Kansas

Reviewer Requirements

  • Reviewers must be licensed appraiser in state of Kansas

 

  • KS AMC Registration Act 58-4711-(b):

(b) Any employee of, or independent contractor to, the AMC that performs an appraisal review for a property located in Kansas shall be an appraiser credentialed in good standing in the state of Kansas.

  • KS AMC Registration Act 58-4703-(f):

(f) “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 related to the appraiser’s data collection, analysis, opinions of value, conclusions, estimate of value, or compliance with the uniform standards of professional appraisal practice. This term “appraisal review” does not include a general examination for:

(1) Grammatical, typographical or other similar errors; or

(2) Completeness including regulatory requirements, client requirements, or both such requirements as specified in the engagement letter that does not communicate an opinion.

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • KS AMC Registration Act 58-4703-(c):

(c) “Appraisal management services” means to perform or attempt to perform, directly or indirectly, any one or more of the following functions on behalf of a lender, financial institution, client, or any other person:

(1) Administer an appraiser panel;

(2) recruit, qualify, verify licensing or certification and negotiate fees and service level expectations with any person who is part of an appraiser panel;

(3) receive an order for an appraisal from one entity and deliver the order for the appraisal to an appraiser that is part of an appraiser panel for completion;

(4) track and determine the status of orders for appraisals;

(5) conduct quality control of a completed appraisal prior to the delivery of such appraisal to the person that ordered the appraisal; or

(6) submit a completed appraisal performed by an appraiser to one or more clients.

 

Reviewing Provisions

  • Must conduct quality reviews of 5% of all appraisal reports annually

 

  • KS AMC Registration Act 58-4704-(a)-(8):

(a) The application for the registration shall be on a form approved by the board and shall, at a minimum, include the following information:

(8) a certification that the entity has a system in place to review an amount or percentage of the appraisal reports submitted by each appraiser who is performing real estate appraisal services for the AMC within Kansas as specified in rules and regulations of the board on an annual basis to validate that the real estate appraisal services are being conducted in accordance with USPAP and the state certified and licensed real estate appraisers act and the regulations adopted hereunder, pursuant to K.S.A. 2012 Supp. 58-4712, and amendments thereto;

  • KS AMC Rules and Regulations 117-20-7:

117-20-7. Certification of annual review. The controlling person of each AMC applying for an initial registration or registration renewal shall certify that the AMC performed an appraisal review on at least five percent of all appraisal reports submitted by appraisers performing real estate appraisal services for the AMC within Kansas on an annual basis.

 

Appraiser Requirements

Appraiser Competency

  • Letter of engagements to appraisers must include verification of competency

 

  • KS AMC Registration Act 58-4711-(a):

(a) If a license or certification is required to perform an appraisal, prior to placing an assignment with an appraiser on the appraiser panel of an AMC, the AMC shall verify that the appraiser receiving the assignment holds a credential in good standing in this state issued pursuant to this act and the rules and regulations adopted thereunder. A letter of engagement shall include instructions to the appraiser to decline the assignment in the event the appraiser is not geographically competent or the assignment falls outside the appraiser’s scope of practice.

  • Must verify that appraisers are geographically competent

 

  • KS AMC Registration Act 58-4704-(a)-(7)-(B):

(a) The application for the registration shall be on a form approved by the board and shall, at a minimum, include the following information:

(7) a certification that the entity has a system and process in place to verify that a person being added to the appraiser panel of the AMC for appraisal services being performed in Kansas:

(B) is geographically competent and performs appraisal assignments within the appraiser’s scope of practice;

  • KS AMC Registration Act 58-4716-(d)-(2):

(d) It shall be unlawful and a violation of this act for an AMC to include on the panel of the AMC for appraisal services in Kansas any appraiser who:

(2) is not geographically competent to perform appraisal assignments within the appraiser’s scope of practice.

An attestation provided by an appraiser that such appraiser is geographically competent within the appraiser’s scope of practice will satisfy an AMC’s responsibility pursuant to this subsection.

  • Can’t require an appraiser to complete an appraisal for which they do not feel competent

 

  • KS AMC Registration Act 58-4717-(b)-(1,2)

No AMC shall perform or attempt to perform any of the following acts:

(b) require an appraiser to prepare an appraisal if the appraiser, in the appraiser’s own independent professional judgment:

(1) Believes the appraiser does not have the necessary expertise for the assignment or for the specific geographic area; and

(2) the appraiser has notified the AMC and declined the assignment;

  • Deadlines must be reasonable

 

  • KS AMC Registration Act 58-4717-(c)-(1,2):

No AMC shall perform or attempt to perform any of the following acts:

(c) require an appraiser to prepare an appraisal under a time frame that the appraiser, in the appraiser’s own professional judgment:

(1) Believes does not afford the appraiser the ability to meet all the relevant legal and professional obligations; and

(2) the appraiser has notified the AMC and declined the assignment;

Record Keeping

  • KS AMC Registration Act 58-4704-(a)-(9)

(a) The application for the registration shall be on a form approved by the board and shall, at a minimum, include the following information:

(9) a certification that the entity maintains a detailed record of each service request that it receives and the appraiser that performs real estate appraisal services for the AMC, pursuant to K.S.A. 2012

Supp. 58-4713, and amendments thereto;

  • Must keep records for 5 years or 5 years after any judiciary proceedings
    • KS AMC Registration Act 58-4713:

(a) Each AMC seeking to be registered or to renew an existing registration in this state shall certify to the board on an annual basis on a form prescribed by the board that such AMC maintains a detailed record of each service request that it receives for appraisal of real property located in Kansas.

(b) An AMC registered under the provisions of this act shall retain for a period of five years all records required to be maintained under this act. This five-year period shall commence on:

(1) The date of the final action by the AMC for each individual transaction; or

(2) if the AMC is notified that the transaction is involved in litigation, the date that the final judgment has been issued and all appeals, if any, have been taken.

(c) All records required to be maintained by the registered AMC pursuant to the provisions of this act shall be made available by the registration holder for inspection and copying by the board or its designee on reasonable notice to the AMC.

 

Licensing Disclosure

  • Must include license number on all relevant communication documents

 

  • KS AMC Registration Act 58-4720-(a),(c):

(a) The board shall issue a unique registration number to each AMC that is registered in this state.

(c) An AMC registered in this state shall place its registration number on any instrument utilized by the AMC for procurement of appraisal services in this state.

Communications With Appraisers

  • May request certain additional information from appraiser

 

  • KS AMC Registration Act 58-4716-(b)-(1,2):

(b) No provision of subsection (a) shall be construed to prohibit the AMC from requesting that an appraiser:

(1) Provide additional information about the basis for a valuation including consideration of additional comparable data; or

(2) correct objective factual errors in an appraisal.

Communication With Board

  • Mandatory reporting

 

  • KS AMC Registration Act 58-4714-(c)-(6):

(c) It shall be unlawful and a violation of this act for any employee, partner, director, officer, agent or independent contractor of an AMC to:

(6) fail to report to the board the results of any appraisal reviews in which an appraisal is found to be substantially noncompliant with USPAP;

Billing/ Payment

  • Must disclose AMC fees and fees paid to appraiser separately to clients

 

  • KS AMC Registration Act 58-4714:

(a) An AMC shall be required to have a system in place to disclose to its client the fees paid:

(1) For appraisal management services; and

(2) to the appraiser for the completion of an appraisal assignment.

(b) No AMC shall prohibit an appraiser that is part of an appraiser panel of the AMC from recording the fee that the appraiser was paid by the AMC for the performance of the appraisal within the body of the appraisal that is submitted by the appraiser to the AMC.

  • Must pay appraisers within 45 days of appraiser sending report

 

  • KS AMC Registration Act 58-4718:

58-4718. Same; prompt payment. Except in bona fide cases of breach of contract or substandard performance of services, each AMC shall make payment to an appraiser for the completion of an appraisal or valuation assignment within 45 days of the date on which the appraiser transmits or otherwise provides the completed appraisal or valuation study to the AMC or its assignee unless a mutually agreed upon alternate arrangement has been previously established in good faith.

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice to appraiser prior to being removed from panel/excluded

 

  • KS AMC Registration Act 58-4716-(a)-(9)-(A,B):

(a) It shall be unlawful and a violation of this act for any employee, partner, director, officer or agent of an AMC to influence or attempt to influence the development, reporting, result or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery or in any other manner, including, but not limited to:

(9) Without prior written notice to such appraiser:

(A) Allowing or directing the removal of an appraiser from an appraiser panel; or

(B) the addition of an appraiser to an exclusionary list of disapproved appraisers used by any entity.

  • Specific procedures for removal from appraiser panel
    • KS AMC Registration Act 58-4721:

(a) Except within the first 30 days after an appraiser is first added to the appraiser panel of an AMC, no AMC shall remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an appraiser without:

(1) Notifying the appraiser in writing of the reasons why such appraiser is being removed from the appraiser panel of the AMC;

(2) providing an opportunity for the appraiser to respond to the written notification of the AMC either personally or through legal counsel; and

(3) if the appraiser is being removed from the panel for illegal conduct, violation of the USPAP, or a violation of this act or the regulations adopted thereunder, providing notice to the appraiser and to the board detailing allegations of fact and alleged violations of USPAP, regulations or laws.

Misc