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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Real Estate Appraiser Licensing Act of 2002 | |||||||||||||||||||
5 | is amended by changing Section 5-5 as follows:
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6 | (225 ILCS 458/5-5)
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7 | (Section scheduled to be repealed on January 1, 2022)
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8 | Sec. 5-5. Necessity of license; use of title; exemptions.
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9 | (a) It
is unlawful for a person to (i) act, offer services, | |||||||||||||||||||
10 | or advertise services
as a State certified general real estate
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11 | appraiser, State certified residential real estate appraiser, | |||||||||||||||||||
12 | or associate real estate trainee appraiser, (ii)
develop a real | |||||||||||||||||||
13 | estate appraisal,
(iii)
practice as a real estate
appraiser, or | |||||||||||||||||||
14 | (iv)
advertise or hold himself or herself out to be a real | |||||||||||||||||||
15 | estate
appraiser
without a license issued under this Act. A | |||||||||||||||||||
16 | person who
violates this subsection is
guilty of a Class A | |||||||||||||||||||
17 | misdemeanor for a first offense and a Class 4 felony for any | |||||||||||||||||||
18 | subsequent offense.
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19 | (a-5) It is unlawful for a person, unless registered as an | |||||||||||||||||||
20 | appraisal management company, to solicit clients or enter into | |||||||||||||||||||
21 | an appraisal engagement with clients without either a certified | |||||||||||||||||||
22 | residential real estate appraiser license or a certified | |||||||||||||||||||
23 | general real estate appraiser license issued under this Act. A |
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1 | person who violates this subsection is guilty of a Class A | ||||||
2 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
3 | subsequent offense. | ||||||
4 | (b) It
is unlawful for a person, other than a
person who | ||||||
5 | holds a valid license issued pursuant to this
Act as a State | ||||||
6 | certified general real estate appraiser, a
State
certified
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7 | residential real estate appraiser,
or an associate real estate | ||||||
8 | trainee appraiser to use these titles or any other title, | ||||||
9 | designation, or
abbreviation likely to create the
impression | ||||||
10 | that the person is licensed as a real estate appraiser pursuant | ||||||
11 | to
this Act. A person who
violates this subsection is guilty of | ||||||
12 | a Class A misdemeanor for a first offense and a Class 4 felony | ||||||
13 | for any subsequent offense.
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14 | (c)
The licensing requirements of this Act
do not
require a | ||||||
15 | person who holds a
valid license pursuant to the Real Estate | ||||||
16 | License Act of 2000, to be licensed
as a real estate appraiser
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17 | under this Act,
unless that person is
providing
or attempting | ||||||
18 | to provide an appraisal report, as defined in Section
1-10 of | ||||||
19 | this Act, in connection with a federally-related transaction. | ||||||
20 | Nothing in this Act shall prohibit a person who holds a valid | ||||||
21 | license under the Real Estate License Act of 2000 from | ||||||
22 | performing a comparative market analysis or broker price | ||||||
23 | opinion for compensation, provided that the person does not | ||||||
24 | hold himself out as being a licensed real estate appraiser. | ||||||
25 | (d) Nothing in this Act shall preclude a State certified | ||||||
26 | general real estate appraiser, a State certified residential |
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1 | real estate appraiser, or an associate real estate trainee | ||||||
2 | appraiser from rendering appraisals for or on behalf of a | ||||||
3 | partnership, association, corporation, firm, or group. | ||||||
4 | However, no State appraisal license or certification shall be | ||||||
5 | issued under this Act to a partnership, association, | ||||||
6 | corporation, firm, or group.
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7 | (e) This Act does not apply to a county assessor, township | ||||||
8 | assessor, multi-township assessor, county supervisor of | ||||||
9 | assessments, or any deputy or employee of any county assessor, | ||||||
10 | township assessor, multi-township assessor, or county | ||||||
11 | supervisor of assessments who is performing his or her | ||||||
12 | respective duties in accordance with the provisions of the | ||||||
13 | Property Tax Code.
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14 | (e-5) For the purposes of this Act, valuation waivers may | ||||||
15 | be prepared by a licensed appraiser notwithstanding any other | ||||||
16 | provision of this Act, and the following types of valuations | ||||||
17 | are not appraisals and may not be represented to be appraisals, | ||||||
18 | and a license is not required under this Act to
perform such | ||||||
19 | valuations if the valuations are performed by (1) an employee | ||||||
20 | of the Illinois Department of Transportation who has completed | ||||||
21 | a minimum of 45 hours of course work in real estate appraisal, | ||||||
22 | including the principals of real estate appraisals, appraisal | ||||||
23 | of partial acquisitions, easement valuation, reviewing | ||||||
24 | appraisals in eminent domain, appraisal for federal aid highway | ||||||
25 | programs, and appraisal review for federal aid highway programs | ||||||
26 | and has at least 2 years' experience in a field closely related |
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1 | to real estate or (2) a county or municipal engineer or a | ||||||
2 | consulting engineer under contract with a municipality who is a | ||||||
3 | registered professional engineer under the Professional | ||||||
4 | Engineering Practice Act of 1989, under the following | ||||||
5 | circumstances: | ||||||
6 | (A) a valuation waiver in an amount not to exceed | ||||||
7 | $10,000 prepared pursuant to the federal Uniform | ||||||
8 | Relocation Assistance and Real Property Acquisition | ||||||
9 | Policies Act of 1970, or prepared pursuant to the federal | ||||||
10 | Uniform Relocation Assistance and Real Property | ||||||
11 | Acquisition for Federal and Federally-Assisted Programs | ||||||
12 | regulations and which is performed by an employee of the | ||||||
13 | Illinois Department of Transportation and co-signed, with | ||||||
14 | a license number affixed, by another employee of the | ||||||
15 | Illinois Department of Transportation who is a registered | ||||||
16 | professional engineer under the Professional Engineering | ||||||
17 | Practice Act of 1989; and | ||||||
18 | (B) a valuation waiver in an amount not to exceed | ||||||
19 | $10,000 prepared pursuant to the federal Uniform | ||||||
20 | Relocation Assistance and Real Property Acquisition | ||||||
21 | Policies Act of 1970, or prepared pursuant to the federal | ||||||
22 | Uniform Relocation Assistance and Real Property | ||||||
23 | Acquisition for Federal and Federally-Assisted Programs | ||||||
24 | regulations and which is performed by a county or municipal | ||||||
25 | engineer who is employed by a county or municipality or a | ||||||
26 | consulting engineer under contract with a municipality and |
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1 | is a registered professional engineer under the | ||||||
2 | Professional Engineering Practice Act of 1989. In addition | ||||||
3 | to his or her signature, the county or municipal engineer | ||||||
4 | or consulting engineer under contract with a municipality | ||||||
5 | shall affix his or her license number to the valuation. | ||||||
6 | Nothing in this subsection (e-5) shall be construed to | ||||||
7 | allow the State of Illinois, a political subdivision thereof, | ||||||
8 | or any public body to acquire real estate by eminent domain in | ||||||
9 | any manner
other than provided for in the Eminent Domain Act. | ||||||
10 | (f) A State real estate appraisal certification or license | ||||||
11 | is not required under this Act for any of the following: | ||||||
12 | (1) A person, partnership, association, or corporation | ||||||
13 | that performs appraisals of property owned by that person, | ||||||
14 | partnership, association, or corporation for the sole use | ||||||
15 | of that person, partnership, association, or corporation. | ||||||
16 | (2) A court-appointed commissioner who conducts an | ||||||
17 | appraisal pursuant to a judicially ordered evaluation of | ||||||
18 | property. | ||||||
19 | However, any person who is certified or licensed under this Act | ||||||
20 | and who performs any of the activities set forth in this | ||||||
21 | subsection (f) must comply with the provisions of this Act. A | ||||||
22 | person who violates this subsection (f) is guilty of a Class A | ||||||
23 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
24 | subsequent offense. | ||||||
25 | (g) This Act does not apply to an employee, officer, | ||||||
26 | director, or member of a credit or loan committee of a |
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1 | financial institution or any other person engaged by a | ||||||
2 | financial institution when performing an evaluation of real | ||||||
3 | property for the sole use of the financial institution in a | ||||||
4 | transaction for which the financial institution would not be | ||||||
5 | required to use the services of a State licensed or State | ||||||
6 | certified appraiser pursuant to federal regulations adopted | ||||||
7 | under Title XI of the federal Financial Institutions Reform, | ||||||
8 | Recovery, and Enforcement Act of 1989, nor does this Act apply | ||||||
9 | to the procurement of an automated valuation model. | ||||||
10 | "Automated valuation model" means an automated system that | ||||||
11 | is used to derive a property value through the use of publicly | ||||||
12 | available property records and various analytic methodologies | ||||||
13 | such as comparable sales prices, home characteristics, and | ||||||
14 | historical home price appreciations.
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15 | (Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)
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