State of Illinois
2013 and 2014


Introduced 2/14/2014, by Sen. Karen McConnaughay


225 ILCS 458/1-10

    Amends the Real Estate Appraiser Licensing Act of 2002. Makes changes to the definitions of "appraisal", "appraisal report", "appraiser", "federal financial institutions regulatory agencies", and "federally related transaction" and deletes the definition of "modular course".

LRB098 19702 ZMM 54913 b





SB3430LRB098 19702 ZMM 54913 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 1-10 as follows:
6    (225 ILCS 458/1-10)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 1-10. Definitions. As used in this Act, unless the
9context otherwise requires:
10    "Accredited college or university, junior college, or
11community college" means a college or university, junior
12college, or community college that is approved or accredited by
13the Board of Higher Education, a regional or national
14accreditation association, or by an accrediting agency that is
15recognized by the U.S. Secretary of Education.
16    "Address of record" means the designated address recorded
17by the Department in the applicant's or licensee's application
18file or license file as maintained by the Department's
19licensure maintenance unit. It is the duty of the applicant or
20licensee to inform the Department of any change of address and
21those changes must be made either through the Department's
22website or by contacting the Department.
23    "Applicant" means person who applies to the Department for



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1a license under this Act.
2    "Appraisal" means (noun) the act or process of developing
3an opinion of value; an opinion of value (adjective) of or
4pertaining to appraising and related functions, such as
5appraisal practice or valuation appraisal services.
6    "Appraisal assignment" means a valuation service provided
7as a consequence of an agreement between an appraiser and a
9    "Appraisal consulting" means the act or process of
10developing an analysis, recommendation, or opinion to solve a
11problem, where an opinion of value is a component of the
12analysis leading to the assignment results.
13    "Appraisal firm" means an appraisal entity that is 100%
14owned and controlled by a person or persons licensed in
15Illinois as a certified general real estate appraiser or a
16certified residential real estate appraiser. "Appraisal firm"
17does not include an appraisal management company.
18    "Appraisal management company" means any corporation,
19limited liability company, partnership, sole proprietorship,
20subsidiary, unit, or other business entity that directly or
21indirectly performs the following appraisal management
22services: (1) administers networks of independent contractors
23or employee appraisers to perform real estate appraisal
24assignments for clients; (2) receives requests for real estate
25appraisal services from clients and, for a fee paid by the
26client, enters into an agreement with one or more independent



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1appraisers to perform the real estate appraisal services
2contained in the request; or (3) otherwise serves as a
3third-party broker of appraisal management services between
4clients and appraisers. "Appraisal management company" does
5not include an appraisal firm.
6    "Appraisal practice" means valuation services performed by
7an individual acting as an appraiser, including, but not
8limited to, appraisal, appraisal review, or appraisal
10    "Appraisal report" means any communication, written or
11oral, of an appraisal or , appraisal review, or appraisal
12consulting service that is transmitted to a client upon
13completion of an assignment.
14    "Appraisal review" means the act or process of developing
15and communicating an opinion about the quality of another
16appraiser's work that was performed as part of an appraisal,
17appraisal review, or appraisal assignment.
18    "Appraisal Subcommittee" means the Appraisal Subcommittee
19of the Federal Financial Institutions Examination Council as
20established by Title XI.
21    "Appraiser" means a person who performs real estate or real
22property appraisals in accordance with the Uniform Standards of
23Professional Appraisal Practice.
24    "AQB" means the Appraisal Qualifications Board of the
25Appraisal Foundation.
26    "Associate real estate trainee appraiser" means an



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1entry-level appraiser who holds a license of this
2classification under this Act with restrictions as to the scope
3of practice in accordance with this Act.
4    "Board" means the Real Estate Appraisal Administration and
5Disciplinary Board.
6    "Classroom hour" means 50 minutes of instruction out of
7each 60 minute segment of coursework.
8    "Client" means the party or parties who engage an appraiser
9by employment or contract in a specific appraisal assignment.
10    "Coordinator" means the Coordinator of Real Estate
11Appraisal of the Division of Professional Regulation of the
12Department of Financial and Professional Regulation.
13    "Department" means the Department of Financial and
14Professional Regulation.
15    "Federal financial institutions regulatory agencies" means
16the Board of Governors of the Federal Reserve System, the
17Federal Deposit Insurance Corporation, the Office of the
18Comptroller of the Currency, the Consumer Financial Protection
19Bureau Office of Thrift Supervision, and the National Credit
20Union Administration.
21    "Federally related transaction" means any real
22estate-related financial transaction in which a federal
23financial institutions regulatory agency, the Department of
24Housing and Urban Development, Fannie Mae, Freddie Mae, or the
25National Credit Union Administration engages in, contracts
26for, or regulates, or and requires the services of an



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2    "Financial institution" means any bank, savings bank,
3savings and loan association, credit union, mortgage broker,
4mortgage banker, licensee under the Consumer Installment Loan
5Act or the Sales Finance Agency Act, or a corporate fiduciary,
6subsidiary, affiliate, parent company, or holding company of
7any such licensee, or any institution involved in real estate
8financing that is regulated by state or federal law.
9    "Modular Course" means the Appraisal Qualifying Course
10Design conforming to the Sub Topics Course Outline contained in
11the AQB Criteria 2008.
12    "Person" means an individual, entity, sole proprietorship,
13corporation, limited liability company, partnership, and joint
14venture, foreign or domestic, except that when the context
15otherwise requires, the term may refer to more than one
16individual or other described entity.
17    "Real estate" means an identified parcel or tract of land,
18including any improvements.
19    "Real estate related financial transaction" means any
20transaction involving:
21        (1) the sale, lease, purchase, investment in, or
22    exchange of real property, including interests in property
23    or the financing thereof;
24        (2) the refinancing of real property or interests in
25    real property; and
26        (3) the use of real property or interest in property as



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1    security for a loan or investment, including mortgage
2    backed securities.
3    "Real property" means the interests, benefits, and rights
4inherent in the ownership of real estate.
5    "Secretary" means the Secretary of Financial and
6Professional Regulation.
7    "State certified general real estate appraiser" means an
8appraiser who holds a license of this classification under this
9Act and such classification applies to the appraisal of all
10types of real property without restrictions as to the scope of
12    "State certified residential real estate appraiser" means
13an appraiser who holds a license of this classification under
14this Act and such classification applies to the appraisal of
15one to 4 units of residential real property without regard to
16transaction value or complexity, but with restrictions as to
17the scope of practice in a federally related transaction in
18accordance with Title XI, the provisions of USPAP, criteria
19established by the AQB, and further defined by rule.
20    "Supervising appraiser" means either (i) an appraiser who
21holds a valid license under this Act as either a State
22certified general real estate appraiser or a State certified
23residential real estate appraiser, who co-signs an appraisal
24report for an associate real estate trainee appraiser or (ii) a
25State certified general real estate appraiser who holds a valid
26license under this Act who co-signs an appraisal report for a



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1State certified residential real estate appraiser on
2properties other than one to 4 units of residential real
3property without regard to transaction value or complexity.
4    "Title XI" means Title XI of the federal Financial
5Institutions Reform, Recovery and Enforcement Act of 1989.
6    "USPAP" means the Uniform Standards of Professional
7Appraisal Practice as promulgated by the Appraisal Standards
8Board pursuant to Title XI and by rule.
9    "Valuation services" means services pertaining to aspects
10of property value.
11(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)