ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

Senate: COM DP 6-0-1-0 | 3rd Read 29-0-1-0

House: RA 7-0-0-0

SB 1168: real estate appraisers; licensure classifications.

Sponsor: Senator Kaiser, LD 2

Caucus & COW

Overview

Permits state-licensed real estate appraisers to conduct the appraisal of complex residential units under $400,000.

History

The Department of Insurance and Financial Institutions (DIFI) licenses and authorizes the transactions of insurance-related entities and regulates state-chartered financial entities such as money transmitters, motor vehicle dealers and real estate appraisal entities (JLBC FY2023 Baseline Book – Department of Insurance and Financial Institutions).

The Appraisal Qualifications Board (the Board) sets universal standards adopted by DIFI for minimum criteria necessary to either be certified, licensed, or registered as a real estate appraiser. (A.R.S. § 32-3605). The Board standards for a state-licensed real estate appraiser are as follows:

1) Must complete the Board licensed residential real property appraiser examination;

2) Must complete 150 credit class hours under the Board required core curriculum; and

3) Have 1,000 hours of qualifying experience in no fewer than 6 months.

Associated fees for state-licensed real estate appraisers are composed of new application and national registry fees of $400.00 and $80.00. For license renewal, there is a biennial renewal and national registry fee of $425.00 and $80.00 (Department of Insurance and Financial Institutions). According to DIFI, there is a total of 170 active state-licensed real estate appraisers in Arizona.

In 2019, the Federal Government issued the Appraisal Rule, which required federally related real estate transactions valued at more than $400,000 to require a state-certified appraiser. For transactions under that threshold, an evaluation of real property collateral is required instead (C.F.R. 12-3B-323).

Complex one to four residential units are properties that are considered atypical for the marketplace considering factors such as: 1) architectural style; 2) age of improvements; 3) size of improvements; 4) size of lot; 5) neighborhood land use; 6) potential environmental hazard liability; 7) leasehold interest; and 8) limited readily available comparable sales or other unusual factors (A.R.S. § 32-3601).

Provisions

1. Expands the value threshold that state-licensed real estate appraisers can appraise complex one to four residential units from $250,000 to $400,000. (Sec. 1)

2. Makes a technical change. (Sec. 1)

5. ---------- DOCUMENT FOOTER ---------

6. SB 1168

7. Initials DC Page 0 Caucus & COW

9. ---------- DOCUMENT FOOTER ---------