AN ACT Relating to real
estate appraisers; amending RCW 18.140.005, 18.140.010, 18.140.020, 18.140.030,
18.140.090, 18.140.130, 18.140.140, 18.140.150, 18.140.160, and 18.140.170;
adding new sections to chapter 18.140 RCW; adding a new section to chapter
50.04 RCW; repealing RCW 18.140.085; prescribing penalties; and providing
effective dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 18.140.005 and 1993
c 30 s 1 are each amended to read as follows:
It is the intent of the
legislature that only individuals who meet and maintain minimum standards of
competence and conduct ((may provide)) established under this chapter
for certified or licensed real estate appraisers may provide real estate
appraisal services to the public.
Sec. 2. RCW 18.140.010 and 1993
c 30 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"
((or "real estate appraisal")) means ((an analysis,
opinion, or conclusion relating to the nature, quality, value, or utility of
specified interests in, or aspects of, identified real estate, for or in
expectation of compensation. An appraisal may be classified by subject matter
into either a valuation or an analysis. A "valuation" is an estimate
of the value of real estate or real property. An "analysis" is a
study of real estate or real property other than estimating value)) 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, ((except
that all appraisal reports in federally related transactions are required to be
written reports)) 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 ((nature, quality,)) value((,
or utility)) 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.
(((5))) (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.
(((6))) (8)
"Comparative market analysis" means a brokers price opinion.
(9)
"Department" means the department of licensing.
(((7))) (10)
"Director" means the director of the department of licensing.
(((8))) (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) "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)
"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.
(((9))) (17)
"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) "Real
estate" means an identified parcel or tract of land, including
improvements, if any.
(((10))) (19)
"Real property" means one or more defined interests, benefits, or
rights inherent in the ownership of real estate.
(((11))) (20)
"Review" means the act or process of critically studying an appraisal
report prepared by another.
(21)
"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.
(((12))) (22)
"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."
(((13))) (23)
"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."
(((14))) (24)
"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. 3. RCW 18.140.020 and 1993
c 30 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.
(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 ((describe or
refer to)) prepare any appraisal of real estate located in this
state ((by the term "certified" or "licensed."
(2) This section
does not preclude a person who is not certified or licensed as a
state-certified or state-licensed real estate appraiser from appraising real
estate in this state for compensation, except in federally related transactions
requiring licensure or certification to perform appraisal services)), 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
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 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.
(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.
Sec. 4. RCW 18.140.030 and 1993
c 30 s 4 are each amended to read as follows:
The director shall have
the following powers and duties:
(1) To adopt rules in
accordance with chapter 34.05 RCW necessary to implement this chapter;
(2) To receive and
approve or deny applications for certification or licensure as a
state-certified or state-licensed real estate appraiser under this chapter; to
establish appropriate administrative procedures for the processing of such
applications; to issue certificates or licenses to qualified applicants
pursuant to the provisions of this chapter; and to maintain a register of the
names and addresses of individuals who are currently certified or licensed
under this chapter;
(3) To establish,
provide administrative assistance, and appoint the members for the real estate
appraiser advisory committee to enable the committee to act in an advisory
capacity to the director;
(4) To solicit bids and
enter into contracts with educational testing services or organizations for the
preparation of questions and answers for certification or licensure
examinations;
(5) To administer or
contract for administration of certification or licensure examinations at
locations and times as may be required to carry out the responsibilities under
this chapter;
(6) To enter into
contracts for professional services determined to be necessary for adequate
enforcement of this chapter;
(7) To consider
recommendations by the real estate appraiser advisory committee relating to the
experience, education, and examination requirements for each classification of
state-certified appraiser and for licensure;
(8) To impose
continuing education requirements as a prerequisite to renewal of certification
or licensure;
(9) To consider
recommendations by the real estate appraiser advisory committee relating to
standards of professional appraisal practice in the enforcement of this
chapter;
(10) To investigate all
complaints or reports of unprofessional conduct as defined in this chapter and
to hold hearings as provided in this chapter;
(11) To establish
appropriate administrative procedures for disciplinary proceedings conducted
pursuant to the provisions of this chapter;
(12) To compel the
attendance of witnesses and production of books, documents, records, and other
papers; to administer oaths; and to take testimony and receive evidence
concerning all matters within their jurisdiction. These powers may be
exercised directly by the director or the director's authorized representatives
acting by authority of law;
(13) To take emergency
action ordering summary suspension of a license or certification pending
proceedings by the director;
(14) To employ such
professional, clerical, and technical assistance as may be necessary to
properly administer the work of the director;
(15) To establish forms
necessary to administer this chapter;
(16) To adopt standards
of professional conduct or practice; ((and))
(17) To establish an
expert review appraiser roster comprised of state-certified or licensed real
estate appraisers whose purpose is to assist the director by applying their
individual expertise by reviewing real estate appraisals for compliance with
this chapter. Qualifications to act as an expert review appraiser shall be
established by the director with the advice of the committee. An application
to serve as an expert review appraiser shall be submitted to the real estate
appraiser program, and the roster of accepted expert review appraisers shall be
maintained by the department. An expert review appraiser may be added to or
deleted from that roster by the director. The expert review appraiser shall be
reimbursed for expenses in the same manner as the department reimburses the
committee; and
(18) To do all
other things necessary to carry out the provisions of this chapter and
minimally meet the requirements of federal guidelines regarding state
certification or licensure of appraisers that the director determines are
appropriate for state-certified and state-licensed appraisers in this state.
Sec. 5. RCW 18.140.090 and 1993
c 30 s 9 are each amended to read as follows:
(1) As a
prerequisite to taking an examination for certification or licensure, an
applicant must meet the experience requirements adopted by the director.
(2) The
preexamination experience claimed by an applicant, and accepted by the
department for the purpose of taking the examination, shall remain subject to
postlicensure auditing by the department.
Sec. 6. RCW 18.140.130 and 1993
c 30 s 13 are each amended to read as follows:
(1) Each original and
renewal license or certificate issued under this chapter shall expire on the
applicant's second birthday following issuance of the license or certificate.
(2) To be renewed as a
state-licensed or state-certified real estate appraiser, the holder of a valid
license or certificate shall apply and pay the prescribed fee to the director
no earlier than one hundred twenty days prior to the expiration date of the
license or certificate and shall demonstrate satisfaction of any continuing
education requirements.
(3) If a person fails
to renew a license or certificate prior to its expiration and no more than ((two
years have)) one year has passed since the person last held a valid
license or certificate, the person may obtain a renewal license or certificate
by satisfying all of the requirements for renewal and paying late renewal fees.
The director shall
cancel the license or certificate of any person whose renewal fee is not
received within ((two years)) one year from the date of
expiration. A person may obtain a new license or certificate by satisfying the
procedures and qualifications for initial licensure or certification, including
the successful completion of any applicable examinations.
Sec. 7. RCW 18.140.140 and 1993
c 30 s 14 are each amended to read as follows:
(1) A license or
certificate issued under this chapter shall bear the signature or facsimile
signature of the director and a license or certificate number assigned by the
director.
(2) Each state-licensed
or state-certified real estate appraiser shall place his or her license or
certificate number adjacent to or immediately below the title
"state-licensed real estate appraiser," "state-certified
residential real estate appraiser," or "state-certified general real
estate appraiser" when used in an appraisal report or in a contract or
other instrument used by the licensee or certificate holder in conducting real
property appraisal activities, except that the license or certificate number
shall not be required to appear when the title is not accompanied by a
signature as is typical on such promotional and stationery items as brochures,
business cards, forms, or letterhead.
Sec. 8. RCW 18.140.150 and 1993
c 30 s 15 are each amended to read as follows:
(1) The term
"state-licensed" or "state-certified real estate appraiser"
may only be used to refer to individuals who hold the license or certificate
and may not be used following or immediately in connection with the name or
signature of a firm, partnership, corporation, ((or)) group, or
limited liability company, or in such manner that it might be interpreted
as referring to a firm, partnership, corporation, group, limited liability
company, or anyone other than an individual holder of the license or
certificate.
(2) No license or
certificate may be issued under this chapter to a corporation, partnership,
firm, limited liability company, or group. This shall not be construed
to prevent a state-licensed or state-certified appraiser from signing an
appraisal report on behalf of a corporation, partnership, firm, ((or))
group practice, or limited liability company.
Sec. 9. RCW 18.140.160 and 1993
c 30 s 17 are each amended to read as follows:
The director may
deny an application for licensure or certification and may ((be
denied. The director may)) impose any one or more of the following
sanctions against a state-licensed or state-certified appraiser((s)):
Suspend, revoke, or levy a fine not to exceed one thousand dollars for each
offense and/or otherwise discipline in accordance with the provisions of this
chapter, for any of the following acts or omissions:
(1) Failing to meet the
minimum qualifications for state licensure or certification established by or
pursuant to this chapter;
(2) Procuring or
attempting to procure state licensure or certification under this chapter by
knowingly making a false statement, knowingly submitting false information, or
knowingly making a material misrepresentation on any application filed with the
director;
(3) Paying money other
than the fees provided for by this chapter to any employee of the director or
the committee to procure state licensure or certification under this chapter;
(4) Obtaining a license
or certification through the mistake or inadvertence of the director;
(5) Conviction of any
gross misdemeanor or felony or the commission of any act involving moral
turpitude, dishonesty, or corruption whether or not the act constitutes a
crime. If the act constitutes a crime, conviction in a criminal proceeding is
not a condition precedent to disciplinary action. Upon such a conviction,
however, the judgment and sentence is conclusive evidence at the ensuing
disciplinary hearing of the guilt of the license or certificate holder or
applicant of the crime described in the indictment or information, and of the
person's violation of the statute on which it is based. For the purposes of
this section, conviction includes all instances in which a plea of guilty or
nolo contendere is the basis for the conviction and all proceedings in which
the sentence has been deferred or suspended. Nothing in this section abrogates
rights guaranteed under chapter 9.96A RCW;
(6) Failure or refusal
without good cause to exercise reasonable diligence in developing an appraisal,
preparing an appraisal report, or communicating an appraisal;
(7) Negligence or
incompetence in developing an appraisal, preparing an appraisal report, or
communicating an appraisal;
(8) Continuing to act
as a state-licensed or state-certified real estate appraiser when his or her
license or certificate is on an expired status;
(9) Failing, upon
demand, to disclose any information within his or her knowledge to, or to
produce any document, book, or record in his or her possession for inspection
of the director or the director's authorized representatives acting by
authority of law;
(10) Violating any
provision of this chapter or any lawful rule or regulation made by the director
pursuant thereto;
(11) Advertising in a
false, fraudulent, or misleading manner;
(12) Suspension,
revocation, or restriction of the individual's license or certification to
practice the profession by competent authority in any state, federal, or
foreign jurisdiction, with a certified copy of the order, stipulation, or
agreement being conclusive evidence of the revocation, suspension, or restriction;
(13) Failing to comply
with an order issued by the director;
(14) Committing any act
of fraudulent or dishonest dealing or a crime involving moral turpitude, with a
certified copy of the final holding of any court of competent jurisdiction in
such matter being conclusive evidence in any hearing under this chapter; and
(15) Issuing an
appraisal report on any real property in which the appraiser has an interest
unless his or her interest is clearly stated in the appraisal report.
Sec. 10. RCW 18.140.170 and 1993
c 30 s 18 are each amended to read as follows:
The director may
investigate the actions of a state-licensed or state-certified real estate
appraiser or an applicant for licensure or certification or relicensure or
recertification. Upon receipt of information indicating that a state-licensed
or state-certified real estate appraiser under this chapter may have violated
this chapter, the director shall cause one or more of the staff investigators
to make an investigation of the facts to determine whether or not there is
admissible evidence of any such violation. If technical assistance is
required, a staff investigator may consult with one or more of the members of
the committee.
In any investigation made
by the director's investigative staff, the director shall have the power to
compel the attendance of witnesses and the production of books, documents,
records, and other papers, to administer oaths, and to take testimony and
receive evidence concerning all matters within the director's jurisdiction.
If the director
determines, upon investigation, that a state-licensed or state-certified real
estate appraiser under this chapter has violated this chapter, a statement of
charges shall be prepared and served upon the state-licensed or state-certified
real estate appraiser. The statement of charges shall be served as
follows: The statement of charges shall be sent by certified or registered
mail, and if no receipt of service is received, two attempts to personally
serve the statement of charges shall be made. This statement of charges
shall require the accused party to file an answer to the statement of charges
within twenty days of the date of service.
In responding to a
statement of charges, the accused party may admit to the allegations, deny the
allegations, or otherwise plead. Failure to make a timely response shall be
deemed an admission of the allegations contained in the statement of charges
and will result in a default whereupon the director may enter an order under
RCW 34.05.440. If a hearing is requested, the time of the hearing shall be
scheduled but the hearing shall not be held earlier than thirty days after
service of the charges upon the accused. A notice of hearing shall be issued
at least twenty days prior to the hearing, specifying the time, date, and place
of hearing.
NEW SECTION. Sec.
11. The director may refer a
complaint for violation of any section of this chapter before any court of
competent jurisdiction.
Any violation of the
provisions of this chapter shall be prosecuted by the prosecuting attorney of
each county in which the violation occurs, and if the prosecuting attorney
fails to act, the director may request the attorney general to take action in
lieu of the prosecuting attorney.
Whenever evidence
satisfactory to the director suggests that any person has violated any of the
provisions of this chapter, or any part or provision thereof, the director may
bring an action, in the superior court in the county where the person resides,
against the person to enjoin any person from continuing a violation or engaging
or doing any act or acts in furtherance thereof. In this action an order or
judgment may be entered awarding a preliminary or final injunction as may be
proper.
The director may
petition the superior court in any county in this state for the appointment of
a receiver to take over, operate, or close any real estate appraisal activity
or practice in this state which is found upon inspection of its books and
records to be operating in violation of the provisions of this chapter, pending
a hearing.
NEW SECTION. Sec.
12. Any person acting as a
state-certified or state-licensed real estate appraiser without a certificate
or license that is currently valid is guilty of a misdemeanor.
NEW SECTION. Sec.
13. RCW 18.140.085 and 1993 c
30 s 23 are each repealed.
NEW SECTION. Sec.
14. A new section is added
to chapter 50.04 RCW to read as follows:
The term
"employment" does not include services performed by an appraisal
practitioner certified or licensed under chapter 18.140 RCW in an appraisal
business if the use of the business facilities is contingent upon compensation
to the owner of the business facilities and the person receives no compensation
from the owner for the services performed. This exemption does not include
services performed by an appraisal practitioner certified or licensed under
chapter 18.140 RCW for an employer under chapter 50.44 RCW.
NEW SECTION. Sec.
15. Sections 11 and 12 of
this act are each added to chapter 18.140 RCW.
NEW
SECTION. Sec. 16. This act shall take
effect July 1, 1996, except section 3 of this act, which shall take effect July
1, 1997.
