California

Scope of Law

  • No specific distinction between residential and commercial real estate

 

  • CA SB 237, Ch. 173 Section 11302-(b):

(b) “Appraisal” means a written statement independently and impartially prepared by a qualified

appraiser setting forth an opinion in a federally related transaction as to the market value of an

adequately described property as of a specific date, supported by the presentation and analysis of

relevant market information.

Reviewing Provisions

  • Must review work of all appraisers (no specification of how often)

 

  • CA SB 237, Ch. 173 Section 11345.3-(b):

11345.3. The director may not issue a certificate of registration to an appraisal management company unless the appraisal management company confirms in its application for registration that all of its contracts with clients include provision of each of the following as standard business practices, as and where applicable:

 

(b) Reviewing the work of all employee appraisers and independent contractor appraisers contracted by the applicant to ensure that appraisal services are performed in accordance with the Uniform Standards of Professional Appraisal Practice.

 

  • Must adopt “reasonable” reviewing procedures

 

  • CA Code of Regulations Title 10, Ch. 6.5, 3577-(b):

 

(b) Appraisal Management Companies must adopt reasonable procedures designed to ensure that

all appraisal assignments completed by the contracted its independent contractor or employee

appraisers are performed in accordance with the Uniform Standards of Professional Appraisal

Practice.

 

Appraiser Requirements

Appraiser Competency

Record Keeping

  • CA SB 237, Ch. 173 Section 11345.3-(c):

11345.3. The director may not issue a certificate of registration to an appraisal management company unless the appraisal management company confirms in its application for registration that all of its contracts with clients include provision of each of the following as standard business practices, as and where applicable:

 

(c) Maintaining records of each of the following for each service request:

(1) Date of receipt of the request.

(2) Name of the person from whom the request was received.

(3) Name of the client for whom the request was made, if different from the name of the person from whom the request was received.

(4) The appraiser or appraisers assigned to perform the requested service.

(5) Date of delivery of the appraisal product to the client.

  • CA Code of Regulations Title 10, Ch. 6.5, 3577-(c):

(c) Appraisal Management Companies must maintain records of each of the following for each

service request:

(l) Date of the receipt of the request;

(2) The name of the person from whom the request was received;

(3) The name of the client for whom the request was made, if different from the name of the

person from whom the request was received.

(4) The name of the appraiser or appraisers assigned to perform the contracted service; and

(5) The date of delivery of the appraisal product to the client.

  • Must keep records of all relevant fees
  • CA Code of Regulations Title 10, Ch. 6.5, 3577-(d):

(d) Appraisal Management Companies must maintain records of all appraisal fees dispersed to

contracted appraisers and the final fee charged to the lender/client.

Licensing Disclosure

Communications With Appraisers

Communication With Board

Billing/ Payment

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice prior to removing an appraiser from panel

 

  • CA Code of Regulations Title 10, Ch. 6.5, 3577-(j)

(j) The Appraisal Management Company shall not remove an independent appraiser from

their panel of approved appraisers without prior written notice that includes evidence which

supports the basis of fact that the appraiser has violated the Uniform Standards of Professional

Appraisal Practice or other applicable appraisal regulations or state statutes, or evidence which

demonstrates substandard performance, improper or unprofessional behavior, or other

substantive deficiencies.

Misc

  • License valid for two years

 

  • CA SB 237, Ch. 173 Section 11345.1:

11345.1. A certificate of registration as an appraisal management company shall be valid for a period of

two years, unless otherwise extended or limited by the director.