AN
ACT Relating to real estate appraisers; amending RCW 18.140.010 and 18.140.030;
and adding new sections to chapter 18.140 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
18.140.010 and 1997 c 399 s 1 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.
(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")) "Commission" means the real
estate appraiser ((advisory committee)) commission 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.
(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.
(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.
(19)
"Real estate" means an identified parcel or tract of land, including
improvements, if any.
(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.
(22)
"Review" means the act or process of critically studying an appraisal
report prepared by another.
(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.
(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."
(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."
(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
18.140.030 and 1996 c 182 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, with the advice and approval of the commission;
(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))
to the members of and to keep records for the real estate
appraiser ((advisory committee to enable the committee to act in an advisory
capacity to the director)) commission;
(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)) commission relating to the experience, education, and
examination requirements for each classification of state-certified appraiser
and for licensure;
(8)
To ((impose)) consider recommendations by the real estate appraiser
commission relating to continuing education requirements as a prerequisite
to renewal of certification or licensure;
(9)
To consider recommendations by the real estate appraiser ((advisory
committee)) commission relating to standards of professional
appraisal conduct or 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;
(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))
commission. 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)) commission; and
(((18)))
(17) 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.
NEW
SECTION. Sec. 3. There
is established the real estate appraiser commission of the state of Washington,
consisting of seven members who shall act to give advice to the director.
(1)
The seven commission members shall be appointed by the governor in the
following manner: For a term of six years each, with the exception of the
first appointees who shall be the incumbent members of the predecessor real
estate appraiser advisory committee to serve for the duration of their current
terms, with all other subsequent appointees to be appointed for a six-year
term.
(2)
At least two of the commission members shall be selected from the area of the
state east of the Cascade mountain range and at least two of the commission
members shall be selected from the area of the state west of the Cascade mountain
range. At least two members of the commission shall be certified general real
estate appraisers, at least two members of the commission shall be certified
residential real estate appraisers, and at least one member of the commission
shall be a licensed real estate appraiser, all pursuant to this chapter. No
certified or licensed appraiser commission member shall be appointed who has
not been certified and/or licensed pursuant to this chapter for less than ten
years, except that this experience duration shall be not less than five years
only for any commission member taking office before January 1, 2003. One
member shall be an employee of a financial institution as defined in this
chapter whose duties are concerned with real estate appraisal management and
policy. One member shall be an individual engaged in mass appraisal whose
duties are concerned with ad valorem appraisal management and policy and who is
licensed or certified under this chapter. One member may be a member of the
general public.
(3)
The members of the commission annually shall elect their chairperson and
vice-chairperson to serve for a term of one calendar year. A majority of the
members of said commission shall at all times constitute a quorum.
(4)
Any vacancy on the commission shall be filled by appointment by the governor
for the unexpired term.
NEW
SECTION. Sec. 4. The
members of the real estate appraiser commission and its individual members
shall have the following duties and responsibilities:
(1)
To meet at the call of the director or upon its own initiative at the call of
its chair or a majority of its members;
(2)
To adopt a mission statement, and to serve as a liaison between appraisal
practitioners, the public, and the department; and
(3)
To study and recommend changes to this chapter to the director or to the
legislature.
NEW
SECTION. Sec. 5. The
commission members shall be compensated in accordance with RCW 43.03.240, plus
travel expenses in accordance with RCW 43.03.050 and 43.03.060 when they are in
session by their call or by the director, or when otherwise engaged in the
business of the commission.
NEW
SECTION. Sec. 6.
Sections 3 through 5 of this act are each added to chapter 18.140 RCW.
