Why the other options are wrong
- B. A formal 'opinion of value' is vague and could be misconstrued as an appraisal, which a broker cannot do.
- C. Only a licensed appraiser can provide a certified appraisal.
- D. A BPO is typically prepared for lenders in foreclosure situations, not for general estate planning by a broker.
Broker's Valuation Services (Florida)
Florida real estate brokers can provide a Comparative Market Analysis (CMA) to estimate property value, but cannot perform a certified appraisal unless also a licensed appraiser.
- CMA is for marketing or advising clients.
- Appraisals require a separate appraiser license.
- BPOs are typically for financial institutions in specific contexts.
Memory trick: Brokers can 'Compare' but not 'Certify' value.