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S.F. No. 2665 - Real Estate Appraisers, First Engrossment
 
Author: Senator Vicki Jensen
 
Prepared By: Christopher B. Stang, Senate Counsel (651/296-0539)
 
Date: April 7, 2016



 

Section 1 provides that a real estate appraiser shall not be charged costs for a Commerce department investigation if it results in a finding of no violation.

Section 2 modifies the definition of "appraisal assignment."

Section 3 establishes a definition for "National Registry."

Section 4 revises the definition of “appraisal management company” to include companies that administer a network of 15 or more Minnesota appraisers, or 25 or more appraisers in two or more states. Clarifies that an appraisal management company does not include departments or divisions of an entity that provide appraisal management services only to that entity.

Sections 5 and 6 establish definitions for "Appraisal Subcommittee" and "federally regulated appraisal management company."

Section 7 provide the process for determining the number of appraisers an appraisal management company has in its network.

Section 8, subdivision 1 requires an appraisal management company to compensate appraisers with fees that are reasonable and customary in the market area.

Subdivision 2 provides for ways that an appraisal management company can evidence that fees paid were customary and reasonable. Requires written documentation to be maintained that supports the determination of customary and reasonable fees.

Subdivision 3 requires an appraisal management company to separately state to the client the fees paid to the appraiser and the fees charged by the company for management of the appraisal process. An appraisal management company may not prohibit an appraiser that is part of an appraiser panel from recording the fee paid within the appraisal report. Prohibits an appraisal management company from including fees for appraisal management services performed by the company in the amount reported as charges for the appraisal by the appraiser.

Subdivision 4 requires timely payment of the appraiser except in the case of breach of contract or specified uncorrected errors.

Section 9 provides sections 2 to 8 are effective for appraisals commenced after August 1, 2016.

 

 
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