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91_SB1704
LRB9113109ACtm
1 AN ACT to amend the Real Estate Appraiser Licensing Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Real Estate Appraiser Licensing Act is
5 amended by changing Sections 15, 55, 60, 85, 90, and 95 as
6 follows:
7 (225 ILCS 457/15)
8 Sec. 15. License requirement; title; exemptions.
9 (a) No person shall engage in the business of, act in
10 the capacity of, advertise, or assume to act as a real estate
11 appraiser, develop or report real estate appraisals, or
12 appraise real estate, in a federally related transaction,
13 without a license to practice as a real estate appraiser
14 issued by the Office under this Act. A person who violates
15 this subsection is guilty of a Class A misdemeanor.
16 (b) No person, other than a State Certified General Real
17 Estate Appraiser, State Certified Residential Real Estate
18 Appraiser, or State Licensed Real Estate Appraiser licensed
19 under this Act whose license is in good standing, shall
20 assume or use these titles or any other title, designation,
21 or abbreviation likely to create the impression that the
22 person is licensed by the State of Illinois as a real estate
23 appraiser. A person who violates this subsection is guilty of
24 a Class A misdemeanor.
25 (Source: P.A. 90-571, eff. 7-1-98.)
26 (225 ILCS 457/55)
27 Sec. 55. Examination prerequisites. As a prerequisite to
28 taking the examination for a rank of appraiser licensure, an
29 applicant shall (i) present evidence of successful completion
30 of a 4-year course of study in a high school or secondary
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1 school approved by the Illinois State Board of Education or
2 an equivalent course of study as determined by an examination
3 conducted by the Illinois State Board of Education which
4 shall be verified under oath by the applicant and (ii)
5 present evidence, satisfactory to the Office of Banks and
6 Real Estate, that the applicant has successfully completed
7 not less than 165 150 classroom hours in the case of an
8 applicant for a State Certified General Real Estate Appraiser
9 license, 105 90 classroom hours in the case of an applicant
10 for a State Certified Residential Real Estate Appraiser
11 license, or 75 60 classroom hours in the case of an applicant
12 for a State Licensed Real Estate Appraiser license, or that
13 amount mandated or recommended by the Appraisal
14 Qualifications Board in accordance with under Title XI of the
15 federal Financial Institutions Reform, Recovery and
16 Enforcement Act of 1989, whichever is greater, or their
17 equivalent as provided by rule, of courses in subjects
18 relating to real estate appraisal. In addition, the applicant
19 shall present evidence of successful completion of 15
20 classroom hours relating to standards of professional
21 practice. The classroom hours required by this Section shall
22 be obtained from one or more of the following entities
23 approved by the Office of Banks and Real Estate:
24 (1) a college or university;
25 (2) a community college or junior college;
26 (3) a real estate appraisal or real estate related
27 organization;
28 (4) a trade association or organization that
29 consists in whole or in part of members engaged in real
30 estate appraising; or
31 (5) any other provider approved by the Office of
32 Banks and Real Estate.
33 The Office of Banks and Real Estate shall require by rule
34 completion of course work in fair housing and fair lending,
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1 which shall be included within the requirements of this
2 Section.
3 (Source: P.A. 90-571, eff. 7-1-98.)
4 (225 ILCS 457/60)
5 Sec. 60. Experience requirement.
6 (a) A license as a State Certified General Real Estate
7 Appraiser or State Certified Residential Real Estate
8 Appraiser shall not be issued to a person who does not
9 possess 2 years of experience, or that amount mandated under
10 Title XI of the federal Financial Institutions Reform,
11 Recovery and Enforcement Act of 1989, whichever is greater,
12 or their equivalent as provided by rule of the Office of
13 Banks and Real Estate. For the purposes of this Section, one
14 year of experience means 1,000 hours of experience.
15 Approved experience shall include fee appraisal, staff
16 appraisal, mass appraisal in accordance with the USPAP, ad
17 valorem tax appraisal, mass ad valorem tax appraisal in
18 accordance with the USPAP, review appraisal in accordance
19 with the USPAP, highest and best use analysis, feasibility
20 analysis or study in accordance with the USPAP, real estate
21 sales and brokerage, real estate consulting in accordance
22 with the USPAP, real property management, and other related
23 experience approved by the Office of Banks and Real Estate
24 and in accordance with the USPAP. Nevertheless, the amount of
25 credit granted for this experience shall be equivalent to the
26 amount of credit that may be granted for the experience under
27 Title XI of the federal Financial Institutions Reform,
28 Recovery and Enforcement Act of 1989.
29 An applicant for a license shall provide to the Office of
30 Banks and Real Estate on forms prescribed by rule of the
31 Office a summary of the level and type of experience for
32 which the applicant is claiming credit. To obtain experience
33 credit for the preparation of a written appraisal report, the
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1 applicant shall provide in the experience summary the date of
2 appraisal, the type of property, the approximate size of the
3 property (including land and improvements), and the general
4 location of the property. Nothing in this Section shall
5 require, as a condition of obtaining experience credit, that
6 a real estate appraiser disclose the identity of the client
7 for whom the appraisal was performed. The Office of Banks and
8 Real Estate may require that an applicant provide samples of
9 the applicant's work for which experience is claimed.
10 Of the total experience requirement, at least 50% must be
11 earned in one or more of the following areas: fee appraisal,
12 staff appraisal, ad valorem tax appraisal, review appraisal,
13 or real estate consulting.
14 (b) An applicant who has been engaged in appraising
15 real property for ad valorem purposes as a local assessment
16 officer, as defined in Section 1-85 of the Property Tax Code
17 or as a deputy or employee of a local assessment officer,
18 shall receive experience credit for the number of hours the
19 applicant was engaged in one or more of the following duties:
20 (1) the analysis and establishment of the value of
21 properties through the cost, income, and market sale
22 appraisal techniques;
23 (2) model development and calibration in relation
24 to mass ad valorem tax assessments; and
25 (3) the review and analysis of appraisals employing
26 cost, income, and market sale appraisal techniques.
27 The experience under this subsection (b) shall not be
28 required to be set forth in the form of the experience
29 summary as provided in subsection (a) of Section 60. All
30 persons who seek experience credit under this subsection (b)
31 shall attach his or her own affidavit as a supporting
32 document to the application form of the Office of Banks and
33 Real Estate. The applicant's affidavit shall detail the
34 experience for which credit is being claimed and the length
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1 of time the applicant was engaged in these duties as a local
2 assessment officer, or deputy or employee of a local
3 assessment officer. The applicant shall attach to this
4 affidavit an Assessment Experience Certification form
5 executed by the local assessment officer or his or her
6 designee in the following form:
7 "Assessment Experience Certification.
8 Pursuant to the provisions of subsection (b) of
9 Section 60 of the Real Estate Appraiser Licensing Act, it
10 is hereby certified that (Applicant's Name) was engaged
11 in appraising (residential .....%) (nonresidential....%)
12 real estate for ad valorem tax purposes as a local
13 assessment officer, or as a deputy or employee of a local
14 assessment officer, from (date) through (date) and
15 during this time period was engaged in one or more of the
16 following duties: (1) the analysis and establishment of
17 the value of properties through the cost, income, and
18 market sale appraisal techniques; (2) model development
19 and calibration in relation to mass ad valorem tax
20 assessments; (3) the review and analysis of appraisals
21 employing cost, income, and market sale appraisal
22 techniques, and that the experience is accurately
23 described in the affidavit to which this Certificate is
24 attached and supported by assessment records available
25 under Section 14-30 of the Property Tax Code or the
26 Freedom of Information Act.
27 By:
28 _________________________
29 Local Assessment Officer"
30 Upon submission of the application, affidavit, and the
31 Assessment Experience Certification form, the Commissioner
32 shall grant the experience credit set forth in this
33 subsection. Notwithstanding other provisions of this Act, the
34 amount of experience credit granted for appraising real
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1 property for ad valorem tax purposes as a local assessment
2 officer, or deputy or employee of a local assessment officer,
3 shall be equivalent to the amount of credit that may be
4 granted for that experience under the provisions of Title XI
5 of the federal Financial Institutions Reform, Recovery and
6 Enforcement Act of 1989.
7 (c) An applicant who has been licensed for 5 of the
8 previous 7 years with the Office of Banks and Real Estate as
9 a real estate broker or real estate salesperson shall receive
10 credit for appraisal experience equal to 40% of the total
11 experience requirement. This experience as a real estate
12 broker or real estate salesperson shall not be required to be
13 set forth in the form required in subsection (a). The balance
14 of the experience requirement shall be set forth in the form
15 of the experience summary as provided in subsection (a).
16 (d) Of the total experience requirement for State
17 Certified General Real Estate Appraisers, at least 50% must
18 be approved experience relating to nonresidential real
19 estate.
20 (e) Of the total experience required for State Certified
21 Residential Real Estate Appraisers, at least 50% must be
22 approved experience relating to residential real estate.
23 (f) Proof of experience shall not be required for
24 licensure as a State Licensed Real Estate Appraiser. The
25 license of a State Licensed Real Estate Appraiser shall be an
26 entry level licensing rank, and the license may be held from
27 the date of issuance for the balance of the initial license
28 and through 2 renewals and then shall not be renewed; except
29 that a licensee in this rank on the effective date of this
30 amendatory Act of the 91st General Assembly may renew the
31 license so that it is valid until September 30, 2003, but
32 shall not be allowed to renew the license after that date.
33 who has been licensed for a period of 2 years shall be
34 renewed only if the licensee meets the following experience
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1 requirements:
2 (1) Prior to the first renewal after the licensee
3 has been licensed for 2 years, the licensee possesses at
4 least 500 hours of experience. A licensee may, at the
5 time of applying for the first renewal, submit 1,000
6 hours of experience.
7 (2) Unless the licensee submitted 1,000 hours of
8 experience under the provisions of subdivision (1), prior
9 to the second renewal after the licensee has been
10 licensed for a period of 2 years, the licensee possesses
11 500 hours experience. The experience required under this
12 subdivision must be earned after the first renewal after
13 the licensee has been licensed for a period of 2 years.
14 All real estate appraisal experience granted shall be in
15 accordance with this Section.
16 (g) The Office of Banks and Real Estate may waive the
17 experience requirement of this Section for good cause. A
18 renewal applicant seeking renewal of a license without having
19 fully complied with the experience requirement of subsection
20 (a) shall file with the Office of Banks and Real Estate a
21 renewal application, the required renewal fee, an affidavit
22 setting forth the facts concerning the noncompliance, a
23 request for waiver of the experience requirement on the basis
24 of those facts, and a waiver processing fee of $25. If the
25 Office of Banks and Real Estate finds from the affidavit or
26 any other evidence submitted that good cause has been shown
27 for granting a waiver, the Office of Banks and Real Estate
28 shall waive enforcement of the experience requirement for the
29 renewal period for which the applicant has applied. For
30 purposes of this subsection, "good cause" means an inability
31 of the applicant to reasonably complete the requisite
32 appraisal experience because there has been an insufficient
33 amount of appraisal activity in the geographic area where the
34 applicant practices real estate appraising. In determining
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1 whether good cause exists, the Office of Banks and Real
2 Estate may consider (i) the amount of appraisal experience
3 earned by the applicant in proportion to the total appraisal
4 activity within the geographic area where the applicant
5 practices real estate appraising and (ii) the reasonableness
6 of the geographic area the applicant defines as the area
7 where the applicant practices real estate appraising. "Good
8 cause" shall also include an inability of the applicant to
9 complete the experience requirement because of extreme
10 hardship, which includes but is not limited to an
11 incapacitating illness or full-time service in the armed
12 services in the United States of America, during a
13 substantial part of the prerenewal period.
14 (Source: P.A. 90-571, eff. 7-1-98.)
15 (225 ILCS 457/85)
16 Sec. 85. Continuing education requirements.
17 (a) An appraiser licensed as a State Certified General
18 Real Estate Appraiser or a State Certified Residential Real
19 Estate Appraiser under this Act As a prerequisite to renewal
20 of an appraiser license, a renewal applicant shall present
21 evidence satisfactory to the Office of Banks and Real Estate
22 of having completed not less than 28 20 hours of continuing
23 education per renewal period or that amount mandated under
24 Title XI of the Federal Financial Institutions Reform,
25 Recovery and Enforcement Act of 1989, whichever is greater,
26 or their equivalent as provided by rule, from courses
27 approved by the Office and presented by real estate appraisal
28 education providers licensed by the Office.
29 The Office of Banks and Real Estate may provide by rule
30 for the temporary waiver of continuing education requirements
31 for good cause.
32 (b) In lieu of meeting the requirements of subsection
33 (a) of this Section, an applicant for renewal of a license
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1 may satisfy all or part of the requirements by presenting
2 evidence of participation as an instructor of pre-licensure
3 or continuing education courses licensed by the Office and
4 presented by providers licensed by the Office as real estate
5 appraisal education providers other than as a student, in
6 educational processes and programs approved pursuant to
7 subsection (a) that relate to real property appraisal theory,
8 practices, or techniques, including but not limited to
9 teaching, program development, and preparation of textbooks,
10 monographs, articles, and other instructional materials.
11 (c) The Office of Banks and Real Estate may by rule
12 require periodic testing of a licensee's understanding of
13 this Act. Continuing education credit hours may be awarded
14 for successful completion of the periodic examination.
15 (d) The Office of Banks and Real Estate shall require by
16 rule the completion of course work in fair housing and fair
17 lending, which shall be included within the requirements of
18 this Section.
19 (Source: P.A. 90-571, eff. 7-1-98.)
20 (225 ILCS 457/90)
21 Sec. 90. Grounds for disciplinary action.
22 (a) Pursuant to the action and report in writing of the
23 Board, the Office of Banks and Real Estate may suspend,
24 revoke, or refuse to issue or renew the license of an
25 appraiser or place on probation or reprimand a licensee, may
26 impose a civil penalty not to exceed $10,000 upon a licensee,
27 or the holder of a license may be placed on administrative
28 supervision or otherwise disciplined for any one or
29 combination of the following reasons:
30 (1) Procuring or attempting to procure a license by
31 knowingly making a false statement, submitting false
32 information, refusing to provide complete information in
33 response to a question in an application for licensure or
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1 through any form of fraud or misrepresentation.
2 (2) Failing to meet the minimum qualifications for
3 licensure as an appraiser established by this Act.
4 (3) Paying money, other than for the fees provided
5 for by this Act, or anything of value to a member or
6 employee of the Board or Office of Banks and Real Estate
7 to procure licensure under this Act.
8 (4) A conviction of a crime, including conviction
9 based upon a plea of guilty or nolo contendere.
10 (5) An act or omission involving dishonesty, fraud,
11 or misrepresentation with the intent to substantially
12 benefit the licensee or another person or with intent to
13 substantially injure another person.
14 (6) Violation of a provision or standard for the
15 development or communication of real estate appraisals as
16 provided in Section 110 of this Act or by rule.
17 (7) Failure or refusal without good cause to
18 exercise reasonable diligence in developing and reporting
19 or communicating an appraisal.
20 (8) Negligence or incompetence in developing and
21 reporting or communicating an appraisal.
22 (9) Willfully disregarding or violating a provision
23 of this Act or its rules.
24 (10) Accepting an appraisal assignment for
25 valuation when the employment itself is contingent upon
26 the appraiser reporting a predetermined estimate,
27 analysis, or opinion or when the fee to be paid is
28 contingent upon the opinion, conclusion, or valuation
29 reached or upon the consequences resulting from the
30 appraisal assignment.
31 (11) Developing valuation conclusions based on the
32 race, color, religion, sex, national origin, ancestry,
33 age, marital status, familiar status, physical or mental
34 handicap, or unfavorable military discharge, as defined
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1 under the Illinois Human Rights Act, of the prospective
2 or present owners or occupants of the area or property
3 under appraisal.
4 (12) Violation of the confidential nature of
5 government records to which the licensee gained access
6 through employment or engagement as an appraiser by a
7 government agency.
8 (13) Adjudication of liability in a civil
9 proceeding on grounds of fraud, misrepresentation, or
10 deceit. In a disciplinary proceeding based upon a finding
11 of civil liability, the appraiser shall be afforded an
12 opportunity to present mitigating and extenuating
13 circumstances, but may not collaterally attack the civil
14 adjudication.
15 (14) Adjudication of liability in a civil
16 proceeding for violation of a State or federal fair
17 housing law.
18 (15) Engaging in misleading or untruthful
19 advertising or using a trade name or insignia of
20 membership in a real estate appraisal or real estate
21 related organization of which the licensee is not a
22 member.
23 (16) Failure to fully cooperate with an Office
24 investigation by knowingly making a false statement,
25 submitting false information, or refusing to provide
26 complete information in response to a question or other
27 requests by the Office.
28 (17) Failing to include within the certificate of
29 appraisal for all written appraisal reports the
30 appraiser's license number, licensure title (State
31 Licensed Real Estate Appraiser, State Certified
32 Residential Real Estate Appraiser, or State Certified
33 General Real Estate Appraiser), and the date of
34 expiration of the license. All appraisers providing
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1 significant contribution to the development and reporting
2 of an appraisal must be disclosed in the appraisal
3 report. It is a violation of this Act for an appraiser
4 to sign a report, transmittal letter, or appraisal
5 certification knowing that a person providing significant
6 contribution to the report has not been disclosed in the
7 appraisal report.
8 (b) Pursuant to the action and report in writing of the
9 Board, the Office of Banks and Real Estate may suspend,
10 revoke, place on probation, reprimand, or otherwise
11 discipline the license of an appraisal education course
12 provider or course license subordinate to the providership,
13 or may refuse to issue or renew a course license or
14 provider's license and may also impose a civil penalty not to
15 exceed $10,000 upon the holder of the course or provider's
16 license for any of the following acts or omissions:
17 (1) Procuring or attempting to procure licensure by
18 knowingly making a false statement, submitting false
19 information, refusing to provide complete information in
20 response to a question in an application for licensure or
21 through any form of fraud or misrepresentation.
22 (2) Failing to comply with covenants certified to
23 on the application for licensure as an appraisal
24 education provider, appraisal education subprovider,
25 prelicensure course, or continuing education course.
26 (3) An act or omission involving dishonesty, fraud,
27 or misrepresentation by the course provider or any
28 employees or independent contractors of the provider.
29 (4) Engaging in misleading or untruthful
30 advertising.
31 (5) Failing to retain competent instructors in
32 accordance with rules adopted under this Act.
33 (6) Failing to meet the topic or time requirements
34 for course approval as a prelicensure curriculum course
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1 or a continuing education course.
2 (7) Failing to administer a licensed course using
3 the course materials, syllabus, and examinations
4 submitted as the basis of licensure.
5 (8) Failing to provide an appropriate classroom
6 environment for presentation of courses with
7 consideration for student comfort, acoustics, lighting,
8 seating, work space, and visual aid material.
9 (9) Failing to maintain student records in
10 compliance with rules adopted under this Act.
11 (10) Failing to provide certificates, transcripts,
12 or other student records to the Office or student as may
13 be required by rule.
14 (11) Failure to fully cooperate with an Office
15 investigation by knowingly making a false statement,
16 submitting false information, or refusing to provide
17 complete information in response to a question or other
18 requests by the Office.
19 (c) Notwithstanding the provisions of this Act
20 concerning the conduct of hearings and recommendations for
21 disciplinary actions, a conference panel of the Board may
22 recommend to the Office of Banks and Real Estate who shall
23 have the authority to negotiate settlement agreements with
24 State Licensed Real Estate Appraisers, State Certified
25 General Real Estate Appraisers, State Certified Residential
26 Real Estate Appraisers, and appraiser education licensees or
27 applicants, resulting in disciplinary Consent Orders. Consent
28 Orders may provide for any of the forms of discipline
29 provided in this Act. Consent Orders shall provide that they
30 were not entered into as a result of any coercion by the
31 Office of Banks and Real Estate, the Director of Real Estate
32 Appraisal Administration, or the Board. A Consent Order shall
33 be filed with the Commissioner along with the Board's
34 recommendation and accepted or rejected by the Commissioner
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1 in a timely manner.
2 (d) Notwithstanding the provisions of this Act
3 concerning the conduct of hearings and recommendations for
4 disciplinary actions, a conference panel of the Board may
5 recommend to the Office of Banks and Real Estate who on the
6 Board shall have the authority to negotiate settlement
7 agreements with State Licensed Real Estate Appraisers, State
8 Certified General Real Estate Appraisers, State Certified
9 Residential Real Estate Appraisers, appraiser education
10 licensees or applicants, resulting in disciplinary Consent to
11 Administrative Supervision Orders. Consent to Administrative
12 Supervision Orders may be offered with conditions that may
13 include but shall not be limited to the respondent's
14 attendance and successful completion of appraisal courses,
15 payment of part or all of the investigation and prosecution
16 costs associated with the complaint and replacement of
17 appraiser rank with a lower rank. Consent to Administrative
18 Supervision Orders shall provide that they were not entered
19 into as a result of coercion by the Office of Banks and Real
20 Estate, the Director of Real Estate Appraisal Administration,
21 or the Board. Consent to Administrative Supervision Order
22 shall be filed with the Commissioner along with the Board's
23 recommendation and accepted or rejected by the Commissioner
24 in a timely manner. A licensee subject to a Consent to
25 Administrative Supervision Order shall be considered by the
26 Office as an active appraiser in good standing and the
27 records regarding an investigation and a Consent to
28 Administrative Supervision Order are confidential and shall
29 not be released by the Office except as mandated by law.
30 However, the complainant shall be notified that his or her
31 complaint has been resolved by administrative supervision of
32 the respondent.
33 (e) Civil penalties and costs collected under this
34 Section are to be deposited into the Appraisal Administration
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1 Fund.
2 (f) Civil penalties imposed by the Office of Banks and
3 Real Estate shall be enforceable in the Circuit Court. The
4 Office may petition the Court for a judgment to enforce
5 collection of the penalty. Any civil penalties collected by
6 the Court shall be made payable to the Office of Banks and
7 Real Estate for deposit into the Appraisal Administration
8 Fund. In addition to or in lieu of the imposition of a civil
9 penalty, the Office may report a violation of this Act or the
10 failure or refusal to comply with an order of the Office to
11 the Attorney General and the appropriate State's Attorney.
12 (Source: P.A. 90-571, eff. 7-1-98.)
13 (225 ILCS 457/95)
14 Sec. 95. Unlicensed practice; civil penalty.
15 (a) A person who practices, offers to practice, attempts
16 to practice, or holds himself or herself out to practice as a
17 State Licensed Real Estate Appraiser, State Certified
18 Residential Real Estate Appraiser, or State Certified General
19 Real Estate Appraiser without being licensed under this Act
20 shall, in addition to any other penalty provided by law, pay
21 a civil penalty to the Office of Banks and Real Estate in an
22 amount not to exceed $5,000 for each offense as determined by
23 the Office of Banks and Real Estate. The civil penalty shall
24 be assessed by the Office of Banks and Real Estate after a
25 hearing is held in accordance with the provisions set forth
26 in this Act regarding the provision of a hearing for the
27 discipline of a licensee.
28 (b) The Office of Banks and Real Estate has the
29 authority and power to investigate any and all unlicensed
30 appraiser activity concerning federally related transactions.
31 (c) Civil penalties imposed by the Office of Banks and
32 Real Estate shall be enforceable in the Circuit Court. The
33 Office may shall petition the Court for a judgment an order
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1 to enforce collection of the penalty and, if the Court finds
2 it has jurisdiction over the person against whom the penalty
3 was imposed, the Court shall issue the appropriate order.
4 Any civil penalties collected by the Court shall be made
5 payable to the Office of Banks and Real Estate for deposit
6 into the Appraisal Administration Fund forwarded to the State
7 Treasurer. In addition to or in lieu of the imposition of a
8 civil penalty, the Office may report a violation of this Act
9 or and the failure or refusal to comply with an the order of
10 the Office to the Attorney General and the appropriate
11 State's Attorney.
12 (Source: P.A. 90-571, eff. 7-1-98.)
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