Georgia

Reviewer Requirements

  • GA HB 1050 Section 2- 6:

(6) ‘Appraisal review’ means the act or process of developing and communicating an

opinion about the quality of another appraiser’s work that was performed as part of an

appraisal assignment, except that an examination of an appraisal for grammatical,

typographical, or other similar errors shall not be an appraisal review.

  • Reviewers must be licensed appraisers in the state of GA

 

  • GA HB 1050 Section 4-5- b.1:

(b.1) Any employee or independent contractor of an appraisal management company who

performs appraisal review services must be an individual who holds a valid appraiser

license or certification issued pursuant to this chapter.

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • GA HB 1050 Section 2-2:

(2) ‘Appraisal’ or ‘real estate appraisal’ means an analysis, opinion, or conclusion

prepared by an appraiser relating to the nature, quality, value, or utility of specified

interests in, or aspects of, identified real estate. An appraisal may be classified by subject

matter into either a valuation or an analysis.

 

  • GA HB 1050 Section 2- 4:

 

(4) ‘Appraisal management services’ means services performed by an appraisal

management company and may include, but are not limited to, such activities as

recruiting appraisers, contracting with appraisers to perform real estate appraisal activity,

negotiating fees for appraisals, receiving appraisal orders and appraisal reports, and

submitting appraisal reports received from appraisers to clients.

 

 

Reviewing Provisions

  • Must conduct internal quality control reviews on a periodic basis

 

  • GA HB 1050 Section 4- 2- H

(2) The registration required by paragraph (1) of this subsection shall, at a minimum,

include the following:

(H) A certification that the entity has a system in place to review the work of all

appraisers who are performing real estate appraisal services for the appraisal

management company on a periodic basis to validate that the real estate appraisal

services are being conducted in accordance with the standards for real estate appraisals

established by the board;

  • GA HB 1050 Section 7-c-3

(c) Each appraisal management company shall certify to the commission on an annual

basis that it:

(3) Has a system in place to perform an appraisal review on a periodic basis of the work

of all appraisers who are performing appraisals for the appraisal management company

to validate that the appraisals are being conducted in accordance with the standards for

real estate appraisals established by the board;

Appraiser Requirements

Record Keeping

  • GA HB 1050 Section 4-2-(I):

(2) The registration required by paragraph (1) of this subsection shall, at a minimum,

include the following:

(I) A certification that the entity maintains a detailed record of each service request that

it receives for appraisal services within the State of Georgia and the name, address, and

telephone number of the appraiser who performs the requested real estate appraisal

services for the appraisal management company;

  • GA Real Estate Appraisers Board Substantive Regulations 539-1-.23:

Notwithstanding any federal or state regulations to the contrary, an appraisal management company shall not:

(1) fail to preserve the data and format of the appraisal as submitted by the appraiser;

 

 

Licensing Disclosure

  • Must publish license # on all documents involving appraisal requests/assignments

 

  • GA HB 1050 Section 4-5:

5) An appraisal management company shall be required to disclose the registration

number on each engagement letter utilized in assigning an appraisal request for real estate

appraisal assignments within the State of Georgia.

  • GA Real Estate Appraisers Board Substantive Regulations 539-1-.23:

Notwithstanding any federal or state regulations to the contrary, an appraisal management company shall not:

(7) fail to include its registration number in any appraisal order.

Communications With Appraisers

  • Must provide information re: acceptance/declining of appraisal assignments

 

  • GA HB 1050 Section 7-c-1:

(c) Each appraisal management company shall certify to the commission on an annual

basis that it:

(1) Includes instructions to appraisers in letters of engagement to decline the assignment

in the event the appraiser is not geographically competent or the assignment falls outside

the appraiser’s scope of practice restrictions;

  • Can’t ask for appraisers to modify subjective aspects of reports

 

  • GA HB 1050 Section 7-d-4:

(4) Request or require an appraiser to modify any aspect of an appraisal report unless the

modification provides additional information about the basis for a valuation, corrects

objective factual errors in the appraisal report, or provides additional information within

the appraisal regarding additional sales provided through an established dispute process;

  • Can’t ask for reports for which the appraiser is not sufficiently competent

 

  • GA HB 1050 Section 7-d-5:

(5) Require an appraiser to prepare an appraisal if the appraiser, in the appraiser’s own

independent professional judgment, believes the appraiser does not have the necessary

expertise for the assignment or for the specific geographic area and has notified the

appraisal management company and declined the assignment;

 

  • Deadlines must be reasonable

 

  • GA HB 1050 Section 7-d-6:

(6) Require an appraiser to prepare an appraisal under a time frame that the appraiser,

in the appraiser’s own professional judgment, believes does not afford the appraiser the

ability to meet all the relevant legal and professional obligations, and the appraiser has

notified the appraisal management company and declined the assignment;

  • Can’t interfere with communication between appraiser and other relevant parties

 

  • GA HB 1050 Section 7-d-7:

(7) Prohibit or inhibit legal or other allowable communication between the appraiser

and a lender, a real estate licensee, or any other person who the appraiser, in the

appraiser’s own professional judgment, believes possesses information that would be

relevant;

 

 

Communication With Board

  • Mandatory Reporting

 

  • GA HB 1050 Section 7-c-4:

(c) Each appraisal management company shall certify to the commission on an annual

basis that it:

(4) Has reported to the board the results of any appraisal reviews in which an appraisal

is found to be substantially noncompliant with the standards for real estate appraisals

established by the board or any state or federal laws pertaining to appraisals;

Billing/ Payment

  • Fees paid to appraisers and fees charged for AMC services must be separately stated

 

  • GA HB 1050 Section 7-e:

(e) An appraisal management company shall separately state to the client the fees paid to

an appraiser for appraisal services and the fees charged by the appraisal management

company for services associated with the management of the appraisal process, including

procurement of the appraiser’s services.

  • Must pay appraisers within two weeks
    • GA Real Estate Appraisers Board Substantive Regulations 539-1-.23:

Notwithstanding any federal or state regulations to the contrary, an appraisal management company shall not:

(6) fail to satisfy payment obligations for work performed by an appraiser for a period of greater than two weeks from the date of completion of assignment, unless otherwise agreed to by all parties in writing;

Employee Training

Removal of Appraisers from Panel

Misc.

  • Can’t modify appraisal reports

 

  • GA Real Estate Appraisers Board Substantive Regulations 539-1-.23:

Notwithstanding any federal or state regulations to the contrary, an appraisal management company shall not:

(2) with the exception of review appraisals, redact any information on the appraisal, including but not limited to the name and classification number(s) of the appraiser(s);

(4) require an appraiser to submit a report in an unsecured format;