CHAPTER 140

FORMERLY

SENATE BILL NO. 187

AS AMENDED BY SENATE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTER 29, TITLE 24, SUBCHAPTER II, OF THE DELAWARE CODE RELATING TO REGULATION OF REAL ESTATE APPRAISERS.

WHEREAS, State and Federal financial and public policy interests in real estate related transactions will be protected by requiring that real estate appraisals utilized in connection with state and federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.

WHEREAS, it is desirable that the State of Delaware's statutory scheme regarding certification and licensure of real estate appraisers conform to Title XI of the Financial Institutions Recovery, Reform and Enforcement Act of 1989, Public Law 101-73 (Codified at Title 12, United States Code, Chapter 34A) and to amendments thereto and regulations promulgated thereunder.

NOW, THEREFORE:

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 2930 (b), Chapter 29, Title 24, Delaware Code by adding the words "or certified" after the words "shall not be licensed".

Section 2. Amend subsection (c), Section 2930, Chapter 29, Title 24,

Delaware Code by striking said subsection in its entirety, and substituting the following in lieu thereof:

"(c) Nothing in this Chapter shall require a geologist licensed

under Chapter 36 of Title 24 to meet the requirements for either certification or licensure, provided that the geologist's written estimate of value is not the sole determinant of a property's value and that any such estimate of value is not used as an appraisal in Federally funded transactions.

(d) Nothing in this Chapter shall require an auctioneer to meet the

requirement for either certification or licensure under this Subchapter, provided that the auctioneer provides only a verbal estimate of value and not a written appraisal of the value of any real property."

Section 3. Amend Section 2931 (a), Chapter 29, Title 24, Delaware Code by striking the words "and meet standards as set by a federal financial regulatory agency." and substituting the words "and to comply with the standards as set forth in Title XI of the Financial Institutions Recovery, Reform and Enforcement Act of 1989, Public Law 101-73 (Codified at Title 12, United States Code, Chapter 34A), and any subsequent amendments thereto or any regulations promulgated thereunder." in lieu thereof.

Section 4. Amend Section 2931 (c), Chapter 29, Title 24, Delaware Code by striking the words "calendar year" and substituting in lieu thereof the words "fiscal year".

Section 5. Amend subsection (a), Section 2932, Chapter 29, Title 24,

Delaware Code by striking the words "Title 12, United States Code, Chapter 34A and any subsequent amendments thereto." and substituting the words "Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Public Law 101-73, and any subsequent amendments thereto or any regulations promulgated thereunder".

Section 6. Further amend subsection (a), Section 2932, Chapter 29, Title 24, Delaware Code by striking the words "federal financial institutions regulatory agencies and the Resolution Trust Corporation;" as the same appear in said subsection, and substituting` the words "Federal Financial Institutions

Examination Council, Appraisal Subcommittee or its successor committee, council or agency;" in lieu thereof.

Section 7. Amend Section 2932 (c), Chapter 29, Title 24, Delaware Code by striking the words "by the Appraiser Qualification Board of the Appraisal Foundation, if any, or such additional standards as may be specified by a federal financial regulatory agency or by 12 United States Code, Chapter 34A." and substituting the words "under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Public Law 101-73, and any subsequent amendments thereto or any regulations promulgated thereunder." in lieu thereof.

Section 8. Amend subsection (b), Section 2933, Chapter 29, Title 24,

Delaware Code by striking the figure "$25" as it appears in the last sentence of the subsection and substituting the figure "$50" in lieu thereof; and by striking the words "appraisal subcommittee of the Federal Financial Institutions Examination Council."; and by substituting the words "appropriate federal agency as designated in Title XI of the Financial Institutions Recovery, Reform and Enforcement Act of 1989, Public Law 101-73, and any subsequent amendments thereto or any regulations promulgated thereunder." in lieu thereof.

Section 9. Amend Chapter 29, Title 24, Delaware Code by striking Section 2934 in its entirety and substituting the following in lieu thereof:

"Section 2934. Real Estate Appraiser Qualifications Criteria: Certified General Real Property Appraiser, Certified Residential Real Property Appraiser, Licensed Real Property Appraiser and Real Property Appraiser Trainee.

(a) Certified General Real Property Appraiser

Applicants for initial certification as Certified General Real Property Appraiser must meet the requirements, and renewal applicants the continuing education requirements, as set forth in Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, and any subsequent amendments thereto or any regulations promulgated thereunder.

(b) Certified Residential Real Property Appraiser

Applicants for initial certification as Certified Residential Real Property Appraiser must meet the requirements, and renewal applicants the continuing education requirements, as set forth in Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, and any subsequent amendments thereto or any regulations promulgated thereunder.

(c) Licensed Real Property Appraiser

Applicants for Appraiser must meet continuing education criteria established Appraisal Foundation designation. initial licensure as Licensed Real Property

the requirements, and renewal applicants the requirements, as set forth in the qualifications by the Appraiser Qualifications Board of the for their licensed real property appraiser

(d) Real Property Appraiser Trainee

An applicant for a real estate appraiser trainee license shall have successfully completed a minimum of 45 classroom hours of education on real estate matters satisfactory to the Council, including classroom hours on the topic of the Code of Professional Ethics and Uniform Standards of Professional Appraiser Practice.

A Real Property Appraiser Trainee may assist in the completion of an appraisal report, including an opinion of value, and may co—sign an appraisal, provided that he or she is actively and personally suspervised by a state certified or licensed real estate appraiser; provided that the appraisal report is reviewed and signed by the state certified or licensed real estate appraiser, and provided that the

 licensed or certified appraiser accepts total responsibility for the appraisal report.

(e) (1) An applicant for certification under this Subchapter shall not have been convicted of a felony, substance abuse, or fraud within the 5 years preceeding the date of application.

(2) Each applicant shall provide such information as may be

required on an application form designed and furnished by the Council. No application form shall require a picture of the applicant; require information relating to citizenship, place of birth, length of state residency; nor require personal references.

(a) Where the Council has found to its satisfaction that an application has been intentionally fraudulent, or that false information has been intentionally supplied, it shall report its finding to the Attorney General for further action.

(a) No person shall be denied certification or licensure solely by
virtue of membership or lack of membership in any appraisal organization.

(b) Where the application of a person has been refused or rejected and such applicant feels that the Board has acted without justification; has imposed higher or different standards for him or her than for other applicants or licensees; or has in some other manner contributed to, or caused the failure of, such application, the applicant may appeal to the Superior Court within 30 days of receipt of the refusal from the Board."

Section 10. Amend Section 2935, Chapter 29, Title 24, Delaware Code by striking said section in its entirety and substituting the following in lieu thereof:

"Section 2935. Temporary Practice and Reciprocity (a) Temporary Practice

(1) A real estate appraiser from another state, who is licensed or certified by the appraiser licensing or certifying agency in such state, may apply for registration to receive temporary licensing or certification privileges in this State by paying all required fees and filing with the Council on Real Estate Appraisers a notarized application, on a form prescribed by the Council for such purpose, which shall set forth and include:

a. the applicant's name, address, social security number and such other information as may be necessary to identify the applicant;

b. a statement under seal issued by the appraiser licensing or certifying agency in the applicant's resident state setting forth:

i. the applicant's name, business name and address;

ii. the type license or certificate held by the applicant and the license or certificate number;

iii. the dates of licensure or certification and the

expiration date of the applicant's current license or certificate;

iv. whether the license or certificate was issued as a result of passing a licensure/certification examination, by reciprocity, or by some other means; and

v. a complete record of any disciplinary actions taken, or disciplinary proceedings pending, against the applicant;

c. A statement that the applicant (i) has read and agrees to abide by all appraiser laws and rules in this State and (ii) agrees to cooperate with any investigation initiated by the Council, including supplying relevant documents and personally appearing before the Council and/or its investigators;

d. Such other information as may be necessary to determine the applicant's eligibility for temporary appraiser licensing or certification privileges in this State;

e. Every applicant for certification or licensure under this Subchapter, who is not a resident of this State shall submit, with the application for certification or licensure, an irrevocable consent that service of process upon him or her may be made by delivery of the process to the Secretary of State if, in an action against the applicant in a court of this state arising out of the applicant's activities as a real estate appraiser, the plaintiff cannot, in the exercise of due diligence, effect personal service upon the applicant; and

a. Identification of the property to be appraised and the
anticipated duration of the assignment. (See Section 2901 (a) (1).)

(2) Licensing and certification privileges granted under the
provisions of this section shall expire upon completion of the specific appraisal assignment for which the temporary license or certificate was issued.

(3) Persons granted temporary licensing/certification privileges
under this section shall not advertise or otherwise hold themselves out as being licensed or certified by the State of Delaware;

(b) Reciprocity

(1) An applicant for certification or licensure in Delaware who possesses substantially equivalent certification or licensure in another state shall:

a. Provide satisfactory proof that he or she is licensed or certified in good standing in his or her resident state;

a. File a 'consent to service form' whereby the applicant
would agree that any lawful judicial process or legal notice served upon the administrator of the Council will have the same force and effect as if served upon him or her;

a. Furnish a signed statement that the applicant (i) has read and agrees to abide by all appraiser laws and rules in this State and (ii) agrees to cooperate with any investigation initiated by the Council in this State including supplying relevant documents and personally appearing before the Council and/or its
investigators;

a. Pay all required licensure/certification fees; and

a. Furnish any additional information and documentation
required by the Council needed to determine whether the applicant possesses the requisite competency for licensure or certification."

Section 11. Amend Section 2943 (a) (1), Chapter 29, Title 24, Delaware Code by striking the words "Title 12 United States Code, Chapter 34A and in any subsequent amendments thereto." and substituting the words "Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Public Law 101-73, and any subsequent amendments thereto or any regulations promulgated thereunder."

Section 12. Amend Section 2943 (a) (2), Chapter 29, Title 24, Delaware Code by adding commas between the words "sales" and "developments" and between the words "disposition" and "including".

Section 14. Amend Section 2943, Chapter 29, Title 24, Delaware Code by adding the following subsections:

"(c) 'Appraisal or real estate appraisal' means an analysis, opinion

or conclusion as to the value of identified real estate or specified interests therein.

‘Classroom hour' is defined as fifty minutes out of each sixty
minute hour.

(a) 'Council' means the Council on Real Estate Appraisers.

(a) 'Certified General Real Property Appraiser' shall mean an
individual who meets the qualifications for certification as outlined in Section 2934 (a) of this Title.

(b) 'Certified Residential Real Property Appraiser' shall mean an
individual who meets the qualifications for certification outlined in Section 2934 (b) of this Title.

(a) 'State Licensed Real Property Appraiser' shall mean an individual who meets the qualifications for licensure outlined in Section 2934 (c) of this Chapter.

(b) 'Trainee' or 'Appraiser Trainee' shall mean an individual who
meets the qualifications for licensure outlined in Section 2934 (d) of this Chapter."

Section 13. Amend Chapter 29, Title 24, Delaware Code by renumbering Section 2939 as Section 2936; Section 2940 as 2937; Section 2941 as Section 2938; Section 2942 as 2939, and Section 2943 as Section 2940.

Section 15. Amend §2932 of Title 24, Delaware Code by adding a new

subsection 7 as follows:

"(7) Adopt and revise such rules and regulations to define the scope of practice of a 'licensed real property appraiser' such that there be no violation of the federal law, rules, standards, guidelines, or regulations as presently existing or hereafter amended."

Approved July 9, 1991.