BILL NUMBER: SB 633 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Wright
FEBRUARY 27, 2009
An act to amend Section 11302 of, and to add Section 11324.5 to,
the Business and Professions Code, and to amend Section 1090.5 of the
Civil Code, relating to real estate appraisers.
LEGISLATIVE COUNSEL'S DIGEST
SB 633, as introduced, Wright. Real estate appraisers.
Existing law, the Real Estate Appraisers' Licensing and
Certification Law, provides for the licensure and regulation of real
estate appraisers and vests the duties of enforcing and administering
that law in the Office of Real Estate Appraisers.
Existing law prohibits a person with an interest in a real estate
transaction involving an appraisal to improperly influence or attempt
to improperly influence, through coercion, extortion, or bribery,
the development, reporting, result, or review of a real estate
appraisal sought in connection with a mortgage loan.
This bill would require that a person making an appraisal in
connection with a mortgage loan shall make at least one personal
visit to the property that he or she is appraising. The bill would
specify that this duty may not be assigned or delegated to any other
person or employee of the appraiser. As applied to a licensed
appraiser, as defined, a violation of these provisions would be
deemed a violation of the Real Estate Appraisers' Licensing and
Certification Law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11302 of the Business and Professions Code is
amended to read:
11302. For the purpose of applying this part, the following
terms, unless otherwise expressly indicated, shall mean and have the
following definitions:
(a) "Agency" means the Business, Transportation and Housing
Agency.
(b) "Appraisal" means a written statement independently and
impartially prepared by a qualified appraiser setting forth an
opinion in a federally related transaction as to the market value of
an adequately described property as of a specific date, supported by
the presentation and analysis of relevant market information ,
and as valuated pursuant to at least one personal visit by the
appraiser .
The term "appraisal" does not include an opinion given by a real
estate licensee or engineer or land surveyor in the ordinary course
of his or her business in connection with a function for which a
license is required under Chapter 7 (commencing with Section 6700) or
Chapter 15 (commencing with Section 8700) of Division 3, or Chapter
3 (commencing with Section 10130) or Chapter 7 (commencing with
Section 10500) and the opinion shall not be referred to as an
appraisal. This part does not apply to a probate referee acting
pursuant to Sections 400 to 408, inclusive, of the Probate Code
unless the appraised transaction is federally related.
(c) "Appraisal Foundation" means the Appraisal Foundation that was
incorporated as an Illinois not-for-profit corporation on November
30, 1987.
(d) "Appraisal Subcommittee" means the Appraisal Subcommittee of
the Federal Financial Institutions Examination Council.
(e) "Director" means the Director of the Office of Real Estate
Appraisers.
(f) "Federal financial institutions regulatory agency" means the
Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, Office of Thrift Supervision,
Federal Home Loan Bank System, National Credit Union Administration,
the Resolution Trust Corporation, and any other agency determined by
the director to have jurisdiction over transactions subject to this
part.
(g) "Federally related real estate appraisal activity" means the
act or process of making or performing an appraisal on real estate or
real property in a federally related transaction and preparing an
appraisal as a result of that activity.
(h) "Federally related transaction" means any real estate-related
financial transaction which a federal financial institutions
regulatory agency engages in, contracts for or regulates and which
requires the services of a state licensed real estate appraiser
regulated by this part. This term also includes any transaction
identified as such by a federal financial institutions regulatory
agency.
(i) "License" means any license, certificate, permit,
registration, or other means issued by the office authorizing the
person to whom it is issued to act pursuant to this part within this
state.
(j) "Licensure" means the procedures and requirements a person
shall comply with in order to qualify for issuance of a license and
includes the issuance of the license.
(k) "Office" means the Office of Real Estate Appraisers.
() "Secretary" means the Secretary of the Business, Transportation
and Housing Agency.
(m) "State licensed real estate appraiser" is a person who is
issued and holds a current valid license under this part.
(n) "Uniform Standards of Professional Appraisal Practice" are the
standards of professional appraisal practice established by the
Appraisal Foundation.
(o) "Course provider" means a person or entity that provides
educational courses related to professional appraisal practice.
SEC. 2. Section 11324.5 is added to the Business and Professions
Code, to read:
11324.5. Notwithstanding Section 11324, the individual who is the
licensed appraiser shall make at least one personal visit to the
property that he or she is appraising. This duty may not be assigned
or delegated to any other person or employee of the appraiser.
SEC. 3. Section 1090.5 of the Civil Code is amended to read:
1090.5. (a) No person with an interest in a real estate
transaction involving an appraisal shall improperly influence or
attempt to improperly influence, through coercion, extortion, or
bribery, the development, reporting, result, or review of a real
estate appraisal sought in connection with a mortgage loan.
(b) Subdivision (a) does not prohibit a person with an interest in
a real estate transaction from asking an appraiser to do any of the
following:
(1) Consider additional, appropriate property information.
(2) Provide further detail, substantiation, or explanation for the
appraiser's value conclusion.
(3) Correct errors in the appraisal report.
(c) (1) A person who prepares an appraisal in connection with the
making of any mortgage loan shall make at least one personal visit to
the property that he or she is appraising. This duty may not be
assigned or delegated to any other person or employee of the
appraiser.
(2) This subdivision shall apply to any person making an appraisal
sought in connection with any type of mortgage loan.
(c)
(d) If a person who violates this section is licensed
under any state licensing law and the violation occurs within the
course and scope of the person's duties as a licensee, the violation
shall be deemed a violation of that state licensing law.
(d)
(e) Nothing in this section shall be construed to
authorize communications that are otherwise prohibited under existing
law.