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The regulation of Appraisal Management Companies became law in Florida July 1, 2011. There were efforts to delay implementation of the law, and additional amendments enacted in 2012 clarified a few points and definitions related to Appraisal Management Companies. The most important 2012 amendments covered Discipline of Appraisal Management Companies. Those became law October 1, 2012.
Shortly after October 1, 2012, the Florida Real Estate Appraisal Board started drafting a rule to implement the new amendments. The effort was spearheaded by FREAB member Mike Rogers. The meetings, attended by individuals representing appraisers and appraisal management companies, were often contentious. Although there was give and take, the appraiser members of FREAB stood fast, and some important provisions were included in the new rule, 61J1-9.002 - Standards of practice for Appraisal Management Companies; Development and Communication of Real Estate Appraisals.
There are over 180 AMCs registered in Florida. The rule is effective June 26, 2013. The full text of the rule is at the link above, and after the jump in this post. Here are a few highlights:
(1) Upon issuance of a registration
number by the Department, an appraisal management company shall disclose its
issued registration number on each solicitation for engagement and each
engagement letter utilized in assigning an appraisal request for real estate
appraisal assignments in Florida.
(3) Before or at the time an appraiser
accepts an assignment, the appraisal management company shall require the
appraiser to declare in writing or via electronic means that the appraiser
receiving the assignment is a competent appraiser for the performance of the
appraisal being assigned.
(4) An appraisal management company must
include instructions to appraisers in letters of engagement to decline the
assignment in the event the appraiser is not geographically competent or the
assignment falls outside the appraiser’s scope of practice restrictions.
(5) An appraisal management company
cannot:
(a) Require that an appraiser prepare an
appraisal if the appraiser, in the appraiser’s own independent professional
judgment believes that she or he does not have the necessary expertise for the
assignment or for the specific geographic area and has notified the appraisal
management company and declined the assignment;
(b) Require that an appraiser prepare an
appraisal within a time frame that the appraiser, in the appraiser’s own
professional judgment believes does not afford he or she the ability to meet
all the relevant legal and professional obligations, and the appraiser has
notified the appraisal management company and declined the assignment; or
(c) Require that an appraiser provide
the appraisal management company with the appraiser’s digital signature or
seal.
(9) Each solicitation for engagement by
an appraisal management company for an appraiser’s services must include the
following items:
(a) The name of the AMC; (b) Appraisal management company’s
registration number; (c) If the assignment is retrospective
the effective date must be provided; (d) The specific intended use; (e) Type of value; (f) A description of the reporting level
expected; (g) The identification of the subject to
include the property address, county, property type and property rights as
requested by the client; (h) Point of contact for discussion of
conditions and scope of work; (i) Other assignment conditions; (j) The expected delivery date; and (k) The terms of payment to the
appraiser unless otherwise in a contract.
Full text after the jump.
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