101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2960

 

Introduced , by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 458/5-5

    Amends the Real Estate Appraiser Licensing Act of 2002. Provides that it is unlawful for a person to develop a document that reports an opinion of value of real estate or uses the term "appraisal" or "market value" in documenting or reporting an opinion of value of real estate without a license issued under the Act.


LRB101 10483 SMS 55589 b

 

 

A BILL FOR

 

HB2960LRB101 10483 SMS 55589 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate Appraiser Licensing Act of 2002
5is amended by changing Section 5-5 as follows:
 
6    (225 ILCS 458/5-5)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 5-5. Necessity of license; use of title; exemptions.
9    (a) It is unlawful for a person to (i) act, offer services,
10or advertise services as a State certified general real estate
11appraiser, State certified residential real estate appraiser,
12or associate real estate trainee appraiser, (ii) develop a real
13estate appraisal or other document that reports an opinion of
14value of real estate, (iii) practice as a real estate
15appraiser, or (iv) advertise or hold himself or herself out to
16be a real estate appraiser, or (v) use the term "appraisal" or
17"market value" in documenting or reporting an opinion of value
18of real estate without a license issued under this Act. A
19person who violates this subsection is guilty of a Class A
20misdemeanor for a first offense and a Class 4 felony for any
21subsequent offense.
22    (a-5) It is unlawful for a person, unless registered as an
23appraisal management company, to solicit clients or enter into

 

 

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1an appraisal engagement with clients without either a certified
2residential real estate appraiser license or a certified
3general real estate appraiser license issued under this Act. A
4person who violates this subsection is guilty of a Class A
5misdemeanor for a first offense and a Class 4 felony for any
6subsequent offense.
7    (b) It is unlawful for a person, other than a person who
8holds a valid license issued pursuant to this Act as a State
9certified general real estate appraiser, a State certified
10residential real estate appraiser, or an associate real estate
11trainee appraiser to use these titles or any other title,
12designation, or abbreviation likely to create the impression
13that the person is licensed as a real estate appraiser pursuant
14to this Act. A person who violates this subsection is guilty of
15a Class A misdemeanor for a first offense and a Class 4 felony
16for any subsequent offense.
17    (c) This Act does not apply to a person who holds a valid
18license as a real estate broker or managing broker pursuant to
19the Real Estate License Act of 2000 who prepares or provides a
20broker price opinion or comparative market analysis in
21compliance with Section 10-45 of the Real Estate License Act of
222000.
23    (d) Nothing in this Act shall preclude a State certified
24general real estate appraiser, a State certified residential
25real estate appraiser, or an associate real estate trainee
26appraiser from rendering appraisals for or on behalf of a

 

 

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1partnership, association, corporation, firm, or group.
2However, no State appraisal license or certification shall be
3issued under this Act to a partnership, association,
4corporation, firm, or group.
5    (e) This Act does not apply to a county assessor, township
6assessor, multi-township assessor, county supervisor of
7assessments, or any deputy or employee of any county assessor,
8township assessor, multi-township assessor, or county
9supervisor of assessments who is performing his or her
10respective duties in accordance with the provisions of the
11Property Tax Code.
12    (e-5) For the purposes of this Act, valuation waivers may
13be prepared by a licensed appraiser notwithstanding any other
14provision of this Act, and the following types of valuations
15are not appraisals and may not be represented to be appraisals,
16and a license is not required under this Act to perform such
17valuations if the valuations are performed by (1) an employee
18of the Illinois Department of Transportation who has completed
19a minimum of 45 hours of course work in real estate appraisal,
20including the principals of real estate appraisals, appraisal
21of partial acquisitions, easement valuation, reviewing
22appraisals in eminent domain, appraisal for federal aid highway
23programs, and appraisal review for federal aid highway programs
24and has at least 2 years' experience in a field closely related
25to real estate; (2) a county engineer who is a registered
26professional engineer under the Professional Engineering

 

 

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1Practice Act of 1989; (3) an employee of a municipality who has
2(i) completed a minimum of 45 hours of coursework in real
3estate appraisal, including the principals of real estate
4appraisals, appraisal of partial acquisitions, easement
5valuation, reviewing appraisals in eminent domain, appraisal
6for federal aid highway programs, and appraisal review for
7federal aid highway programs and (ii) has either 2 years'
8experience in a field clearly related to real estate or has
9completed 20 hours of additional coursework that is sufficient
10for a person to complete waiver valuations as approved by the
11Federal Highway Administration; or (4) a municipal engineer who
12has completed coursework that is sufficient for his or her
13waiver valuations to be approved by the Federal Highway
14Administration and who is a registered professional engineer
15under the Professional Engineering Act of 1989, under the
16following circumstances:
17        (A) a valuation waiver in an amount not to exceed
18    $10,000 prepared pursuant to the federal Uniform
19    Relocation Assistance and Real Property Acquisition
20    Policies Act of 1970, or prepared pursuant to the federal
21    Uniform Relocation Assistance and Real Property
22    Acquisition for Federal and Federally-Assisted Programs
23    regulations and which is performed by (1) an employee of
24    the Illinois Department of Transportation and co-signed,
25    with a license number affixed, by another employee of the
26    Illinois Department of Transportation who is a registered

 

 

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1    professional engineer under the Professional Engineering
2    Practice Act of 1989 or (2) an employee of a municipality
3    and co-signed with a license number affixed by a county or
4    municipal engineer who is a registered professional
5    engineer under the Professional Engineering Practice Act
6    of 1989; and
7        (B) a valuation waiver in an amount not to exceed
8    $10,000 prepared pursuant to the federal Uniform
9    Relocation Assistance and Real Property Acquisition
10    Policies Act of 1970, or prepared pursuant to the federal
11    Uniform Relocation Assistance and Real Property
12    Acquisition for Federal and Federally-Assisted Programs
13    regulations and which is performed by a county or municipal
14    engineer who is employed by a county or municipality and is
15    a registered professional engineer under the Professional
16    Engineering Practice Act of 1989. In addition to his or her
17    signature, the county or municipal engineer shall affix his
18    or her license number to the valuation.
19    Nothing in this subsection (e-5) shall be construed to
20allow the State of Illinois, a political subdivision thereof,
21or any public body to acquire real estate by eminent domain in
22any manner other than provided for in the Eminent Domain Act.
23    (f) A State real estate appraisal certification or license
24is not required under this Act for any of the following:
25        (1) A person, partnership, association, or corporation
26    that performs appraisals of property owned by that person,

 

 

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1    partnership, association, or corporation for the sole use
2    of that person, partnership, association, or corporation.
3        (2) A court-appointed commissioner who conducts an
4    appraisal pursuant to a judicially ordered evaluation of
5    property.
6However, any person who is certified or licensed under this Act
7and who performs any of the activities set forth in this
8subsection (f) must comply with the provisions of this Act. A
9person who violates this subsection (f) is guilty of a Class A
10misdemeanor for a first offense and a Class 4 felony for any
11subsequent offense.
12    (g) This Act does not apply to an employee, officer,
13director, or member of a credit or loan committee of a
14financial institution or any other person engaged by a
15financial institution when performing an evaluation of real
16property for the sole use of the financial institution in a
17transaction for which the financial institution would not be
18required to use the services of a State licensed or State
19certified appraiser pursuant to federal regulations adopted
20under Title XI of the federal Financial Institutions Reform,
21Recovery, and Enforcement Act of 1989, nor does this Act apply
22to the procurement of an automated valuation model.
23    "Automated valuation model" means an automated system that
24is used to derive a property value through the use of publicly
25available property records and various analytic methodologies
26such as comparable sales prices, home characteristics, and

 

 

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1historical home price appreciations.
2(Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15;
398-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)