North Dakota

Reviewer Requirements

  • Reviewers must be licensed appraisers SOMEWHERE

 

  • ND HB No. 1389 Section 43-23.5-12:

43 – 23.5 – 12. Appraisal review .

Any employee of, or independent contractor to, the appraisal management company that performs an appraisal review for a property located in this state must be:

1. A certified or licensed appraiser in good standing in this state.

2. A certified or licensed appraiser in good standing in another state.

  • ND HB No. 1389 Section 43-23.5-01-(4):

4. “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,

conclusions, estimate of value, or compliance with the uniform standards of

professional appraisal practice. This term does not include:

a. A general examination for grammatical, typographical, or other similar errors.

b. A general examination for completeness, including regulatory and/or client

requirements as specified in the agreement process that does not communicate an

opinion.

Scope of Law

Reviewing Provisions

  • Must conduct internal quality control reviews on a “statistically significant” number of reports on a periodic basis

 

  • ND HB No. 1389 Section 43-23.5-14:

43 – 23.5 – 14. Appraisal management company certification of appraisal review system .

Each appraisal management company seeking to be registered or to renew a registration in

this state shall certify to the board on a form prescribed by the board that the company has a

system in place to perform an appraisal review of the work product of a statistically significant

number of appraisal reports submitted by independent appraisers performing appraisals for the

appraisal management company on a periodic basis to validate that the appraisals are being

conducted in accordance with the uniform standards of professional appraisal practice, and

chapter 43 – 23.3, and the rules adopted under this chapter. An appraisal management company

shall report to the board the results of any appraisal reviews in which an appraisal is found to be

substantially noncompliant with the uniform standards of professional appraisal practice.

Appraiser Requirements

Appraiser Competency

Record Keeping

  • Must keep records for 5 years/ 5 years after any judicial proceedings

 

  • ND HB No. 1389 Section 43-23.5-15:

43 – 23.5 – 15. Retention of records .

1. Each appraisal management company seeking to be registered or to renew an

existing registration in this state shall certify to the board on a form prescribed by the

board that the company maintains a detailed record of each service request that the

company receives for appraisal of real property located in this state.

2. An appraisal management company registered in this state shall retain for five years

all records required to be maintained under this chapter as described in rules. This

five-year period shall commence on the date of the final action by the appraisal

management company for each individual transaction or, if the appraisal management

company is notified that the transaction is involved in litigation, the five-year period

shall commence on the date the litigation is finally disposed.

Licensing Disclosure

  • Must disclose registration number on all engagement documents

 

  • ND HB No. 1389 Section 43-23.5-18:

3. An appraisal management company registered in this state shall place its registration

number on engagement documents utilized by the appraisal management company

for procurement of appraisal services in this state.

Communications With Appraisers

Communication With Board

  • Mandatory reporting clause

 

  • ND HB No. 1389 Section 43-23.5-20:

43 – 23.5 – 20. Mandatory reporting .

An appraisal management company that has a reasonable basis to believe an appraiser

has failed to comply with applicable laws or rules or has substantially violated the uniform

standards of professional appraisal practice shall refer the matter to the board.

Billing/ Payment

  • Must state separately to clients the fees paid to appraisers and AMC fees

 

  • ND HB No. 1389 Section 43-23.5-16-(1):

43 – 23.5 – 16. Fee disclosure system requirement .

1. An appraisal management company registered in this state shal l disclose to its clients

the fees paid for appraisal management services and the fees paid to the independent

appraiser for the completion of an appraisal assignment.

  • Must pay appraisers within 45 days of appraiser transmitting appraisal report

 

  • ND HB No. 1389 Section 43-23.5-17:

43 – 23.5 – 17. Requirement of appraisal management company’s payment to appraiser .

1. An appraisal management company shall, except in bona fide cases of breach of

contract or substandard performance of services, make payment to an independent

appraiser for the completion of an appraisal or valuation assignment within forty-five

days of the date on which the appraiser transmits or otherwise provides the completed

appraisal or valuation assignment to the company or its assignee unless a mutually

agreed-upon alternate arrangement has been previously established.

2. An appraisal management company seeking to be registered or to renew an existing

registration in this state shall certify that the company will require appraisals to be

conducted independently as required by the appraisal independence standards under

section 129E of the Truth in Lending Act, including the requirements of payment or a

reasonable and customary fee to independent appraisers when the appraisal

management company is providing services for a consumer credit transaction secured

by the principal dwelling of a consumer.

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice to appraisers prior to removal from panel after 90 days

 

  • ND HB No. 1389 Section 43-23.5-21-(6):

43 – 23.5 – 21. Prohibited conduct .

A violation of this section may constitute grounds for discipline against an appraisal

management company registered in this state. However, an appraisal management company

may request an appraiser provide additional information about the basis for a valuation, correct

objective factual errors in an appraisal report, or consider additional appropriate property

information. No employee, director, officer, agent, independent contractor, or other third party

acting on behalf of an appraisal management company may:

6. Except within the first ninety days after an independent appraiser is added to an

appraiser page, remove an independent appraiser from an appraiser panel without

prior written notice to the appraiser, with the prior written notice including evidence of

the following, if applicable:

a. The appraiser’s illegal conduct.

b. A violation of the uniform standards of professional appraisal practice, this

chapter, or the rules adopted by the board.

c. Improper or unprofessional conduct.

Misc

  • Registrations expire September 30th each year

 

  • ND HB No. 1389 Section 43-23.5-06:

43 – 23.5 – 06. Expiration of registration .

Registrations will expire on September thirtieth of each year. The expiration date of the

registration must appear on the registration and no other notice of its expiration need be given

to the registrant.