Legislation Introduced to Amend Real Estate Appraisers Law

House Bill 565 has been filed by Reps. John Szoka (R-Cumberland); Julia Howard (R-Davie); Brian Brown (R-Pitt) and Jason Saine (R-Lincoln) to make changes to the statutes governing the North Carolina Appraisal Board (NCAB). Several provisions of this legislation, including one requiring future applicants seeking a certified residential appraiser license to hold a college degree, were sought by NCAB pursuant to the requirements of the federal Appraisal Foundation.

Other provisions of this legislation would:

  • Require that applicants must have completed all of their instructional courses on or after January 1, 2008.
  • Require that applicants must complete at least 2,500 hours of experience within the 8 years immediately preceding their application.
  • Require that all applicants submit to a criminal history record check and provide fingerprints.
  • Require all trainees and any appraiser wishing to supervise a trainee to complete a course in trainee supervision.
  • Allow the NCAB to collect any of its fees by electronic means and to charge a processing fee for doing so as long as the processing fee doesn’t exceed the actual cost to the Board of processing the payments.
  • Require Appraisal Management Companies (AMCs) to establish a trust or escrow account in which the portion of all receipts from the entity’s clients that are to paid to appraisers are deposited into the account when the fees are received from the client.
  • Require AMC’s to ensure that appraisers receive fees within 45 days of the date the appraisal is transmitted to the AMC.
  • Allow AMC’s to be disciplined for commingling fees owed to appraisers with the AMCs operating account.
  • Make all trust/escrow accounts held by an AMC subject to audit and inspection without prior notice at the discretion of the NCAB.
  • Require all AMC’s to keep complete records showing the deposit, maintenance and withdrawal of appraisal fees held in escrow or trust for appraisers.

The NC REALTORS® government affairs team will work closely with the NCAR Appraisal Section, other interested stakeholders and the bill sponsors as this legislation is considered by the General Assembly.

Source: North Carolina Association of REALTORS®

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