CHAPTER 121

FORMERLY

SENATE SUBSTITUTE NO. 2

TO

SENATE BILL NO. 42

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 29, TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS, SALESMEN AND THE CERTIFICATION OF REAL ESTATE APPRAISERS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each House thereof concurring therein):

Section 1. Amend Section 2901(a)(1), Title 24, Delaware Code by striking the final sentence of the section which reads as follows:

The term 'real estate broker' shall also include real estate appraisers."

Section 2. Amend Sections 2901(a)(3), (a)(4) and (a)(5), Title 24, Delaware Code by redesignating them as Sections 2901 (a)(4), (a)(5) and (a)(6) respectively and by adding a new Subsection 2901(a)(3) as follows:

"(3) 'Real estate appraiser' means any person who, whether or not heretofore certified as a real estate broker or real estate salesperson pursuant to this chapter, for compensation or valuable consideration, advises, consults or prepares analyses with respect to real estate values, uses, sales developments or disposition, including acquisitions by eminent domain, or renders opinions relevant to the marketability of real estate, as a whole or partial vocation.

This definition does not apply to (1) any real estate licensee who prepares a competitive market analysis survey used only for the purpose of listing a property for sale or lease; or (2) any individual who prepares an appraisal for his full-time employer for the employer's internal use only and which is performed in the regular course of the employee's position."

Section 3. Amend Section 2904, Title 24, Delaware Code by striking it in its entirety and substituting in lieu thereof the following:

12904. Record of Licensees

The Real Estate Commission shall keep a record of all meetings of the Commission and maintain a register of names of all brokers, salepersons, and appraisers licensed under this Chapter, which shall at all times he open for inspection."

Section 4. Amend Title 24, Section 2905, Delaware Code by striking subsections (B), (9) and (10) thereof.

Section 5. Amend Title 24, Section 2905, Delaware Code by redesignating the existing section as subsection (a) and adding new subsections (b) and (c) to read as follows:

"(b) The Commission shall establish a Real Estate Appraiser Certification Committee consisting of eight members appointed by the Chairman of the Commission subject to approval by a majority of the entire Commission. The Real Estate Appraiser Certification Committee shall be composed of three real estate appraisers, three real estate brokers and two members of the public. The Committee shall annually elect a Chairman, a Vice-Chairman and a Secretary from its members. Initial composition of the Real Estate Appraiser Certification Committee shall consist of three members (1 real estate appraiser, 1 real estate broker and one public member) being appointed for a one year term, three members (1 real estate appraiser, 1 real estate broker and one public member) being appointed for a two year term, and each of the remaining two members (one real estate broker and one real estate appraiser) being appointed for a three year term. Thereafter, all new appointments shall be for a three year term. Any person appointed to fill an unexpired term shall hold that position for the balance of the unexpired term of the former member. Committee members may be reappointed but no member shall be appointed to serve more than two complete terms on the Committee.

The Real Estate Appraiser Certification Committee shall:

(1) hold meetings, public hearings, and administrative hearings for the purpose of establishing and reviewing real estate appraiser licensing qualifications.

(2) review examination specifications for all real estate appraiser licensing examinations.

(3) solicit bids with one or more national educational testing services or organizations for the preparation of questions and answers for the real estate appraiser licensing examinations.

(c) The Division of Professional Regulation shall contract with a nationally recognized testing service for the preparation and grading of a written examination for the licensing of real estate brokers, real estate salespersons and real estate appraisers."

Section 6. Amend Section 2906, Title 24, Delaware Code by striking this Section in its entirety and substituting the following:

"The Commission shall establish classes of certification for real estate appraisers as follows:

(1) Residential Real Estate Appraiser

This appraiser classification shall consist of those persons who meet the requirements that relate to the appraisal of residential real estate of one to four units and to the appraisal of residential real estate of up to twelve units when a net income capitalization analysis is not required by the terms of the assignment. This classification shall also include the appraisal of unimproved residential and agricultural real property.

(2) General Real Estate Appraiser

This appraiser classification shall consist of those persons who meet the requirements for certification relating to the appraisal of all types of real estate.

The Commission may create other classes of certification for brokers, salespersons or appraisers as it deems necessary and appropriate.

No person, copartnership, association or corporation shall act as a real estate broker, real estate salesperson or real estate appraiser, or advertise or assume to act as such real estate broker, real estate salesperson or real estate appraiser without being registered and without a certificate of registration issued by the Commission.

No copartnership, association or corporation shall be granted a certificate unless every member or officer of such copartnership, association or corporation who actively participates in the brokerage or appraisal business of such copartnership, association or corporation holds a certificate as a real estate broker or appraiser and unless every employee who acts as a saleperson or appraiser for such person, copartnership, association or corporation holds a certificate as a real estate saleperson or appraiser."

Section 7. Amend Section 2907, Title 24, Delaware Code by striking the first and second sentences and substituting in lieu thereof the following:

"A certificate shall be granted only to persons who bear a good reputation for honesty, truthfulness and fair dealing, and are competent to transact the business of a real estate broker, real estate salesman or real estate appraiser in such manner as to safeguard the interests of the public.

Application for a certificate whether as a real estate broker, real estate salesperson or real estate appraiser shall be made to the Commission upon forms prescribed by the Commission."

Section 8. Amend Section 2908, Title 24, Delaware Code by striking the section in its entirety and substituting in lieu thereof the following:

"Section 2908. Fees.

The amount to be charged for each fee imposed under this chapter shall approximate and reasonably reflect all costs necessary to defray the expenses of the Commission, as well as the proportional expenses incurred by the Division of Professional Regulation in its services on behalf of the Commission. There shall be a separate fee charged for each service or activity, but no fee shall be charged for an activity not specified in this chapter. The application fee shall not be combined with any other fee or charge. At the beginning of each calendar year the Division of Professional Regulation, or any other state agency acting in its behalf, shall compute for each separate service or activity, the appropriate fee for the coming year."

Section 9. Amend Section 2909(a), Title 24, Delaware Code by striking the subsection in its entirety and substituting in lieu thereof the following:

"(a) A nonresident of this State who is a licensed broker, salesperson or appraiser in another state may obtain similar license as a broker, salesperson or appraiser in this State by complying with this chapter, provided that the nonresident broker, salesperson or appraiser is regularly engaged in the real estate business in the other state, and provided that such other state requires standards for licensure equal to or greater than the standards In Delaware. Such nonresident licensed broker, salesperson or appraiser need not maintain a place of business within this State. The Commission shall license such nonresident broker, salesperson or appraiser without examination if such person has been duly licensed for a broker's, salesperson's or appraiser's license in another state. When an applicant for licensure by reciprocity as a real estate appraiser can show that he or she possesses the relevant background the Commission shall license the applicant as a real estate appraiser. Upon receipt of an application for reciprocity, the Commission shall contact each board which has previously licensed the applicant, to determine whether or not there are disciplinary proceedings or unresolved complaints pending against the applicant. In the event there is a disciplinary proceeding or unresolved complaint pending, the applicant shall not be licensed until the proceeding or complaint has been resolved. An application for licensure by reciprocity shall be accompanied by full payment of the reciprocity fee."

Section 10. Amend Section 2912(a), Title 24, Delaware Code by striking the first sentence and substituting in lieu thereof the following:

The Commission may, upon its own motion, and shall upon the verified complaint in writing of any person, provided such complaint, together with evidence documentary or otherwise presented in connection therewith, shall make out a prima facie case, direct all complaints to the investigative staff of the Division of Professional Regulation for the Investigation of the actions of any real estate broker, real estate salesperson or real estate appraiser or any person who shall assume to act in any of such capacities within this State, and may suspend or revoke any certificate issued under the provisions of this chapter or reprimand any licensee at any time where the certificate holder has by false or fraudulent representation obtained a certificate, or where the certificate holder, in performing or attempting to perform any of the acts mentioned herein, is guilty of:"

Section 11. Amend Section 2912(a)(6), Chapter 29, Title 24, Delaware Code by striking subsection (6) in its entirety and substituting in lieu thereof the following:

"(6) Being incompetent to act as a real estate broker, salesperson or appraiser in such manner as to safeguard the interest of the public; or

Section 12. Amend Section 2912, Chapter 29, Title 24, Delaware Code by adding a new Subsection (d) thereto to read as follows:

"(d) The Commission may request from the Secretary of Administrative Services a waiver of the requirement that the investigation be conducted by the Division of Professional Regulation. Granting of this waiver would permit the Commission itself to investigate the particular complaint(s)."

Section 13. Amend Section 2916, Chapter 29, Title 24, Delaware Code by striking the first sentence and substituting in lieu thereof the following:

The Commission shall publish annually the names of the duly certified real estate brokers, salespersons and appraisers."

Section 14. Amend Section 2921(a), Chapter 29, Title 24, Delaware Code by striking the phrase "real estate broker or real estate 'salesman" each time it appears and substituting In lieu thereof "real estate broker, real estate salesperson or real estate appraiser."

Section 15. Amend Section 2921(b), Chapter 29, Title 24, Delaware Code by striking the phrases "real estate broker and real estate salesman," "real estate broker's or real estate salesman's" and "broker or salesman" and substituting in lieu thereof "real estate broker, real estate salesperson and real estate appraiser," "real estate broker's, real estate salesperson's or real estate appraiser's," and "broker, salesperson or appraiser."

Section 16. Amend Section 2921(d), Chapter 29, Title 24, Delaware Code by striking the phrase "real estate broker and real estate salesman" and substituting in lieu thereof "real estate broker, real estate salesperson and real estate appraiser."

Section 17. Amend Section 2921(e), Chapter 29, Title 24, Delaware Code by striking the phrase "real estate broker or real estate salesman" and substituting in lieu thereof "real estate broker, real estate salesperson or real estate appraiser."

Section 18. Amend Section 2921(f), Chapter 29, Title 24, Delaware Code by striking the phrase "real estate broker or real estate salesman" and substituting in lieu thereof "real estate broker, real estate salesperson or real estate appraiser."

Section 19. Amend Section 2921(g), Chapter 29, Title 24, Delaware Code by striking the phrase "real estate broker or real estate salesman" each time it appears and substituting in lieu thereof "real estate broker, real estate salesperson or real estate appraiser."

Section 20. Amend Section 2921(h), Chapter 29, Title 24, Delaware Code by striking the phrases "real estate broker or real estate salesman" and "broker or salesman" each time it appears and substituting in lieu thereof "real estate broker, real estate salesperson or real estate appraiser" and "broker, salesperson or appraiser.'

Section 21. The Delaware Real Estate Commission shall submit the certification requirements for the Residential Real Estate Appraiser, General Real Estate Appraiser classifications and other certification classes created by the Real Estate Commission to the General Assembly on or before March 1, 1990. Licensure under the new certification requirements shall become effective one year after enactment into law in bill form by the General Assembly.

Section 23. Amend Chapter 29, Title 24 Delaware Code by striking the words "salesman", "salesman's", "salesmen" and "salesmen's" wherever they appear therein and substituting in lieu thereof the words "salesperson", "salesperson's, "salespersons", "salespersons'".

Approved July 17, 1989.