Chapter 06-217

2006 -- H 7434 AS AMENDED

Enacted 07/03/06

A N A C T

RELATING TO REAL ESTATE APPRAISER CERTIFICATION

Introduced By: Representatives Lima, and E Coderre

Date Introduced: February 16, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-20.7-3 of the General Laws in Chapter 5-20.7 entitled "Real

Estate Appraiser Certification Act" is hereby amended to read as follows:

5-20.7-3. Certification required. -- (a) No person, other than persons certified in

accordance with the provisions of this chapter, shall assume or use that title or any title,

designation or abbreviation likely to create the impression of certification as a real estate

appraiser by this state. A person who is not certified pursuant to this act shall not describe or refer

to any appraisal or other valuation of real estate located in the state by the term "certified".

      (b) (1) This chapter does not preclude a precludes any person who is not certified as a

state certified real estate appraiser from appraising residential real property containing four (4) or

fewer units for compensation under chapter 20.5 of this title.; provided, however, that this chapter

does not preclude any person who holds a license pursuant to chapter 20.5 of this title and, in the

ordinary course of business, from giving a written or oral opinion of value of real estate for the

purposes of a prospective listing, purchase, sale, or business valuation; provided, however, that

such opinion of value shall not be referred to as an appraisal.

(2) Those appraisals may be used in any court in this state to establish residential

property valuation, but shall not be utilized for mortgage lending and/or for state or municipal

valuation purposes.

      (c) Nothing in this chapter shall preclude a person trainee directly supervised by a

certified appraiser from assisting in or preparing a certified appraisal and signing such appraisal

provided the appraisal is approved and signed by a certified appraiser as appropriate.

     (d) Any appraisal conducted by an institution licensed in this state to accept deposits in

connection with a loan transaction, other than those conducted by:

     (1) Federally or NCUA insured banks, savings banks, or credit unions; or

     (2) Persons regulated or licensed under title 19 or any transactions, municipal or state,

regardless of monetary value, shall require an appraisal by a licensed or certified appraiser.

     SECTION 2. Section 5-20.7-8 of the General Laws in Chapter 5-20.7 entitled "Real

Estate Appraiser Certification Act" is hereby amended to read as follows:

5-20.7-8. Classes of certification and licensing -- Residential and general. -- (a) There

are two (2) classes for state certified real estate appraisers:

      (1) A state certified residential real estate appraiser is a person who fulfills the

requirements for certification for the appraisal of residential real property. For the purposes of

this section residential property means property which is used for noncomplex single or multi-

family dwellings of 1 -- 4 units having no minimum transaction value, or property used for

complex 1 -- 4 residential units having a transaction value of less than two hundred fifty thousand

dollars ($250,000).

      (2) A state certified general real estate appraiser is a person who fulfills the requirements

for certification for the appraisal of all types of real property.

      (b) A state licensed appraiser is a person who fulfills the requirements for licensing for

the appraisal of residential property. For purposes of this section, residential property applies to

the appraisal of noncomplex 1 -- 4 residential units having a transaction value of less than one

million dollars ($1,000,000) and complex 1 -- 4 residential units having a transaction value of less

than two hundred fifty thousand dollars ($250,000).

      (c) An individual who meets the requirements of section 5-20.7-9 shall be allowed two

(2) years from the date of issue of a trainee license to complete the experience requirement,

providing that the individual works directly under a certified appraiser. Upon request, the trainee

shall be granted only a two (2) year extension to complete his or her experience requirement. No

further extensions shall be granted. All continuing education requirements shall be fulfilled.

(d) No certified appraiser shall supervise more than five (5) trainees.

     SECTION 3 Section 1 of this act shall take effect upon passage and Section 2 of this act

shall take effect on July 1, 2007.

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LC02243

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