 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
real estate appraisers; licensure classifications.
Purpose
Increases, from $250,000 to $400,000, the value threshold of complex one to four residential units that a state-licensed real estate appraiser may appraise.
Background
The Department of Insurance and Financial Institutions (DIFI) is charged with the licensing, supervision and regulation of insurance businesses and state-chartered financial entities. DIFI ensures the safety and soundness of the insurance and financial services industry in Arizona, investigates complaints filed by consumers against licensed entities and takes appropriate remedial actions (Ariz. Const. art. 15, § 5; A.R.S Title 20 and Title 6).
Title 9 of the federal
Financial Institutions Reform, Recovery and Enforcement Act authorizes the
Appraisal Qualification Board (Board) to establish minimum education,
experience and exam requirements for real property appraisers to obtain a state
certification (12
U.S.C. § 3331 et seq). The criteria for certification, licensing and
registration prescribed by DIFI must be at a minimum equal to the criteria
adopted by the Board (A.R.S.
§ 32-3605). The qualifications for a
state-licensed real estate appraiser include completion of: 1) 150 creditable
class hours; 2) 1,000 hours of qualifying experience obtained in six months;
and 3) the Board-approved Licensed Residential Real Property Appraiser
examination (The
Appraisal Foundation).
The new federal appraisal rule, as amended in 2019, increased the appraisal threshold for complex residential real estate transactions from $250,000 to $400,000 (12 CFR § 34.43). Current statute classifies state-licensed real estate appraisers as any person who meets the requirements for licensing relating to the appraisal of noncomplex one to four residential units with a value threshold of $1,000,000 or complex one to four residential units with a value threshold of $250,000 (A.R.S. § 32-3612).
A complex one-to-four residential unit is property that is atypical for the marketplace. Atypical factors may include architectural style, age of improvements, size of improvements, size of lot, neighborhood land use, potential environmental hazard liability, leasehold interests, limited readily available comparable sales data or other unusual factors (A.R.S. § 32-3601).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases, from $250,000 to $400,000, the value threshold of complex one to four residential units that a state-licensed real estate appraiser may appraise.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2023
JT/PM/sr