In a recent complaint filed with the Real Estate Commission, a North Carolina bank alleged that a real estate broker had submitted an "opinion of value" on certain real estate being used to secure a loan, which property was later determined to have significantly less value than indicated in the opinion. The bank further alleged that it had relied upon this opinion of value in granting a loan on the property, and that as a result, it suffered monetary damages upon a subsequent foreclosure against the property.

The real estate broker in her defense told the Commission's investigator that she was not aware that her opinion was to be used for loan purposes; that it was her understanding that the person requesting the opinion was the owner of the property and that the opinion was to be used for his "file purposes." Nevertheless, it was the position of the Commission that the broker did not exercise adequate skill and diligence in performing this service. (The Commission also questioned the prudence of the bank in accepting the opinion without further substantiation.) The broker subsequently entered into a monetary settlement with the bank.

This matter is being reported as a warning to real estate brokers and salesmen who may find themselves in a similar situation. You are cautioned not to state an opinion of value regarding any real estate until you have first conducted the necessary research and study, even if the opinion is requested for merely "curiosity" or general interest purposes. You are also advised to decline any requests to state an opinion of value if you do not feel that you possess the requisite skill and training to effectively perform the task. Failure to do so, may, as in the case of this broker, prove to be an expensive lesson.