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 areal 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,orsalesperson, 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,orincompetence, 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