AN ACT Relating to real estate appraisals and appraisers; amending RCW 18.140.130, 18.140.060, and 18.140.160; and adding a new section to chapter 18.140 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1.  A new section is added to chapter 18.140 RCW to read as follows:

(1) Any action to recover damages against a real estate appraiser arising out of the appraiser's real estate activity shall be brought within one year from the date of discovery of the act or omission giving rise to the action, but in no event shall an action to recover damages against a real estate appraiser be brought more than three years after the report date.

(2) An appraisal report or appraisal review report, including any data, work papers, opinion of market value, certification, and statement is deemed prepared at the request of and exclusively for the benefit of the client and intended user, and for the intended use specified in the appraisal report or appraisal review report. An appraiser:

(a) Shall not be liable in a court of law for any action arising out of the appraiser's real estate activity, to any person or entity other than the client or intended user; and

(b) Shall only be subject to disciplinary action stemming from a complaint arising out of the appraiser's real estate activity, if it originated from the client or intended user.

(3) The definitions in this subsection apply to this section:

(a) "Intended use" means the use of an appraisal report or appraisal review report as identified by the appraiser.

(b) "Intended user" means the client or any other party as identified by name or type, as a user of the appraiser's appraisal report or appraisal review report.

(c) "Report date" means the date the appraiser signed the appraisal report or appraisal review report.

Sec. 2.  RCW 18.140.130 and 2005 c 339 s 10 are each amended to read as follows:

(1) Each original and renewal certificate, license, or registration issued under this chapter shall expire on the applicant's second birthday following issuance of the certificate, license, or registration.

(2) To be renewed as a state-certified or state-licensed real estate appraiser or state-registered appraiser trainee, the holder of a valid certificate, license, or registration shall apply and pay the prescribed fee to the director no earlier than one hundred twenty days prior to the expiration date of the certificate, license, or registration and shall demonstrate satisfaction of any continuing education requirements.

(3) If a person fails to renew a certificate, license, or registration prior to its expiration and no more than one year has passed since the person last held a valid certificate, license, or registration, the person may obtain a renewal certificate, license, or registration by satisfying all of the requirements for renewal and paying late renewal fees.

Sec. 3.  RCW 18.140.060 and 2005 c 339 s 5 are each amended to read as follows:

(1) Applications for examinations, original certification, licensure, or registration, ((and)) renewal certification, licensure, or registration ((shall)), and the reinstatement of a certificate, license, or registration must be made in writing to the department on forms approved by the director. Applications for original and renewal certification, licensure, or registration ((shall)) or the reinstatement of a certificate, license, or registration must include a statement confirming that the applicant ((shall)) must comply with applicable rules and regulations and that the applicant understands the penalties for misconduct.

(2) The appropriate fees ((shall)) must accompany all applications for examination, reexamination, original certification, licensure, or registration, ((and)) renewal certification, licensure, or registration, and the reinstatement of a certificate, license, or registration.

Sec. 4.  RCW 18.140.160 and 2007 c 256 s 1 are each amended to read as follows:

In addition to the unprofessional conduct described in RCW 18.235.130, the director may take disciplinary action for the following conduct, acts, or conditions:

(1) Failing to meet the minimum qualifications for state certification, licensure, or registration established by or pursuant to this chapter;

(2) Paying money other than the fees provided for by this chapter to any employee of the director or the commission to procure state certification, licensure, or registration under this chapter;

(3) Continuing to act as a state-certified real estate appraiser, state-licensed real estate appraiser, or state-registered appraiser trainee when his or her certificate, license, or registration is on an expired or inactive status;

(4) Violating any provision of this chapter or any lawful rule made by the director pursuant thereto;

(5) 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;

(6) Being affiliated as an employer, independent contractor, or supervisory appraiser of a state-certified real estate appraiser, state-licensed real estate appraiser, or state-registered appraiser trainee whose certification, license, or registration is currently in a suspended or revoked status;

(7) Failure or refusal without good cause to exercise reasonable diligence in performing an appraisal practice under this chapter, including preparing an oral or written report to communicate information concerning an appraisal practice; and

(8) Negligence or incompetence in performing an appraisal practice under this chapter, including preparing an oral or written report to communicate information concerning an appraisal practice.

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