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S1436.......................................by COMMERCE AND HUMAN RESOURCES APPRAISERS - Amends existing law to prohibit any person from practicing as an appraiser without a license or certification, to add definitions, to provide for issuance of a broker's price opinion by a broker or licensed associate broker and to provide that an unlicensed or uncertified appraiser may testify as to an opinion when qualified as an expert witness. 02/11 Senate intro - 1st rdg - to printing 02/12 Rpt prt - to Com/HuRes
S1436|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1436 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO REAL ESTATE APPRAISERS ACT; AMENDING SECTION 54-4103, 3 IDAHO CODE, TO PROHIBIT ANY PERSON FROM PRACTICING, ASSUMING TO ACT OR 4 HOLDING HIMSELF OUT TO THE PUBLIC AS AN APPRAISER WITHOUT A LICENSE OR 5 CERTIFICATION; AMENDING SECTION 54-4104, IDAHO CODE, TO ADD DEFINITIONS; 6 AND AMENDING SECTION 54-4105, IDAHO CODE, TO DELETE OBSOLETE LANGUAGE, TO 7 PROVIDE THAT A BROKER OR LICENSED ASSOCIATE BROKER MAY RENDER A BROKER'S 8 PRICE OPINION, TO PROVIDE THE INFORMATION AND A DISCLOSURE TO BE INCLUDED 9 IN A BROKER'S PRICE OPINION, TO PROVIDE FOR COMPENSATION FOR ISSUANCE OF 10 A BROKER'S PRICE OPINION AND TO PROVIDE THAT AN UNLICENSED OR UNCERTIFIED 11 APPRAISER MAY TESTIFY AS TO AN OPINION WHEN QUALIFIED AS AN EXPERT WITNESS 12 UNDER APPLICABLE COURT RULES OF EVIDENCE. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 54-4103, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 54-4103. USE OF TERM "LICENSED" OR "CERTIFIED" APPRAISER -- UNLAW- 17 FUL PRACTICE OF APPRAISAL . From and after July 1, 1992, it shall be 18 unlawful for any person in this state to assume or use the title "state 19 licensed" or "state certified real estate appraiser" or any title, designation 20 or abbreviation likely to create the impression of licensure or certification 21 by the state of Idaho for any real estate appraisal, unless the person has 22 first been licensed or certified by the real estate appraiser board under the 23 provisions of this chapter. The board may adopt for the exclusive use of per- 24 sons licensed or certified under the provisions of this chapter, a seal, sym- 25 bol or other mark identifying the user as a state licensed or certified real 26 estate appraiser. 27From and after July 1, 1992, iI t shall be unlaw- 28 ful for anyreal estate appraiserperson to practice, or 29 assume to act or to hold himself out to the public as a person qualified to 30 practice or carry on the calling of an appraiser within this state, or 31 to perform an appraisal of real estate located in this state unless the person 32 has first been licensed or certified by the board under the provisions of this 33 chapter. 34 SECTION 2. That Section 54-4104, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 54-4104. DEFINITIONS. As used in this chapter: 37 (1) "Appraisal" or "real estate appraisal" means an analysis, opinion or 38 conclusion relating to the value, nature, quality, or utility of specified 39 interests in, or aspects of, identified real estate. 40 (2) "Appraisal assignment" means an engagement for which an appraiser is 41 employed or retained to act, or would be perceived by third parties or the 2 1 public as acting, as a disinterested third party in rendering an unbiased 2 opinion or conclusion relating to the value, nature, quality or utility of 3 specified interests in, or aspects of, identified real estate. 4 (3) "Appraisal foundation" or "foundation" means the appraisal foundation 5 established on November 20, 1987, as a not-for-profit corporation under the 6 laws of Illinois. 7 (4) "Board" means the real estate appraiser board. 8 (5) "Broker's price opinion" means an oral or written opinion of 9 the estimated reasonable price that an identified real property or real prop- 10 erty interest will sell for in the relevant real estate market, rendered by a 11 broker or associate broker licensed under chapter 20, title 54, Idaho Code. 12 (6) "Federally related transaction" means any real estate related finan- 13 cial transaction that a federally regulated financial institution, regulatory 14 agency, or the resolution trust corporation engages in, funds contracts for, 15 or regulates and that requires the services of an appraiser. 16 (7) "License" or "certificate" means that document issued by the 17 real estate appraiser board certifying that the person named thereon has sat- 18 isfied the requirements for licensure or certification as a state licensed or 19 certified real estate appraiser and bearing a license or certificate number 20 assigned by the board. 21 (68 ) "Noncomplex appraisal" is one in which the 22 subject property has an active market of essentially identical properties, 23 there is adequate market data available, adjustments do not exceed the typical 24 range found in the market for essentially identical properties, and in the 25 instance of residential property, the contract sales price would fall within 26 the market norm for homes or lots within the same area. 27 (79 ) "Real estate appraiser" or "appraiser" 28 means a person who for a fee or other valuable consideration or the expecta- 29 tion thereof, develops and communicates real estate appraisals or otherwise 30 gives an opinion of the value of real estate or any interest therein. 31 (10) "Real estate related financial transaction" means any transac- 32 tion involving: 33 (a) The sale, lease, purchase, investment in or exchange of real property 34 including interests in property or the financing thereof; 35 (b) The refinancing of real property or interest in real property; or 36 (c) The use of real property or interest in property or security for a 37 loan or investment including mortgage back security. 38 (811 ) "Real property" or "real estate" means and 39 includes leaseholds as well as any other interest or estate in land, whether 40 corporeal, incorporeal, freehold or nonfreehold and whether situated in this 41 state or elsewhere. 42 (912 ) "State certified general real estate 43 appraiser" means a person who is certified to appraise all types of real prop- 44 erty. 45 (103 ) "State certified residential real estate 46 appraiser" means a person who holds a current, valid certificate as a state 47 certified residential appraiser issued under the provisions of this chapter 48 whose practice is limited to appraisal of residential properties of four (4) 49 or less units without regard to transaction value or complexity. 50 (114 ) "State licensed residential real estate 51 appraiser" means a person who is licensed to appraise residential real prop- 52 erty consisting of one (1) to four (4) noncomplex residential units having a 53 transaction value less than one million dollars ($1,000,000) and complex one 54 (1) to four (4) residential units having a transaction value less than two 55 hundred fifty thousand dollars ($250,000). 3 1 SECTION 3. That Section 54-4105, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 54-4105. EXCEPTIONS. (1)The provisions of this chapter do not4apply to any person who does not hold himself out as, or offer to perform ser-5vices as, a real estate appraiser.6(2)The provisions of this chapter do not restrict the right to 7 use the term "appraiser," provided that such term is not used in a manner that 8 creates the impression of certification by the state of Idaho to perform real 9 estate appraisals other than ad valorem tax appraisals. However, nothing in 10 this chapter shall entitle a state licensed or state certified real estate 11 appraiser to appraise real estate for ad valorem tax purposes unless he has 12 first been certified by the Idaho state tax commission pursuant to section 13 63-105A(17), Idaho Code. 14 (32 ) The provisions of this chapter shall not 15 apply to a licensed real estate broker, associate broker or salesperson who, 16 in the ordinary course of his business gives an opinion of the price of real 17 estate for the purpose of a prospective listing or sale, provided that such 18 person does not represent himself as being a state licensed or certified real 19 estate appraiser. 20 (3) (a) The provisions of this chapter do not prohibit a real 21 estate broker or associate broker who is licensed in the state of Idaho 22 under chapter 20, title 54, Idaho Code, from rendering a broker's price 23 opinion. If a broker's price opinion is rendered in writing, it shall 24 identify the real estate or the real estate interest that is the subject 25 of the opinion, state the assumptions and limiting conditions which affect 26 the broker's price opinion, the intended use of the broker's price opin- 27 ion, disclose whether the broker or associate broker licensed under chap- 28 ter 20, title 54, Idaho Code, rendering the opinion has any present or 29 known prospective interest in the property that is the subject of the 30 broker's price opinion, and be signed by the real estate broker or associ- 31 ate broker licensed under chapter 20, title 54, Idaho Code, who is render- 32 ing the broker's price opinion. The written opinion shall further state 33 in an obvious location within the document the following disclosure: 34 "This broker's price opinion has not been prepared by a licensed 35 or certified appraiser and is not an appraisal of the market 36 value of the property that is the subject of this opinion, as 37 provided in chapter 41, title 54, Idaho Code." 38 (b) The broker's price opinion permitted under this subsection may not be 39 used as an appraisal or in lieu of an appraisal in a federally related 40 transaction. 41 (c) Notwithstanding any other provision of this chapter, a broker or 42 associate broker licensed under chapter 20, title 54, Idaho Code, may 43 receive compensation for the issuance of a broker's price opinion. 44 (d) Nothing in this act precludes an unlicensed or uncertified appraiser 45 from testifying as to an opinion when qualified as an expert witness under 46 applicable court rules of evidence. 47 (4) Any person who is not licensed or certified under the provisions of 48 this chapter may assist a state licensed or certified real estate appraiser in 49 the performance of an appraisal, provided that he is actively and personally 50 supervised by the state licensed or certified appraiser and provided further 51 that any appraisal report rendered in connection with the appraisal is 52 reviewed and signed by the state licensed or certified real estate appraiser. 53 (5) The provisions of this chapter requiring mandatory licensure or cer- 54 tification shall not apply to employees or agents of the Idaho transportation 4 1 department when appraising transportation department property with a fair mar- 2 ket value of ten thousand dollars ($10,000) or less.
STATEMENT OF PURPOSE
RS07841
The purpose of this legislation is to clarify the Idaho Real
Estate Appraisers Act as it relates to real estate brokers and
associate brokers licensed under Chapter 20, Title 54 of the
Idaho Code. It clarifies language related to the unlawful
practice of appraisal. It provides for a definition of a broker
price opinion, a real estate related financial transaction, and
a federally related transaction. It clarifies that real estate
brokers and associate brokers can provide broker price opinions
while requiring specific disclosure language to distinguish
between a brokers price opinion and a real estate appraisal and
provides that real estate brokers and associate brokers can be
compensated for providing broker price opinions.
FISCAL IMPACT
There is no fiscal impact on the state general fund or any
political subdivision.
CONTACT: Alex LaBeau, Idaho Association of REALTORS
208-342-3585
STATEMENT OF PURPOSE/FISCAL NOTE
S 1436