Code-Co's Utah Law Internet Access http://www.code-co.com/utah/
If you have problems or suggestions, please email webmaster@code-co.com
QuickLinks:
[Leg. Main Page]
[Enrolled Bills]
[Code Section Look Up]
[Committees]
[Legislators]
[Schedule]
[Journals]
Bill Related Links:
[End of Bill]
HB 113
REAL ESTATE APPRAISER AMENDMENTS
1996 GENERAL SESSION
STATE OF UTAH
Sponsor: Gerry A. Adair
AN ACT RELATING TO REAL ESTATE APPRAISER REGISTRATION AND
CERTIFICATION; MODIFYING CERTAIN DEFINITIONS RELATING TO APPRAISALS
AND CONSULTATION SERVICES; RESTRICTING THE USE OF CERTAIN TERMS;
MODIFYING THE CONTINGENT FEES PROVISIONS; MODIFYING THE
COMPOSITION OF THE BOARD; EXPANDING THE EDUCATION AND EXPERIENCE
REQUIREMENTS FOR APPLICANTS AND RENEWALS; EXPANDING THE GROUNDS
FOR DISCIPLINARY ACTION; AMENDING SENIOR CERTIFIED APPRAISER
DEFINITION; REQUIRING CONTINUING EDUCATION FOR SENIOR ENGINEERS;
AND MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
61-2b-2 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-3 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-6 , as last amended by Chapter 235, Laws of Utah 1994
61-2b-7 , as last amended by Chapter 223, Laws of Utah 1994
61-2b-13 , as repealed and reenacted by Chapter 245, Laws of Utah 1991
61-2b-14 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-15 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-15.5 , as enacted by Chapter 245, Laws of Utah 1991
61-2b-17 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-29 , as last amended by Chapter 245, Laws of Utah 1991
61-2b-36 , as enacted by Chapter 212, Laws of Utah 1990
61-2b-40 , as last amended by Chapter 283, Laws of Utah 1992
ENACTS:
61-2b-41 , Utah Code Annotated 1953
REPEALS:
61-2b-35 , as enacted by Chapter 212, Laws of Utah 1990
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
61-2b-2
is amended to read:
61-2b-2. Definitions.
As used in this chapter:
(1) (a) "Appraisal" means an unbiased analysis, opinion, or conclusion [prepared by a real
estate appraiser] relating to the nature, quality, value, or utility of specified interests in, or aspects
of, identified real estate or identified real property. [An appraisal may]
(b) Appraisals shall be classified by the nature of the assignment as a valuation appraisal,
an analysis assignment, or a review assignment[. The term "valuation] in accordance with the
following definitions:
(i) "Valuation appraisal" [refers to] means an unbiased analysis, opinion, or conclusion
[prepared by a real estate appraiser] that estimates the value of an identified parcel of real estate or
identified real property at a particular point in time. [An "analysis]
(ii) "Analysis assignment" [refers to] means an unbiased analysis, opinion, or conclusion
[prepared by a real estate appraiser] that relates to the nature, quality, or utility of identified real
estate or identified real property. [A "review]
(iii) "Review assignment" [refers to] means an unbiased analysis, opinion, or conclusion
[prepared by a real estate appraiser] that forms an opinion as to the adequacy and appropriateness
of a valuation appraisal or an analysis assignment.
(2) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as an
Illinois not-for-profit corporation on November 30, 1987.
(3) (a) "Appraisal report" means any communication, written or oral, of an appraisal.
(b) An appraisal report [may] shall be classified by the nature of the assignment as a
valuation report, analysis report, or review report in accordance with the definitions provided in
Subsection (1)(b). [For the purposes of this chapter, the]
(c) The testimony of [an appraiser dealing with] a person relating to the [appraiser's]
- 2 -
person's analyses, conclusions, or opinions concerning identified real estate or identified real
property is considered to be an oral appraisal report.
(4) "Board" means the Real Estate Appraiser Registration and Certification Board that is
established under this chapter to provide technical assistance and make recommendations to the
division and perform certain ancillary functions.
(5) "Certified appraisal report" means a written or oral appraisal report that is certified as
such by a state-certified general appraiser or state-certified residential appraiser. The certification
of an appraisal report by a state-certified real estate appraiser represents to the public that [it] the
appraisal report meets the appraisal standards established under this chapter.
(6) (a) (i) "Consultation service" means an engagement to provide a real estate valuation
service analysis, opinion, conclusion, or other service that does not fall within the definition of
appraisal.
(ii) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
review assignment as provided in Subsection (1)(b).
(b) Regardless of the intention of the client or employer, if a person prepares an unbiased
analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to be an appraisal
and not a consultation service.
(7) "Contingent fee" means a fee or other form of compensation, payment of which is
dependent on or conditioned by:
(a) the reporting of a predetermined analysis, opinion, or conclusion by the person
performing the analysis, opinion, or conclusion; or
(b) achieving a result specified by the person requesting the analysis, opinion, or conclusion.
[(6)] (8) "Division" means the Division of Real Estate of the Department of Commerce.
[(7)] (9) "Federally related transaction" means any real estate related transaction which is
required by federal law or by federal regulation to be supported by an appraisal prepared by a state
certified appraiser.
[(8) "Independent appraisal service" means an engagement for which an appraiser is
employed or retained to act, or would be perceived by third parties or the public as acting, as a
- 3 -
disinterested third party in rendering an unbiased analysis, opinion, or conclusion relating to the
nature, quality, value, or utility of identified real estate or identified real property.]
[(9)] (10) "Real estate" means an identified parcel or tract of land including improvements
if any.
[(10)] (11) "Real estate appraisal activity" means the act or process of making an appraisal
of real estate or real property and preparing an appraisal report.
[(11)] (12) "Real estate related transaction" means:
(a) the sale, lease, purchase, investment in, or exchange of real property or an interest in real
property, or the financing of such a transaction;
(b) the refinancing of real property or an interest in real property; or
(c) the use of real property or an interest in real property as security for a loan or investment,
including mortgage-backed securities.
[(12)] (13) "Real property" means one or more defined interests [or], benefits, or rights
inherent in the ownership of real estate.
[(13)] (14) "Senior [certified] appraiser" means a person grandfathered under this chapter
who holds a current, valid state certification issued to [him] the person based on [his] the person's
experience or [his] designation as a member in good standing in an appraisal organization [which]
that is a member of the Appraisal Foundation.
[(14) "Specialized appraisal service" means an engagement to provide an appraisal service
which does not fall within the definition of independent appraisal service. The term specialized
appraisal service may include valuation appraisals, analysis assignments, and review assignments.
Regardless of the intention of the client or employer, if the appraiser is, in fact, perceived by third
parties or the public as acting as a disinterested third party in rendering an unbiased analysis,
opinion, or conclusion, the work is classified as an independent appraisal service and not as a
specialized appraisal service.]
(15) "State-certified general appraiser" means a person who holds a current, valid
certification as a state-certified general appraiser issued to him under the provisions of this chapter.
The state-certified general appraiser classification [shall consist] consists of those persons who meet
- 4 -
the requirements for certification relating to the appraisal of all types of real estate.
(16) "State-certified residential appraiser" means a person who holds a current, valid
certification as a state-certified residential real estate appraiser issued to him under the provisions
of this chapter. The state-certified residential appraiser classification [shall consist] consists of those
persons who meet the requirements for certification that relate to the appraisal of residential real
estate in federally related transactions.
(17) "State-registered appraiser" means a person who holds a current, valid state registration
as a real estate appraiser issued to him under the provisions of this chapter. The state-registered
appraiser classification [shall consist] consists of those persons who meet the requirements for
registration that relate to the appraisal of all types of real estate in transactions [which] that are not
federally related transactions.
(18) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or conclusion
relating to the nature, quality, value, or utility or identified real estate or identified real property that
is prepared by a person who is employed or retained to act, or would be perceived by third parties
or the public as acting, as a disinterested third party in rendering the analysis, opinion, or conclusion.
Section 2.
Section
61-2b-3
is amended to read:
61-2b-3. Registration or certification required.
(1) It is unlawful for anyone to prepare, for valuable consideration, an appraisal, an appraisal
report, [or] a certified appraisal report, or perform a consultation service relating to real estate or real
property in this state without first being registered or certified in accordance with the provisions of
this chapter.
(2) This section does not apply to:
(a) a real estate broker or sales agent as defined by Section 61-2-2
licensed by this state who,
in the ordinary course of his business [as defined by Section 61-2-2
], gives an opinion:
(i) regarding the value of real estate;
(ii) to a potential seller or third party recommending a listing price of real estate; or
(iii) to a potential buyer or third party recommending a purchase price of real estate;
(b) an employee of a company who states an opinion of value or prepares a report containing
- 5 -
value conclusions relating to real estate or real property solely for the company's use;
(c) any official or employee of a government agency while acting solely within the scope
of his duties, unless otherwise required by Utah law;
(d) an auditor or accountant who states an opinion of value or prepares a report containing
value conclusions relating to real estate or real property while performing an audit;
(e) an individual, except an individual who is required to be registered or certified under this
chapter, who states an opinion about the value of property in which he has an ownership interest;
(f) an individual who states an opinion of value if no consideration is paid or agreed to be
paid for the opinion and no other party is reasonably expected to rely on the individual's appraisal
expertise;
(g) an individual, such as a researcher or a secretary, who does not render significant
professional assistance, as defined by the board, in arriving at a real estate appraisal analysis,
opinion, or conclusion; or
(h) an attorney authorized to practice law in this state who, in the course of his practice,
utilizes an appraisal report governed by this chapter or who states an opinion of the value of real
estate.
(3) No opinion of value or report containing value conclusions exempt under Subsection (2)
may be referred to as an appraisal.
Section 3.
Section
61-2b-6
is amended to read:
61-2b-6. Duties and powers of division.
(1) The division shall have the following powers and duties:
(a) The division shall:
(i) receive applications for registration as a state-registered appraiser;
(ii) establish appropriate administrative procedures for the processing of such applications;
(iii) issue registrations to qualified applicants pursuant to the provisions of this chapter; and
(iv) maintain a registry of the names and addresses of individuals who are currently
registered as state-registered appraisers under this chapter.
(b) The division shall:
- 6 -
(i) receive applications for certification as a state-certified general appraiser, state-certified
residential appraiser, or senior [certified] appraiser under this chapter;
(ii) establish appropriate administrative procedures for the processing of such applications;
(iii) issue certificates to qualified applicants pursuant to the provisions of this chapter; and
(iv) maintain a registry of the names and addresses of individuals who are currently certified
as state-certified general appraisers, state-certified residential appraisers, or senior [certified]
appraisers under this chapter.
(c) The division shall hold public hearings under direction of the board.
(d) (i) The division shall, at its option, solicit bids and enter into contracts with one or more
educational testing services or organizations for the preparation of a bank of questions and answers
approved by the board for registration and certification examinations; and
(ii) administer or contract for the administration of certification examinations as may be
required to carry out its responsibilities under this chapter.
(e) The division shall provide administrative assistance to the board by providing to the
board the facilities, equipment, supplies, and personnel that are required to enable the board to carry
out its responsibilities under this chapter.
(f) The division shall assist the board in upgrading and improving the quality of the
education and examinations required under this chapter.
(g) The division shall assist the board in improving the quality of the continuing education
available to persons certified under this chapter.
(h) The division shall assist the board with respect to the proper interpretation or explanation
of the Uniform Standards of Professional Appraisal Practice required by Section 61-2b-27
when an
interpretation or explanation becomes necessary in the enforcement of this chapter.
(i) The division shall collect all registration and certification fees required or permitted by
this chapter.
(j) The division may:
(i) investigate complaints against persons registered or certified under this chapter;
(ii) subpoena witnesses and the production of books, documents, records, and other papers;
- 7 -
(iii) administer oaths; and
(iv) take testimony and receive evidence concerning all matters within its jurisdiction.
(k) The division may promote research and conduct studies relating to the profession of real
estate appraising and sponsor real estate appraisal educational activities.
(l) The division shall adopt, with the concurrence of the board, rules for the administration
of this chapter that are not inconsistent with the provisions of this chapter or the constitution and
laws of this state or of the United States.
(m) The division shall employ an appropriate staff to investigate allegations that persons
registered or certified under this chapter failed to comply with the terms and provisions of this
chapter.
(n) The division may employ such other professional, clerical, and technical staff as may be
necessary to properly administer the work of the division.
(2) (a) The division shall register expert witnesses to appear in all administrative and judicial
tax proceedings to provide evidence related to the valuation of real property that is assessed by the
tax commission, provided that the:
(i) registration is limited to a specific proceeding;
(ii) registration is valid until the proceeding becomes final;
(iii) applicant pays the standard registration fee charged by the division;
(iv) applicant provides the applicant's name, address, occupation, and professional
credentials; and
(v) applicant signs a sworn statement that:
(A) the applicant is competent to render an appraisal and to testify as an expert witness in
the proceeding; and
(B) the appraisal and testimony to be offered shall be in accordance with the Uniform
Standards of Professional Appraisal Practice adopted by the board.
(b) The provisions of this subsection shall be effective for all administrative and judicial
property tax proceedings related to the valuation of real property that is assessed by the tax
commission, including those filed but which are not final as of May 3, 1994.
- 8 -
(3) The division shall be immune from any civil action or criminal prosecution for initiating
or assisting in any lawful investigation of the actions of or participating in any disciplinary
proceeding concerning a person registered or certified pursuant to this chapter if the action is taken
without malicious intent and in the reasonable belief that the action was taken pursuant to the powers
and duties vested in the members of the division under this chapter.
Section 4.
Section
61-2b-7
is amended to read:
61-2b-7. Board established -- Composition -- Qualifications -- Terms of office.
(1) (a) There is established a Real Estate Appraiser Registration and Certification Board
which shall consist of seven members, two of whom shall be public members, three of whom shall
be state-certified appraisers, one of whom shall be a [registered] state-registered appraiser, and the
Commissioner of the Department of Financial Institutions or his designee.
(b) All members of the board shall be appointed by the governor with the advice and consent
of the Senate.
(2) The appraisers appointed to the first board shall possess a minimum of five years of
active experience as real estate appraisers or shall be designated members in good standing of a real
estate appraisal organization that is a member of the Appraisal Foundation or an appraisal
organization whose standards and requirements of membership are approved by the Appraisal
Foundation and that as of January 1, 1990, required appraisal experience, appraisal education, and
testing to become a designated member, and adherence to generally accepted standards of
professional appraisal practice in order to retain that designation.
(3) [Three real estate appraiser members of the board appointed after July 1, 1991, shall be
state-certified general appraisers or state-certified residential appraisers and one real estate appraiser
member shall be a state-registered appraiser during his entire term.] The board member who is the
state-registered appraiser shall be a state-registered appraiser at the time of that person's
appointment, but shall not be precluded from becoming a state-certified appraiser during his term.
(4) The term of each member of the board shall be three years, except that of the members
first appointed two shall serve for three years, two shall serve for two years, and three, including the
public members, shall serve for one year. All terms shall begin on July 1 of the year of appointment.
- 9 -
Upon the expiration of his term, a member of the board shall continue to hold office until the
appointment and qualification of his successor. No person may serve as a member of the board for
more than two consecutive terms.
(5) The governor may remove a board member for cause.
(6) The public members of the board may not be registered or certified under this chapter.
(7) The board shall meet at least quarterly to conduct its business. Public notice shall be
given for all board meetings.
(8) The members of the board shall elect a chairman annually from among the members to
preside at board meetings. A quorum of the board shall be four members.
(9) Each member of the board shall receive a per diem allowance as provided by state law
for each meeting of the board at which the member is present plus all appropriate expenses.
Section 5.
Section
61-2b-13
is amended to read:
61-2b-13. State-certified appraisers -- Senior appraiser -- Authority.
(1) A senior [certified] appraiser is authorized to appraise all types of real property in this
state if the appraisal either:
(a) is not performed in conjunction with a federally related transaction;
(b) does not exceed the dollar amount permitted under the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, and related federal regulations; or
(c) is one which may be performed by a state registered appraiser under this chapter.
(2) A state-certified residential appraiser is authorized to appraise all types of real estate
which a state-registered appraiser is authorized to appraise. In addition, a state-certified residential
appraiser is authorized to appraise 1-4 unit residential real estate in federally related transactions so
long as net income capitalization analysis is not required by the terms of the assignment. A
state-certified residential appraiser is also authorized to appraise building lots, vacant land, and
subdivisions in federally related transactions so long as discounted cash flow analysis is not required
by the terms of the assignment.
(3) A state-certified general appraiser is authorized to appraise all types of residential and
nonresidential real estate and real property.
- 10 -
Section 6.
Section
61-2b-14
is amended to read:
61-2b-14. State-certified residential appraisers.
(1) Each applicant for certification shall provide to the division evidence of:
(a) completion of the certification examination with a satisfactory score as determined by
the board; and
(b) satisfactory completion of [the] not less than 120 classroom hours of education or their
equivalent required under this chapter.
(2) [As] (a) For applicants applying for certification on or before December 31, 1997, as a
prerequisite to taking the examination for state-certified residential appraiser, an applicant shall
present evidence satisfactory to the division that[: (a) (i) he] the applicant possesses the equivalent
of two years of full-time experience in real property appraisal, as defined by the board[; and].
(b) For applicants applying for certification on or after January 1, 1998, the applicant shall
provide to the division evidence that:
(i) the applicant possesses 2,500 or more hours of experience in real property appraisal, or
its equivalent as defined by the board; and
(ii) the experience required under Subsection (2)(b), or the equivalent, was acquired within
a reasonable period, as determined by the board, immediately preceding the filing of the application
for certification[; and].
[(b) he has successfully completed not less than 120 classroom hours approved by the board
or their equivalent as determined by the board.]
(3) Upon request by the division, the applicant shall also make available to the division for
examination, a detailed listing of the real estate appraisal reports, or file memoranda for each year
for which experience is claimed and a sample of appraisal reports which the applicant has prepared
in the course of his appraisal practice.
(4) (a) To meet the 120 classroom hours, an applicant must successfully complete courses
of study approved by the board which relate to real estate appraisal theory and practice, including
a course of study approved by the board which relates specifically to the Uniform Standards of
Professional Appraisal Practice adopted under Section 61-2b-27
, to the ethical rules to be observed
- 11 -
by a real estate appraiser, and to the provisions of this chapter.
(b) The courses of study referred to in this section must be conducted by:
(i) an accredited university, college, or junior college;
(ii) an approved appraisal society, institute, or association; or
(iii) such other school as may be approved by the board.
Section 7.
Section
61-2b-15
is amended to read:
61-2b-15. State-certified general appraiser -- Application for certification.
(1) Each applicant for certification shall provide to the division evidence of:
(a) completion of the certification examination with a satisfactory score as determined by
the board; and
(b) satisfactory completion of the education required under this chapter.
(2) [As] (a) For applicants applying for certification on or before December 31, 1997, as a
prerequisite to taking the examination for state-certified general appraiser, an applicant shall [meet
the requirements in Section 61-2b-14
except the requirement of education.] present evidence
satisfactory to the division that the applicant possesses the equivalent of two years of full-time
experience in real property appraisals, as defined by the board.
(b) For applicants applying for certification on or after January 1, 1998, the applicant shall
provide to the division evidence that:
(i) the applicant possesses 3,000 hours of experience in real property appraisal, or its
equivalent as defined by the board; and
(ii) the experience required under Subsection (2)(b), or the equivalent, was acquired within
a reasonable period, as determined by the board, immediately preceding the filing of the application
for certification.
(3) [The] (a) (i) An applicant for state-certified general appraiser who submits an application
on or before December 31, 1997, shall provide to the division evidence of satisfactory completion
of not less than 165 classroom hours approved by the board or their equivalent as determined by the
board[, including a course of study which].
(ii) An applicant applying for state-certified general appraiser who submits an application
- 12 -
on or after January 1, 1998, shall provide to the division evidence of satisfactory completion of not
less than 180 classroom hours approved by the board, or their equivalent as determined by the board.
(b) The classroom hours described in Subsections (3)(a)(i) and (ii) shall include a course of
study that relates to the Uniform Standards of Professional Appraisal Practice adopted under Section
61-2b-27
, to the ethical rules to be observed by a real estate appraiser, and to the provisions of this
chapter.
Section 8.
Section
61-2b-15.5
is amended to read:
61-2b-15.5. Senior appraisers.
(1) Prior to July 1, 1991, the division shall waive the requirements in Subsections
61-2b-14
(1)(a) and (b) and Section 61-2b-15
relating to the successful completion of classroom hours of
appraisal study, except the course work on the Uniform Standards of Appraisal Practice which may
not be waived, and the passing of an examination based upon these hours if the applicant for
certification:
(a) was grandfathered as a certified appraiser under this chapter prior to January 1, 1991, by
waiver of educational and examination requirements; or
(b) has a minimum of five years of active experience as a real estate appraiser as approved
by the board and is a designated member in good standing of an appraisal organization that, as of
July 1, 1991, is a member of the Appraisal Foundation.
(2) All certificates issued under this subsection shall clearly state "Senior [Certified]
Appraiser."
(3) (a) The holders of certificates issued under this subsection shall clearly identify that they
are senior [certified] appraisers when signing and placing a seal on any report in accordance with
Section 61-2b-17
.
(b) An appraisal report signed by a holder of a certificate issued under this subsection shall
clearly disclose that the appraiser is a senior [certified] appraiser and that his appraisal may not
qualify for federally related transactions.
(4) Upon application with the division, a senior [certified] appraiser may:
(a) become certified as a state-certified residential appraiser by complying with the
- 13 -
requirements of Section 61-2b-14
either at the time of renewal of the certificate or upon completion
of the requirements of Section 61-2b-14
;
(b) become certified as a state-certified general appraiser by complying with the
requirements of Section 61-2b-15
either at the time of renewal of the certificate or upon completion
of the requirements of Section 61-2b-15
; or
(c) convert his certification to a registration under Section 61-2b-10
at the time of renewal
or upon a determination by the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council that this section does not comply with the requirements of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989.
Section 9.
Section
61-2b-17
is amended to read:
61-2b-17. State appraisers -- Restrictions on use of term -- Conduct prohibited.
(1) (a) The terms "state-certified general appraiser," "state-certified residential appraiser,"
and "senior [certified] appraiser" may only be used to refer to an individual who is certified under
this chapter and may not be used following, or immediately in connection with, the name or
signature of a firm, partnership, corporation, or group, or in any manner that it might be interpreted
as referring to a firm, partnership, corporation, group, or to anyone other than the individual who is
certified under this chapter.
(b) This requirement shall not be construed to prevent a state-certified general appraiser from
signing an appraisal report on behalf of a corporation, partnership, firm, or group practice if it is clear
that only the individual is certified and that the corporation, partnership, firm, or group practice is
not.
(c) Except as provided in Section 61-2b-25
, no certificate may be issued under the provisions
of this chapter to a corporation, partnership, firm, or group.
(2) No person other than a state-certified general appraiser, state-certified residential
appraiser, or senior [certified] appraiser as defined in this chapter may assume or use that title or any
title, designation, or abbreviation likely to create the impression of certification in this state as a
state-certified real estate appraiser.
(3) (a) Only an individual who has qualified under the certification requirements of Sections
- 14 -
61-2b-14
and
61-2b-15
is authorized to prepare and sign a certified appraisal report relating to real
estate or real property in this state.
(b) If a certified appraisal report is prepared and signed by a state-certified residential
appraiser, the certified appraisal report shall state, immediately following the signature on the report,
"State-Certified Residential Appraiser."
(c) If a certified appraisal report is prepared and signed by a state-certified general appraiser,
the certified appraisal report shall state, immediately following the signature on the report,
"State-Certified General Appraiser."
(d) An appraisal report prepared by a senior [certified] appraiser shall state, immediately
following the signature on the report, "Senior [Certified] Appraiser," along with the explanation of
limitations regarding federally related transactions required under Subsection
61-2b-15.5
(3)(b).
(e) When signing a certified appraisal report, a state-certified appraiser shall also place on
the report, immediately below his signature, a seal on the report showing his certificate number and
its expiration date.
(f) A state-certified residential appraiser may not prepare a certified appraisal report outside
his area of expertise as defined in Section 61-2b-13
. However, a state-certified residential appraiser
may prepare an appraisal report for any type property for which a state-registered appraiser is
authorized to appraise under Section 61-2b-10
.
(g) A person registered under Section 61-2b-10
or certified under Section 61-2b-15.5
who
assisted in the preparation of a certified appraisal report is authorized to cosign the appraisal report.
(4) A person who has not qualified under either Section 61-2b-14
or
61-2b-15
may not
describe or refer to any appraisal or appraisal report relating to real estate or real property in this state
by the terms "certified appraisal" or "certified appraisal report."
Section 10.
Section
61-2b-29
is amended to read:
61-2b-29. Unprofessional conduct.
The following acts and omissions shall be considered grounds for disciplinary action:
(1) procuring or attempting to procure registration or certification under this chapter by fraud
or by making a false statement, submitting false information, making a material misrepresentation
- 15 -
in an application filed with the division;
(2) paying money or attempting to pay money other than the fees provided for by this
chapter to any member or employee of the division to procure a registration or certification under
this chapter;
(3) an act or omission in the practice of real estate appraising which constitutes dishonesty,
fraud, or misrepresentation;
(4) entry of a judgment against a registrant or certificate holder on grounds of fraud,
misrepresentation, or deceit in the making of an appraisal of real estate;
(5) conviction, including a conviction based upon a plea of guilty or nolo contendere, of a
criminal offense involving moral turpitude;
(6) engaging in the business of real estate appraising under an assumed or fictitious name
not properly registered in this state;
(7) paying a finder's fee or a referral fee to a person not registered or certified under this
chapter in connection with an appraisal of real estate or real property in this state;
(8) making a false or misleading statement in that portion of a written appraisal report that
deals with professional qualifications or in any testimony concerning professional qualifications;
(9) violation of any provision of this chapter or any rule issued under this chapter;
(10) violation of the confidential nature of governmental records to which a person
registered or certified under this chapter gained access through employment or engagement as an
appraiser by a governmental agency;
(11) acceptance of a fee for performing an [independent] appraisal [service] as defined in
[Section 61-2b-36
] Subsection
61-2b-2
(1) if in fact the fee is or was contingent upon the appraiser
reporting a predetermined analysis, opinion, or conclusion or is or was contingent upon the analysis,
opinion, conclusion, or valuation reached or upon the consequences resulting from the appraisal
assignment; [and]
(12) unprofessional conduct as defined by statute or rule; or
[(12)] (13) any other conduct which constitutes dishonest dealing.
Section 11.
Section
61-2b-36
is amended to read:
- 16 -
61-2b-36. Contingent fees.
(1) A person registered or certified under this chapter who enters into an agreement to
perform an [independent] appraisal [service] as defined in [Section] Subsection
61-2b-2
(1) may not
accept a contingent fee [that is contingent upon the appraiser reporting a predetermined analysis,
opinion, or conclusion, is contingent upon the analysis, opinion, or conclusion reached, or is
contingent upon the results achieved by the appraisal assignment].
(2) A person registered or certified under this chapter who enters into an agreement to
[perform a specialized appraisal service] provide consultation services as defined in [Section]
Subsection
61-2b-2
(6)(a)(i) may be paid a fixed fee or a contingent fee [that is contingent on the
results achieved by the specialized appraisal service].
(3) (a) If a person registered or certified under this chapter enters into an agreement to
perform [a specialized appraisal service] consultation services for a contingent fee, this fact shall be
clearly stated in each [written and oral appraisal report] oral statement.
[(4) In each written report, this fact shall be clearly stated in a prominent location in the
report, in each letter of transmittal, and in the certification statement made by the appraiser in the
report.]
(b) In addition to the requirements of Subsection (3)(a), if a person registered or certified
under this chapter prepares a written consultation report or summary, letter of transmittal, or
certification statement for a contingent fee, the person shall clearly state in the report, summary,
letter of transmittal, or certification statement that the report is prepared under a contingent fee
arrangement.
Section 12.
Section
61-2b-40
is amended to read:
61-2b-40. Continuing education requirements.
(1) As a prerequisite to renewal of certification, a person certified under this chapter [except
senior certified appraisers certified under Section 61-2b-15.5
] shall present evidence satisfactory to
the division of having met the continuing education requirements of this section. On or after January
1, 1998, a person registered under this chapter shall also meet the continuing education requirements
of this section.
- 17 -
(2) (a) For [all persons] any person certified under this chapter whose certification expires
on or before December 31, 1997, the continuing education requirement for renewal of certification
shall be the completion by the applicant, during the two-year period immediately preceding the filing
of an application for renewal, of not less than 20 classroom hours of instruction in courses or
seminars [which] that have received the approval of the board.
(b) For any person registered or certified under this chapter whose registration or
certification expires on or after January 1, 1998, the continuing education requirement for renewal
of registration or certification shall be the completion by the applicant, during the two-year period
immediately preceding the filing of an application for renewal, of not less than 28 classroom hours
of instruction in courses or seminars that have received the approval of the board.
(3) The division may adopt rules for the implementation of the provisions of this section to
[the end of assuring] assure that each [individual] person renewing his registration or certification
under this chapter has a working knowledge of current real estate appraisal theories, practices, and
techniques that will enable [that individual] the person to provide competent real estate appraisal
services to the members of the public with whom that [individual] person deals in a professional
relationship under the authority of [his] that person's certificate.
(4) [No] An amendment or repeal of a rule adopted by the division under this section shall
not operate to deprive a person certified of credit toward renewal of [his] that person's registration
certification for any course of instruction that is successfully completed by the applicant prior to the
date of the amendment or repeal of the regulation.
(5) In lieu of meeting the requirements set forth in this section, an applicant for
recertification may satisfy all or part of the requirements by presenting evidence of the following:
(a) completion of an educational program of study determined by the board to be equivalent,
for continuing education purposes, to courses or seminars approved by the board; or
(b) participation other than as a student in educational processes and programs approved by
the board [which] that relate to real property appraisal theory, practices, or techniques including
teaching, program development, and preparation of textbooks, monographs, articles, and other
instructional materials.
- 18 -
(6) The board shall develop and propose to the division rules for the implementation of the
provisions of this section to [the end of assuring] assure that [an individual] a person who renews
his certification has a working knowledge of current real estate appraisal theories, practices, and
techniques that will enable the [individual] person to provide competent real estate appraisal services
to the members of the public with whom [he] that person deals in a professional relationship under
the authority of [his] that person's certification. These rules shall prescribe:
(a) policies and procedures to be followed in obtaining board approval of courses of
instruction and seminars;
(b) standards, policies, and procedures to be used by the division in evaluating an applicant's
claims of equivalency; and
(c) standards, monitoring methods, and systems for recording attendance to be employed by
course and seminar sponsors as a prerequisite to division approval of courses and seminars for credit.
(7) (a) [On or after July 1, 1991, a] A person whose registration or certification has been
revoked or suspended as the result of a disciplinary action taken by the board may not apply for
reinstatement unless [he] the person presents evidence [that he has completed] of completion of the
continuing education requirement that is provided in this chapter for renewal. [This]
(b) The continuing education [requirement] required under Subsection (7)(a) shall not be
imposed upon an applicant for reinstatement who has been required by the division to successfully
complete the examination for certification required by Section 61-2b-20
as a condition to
reinstatement.
Section 13.
Section
61-2b-41
is enacted to read:
61-2b-41. Consultation reports -- Restrictions on use of terms.
A person who prepares a written or oral consultation report may not refer to the consultation
report as an appraisal, an appraisal report, or in any manner that may be interpreted as referring to
an appraisal or an appraisal report.
Section 14.
Repealer.
This act repeals:
Section 61-2b-35
, Compliance of appraisal reports.
- 19 -
- 20 -
QuickLinks:
[Leg. Main Page]
[Enrolled Bills]
[Code Section Look Up]
[Committees]
[Legislators]
[Schedule]
[Journals]
Bill Related Links:
[Top of Bill]
If you have problems or suggestions, please email webmaster@code-co.com
Code-Co's Utah Law Internet Access http://www.code-co.com/utah/
© Copyright (html coding, links, images only) 1996. Code-Co.