HB5709 EnrolledLRB098 18353 ZMM 55449 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7    (Section scheduled to be repealed on January 1, 2022)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, (iii) practice as a real estate appraiser, or
14(iv) advertise or hold himself or herself out to be a real
15estate appraiser without a license issued under this Act. A
16person who violates this subsection is guilty of a Class A
17misdemeanor for a first offense and a Class 4 felony for any
18subsequent offense.
19    (a-5) It is unlawful for a person, unless registered as an
20appraisal management company, to solicit clients or enter into
21an appraisal engagement with clients without either a certified
22residential real estate appraiser license or a certified
23general real estate appraiser license issued under this Act. A

 

 

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1person who violates this subsection is guilty of a Class A
2misdemeanor for a first offense and a Class 4 felony for any
3subsequent offense.
4    (b) It is unlawful for a person, other than a person who
5holds a valid license issued pursuant to this Act as a State
6certified general real estate appraiser, a State certified
7residential real estate appraiser, or an associate real estate
8trainee appraiser to use these titles or any other title,
9designation, or abbreviation likely to create the impression
10that the person is licensed as a real estate appraiser pursuant
11to this Act. A person who violates this subsection is guilty of
12a Class A misdemeanor for a first offense and a Class 4 felony
13for any subsequent offense.
14    (c) The licensing requirements of this Act do not require a
15person who holds a valid license pursuant to the Real Estate
16License Act of 2000, to be licensed as a real estate appraiser
17under this Act, unless that person is providing or attempting
18to provide an appraisal report, as defined in Section 1-10 of
19this Act, in connection with a federally-related transaction.
20Nothing in this Act shall prohibit a person who holds a valid
21license under the Real Estate License Act of 2000 from
22performing a comparative market analysis or broker price
23opinion for compensation, provided that the person does not
24hold himself out as being a licensed real estate appraiser.
25    (d) Nothing in this Act shall preclude a State certified
26general real estate appraiser, a State certified residential

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1available property records and various analytic methodologies
2such as comparable sales prices, home characteristics, and
3historical home price appreciations.
4(Source: P.A. 97-602, eff. 8-26-11; 98-444, eff. 8-16-13.)