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H0427.........................................by TRANSPORTATION AND DEFENSE
REAL ESTATE APPRAISERS - Amends existing law to provide an exception to
mandatory real estate appraiser licensure or certification for employees or
agents of the Idaho Transportation Department when making value estimates
of property or for just compensation valued at ten thousand dollars or
less; to provide for review of the estimate by a state certified general
real estate appraiser; to provide that the property owner shall be provided
with a copy of the estimate; and to provide that the property owner shall
be informed of the right to request a certified appraisal.
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Transp
01/23 Rpt out - rec d/p - to 2nd rdg
01/24 2nd rdg - to 3rd rdg
01/28 3rd rdg - PASSED - 69-0-1
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge,
Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood,
Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz,
Lake, Langford, Loertscher, Mader, Martinez, McKague, Meyer,
Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould,
Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd,
Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman, Trail,
Wheeler, Young, Mr. Speaker
NAYS -- None
Absent and excused -- Wood
Floor Sponsor - Roberts
Title apvd - to Senate
01/29 Senate intro - 1st rdg - to Transp
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/11 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
Lodge, Marley, Noh, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- Geddes, Richardson
Floor Sponsor - Marley
Title apvd - to House
02/12 To enrol
02/13 Rpt enrol - Sp signed
02/14 Pres signed
02/15 To Governor
02/19 Governor signed
Session Law Chapter 31
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 427
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO REAL ESTATE APPRAISERS ACT; AMENDING SECTION 54-4105,
3 IDAHO CODE, TO PROVIDE AN EXCEPTION TO MANDATORY LICENSURE OR CERTIFICA-
4 TION FOR EMPLOYEES OR AGENTS OF THE IDAHO TRANSPORTATION DEPARTMENT WHEN
5 MAKING VALUE ESTIMATES OF PROPERTY OR FOR JUST COMPENSATION VALUED AT TEN
6 THOUSAND DOLLARS OR LESS, TO PROVIDE FOR REVIEW OF THE ESTIMATE BY A STATE
7 CERTIFIED GENERAL REAL ESTATE APPRAISER, TO PROVIDE THAT THE PROPERTY
8 OWNER SHALL RECEIVE A COPY OF THE ESTIMATE AND TO PROVIDE THAT THE PROP-
9 ERTY OWNER SHALL BE INFORMED OF THE RIGHT TO REQUEST A CERTIFIED
10 APPRAISAL.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 54-4105, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 54-4105. EXCEPTIONS. (1) The provisions of this chapter do not restrict
15 the right to use the term "appraiser," provided that such term is not used in
16 a manner that creates the impression of certification by the state of Idaho to
17 perform real estate appraisals other than ad valorem tax appraisals. However,
18 nothing in this chapter shall entitle a state licensed or state certified real
19 estate appraiser to appraise real estate for ad valorem tax purposes unless he
20 has first been certified by the Idaho state tax commission pursuant to section
21 63-105A(17), Idaho Code.
22 (2) The provisions of this chapter shall not apply to a licensed real
23 estate broker, associate broker or salesperson who, in the ordinary course of
24 his business gives an opinion of the price of real estate for the purpose of a
25 prospective listing or sale, provided that such person does not represent him-
26 self as being a state licensed or certified real estate appraiser.
27 (3) The provisions of this chapter shall not prohibit a real estate bro-
28 ker or associate broker licensed under chapter 20, title 54, Idaho Code, whose
29 license is active and in good standing, from rendering a broker's price opin-
30 ion, for which the broker may charge a fee, provided the broker's price opin-
31 ion complies with the following requirements:
32 (a) The broker's price opinion shall be in writing and contain the fol-
33 lowing:
34 (i) A statement of the intended purpose of the price opinion;
35 (ii) A brief description of the subject property and property
36 interest to be priced;
37 (iii) The basis of reasoning used to reach the conclusion of the
38 price, including the applicable market data and/or capitalization
39 computation;
40 (iv) Any assumptions or limiting conditions;
41 (v) A disclosure of any existing or contemplated interest of the
42 broker(s) issuing the opinion;
43 (vi) The name and signature of the broker(s) issuing the price
2
1 opinion and the date of its issuance;
2 (vii) A disclaimer that, unless the broker is licensed under the
3 Idaho real estate appraisers act, chapter 41, title 54, Idaho Code,
4 the report is not intended to meet the uniform standards of profes-
5 sional appraisal practice.
6 (viii) A disclaimer that the broker's price opinion is not intended
7 to be an appraisal of the market value of the property, and that if
8 an appraisal is desired, the services of a licensed or certified
9 appraiser should be obtained.
10 The broker's price opinion permitted under this chapter may not be used as
11 an appraisal, or in lieu of an appraisal, in a federally related transac-
12 tion.
13 (4) Any person who is not licensed or certified under the provisions of
14 this chapter may assist a state licensed or certified real estate appraiser in
15 the performance of an appraisal, provided that he is actively and personally
16 supervised by the state licensed or certified appraiser and provided further
17 that any appraisal report rendered in connection with the appraisal is
18 reviewed and signed by the state licensed or certified real estate appraiser.
19 (5) The provisions of this chapter requiring mandatory licensure or cer-
20 tification shall not apply to employees or agents of the Idaho transportation
21 department when appraising transportation department property with a fair mar-
22 ket value of estimating the market value of or just compensation for, a prop-
23 erty where a noncomplex appraisal would normally be ordered, and the market
24 value or compensation is ten thousand dollars ($10,000) or less. Such esti-
25 mates of market value or just compensation shall be reviewed and approved by
26 an Idaho state certified general real estate appraiser. A value estimate shall
27 be provided to the property owner who shall also be informed of his right to
28 request and receive an appraisal of his property.
29 (6) This chapter shall not prohibit a property owner from expressing his
30 personal opinion of the value of his own property, nor shall the provisions of
31 this chapter prohibit a lender, or employee of a lending institution, from
32 forming and expressing an opinion of collateral value in the ordinary course
33 of business including, but not limited to, mortgaging property, underwriting a
34 loan, or foreclosing a loan, so long as such opinion of collateral value is
35 not represented as being an appraisal of the market value of the property, or
36 prepared under the provisions of this chapter.
37 (7) This chapter shall not prohibit an attorney or accountant from ren-
38 dering professional advice within the ordinary course of his profession, so
39 long as such advice is not represented to be an appraisal of the market value
40 of the property.
REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
RS 11428
Currently, right-of-way appraisals must be done for all real
property acquired by the Idaho Transportation Department (ITD),
with the exception of Department surplus property valued at less
than ten thousand ($10, 000) dollars. This proposal amendsSection
54-4105(5), Idaho Code, to allow value estimates on non-ITD
property by ITD employees or agents where non- complex appraisals
would normally be ordered and the value of the property is ten
thousand ($10,000) dollars or less. Properties in this value range
typically represent unimproved, uncomplicated valuation situations.
A certified appraiser will review all value estimates for accuracy,
and property owners will be informed they may have an appraisal
performed by ITD if one is requested.
FISCAL IMPACT
The cost of performing a value estimate is approximately twenty-five
percent (25%) of the cost of performing a full appraisal. If
one-half of appraisals are completed as value estimates, this could
result in an annual estimated savings of between $17,000 and $35,000
to ITD. In some cases, the cost of an appraisal to ITD approaches or
exceeds the value of the property being appraised. Value estimates
save money and expedite the project development process without
jeopardizing the rights of a property owner.
CONTACT
Name: Leonard G. Hill, ROW Supv
Agency: Idaho Transportation Department
Phone: 334-8520
Statement of Purpose/Fiscal Impact H 427