Senate File 288 - Introduced
SENATE FILE
BY HATCH
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the registration of residential real estate
2 appraisers and providing a penalty.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2703SS 81
5 jr/cf/24
PAG LIN
1 1 Section 1. Section 543B.5, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 18A. "Residential real estate appraiser"
1 4 means a person who, for a fee, provides an analysis, opinion,
1 5 or conclusion relating to the nature, quality, value, or
1 6 utility of specified interests in, or aspects of, identified
1 7 residential real estate.
1 8 Sec. 2. Section 543B.30, Code 2005, is amended to read as
1 9 follows:
1 10 543B.30 ACTIONS == LICENSE OR REGISTRATION AS
1 11 PREREQUISITE.
1 12 A person engaged in the business or acting in the capacity
1 13 of a real estate broker, or a real estate salesperson, or a
1 14 residential real estate appraiser within this state shall not
1 15 bring or maintain any action in the courts of this state for
1 16 the collection of compensation for services performed as a
1 17 real estate broker, or salesperson, or a residential real
1 18 estate appraiser without alleging and proving that the person
1 19 was a duly licensed real estate broker or real estate
1 20 salesperson, or registered as a residential real estate
1 21 appraiser at the time the alleged cause of action arose.
1 22 Sec. 3. NEW SECTION. 543B.55A REGISTRATION OF
1 23 RESIDENTIAL REAL ESTATE APPRAISERS.
1 24 1. As a condition of doing business in this state, a
1 25 residential real estate appraiser shall register with the
1 26 commission on a biennial basis.
1 27 2. The registration application shall be in the form
1 28 prescribed by the commission and shall be accompanied by a
1 29 registration fee set by rule in an amount calculated to offset
1 30 the cost of the registration. The application shall contain
1 31 information which is substantially complete and accurate,
1 32 including the name, principal place of business, address, and
1 33 telephone number of the appraiser.
1 34 3. This registration requirement shall not apply to a
1 35 county assessor, a financial institution making real estate
2 1 valuations for its own internal lending purposes, a licensed
2 2 real estate broker, licensed broker associate, or a licensed
2 3 real estate salesperson who provides valuation services for
2 4 the listing and sale of property.
2 5 Sec. 4. NEW SECTION. 543B.55B PROHIBITION AGAINST
2 6 INFLATED APPRAISALS.
2 7 1. The commission may revoke a registration or impose an
2 8 administrative penalty if a residential real estate appraiser
2 9 subject to section 543B.55A provides an appraisal that
2 10 inflates the value of the property being appraised, if the
2 11 appraiser knew or should have known the true value of the
2 12 property. Prior to final action, the commission shall provide
2 13 the appraiser an opportunity for a contested case hearing
2 14 under chapter 17A.
2 15 2. An administrative penalty imposed under this section
2 16 shall be not more than five hundred dollars in the case of a
2 17 first violation and not more than five thousand dollars for
2 18 each violation in the case of a second or subsequent
2 19 violation. All administrative penalties collected pursuant to
2 20 this chapter shall be deposited in the general fund of the
2 21 state.
2 22 3. The commission shall report any action under this
2 23 section to the real estate appraiser examining board.
2 24 Sec. 5. Section 543D.17, subsection 1, paragraph f, Code
2 25 2005, is amended to read as follows:
2 26 f. Negligence, or incompetence, or providing an inflated
2 27 appraisal as described in section 543B.55B, subsection 1, in
2 28 developing an appraisal, in preparing an appraisal report, or
2 29 in communicating an appraisal.
2 30 EXPLANATION
2 31 This bill requires that as a condition of doing business in
2 32 Iowa, a residential real estate appraiser must register, on a
2 33 biennial basis, with the real estate commission. The
2 34 commission may revoke a registration or impose an
2 35 administrative penalty if a residential real estate appraiser
3 1 provides an appraisal which inflates the value of the
3 2 property, if the appraiser knew or should have known the true
3 3 value of the property. The bill also adds the provision of
3 4 such an inflated appraisal as a ground for the revocation of
3 5 appraiser certification by the real estate appraiser examining
3 6 board.
3 7 Current law provides for a voluntary certification process
3 8 for real estate appraisers administered by the real estate
3 9 appraiser examining board under Code chapter 543D.
3 10 LSB 2703SS 81
3 11 jr:rj/cf/24.1