AN
ACT Relating to real estate appraisers; amending RCW 18.140.010 and 18.140.020;
providing an effective date; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
18.140.010 and 1996 c 182 s 2 are each amended to read as follows:
As
used in this chapter, the following terms have the meanings indicated unless
the context clearly requires otherwise.
(1)
"Appraisal" means the act or process of estimating value; an estimate
of value; or of or pertaining to appraising and related functions.
(2)
"Appraisal report" means any communication, written or oral, of an
appraisal, review, or consulting service in accordance with the standards of
professional conduct or practice, adopted by the director, that is transmitted
to the client upon completion of an assignment.
(3)
"Appraisal assignment" 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 disinterested third party in rendering an unbiased
analysis, opinion, or conclusion relating to the value of specified interests
in, or aspects of, identified real estate. The term "appraisal
assignment" may apply to valuation work and analysis work.
(4)
"Brokers price opinion" means an oral or written report of property
value that is prepared by a real estate broker or salesperson licensed under
chapter 18.85 RCW ((for listing, sale, purchase, or rental purposes)).
(5)
"Certified appraisal" means an appraisal prepared or signed by a
state-certified real estate appraiser. A certified appraisal represents to the
public that it meets the appraisal standards defined in this chapter.
(6)
"Client" means any party for whom an appraiser performs a service.
(7)
"Committee" means the real estate appraiser advisory committee of the
state of Washington.
(8)
"Comparative market analysis" means a brokers price opinion.
(9)
"Department" means the department of licensing.
(10)
"Director" means the director of the department of licensing.
(11)
"Expert review appraiser" means a state-certified or state-licensed
real estate appraiser chosen by the director for the purpose of providing
appraisal review assistance to the director.
(12)
"Federal department" means an executive department of the United
States of America specifically concerned with housing finance issues, such as
the department of housing and urban development, the department of veterans
affairs, or their legal federal successors.
(13)
"Federal financial institutions regulatory agency" means the board of
governors of the federal reserve system, the federal deposit insurance
corporation, the office of the comptroller of the currency, the office of
thrift supervision, the national credit union administration, their successors
and/or such other agencies as may be named in future amendments to 12 U.S.C.
Sec. 3350(6).
(14)
"Federal secondary mortgage marketing agency" means the federal
national mortgage association, the government national mortgage association,
the federal home loan mortgage corporation, their successors and/or such other
similarly functioning housing finance agencies as may be federally chartered in
the future.
(15)
"Federally related transaction" means any real estate-related
financial transaction that the federal financial institutions regulatory agency
or the resolution trust corporation engages in, contracts for, or regulates;
and that requires the services of an appraiser.
(16)
"Financial institution" means any person doing business under the
laws of this state or the United States relating to banks, bank holding
companies, savings banks, trust companies, savings and loan associations,
credit unions, consumer loan companies, and the affiliates, subsidiaries, and
service corporations thereof.
(((16)))
(17) "Licensed appraisal" means an appraisal prepared or
signed by a state-licensed real estate appraiser. A licensed appraisal
represents to the public that it meets the appraisal standards defined in this
chapter.
(((17)))
(18) "Mortgage broker" for the purpose of this chapter means a
mortgage broker licensed under chapter 19.146 RCW, any mortgage broker approved
and subject to audit by the federal national mortgage association, the
government national mortgage association, or the federal home loan mortgage
corporation as provided in RCW 19.146.020, any mortgage broker approved by the
United States secretary of housing and urban development for participation in
any mortgage insurance under the national housing act, 12 U.S.C. Sec. 1201, and
the affiliates, subsidiaries, and service corporations thereof.
(((18)))
(19) "Real estate" means an identified parcel or tract of
land, including improvements, if any.
(((19)))
(20) "Real estate-related financial transaction" means any
transaction involving:
(a)
The sale, lease, purchase, investment in, or exchange of real property,
including interests in property, or the financing thereof;
(b)
The refinancing of real property or interests in real property; and
(c)
The use of real property or interests in property as security for a loan or
investment, including mortgage-backed securities.
(21)
"Real property" means one or more defined interests, benefits, or
rights inherent in the ownership of real estate.
(((20)))
(22) "Review" means the act or process of critically studying
an appraisal report prepared by another.
(((21)))
(23) "Specialized appraisal services" means all appraisal
services which do not fall within the definition of appraisal assignment. The
term "specialized appraisal service" may apply to valuation work and
to analysis work. Regardless of the intention of the client or employer, if
the appraiser would be 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 appraisal assignment and not a
specialized appraisal service.
(((22)))
(24) "State-certified general real estate appraiser" means a
person certified by the director to develop and communicate real estate
appraisals of all types of property. A state-certified general real estate
appraiser may designate or identify an appraisal rendered by him or her as a
"certified appraisal."
(((23)))
(25) "State-certified residential real estate appraiser" means
a person certified by the director to develop and communicate real estate
appraisals of all types of residential property of one to four units without
regard to transaction value or complexity and nonresidential property having a
transaction value as specified in rules adopted by the director. A state
certified residential real estate appraiser may designate or identify an
appraisal rendered by him or her as a "certified appraisal."
(((24)))
(26) "State-licensed real estate appraiser" means a person
licensed by the director to develop and communicate real estate appraisals of
noncomplex one to four residential units and complex one to four residential
units and nonresidential property having transaction values as specified in
rules adopted by the director.
Sec.
2. RCW
18.140.020 and 1996 c 182 s 3 are each amended to read as follows:
(1)
No person other than a state-certified or state-licensed real estate appraiser
may receive compensation of any form for a real estate appraisal or an
appraisal review. However, compensation may be provided for brokers price
opinions prepared by a real estate licensee, licensed under chapter 18.85 RCW.
(2)
No person, other than a state-certified or state-licensed real estate
appraiser, may assume or use that title or any title, designation, or
abbreviation likely to create the impression of certification or licensure as a
real estate appraiser by this state.
(3)
A person who is not certified or licensed under this chapter shall not prepare
any appraisal of real estate located in this state, except as provided under
subsection (1) of this section.
(4)
This section does not preclude a staff employee of a governmental entity from
performing an appraisal or an appraisal assignment within the scope of his or
her employment insofar as the performance of official duties for the
governmental entity are concerned. Such an activity for the benefit of the
governmental entity is exempt from the requirements of this chapter.
(5)
This ((section)) chapter does not preclude an individual person
licensed by the state of Washington as a real estate broker or as a real estate
salesperson ((and who performs)) from issuing a brokers price
opinion ((as a service to a prospective seller, buyer, lessor, or lessee as
the only intended user, and not for dissemination to a third party, within the
scope of his or her employment or agency. Such an activity for the sole
benefit of the prospective seller, buyer, lessor, or lessee is exempt from the
requirements of this chapter)). However, if the brokers price opinion
is written, or given as evidence in any legal proceeding, and is issued to a
person who is not a prospective seller, buyer, lessor, or lessee as the only
intended user, then the brokers price opinion shall contain a statement, in an
obvious location within the written document or specifically and affirmatively
in spoken testimony, that substantially states: "This brokers price
opinion is not an appraisal as defined in chapter 18.140 RCW and has been
prepared by a real estate licensee, licensed under chapter 18.85 RCW, who
. . . . . (is/is not) also state certified or state
licensed as a real estate appraiser under chapter 18.140 RCW." However,
the brokers price opinion issued under this subsection may not be used as an
appraisal in conjunction with a federally related transaction.
(6)
This section does not apply to an appraisal or an appraisal review performed
for a financial institution or mortgage broker((, whether conducted)) by
an employee ((or third party)), when such appraisal or appraisal review
is not required to be performed by a state-certified or state-licensed real
estate appraiser by the appropriate federal financial institutions regulatory
agency.
(7)
This section does not apply to an attorney licensed to practice law in this
state or to a certified public accountant, as defined in RCW 18.04.025, who
evaluates real property in the normal scope of his or her professional
services.
NEW
SECTION. Sec. 3. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect July 1, 1997.
