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H0486...........................................................by BUSINESS
REAL ESTATE APPRAISER LICENSE - Amends existing law relating to the scope
of authority of the Board of Real Estate Appraisers to further define
exemptions.
01/20 House intro - 1st rdg - to printing
01/21 Rpt prt - to Bus
02/06 Rpt out - rec d/p - to 2nd rdg
02/09 2nd rdg - to 3rd rdg
02/11 3rd rdg - PASSED - 70-0-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts,
Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Gagner
Title apvd - to Senate
02/12 Senate intro - 1st rdg - to Com/HuRes
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 21-12-2
AYES -- Andreason(Andreason), Bunderson, Burtenshaw, Cameron,
Compton, Darrington, Goedde, Hill, Little, Lodge, Malepeai, Marley,
Noble, Noh, Pearce, Richardson, Sorensen, Stegner, Sweet, Werk,
Williams
NAYS -- Bailey, Burkett, Calabretta, Davis, Gannon, Geddes, Kennedy,
Keough, McKenzie, McWilliams, Schroeder, Stennett
Absent and excused -- Brandt, Ingram
Floor Sponsor - Noble
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/15 Pres signed
03/16 To Governor
03/19 Governor signed
Session Law Chapter 85
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 486
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE SCOPE OF AUTHORITY OF THE BOARD OF REAL ESTATE APPRAISERS;
3 AMENDING SECTION 54-4105, IDAHO CODE, TO FURTHER DEFINE EXEMPTIONS AND TO
4 MAKE A TECHNICAL CORRECTION.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 54-4105, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 54-4105. EXCEPTIONS. (1) The provisions of this chapter do not restrict
9 the right to use the term "appraiser," provided that such term is not used in
10 a manner that creates the impression of certification by the state of Idaho to
11 perform real estate appraisals other than ad valorem tax appraisals. However,
12 nothing in this chapter shall entitle a state licensed or state certified real
13 estate appraiser to appraise real estate for ad valorem tax purposes unless he
14 has first been certified by the Idaho state tax commission pursuant to section
15 63-105A(17), Idaho Code.
16 (2) The provisions of this chapter shall not apply to a licensed real
17 estate broker, associate broker or salesperson who, in the ordinary course of
18 his business gives an opinion of the price of real estate for the purpose of a
19 prospective listing or sale, provided that such person does not represent him-
20 self as being a state licensed or certified real estate appraiser.
21 (3) The provisions of this chapter shall not prohibit a real estate bro-
22 ker or associate broker licensed under chapter 20, title 54, Idaho Code, whose
23 license is active and in good standing, from rendering a broker's price opin-
24 ion, for which the broker may charge a fee, provided the broker's price opin-
25 ion complies with the following requirements:
26 (a) The broker's price opinion shall be in writing and contain the fol-
27 lowing:
28 (i) A statement of the intended purpose of the price opinion;
29 (ii) A brief description of the subject property and property
30 interest to be priced;
31 (iii) The basis of reasoning used to reach the conclusion of the
32 price, including the applicable market data and/or capitalization
33 computation;
34 (iv) Any assumptions or limiting conditions;
35 (v) A disclosure of any existing or contemplated interest of the
36 broker(s) issuing the opinion;
37 (vi) The name and signature of the broker(s) issuing the price
38 opinion and the date of its issuance;
39 (vii) A disclaimer that, unless the broker is licensed under the
40 Idaho real estate appraisers act, chapter 41, title 54, Idaho Code,
41 the report is not intended to meet the uniform standards of profes-
42 sional appraisal practice.;
43 (viii) A disclaimer that the broker's price opinion is not intended
2
1 to be an appraisal of the market value of the property, and that if
2 an appraisal is desired, the services of a licensed or certified
3 appraiser should be obtained.
4 The broker's price opinion permitted under this chapter may not be used as
5 an appraisal, or in lieu of an appraisal, in a federally related transac-
6 tion.
7 (4) Any person who is not licensed or certified under the provisions of
8 this chapter may assist a state licensed or certified real estate appraiser in
9 the performance of an appraisal, provided that he is actively and personally
10 supervised by the state licensed or certified appraiser and provided further
11 that any appraisal report rendered in connection with the appraisal is
12 reviewed and signed by the state licensed or certified real estate appraiser.
13 (5) The provisions of this chapter requiring mandatory licensure or cer-
14 tification shall not apply to employees or agents of the Idaho transportation
15 department when estimating the market value of or just compensation for, a
16 property that is subject to eminent domain by the department, or property
17 owned by the department that has been declared surplus, where a noncomplex
18 appraisal would normally be ordered, and the market value or compensation is
19 ten thousand dollars ($10,000) or less. Such estimates of market value or just
20 compensation shall be reviewed and approved by an Idaho state certified gen-
21 eral real estate appraiser. Idaho state certified general real estate apprais-
22 ers who estimate or review market value of property under this section shall
23 be exempt from the requirements of uniform standards of professional appraisal
24 practice. A value estimate shall be provided to the property owner who shall
25 also be informed of his right to request and receive an appraisal of his prop-
26 erty.
27 (6) This chapter shall not prohibit a property owner from expressing his
28 personal opinion of the value of his own property, nor shall the provisions of
29 this chapter prohibit a lender, or employee of a lending institution, from
30 forming and expressing an opinion of collateral value in the ordinary course
31 of business including, but not limited to, mortgaging property, underwriting a
32 loan, or foreclosing a loan, so long as such opinion of collateral value is
33 not represented as being an appraisal of the market value of the property, or
34 prepared under the provisions of this chapter.
35 (7) This chapter shall not prohibit an attorney or accountant from ren-
36 dering professional advice within the ordinary course of his profession, so
37 long as such advice is not represented to be an appraisal of the market value
38 of the property.
STATEMENT OF PURPOSE
RS 13466
Amend section 54-4105, Idaho Code, to add language that would allow
Idaho transportation department personnel to estimate the value of
property owned by the Idaho transportation department that has been
declared surplus or property that is subject to eminent domain when
the property value would be $10,000 or less. Additionally this
language would allow state certified general real estate appraisers
exemption from the requirements of USPAP when they are working
under the provisions of this chapter. Revising the current law will
clarify requirements for these estimates and will remove concerns
from appraisers and appraiser reviewers as to their legal
authority.
FISCAL IMPACT
There is no fiscal impact on general or dedicated funds.
CONTACT
Name: Rayola Jacobsen
Agency: Occupational License Bureau
Phone: 334-3233
Statement of Purpose/Fiscal Impact H 486