Senate File 137 - Enrolled
PAG LIN
1 1 SENATE FILE 137
1 2
1 3 AN ACT
1 4 PROVIDING FOR THE REGISTRATION OF ASSOCIATE REAL ESTATE
1 5 APPRAISERS, PROHIBITING IMPROPER INFLUENCE OVER AN
1 6 APPRAISER'S EVALUATION OPINION, AND IMPOSING A PENALTY.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. Section 543D.3, Code 2007, is amended to read
1 11 as follows:
1 12 543D.3 PURPOSES == VOLUNTARY CERTIFICATION.
1 13 The purpose of this chapter is to establish standards for
1 14 real estate appraisals and a procedure for the voluntary
1 15 certification of real estate appraisers and the mandatory
1 16 registration of associate real estate appraisers.
1 17 A person who is not a certified real estate appraiser under
1 18 this chapter may appraise real estate for compensation if
1 19 certification is not required by this chapter or by federal or
1 20 state law, rule, or policy. However, an employee of the state
1 21 department of transportation whose duties include appraisals
1 22 of property pursuant to chapter 6B must be a certified real
1 23 estate appraiser under this chapter or a registered associate
1 24 real estate appraiser acting under the direct supervision of a
1 25 certified real estate appraiser.
1 26 Sec. 2. Section 543D.9, Code 2007, is amended to read as
1 27 follows:
1 28 543D.9 EDUCATION AND EXPERIENCE REQUIREMENT.
1 29 The board shall determine what real estate appraisal or
1 30 real estate appraisal review experience and what education
1 31 shall be required to provide appropriate assurance that an
1 32 applicant for certification is competent to perform the
1 33 certified appraisal work which is within the scope of practice
1 34 defined by the board. All experience required for initial
1 35 certification shall be performed as a registered associate
2 1 real estate appraiser acting under the direct supervision of a
2 2 certified real estate appraiser, except as the board may
2 3 provide by rule. The board shall prescribe a required minimum
2 4 number of tested hours of education relating to the provisions
2 5 of this chapter, the uniform appraisal standards, and other
2 6 rules issued in accordance with this chapter.
2 7 Sec. 3. Section 543D.18, subsection 1, Code 2007, is
2 8 amended to read as follows:
2 9 1. A certified real estate appraiser shall comply with the
2 10 uniform appraisal standards adopted under this chapter. The
2 11 reliance of the public in general and of the financial
2 12 business community in particular on sound, reliable real
2 13 estate appraisal practices imposes on persons engaged in the
2 14 practice of real estate appraising as certified real estate
2 15 appraisers or as registered associate real estate appraisers
2 16 certain obligations both to their clients and to the public.
2 17 These obligations include the obligation to maintain
2 18 independence in thought and action, to adhere to the uniform
2 19 appraisal standards adopted under this chapter, and to
2 20 maintain high standards of personal conduct in all matters
2 21 impacting one's fitness to practice real estate appraising. A
2 22 certified real estate appraiser and a registered associate
2 23 real estate appraiser acting under the direct supervision of a
2 24 certified real estate appraiser shall perform all appraisal
2 25 assignments in an honest, disinterested and impartial manner,
2 26 with objectivity and independence, and without accommodation
2 27 to the personal interests or objectives of the appraiser, the
2 28 client, or any third person.
2 29 Sec. 4. Section 543D.18, Code 2007, is amended by adding
2 30 the following new subsection:
2 31 NEW SUBSECTION. 7. A certified real estate appraiser who
2 32 receives significant real property appraisal assistance in the
2 33 development or reporting of an appraisal assignment shall
2 34 disclose such assistance in accordance with the uniform
2 35 appraisal standards adopted under this chapter.
3 1 Sec. 5. NEW SECTION. 543D.18A PENALTIES FOR IMPROPER
3 2 INFLUENCE OF AN APPRAISAL ASSIGNMENT.
3 3 1. A mortgage lender, mortgage broker or originator, real
3 4 estate broker or salesperson, client, party, appraiser, or any
3 5 other person with an interest in a real estate transaction or
3 6 the financing of any loan secured by real estate involving an
3 7 appraisal assignment shall not improperly influence or attempt
3 8 to improperly influence the development, reporting, result, or
3 9 review of a real estate appraisal through coercion, extortion,
3 10 or bribery, or by the withholding or threatened withholding of
3 11 payment for an appraisal fee, or the conditioning of the
3 12 payment of an appraisal fee upon the opinion, conclusion, or
3 13 valuation to be reached, or a request that the appraiser
3 14 report a predetermined opinion, conclusion, or valuation, or
3 15 the desired valuation of any person, or by any other act or
3 16 practice that impairs or attempts to impair an appraiser's
3 17 independence, objectivity, and impartiality, as required by
3 18 section 543D.18, subsections 1 and 2.
3 19 2. A violation of this section is an unlawful practice
3 20 under section 714.16, subsection 2, paragraph "a".
3 21 3. A violation of this section is a ground for discipline
3 22 against any person holding a certificate of registration under
3 23 this chapter or another license issued under the laws of the
3 24 state of Iowa, as license is defined in section 17A.2,
3 25 subsection 6, if the practice of the profession, occupation,
3 26 or business regulated by the license relates to real estate
3 27 transactions or the financing of loans secured by real estate.
3 28 4. A person does not violate this section solely by asking
3 29 an appraiser to consider additional, appropriate property
3 30 information, or to provide further detail, substantiation, or
3 31 explanation for the appraiser's value conclusion, or to
3 32 correct errors in the appraisal report, or by withholding
3 33 payment of an appraisal fee based on a bona fide dispute
3 34 regarding the appraiser's compliance with the appraisal
3 35 standards adopted by the board under this chapter. A person
4 1 does not violate this section solely by retaining appraisers
4 2 from panels or lists on a rotating basis, or by supplying an
4 3 appraiser with information the appraiser is required to
4 4 analyze under the appraisal standards adopted by the board
4 5 under this chapter, such as agreements of sale, options, or
4 6 listings of the property to be valued.
4 7 Sec. 6. NEW SECTION. 543D.20 REGISTRATION OF ASSOCIATE
4 8 REAL ESTATE APPRAISERS.
4 9 1. A person shall not assist a certified real estate
4 10 appraiser in the development or reporting of an appraisal
4 11 assignment that is required by this chapter, or by federal or
4 12 state law, rule, or policy to be performed by a certified real
4 13 estate appraiser, unless the person meets one or more of the
4 14 following conditions:
4 15 a. The person is certified under this chapter.
4 16 b. The person is registered as an associate real estate
4 17 appraiser and is acting under the direct supervision of a
4 18 certified real estate appraiser.
4 19 c. The person is solely providing administrative services,
4 20 such as taking photographs, preparing charts, or typing
4 21 reports, and is not providing real estate appraisal assistance
4 22 in developing the analysis, valuation, opinions, or
4 23 conclusions associated with the appraisal assignment.
4 24 d. The person is providing professional consultation that
4 25 does not constitute real property appraisal assistance, such
4 26 as the assistance of a professional engineer or certified
4 27 public accountant.
4 28 2. The board shall establish by rule the terms and
4 29 conditions of the registration of associate real estate
4 30 appraisers, including the educational and other prerequisites
4 31 to registration, the fees for registration and the renewal of
4 32 registration, and the continuing education requirements for
4 33 renewal of registration. The board shall consider and may
4 34 incorporate any guidelines recommended by the appraisal
4 35 qualifications board of the appraisal foundation relating to
5 1 associate real estate appraisers.
5 2 3. The board shall adopt rules governing the manner in
5 3 which certified real estate appraisers shall directly
5 4 supervise associate real estate appraisers, the standards of
5 5 conduct for associate real estate appraisers, and the grounds
5 6 for imposing discipline against an associate real estate
5 7 appraiser which shall include all of the grounds provided in
5 8 section 543D.17.
5 9 4. Associate real estate appraisers shall be bound by the
5 10 uniform appraisal standards adopted by the board under this
5 11 chapter.
5 12 5. Persons who appraise real estate where certification is
5 13 not required by this chapter or by federal or state law, rule,
5 14 or policy, and who are not assisting a certified real estate
5 15 appraiser in the development or reporting of an appraisal
5 16 assignment that is required by this chapter, or by federal or
5 17 state law, rule, or policy to be performed by a certified real
5 18 estate appraiser, are not required to register with the board.
5 19 Sec. 7. NEW SECTION. 543D.21 VIOLATIONS == INJUNCTIONS
5 20 == CIVIL PENALTIES.
5 21 1. If, as the result of a complaint or otherwise, the
5 22 board believes that a person has engaged, or is about to
5 23 engage, in an act or practice that constitutes or will
5 24 constitute a violation of this chapter, the board may make
5 25 application to the district court for an order enjoining such
5 26 act or practice. Upon a showing by the board that such person
5 27 has engaged, or is about to engage, in any such act or
5 28 practice, an injunction, restraining order, or other order as
5 29 may be appropriate shall be granted by the district court.
5 30 2. The board may investigate complaints or initiate
5 31 complaints against persons who are not certified or registered
5 32 under this chapter solely to determine whether grounds exist
5 33 to make application to the district court pursuant to
5 34 subsection 1 or to issue an order pursuant to subsection 3,
5 35 and in connection with such complaints or investigations may
6 1 issue subpoenas to compel witnesses to testify or persons to
6 2 produce evidence consistent with the provisions of section
6 3 272C.6, subsection 3, as needed to determine whether probable
6 4 cause exists to initiate proceedings under this section or to
6 5 make application to the district court for an order enjoining
6 6 violations of this chapter.
6 7 3. In addition to or as an alternative to making
6 8 application to the district court for an injunction, the board
6 9 may issue an order to a person who is not certified or
6 10 registered under this chapter to require compliance with this
6 11 chapter and may impose a civil penalty against such person for
6 12 any violation of subsection 4 in an amount up to one thousand
6 13 dollars for each violation. All civil penalties collected
6 14 pursuant to this subsection shall be deposited in the housing
6 15 trust fund created in section 16.181. An order issued
6 16 pursuant to this section may prohibit a person from applying
6 17 for certification or registration under this chapter.
6 18 4. The board may impose civil penalties against a person
6 19 who is not certified or registered under this chapter for any
6 20 of the following acts:
6 21 a. A violation of section 543D.15.
6 22 b. A violation of section 543D.18A, subsection 1.
6 23 c. A violation of section 543D.20, subsection 1.
6 24 d. Fraud, deceit, or deception, through act or omission,
6 25 in connection with an application for certification or
6 26 registration under this chapter.
6 27 5. The board, before issuing an order under this section,
6 28 shall provide the person written notice and the opportunity to
6 29 request a hearing. The hearing must be requested within
6 30 thirty days after receipt of the notice and shall be conducted
6 31 in the same manner as provided for disciplinary proceedings
6 32 involving a licensee under this chapter.
6 33 6. A person aggrieved by the imposition of a civil penalty
6 34 under this section may seek judicial review pursuant to
6 35 section 17A.19.
7 1 7. If a person fails to pay a civil penalty within thirty
7 2 days after entry of an order imposing the civil penalty, or if
7 3 the order is stayed pending an appeal, within ten days after
7 4 the court enters a final judgment in favor of the board, the
7 5 board shall notify the attorney general. The attorney general
7 6 may commence an action to recover the amount of the penalty,
7 7 including reasonable attorney fees and costs.
7 8 8. An action to enforce an order under this section may be
7 9 joined with an action for an injunction.
7 10
7 11
7 12
7 13 JOHN P. KIBBIE
7 14 President of the Senate
7 15
7 16
7 17
7 18 PATRICK J. MURPHY
7 19 Speaker of the House
7 20
7 21 I hereby certify that this bill originated in the Senate and
7 22 is known as Senate File 137, Eighty=second General Assembly.
7 23
7 24
7 25
7 26 MICHAEL E. MARSHALL
7 27 Secretary of the Senate
7 28 Approved , 2007
7 29
7 30
7 31
7 32 CHESTER J. CULVER
7 33 Governor