Massachusetts Real Estate home appraiser rules - About the Board of Registration of Real Estate Appraisers, Real Estate Appraiser, When to Use a Real Estate Appraiser, Your Property’s Worth, Consumer Tips, How Long Does an Appraisal Take? What the Appraiser Needs to Know, Choosing an Appraiser, Filing a Complaint. Dreamhomes, your Internet Realtor making the home buying or selling process easy and profitable. Internet ease with personalized service.

Contents:	About the Board of Registration of Real Estate Brokers and Salespersons Agency Disclosure Types of Agency Relationships Licensed Brokers and Salespersons Things Buyers Should Know Things Sellers Should Know Things Renters Should Know Your Responsibility as a Consumer Filing a Complaint

	Board of Registration of Real Estate Brokers and Salespersons The Board of Registration of Real Estate Brokers and Salespersons is one of 32 professional and occupational licensing boards within the Division of Professional Licensure. The Real Estate Board licenses applicants who meet the statutory and regulatory requirements initiated for real estate brokers and salespersons. In carrying out its mission, the Board regulates real estate schools and agent curriculum and contracts with a testing vendor to provide computerized broker and salesperson examinations. The Board seeks to protect consumers by exercising its authority to discipline those real estate agents who violate licensing laws and regulations.
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	Agency Disclosure A real estate broker or salesperson must tell you who he or she represents in a prospective transaction. This disclosure of the relationship the agent has with you must be made in writing at the time of your first personal meeting to discuss a specific piece of property.
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	Types of Agency Relationships Sellers Agent If you engage the services of a listing broker to sell your property, you become the broker’s client. That broker represents you, the seller, and owes you undivided loyalty, confidentiality and accountability. In negotiating for the best price and terms, he must put your interests first. Buyer’s Agent You may engage the services of a broker to represent you exclusively as a buyer of real property. In this case, the broker represents you and is accountable to you. She must obey your instructions and keep confidential anything you tell her that may affect your purchase of real property. In negotiating for the best prices and terms, she must put your interests first. Disclosed Dual Agent A broker can work for both the buyer and the seller on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this case, the broker is considered a "disclosed dual agent." This broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker does not represent either the seller or the buyer exclusively, and neither party can expect the broker’s undivided loyalty. Undisclosed dual agency by a broker is illegal.
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	Licensed Brokers and Salespersons Only licensed real estate brokers and salespersons can assist you with the purchase, sale, lease or exchange of real property. This assistance includes a number of services, such as examining property for basic valuations (not to be confused with the services of a licensed appraiser), negotiating purchase, sale or lease agreements, maintaining escrow accounts, and advertising. To become licensed, an applicant must satisfactorily complete the agent curriculum in real estate approved by the Board and pass a written examination conducted by the Board’s testing service. A real estate broker negotiates agreements to sell, exchange, purchase, rent or lease interests in real property for a fee, commission or other valuable consideration for another person. A broker is responsible for accepting and escrowing all funds, such as a deposit placed on the purchase of a home, and for finalizing transactions. A real estate broker must supervise any transactions conducted by a salesperson. A real estate salesperson engages in the same activities as a broker, except completing the negotiation of any agreement or transaction. A salesperson also has no authority or control over escrow funds. A salesperson must be affiliated with a broker, either as an employee or as an independent contractor, and work under the supervision of the broker. A salesperson can not operate his own real estate business.
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	Things Buyers Should Know Who does the real estate agent represent? Typically the broker represents the seller, though in today's environment it is common for full service agencies to have seller, buyer and dual agency representation. Make sure the real estate agent is licensed and in good standing with the Board. (Check that both the broker’s and salesperson’s licenses have not been subject to disciplinary action, such as a suspension or revocation.) Call (617) 727-2373. You can negotiate the amount of any deposit. Deposits: Both parties need to be clear about who will hold any deposit funds and what will happen in the event of a dispute between the parties. All agreements should be in writing, and no party should sign an agreement or pay any money until they are comfortable that they understand the terms. If a broker accepts money from you for any reason, that broker must immediately deposit the payment in an escrow account, a separate bank account which is maintained specifically as a depository for funds belonging to others. The money must be kept in this separate account until the transaction is successfully completed or is terminated. It is illegal for a broker to mingle your funds with his own. If a salesperson accepts your payment or deposit, the salesperson must turn over this money to the supervising broker. If you make an offer to purchase a property listed by a broker, the broker or salesperson is required to convey your offer to the owner of the property immediately. You should be clear about your negotiating position prior to making an offer on a property. Don’t become attached to property beyond your desired price range. You could end up spending beyond your means. You can negotiate the terms of a purchase and sale agreement. Purchase and Sale Agreement: A Purchase and Sale Agreement is the contract between the buyer and seller noting the terms concerning the purchase of the house (real property). Essentially, it controls the sale of the home from seller to buyer. It includes information on what is being sold, the sale price, your financing, the type of title you will get, the closing date, the amount of deposit you have paid over and how much of the house price you are financing. Typical negotiable items include: The amount of the deposit, the closing date, the number of loan applications you will file and the main terms of such loan (e.g., that your are trying for a fixed rate loan that does not exceed a specific percentage and number of years). You may also rid the agreement of deposit dispute clauses or include one more favorable to you as the buyer should the sale fall through. Allow enough time in the purchase and sale agreement to obtain financing. The purchase and sale agreement should also specify how many applications for financing constitute "good faith." Repeated unsuccessful applications can be costly and time consuming. Investigate "pre-approval" before house hunting so you are clear about financial limitations. If the broker or the seller makes any important promises or representations about the property or what will be included in the sale, make sure those promises are contained in the purchase and sale agreement. Allow enough time in the purchase and sale agreement to have a professional home inspection performed. Use references from friends, not the listing broker, to find your own inspector. On the day of the closing, before papers are passed, make one final walk through of the property to be sure it is in the agreed upon condition. It is often wise to seek legal advice prior to signing any documents concerning the purchase of real estate. Ask questions. Don’t sign anything until it has been explained to your full satisfaction.
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	Things Sellers Should Know Find out whether you are dealing with a salesperson or a broker. You may want to make sure that your understanding with a salesperson is confirmed by the broker, with whom the salesperson is affiliated. Make sure the real estate agent is licensed and in good standing with the Board. (Check that both the broker’s and salesperson’s licenses have not been subject to disciplinary action, such as a suspension or revocation.) Call (617) 727-2373. Sellers typically use the services of a real estate broker to sell their residential or commercial property. This is usually described as giving that broker a listing. The terms of the listing agreement are negotiable. Listing Agreement: Often brokers present sellers with a standard listing agreement (an agreement which contains "standard language"). These agreements are certainly acceptable and are commonly used in the practice. (They are not, however, developed by the Real Estate Board or by state government.(Note: DREAMHOMES uses forms developed by the Greater Boston Real Estate Board) ) You may negotiate different terms that are acceptable to you and the broker. Typical negotiable items include: How long you will give a broker to sell your real property, the type of advertising which will be done, and the commission you will pay to the broker. Unless your needs demand otherwise, your listing agreement should seek to have your property advertised in as many advertising mediums as possible, thereby giving it greater exposure to more potential buyers. (For example, the Multiple Listing Service of the private realtor professional associations, local newspapers, newspapers with statewide circulation, or the internet.) Determine whether you want the broker to represent you exclusively. This means that the broker is the only broker representing you in the sale of your real property. This is a typical arrangement, but some sellers may wish to enter into a non-exclusive listing agreement with a broker, based on their particular needs. In such situations, the broker does not exclusively have the right to sell your real property. That broker will attempt to sell it, but you may also employ other brokers and your own efforts in selling the real property. Naturally, non-exclusive listing agreements may affect the ultimate terms of the agreement, particularly the commission. (Remember, the broker bears the cost of advertising the property, which can be substantial. With a non-exclusive listing agreement, the broker may want a larger commission for a sale made by the broker since he or she undertakes these costs without the exclusive right to sell.) Check if a broker has errors and omissions insurance for his or her brokering practice. (State licensing law requires real estate brokers to have a five thousand dollar surety bond, but many brokers carry additional errors and omissions insurance.) This may be helpful should there be a problem which leads to litigation against a broker. Check to be sure your broker will accept offers made from other brokers including brokers who represent the buyer exclusively and brokers who may not be affiliated with a professional association. Brokers are required to present all offers that are made to them to you, the seller. Clearly understand what your interests are so that when you enter into a listing agreement with a broker you are comfortable with the terms. You also may want to have an attorney review such an agreement before you sign it.
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	Things Renters Should Know Anyone in the business of finding living accommodations for another for a fee, commission, or other valuable consideration must be licensed as a real estate broker or salesperson Make sure the real estate agent is licensed and in good standing with the Board. Call (617) 727-2373. When seeking to rent or lease an apartment, house, or condominium through a real estate broker or salesperson, you may be asked to complete an application. Know what you are signing. Some applications may bind you to a fee that must be paid whether or not you ever sign a lease. Even when a standard application form (a form that contains "standard" language) is used, you can submit the application with changes that reflect your terms. There are no "agency disclosure" regulations for agents finding rental or lease property for a fee. Ask who the agent represents - you or the landlord? If you are asked to make a deposit, find out what the deposit will be applied to - first or last month’s rent, security deposit, or a fee. Determine whether it is you or the landlord who will pay the agent’s commission. If you are required to pay the commission, find out when the payment is due. It is illegal for an apartment listing service to advertise or otherwise represent listings that claim to meet certain specifications when, in fact, they do not, or to state that it has listings meeting certain specifications when it has no such listings. It is also illegal for an apartment listing service to induce you to sign a contract by falsely representing that it has listings that conform to your requirements at the time the contract is executed.
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	Your Responsibility as a Consumer Whether you are a buyer, a seller, or a renter, the duties of a real estate broker or salesperson do not relieve you of the responsibility to protect your own interests. If you have questions concerning your particular transaction, pose them to the agent. If you need advice on legal, tax, insurance or other matters, it is your responsibility to consult a professional in those areas. No broker or salesperson should advise you against using the services of an attorney in any real estate transaction.
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	Filing a Complaint While the majority of licensees conduct themselves as true professionals, the Division of Professional Licensure will take action against those who violate the statutes or the Board’s rules and regulations. In many cases, complaints are made by dissatisfied consumers - but, dissatisfaction alone is not proof of incompetence or sufficient grounds for disciplinary action. If you have a serious complaint against a real estate broker or salesperson, call or write the Division’s Office of Investigations and ask for a complaint form: Division of Professional Licensure Office of Investigations 239 Causeway Street, Suite 400 Boston, MA 02114 tel. (617) 727-7406
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	*From the website of the Division of Professional Licensure for Massachusetts.

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Contents:	About the Board of Registration of Real Estate Appraisers Real Estate Appraiser When to Use a Real Estate Appraiser Your Property’s Worth Consumer Tips How Long Does an Appraisal Take? What the Appraiser Needs to Know Choosing an Appraiser Filing a Complaint

	Board of Registration of Real Estate Appraisers Real Estate Appraisers, through their contracts with clients, provide land and commercial and residential property appraisal services. The Board of Registration of Real Estate Appraisers licenses qualifies professional appraisers in compliance with the mandates of Title XI, Federal Financial Institution Reform, Recovery and Enforcement Act (FIRREA) of 1989. The Board insures the integrity of its licensees through fair and consistent enforcement of the statutes and regulations.
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	Real Estate Appraiser A real estate appraiser is an impartial, independent third party who provides an appraisal - an objective report on the estimate of value of real estate. The appraisal is supported by the collection and analysis of data. A real estate appraiser values real property (land, houses, buildings, etc.), not personal property (cars, jewelry, furniture). The appraiser determines the physical characteristics of the property to be appraised and estimates value based upon three common approaches to value: Sales Comparison Market Approach Cost Approach Income Capitalization Approach A state licensed real estate appraiser meets nationally established standards for education and experience, and successfully passes a comprehensive examination. A state licensed appraiser conforms to national ethical and professional standards called the Uniform Standards or Professional Appraisal Practice (USPAP), which establish the standards for ethics, competency and confidentiality governing professional appraisal practices.
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	When to Use a Real Estate Appraiser You will likely need the services of a real estate appraiser whenever an estimate of the value of real estate is required. Most commonly, this occurs when you apply for a real estate loan, either to purchase or refinance your home. You may also need a real estate appraiser to assist in the appeal of your property tax assessment, for insurance purposes, for probate and estate settlements or other reasons. Usually the appraisal is part of a loan application where real estate is being used as collateral or security for a loan. The lender needs an accurate estimate of value, which can be used in the loan application process.
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	Your Property’s Worth It is common for the owner to ask the appraiser this question as soon as the appraiser has inspected the property. The truth is at that time the appraiser doesn’t know what the property value will be. The inspection is the first step of many that the appraiser must complete before a value is determined. As a matter of fact, the inspection of the property is the shortest step in the appraisal process. The appraiser measures the house from the outside to determine square footage. The appraiser takes notes concerning the features of your house such as room layout, number of bedrooms, baths, etc. The appraiser also makes a determination of the general condition, appeal and functional layout of your house. All of these items are taken into consideration in the appraisal report.
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	Consumer Tips When having real estate appraised, just like having other property appraised, it is important to retain a knowledgeable, educated individual with experience in the all aspects of the field. The following is a list of basic requirements for professional real estate appraisers: Formal education in real estate. Training in principles of valuation. Experience in buying and selling real estate. Knowledge of levels of value and how the market is affected from source to consumer. Knowledge of property values. Like many other professions, the industry of Real Estate Appraisers has seen the proliferation of professional designations.
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	How Long Does an Appraisal Take? The physical inspection of a typical property usually takes about twenty to forty-five minutes. Sometimes an inspection can take longer if the house is difficult to measure or has some unique features that require additional investigation by the appraiser. After the initial inspection of the property the appraiser spends time examining or analyzing the neighborhood or area. The purpose of this is to search for other properties that are similar to the property being appraised that have sold recently and examine neighborhood influences. When the fieldwork is finished, the appraiser completes the report at his office.
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	What the Appraiser Needs to Know To help the appraiser complete the appraisal, the owner, purchaser or Realtor can provide some information that is helpful to the appraiser. Please tell the appraiser of any previous sale on the property within the last 12 months. Indicate if there is a pending contract to purchase on the property. Does the property have any right of way or other easements? Is there structural damage, or water leakage in the house? Is the property in a flood zone? Basically, inform the appraiser about any hidden features or detriments to the property.
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	Choosing an Appraiser Although federal and state laws usually require that the lender must hire the appraiser when the appraisal is to be used for a real estate loan, some lenders will allow you to select an appraiser from their list of approved appraisers. For all other appraisals, you are allowed to select your own appraiser. Licensed real estate appraisers can be found on our website on the state's web site - http://license.reg.state.ma.us/ - or by talking to your friends who have previously used an appraiser. Be sure to interview the appraiser carefully to determine if he or she is licensed and experienced in appraising your type of property. Most licensed appraisers will provide an advance estimate of the cost to perform the appraisal, and many will commit to a fixed fee for the appraisal. It is always wise to obtain a written contract for services which includes a description of what is to be appraised, the scope of the assignment, the anticipated delivery date, the fee and terms of payment.
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	Filing a Complaint While the majority of licensees conduct themselves as true professionals, the Division of Professional Licensure will take action against those who fail to maintain acceptable standards of competence and integrity. In many cases, complaints are made by dissatisfied consumers - but, dissatisfaction alone is not proof of incompetence or sufficient grounds for disciplinary action. If you have a serious complaint against a licensed real estate appraiser, call or write the Division's Office of Investigations and ask for a complaint form. Division of Professional Licensure Office of Investigations 239 Causeway Street, Suite 400 Boston, Mass. 02114 (617) 727-7406