A State-by-State Survey of Appraiser Licensing Laws and Regulations Concerning Evaluations
Understanding the legal permissibility of real estate “evaluations,” as opposed to appraisals, under state appraiser laws can be daunting. Few published resources exist. It’s a subject that I’ve spent many hours researching for clients in connection with developing compliant evaluation products and services. And, the subject is becoming increasingly relevant due to more frequent consideration of evaluation services and the increased thresholds for when true appraisals are required for federally related transactions. The survey I’ve provided below is a basic summary of my view on the permissibility of evaluations under applicable state appraiser licensing laws and regulations. (This is a summary – I have a more detailed research piece that is available for clients.)
Here are some key considerations regarding this summary: It addresses evaluations within the meaning of the federal Interagency Appraisal and Evaluation Guidelines (“IAEG”) that: (a) are performed by persons who are not employees of regulated lenders for purposes consistent with the IAEG, and (b) are not intended to be performed or reported in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). The survey is also limited to consideration of state laws and regulations pertaining to appraiser licensing – meaning it doesn’t address other potential bases for permissibility of evaluations, including the application of federal laws and regulations and/or federal preemption. Because it’s a summary, I also don’t list the key statutes or regulations considered in each state (I’m happy to provide that detail to my clients).
The survey is offered here only for the purpose of education – whether by me or other parties. I’m not providing legal advice to readers of the survey. Readers should review the applicable laws and regulations in their states and consult with their own advisers. The survey may be linked to or used in educational programs or seminars, but it may not otherwise be copied, distributed or published without permission.