Licensee and Property Appraiser: You Can’t Wear Two Hats
Q: I am a real estate licensee, and I want to start offering appraisals as well. I’m going to work with an appraisal company that isn’t licensed under the Real Estate Services Act. Is this allowed?
A: No, you can’t work as an appraiser for another company while you are licensed to a brokerage. If you provide appraisals with an unlicensed company, you are violating the Real Estate Services Act (RESA) and you may find yourself being investigated and disciplined by the Council.
That’s because as a licensee, you can only receive payment for real estate services directly from the brokerage where you are licensed. And providing property appraisals is a real estate service.
Take a look at the definition of trading services in RESA — you’ll see that it includes these two lines:
- giving advice on the appropriate price for property, and/or
- making representations about the property.
Those two activities are what you will be doing as a property appraiser. As long as you are licensed under RESA, you can only provide real estate services, including appraisals, through your brokerage. Any payment for this work must come through your brokerage.
So, if you want to work as an appraiser while you are a licensed real estate professional, you should speak to your managing broker about providing this service through your brokerage.
Your other alternative would be to give up your real estate licence in order to focus on property appraisals. There is a specific exemption for professional appraisers in RESA, which means they do not have to be licensed in order to carry out these activities. But this exemption does not apply to individuals who are already licensed under RESA.
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