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Senate Study Bill 181

Bill Text

PAG LIN
  1  1    Section 1.  Section 543B.29, unnumbered paragraph 1, Code
  1  2 1997, is amended to read as follows:
  1  3    A license to practice the profession of real estate broker
  1  4 and salesperson may be revoked or suspended, or a licensee may
  1  5 be otherwise disciplined by the commission, when the licensee
  1  6 is guilty of the following acts or offenses:
  1  7    Sec. 2.  Section 543B.29, Code 1997, is amended by adding
  1  8 the following new subsection:
  1  9    NEW SUBSECTION.  12.  Noncompliance with the appraisal
  1 10 requirements in chapter 543D when providing an appraisal.
  1 11    Sec. 3.  Section 543B.29, unnumbered paragraph 3, Code
  1 12 1997, is amended to read as follows:
  1 13    A real estate broker or salesperson who is an owner or
  1 14 lessor of property or an employee of an owner or lessor may
  1 15 have the broker's or salesperson's license revoked or
  1 16 suspended, or may be otherwise disciplined by the commission,
  1 17 for violations of this section or section 543B.34, except
  1 18 subsections 4, 5, 6, and 9, with respect to that property.
  1 19    Sec. 4.  Section 543B.34, Code 1997, is amended by adding
  1 20 the following new subsection:
  1 21    NEW SUBSECTION.  10A.  Not complying with the appraisal
  1 22 requirements in chapter 543D when providing an appraisal.
  1 23    Sec. 5.  Section 543D.1, Code 1997, is amended to read as
  1 24 follows:
  1 25    543D.1  SHORT TITLE.
  1 26    This chapter shall be known and may be cited as the "Iowa
  1 27 Voluntary Appraisal Standards and Appraiser Certification
  1 28 Law".
  1 29    Sec. 6.  Section 543D.3, Code 1997, is amended to read as
  1 30 follows:
  1 31    543D.3  PURPOSES – VOLUNTARY CERTIFICATION.
  1 32    The purpose of this chapter is to establish standards for
  1 33 real estate appraisals and a procedure for the voluntary
  1 34 certification of real estate appraisers.
  1 35    A Except as otherwise provided in this chapter, only a
  2  1 person who is not a certified real estate appraiser under this
  2  2 chapter may shall appraise real estate for compensation if
  2  3 certification is not required by this chapter or by federal or
  2  4 state law, rule, or policy.
  2  5    Sec. 7.  Section 543D.4, subsections 3 and 4, Code 1997,
  2  6 are amended to read as follows:
  2  7    3.  Each A real estate appraiser member of the board
  2  8 appointed after January 1, 1992, must be a certified real
  2  9 estate appraiser.  The governor shall attempt to represent
  2 10 each class of certified appraisers in making the appointments.
  2 11    4.  The term of each member is three years; except that, of
  2 12 the members first appointed, two shall be appointed for two
  2 13 years and two shall be appointed for one year.
  2 14    Sec. 8.  Section 543D.16, subsection 2, Code 1997, is
  2 15 amended to read as follows:
  2 16    2.  The basic continuing education requirement for renewal
  2 17 of certification shall be the completion, during the
  2 18 immediately preceding term before June 30 of the year in which
  2 19 the appraiser's certificate expires, of the number of
  2 20 classroom hours of instruction required by the board in
  2 21 courses or seminars which have received the approval
  2 22 preapproval of the appraiser qualification board of the
  2 23 appraisal foundation.  Instructional hours by correspondence
  2 24 and home study courses claimed by an appraiser shall not
  2 25 exceed fifty percent of the required hours of instruction
  2 26 necessary for renewal.
  2 27    Sec. 9.  NEW SECTION.  543D.20  EXCLUSIONS FROM
  2 28 APPLICABILITY OF CHAPTER.
  2 29    This chapter does not apply to the following:
  2 30    1.  An individual licensed under chapter 543B who does not
  2 31 provide an appraisal, but who in the ordinary course of
  2 32 business provides an opinion of value, valuation, analysis, or
  2 33 a recommendation of price or pricing of real estate in the
  2 34 pursuit of a listing, when the opinion is provided to assist a
  2 35 potential purchaser in developing a purchase offer or to
  3  1 provide a broker's price opinion, whether or not the opinion
  3  2 is provided for a fee.  Providing an opinion pursuant to this
  3  3 subsection is not subject to the uniform standard of
  3  4 professional appraisal practices adopted by the appraisal
  3  5 foundation.
  3  6    2.  A broker associate, or a designated broker, as defined
  3  7 in section 543B.5, who renders an appraisal or opinion of
  3  8 value which does not conform to the uniform standards of
  3  9 professional appraisal practices adopted by the appraisal
  3 10 foundation, and for purposes of federally related transactions
  3 11 as defined in Title XI of the federal Financial Institutions
  3 12 Reform, Recovery, and Enforcement Act of 1989, or as defined
  3 13 in the United States office of management and budget circular
  3 14 A-129, as amended, or the rules or regulations adopted
  3 15 pursuant to that circular.
  3 16    3.  a.  A salaried employee of any of the following:
  3 17    (1)  The federal government.
  3 18    (2)  The state, or any agency, department, or political
  3 19 subdivision of the state.
  3 20    (3)  A financial institution as defined in section 535A.1.
  3 21    (4)  An insurance company authorized to transact the
  3 22 business of insurance in this state.
  3 23    b.  Notwithstanding paragraph "a", an employee of an entity
  3 24 identified in paragraph "a" who also practices as an
  3 25 independent real estate appraiser is subject to this chapter
  3 26 and shall comply with the requirements of this chapter prior
  3 27 to engaging in such other real estate appraising.
  3 28    4.  A person, or an employee of such person, who renders an
  3 29 estimate or opinion of value of real estate or any interest in
  3 30 real estate when such estimate or opinion is for the purpose
  3 31 of real estate taxation.  An opinion or appraisal of market
  3 32 value rendered under this subsection must contain the
  3 33 following language in bold print in a prominent location:
  3 34 "This opinion of value was not prepared by a certified
  3 35 appraiser." 
  4  1                           EXPLANATION
  4  2    This bill amends provisions relating to the regulation of
  4  3 real estate brokers and salespersons, and to the certification
  4  4 of real estate appraisers.
  4  5    The bill provides that a real estate broker or salesperson
  4  6 may be disciplined as otherwise provided by the real estate
  4  7 commission for committing certain acts identified under Code
  4  8 chapter 543B.  Currently, the commission may only revoke or
  4  9 suspend the broker's or salesperson's license.  The bill
  4 10 provides that a broker or salesperson may be disciplined for
  4 11 the failure of the broker or salesperson to comply with the
  4 12 appraisal requirements under chapter 543D when providing an
  4 13 appraisal.  A broker or salesperson violating this provision
  4 14 would also be guilty of a simple misdemeanor pursuant to Code
  4 15 section 543B.43.
  4 16    The bill amends Code chapter 543D and requires appraisers
  4 17 to be certified under that chapter.  Currently, appraiser
  4 18 certification is voluntary.  Code section 543D.16 is amended
  4 19 to provide that continuing education requirements for renewal
  4 20 of the appraiser's certification must be completed by June 30
  4 21 of the year in which the certificate expires.  The section is
  4 22 also amended to provide that instructional hours by
  4 23 correspondence or home study courses shall not exceed 50
  4 24 percent of the required number of instructional hours.
  4 25    New Code section 543D.20 is created and excludes certain
  4 26 individuals from the provisions of Code chapter 543D including
  4 27 a licensed real estate broker or salesperson who does not
  4 28 provide an appraisal, but who in the ordinary course of
  4 29 business provides an opinion of value, valuation, analysis, or
  4 30 a recommendation of price or pricing which is provided in the
  4 31 pursuit of a listing, to assist a potential purchaser in
  4 32 developing a purchase offer, or to provide a broker's price
  4 33 opinion, whether or not such opinion is provided for a fee; a
  4 34 broker associate who renders an appraisal for purposes other
  4 35 than federally related transactions; and a salaried employee
  5  1 of the federal government, state government, or any agency,
  5  2 department, or political subdivision of the state, a financial
  5  3 institution, or an insurance company.  
  5  4 LSB 2181SC 77
  5  5 mj/jw/5
     

Text: SSB00180                          Text: SSB00182
Text: SSB00100 - SSB00199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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