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2014 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 54.1-2013 and 54.1-2021.1 of the Code of Virginia are amended and reenacted as follows:
§ 54.1-2013. General powers of Real Estate Appraiser Board; regulations; educational requirements for licensure.
The Board shall have all of the powers of a regulatory board
under Chapter 2 (§ 54.1-200 et seq.) of this title. The Board may do all
things necessary and convenient for carrying into effect the provisions of this
chapter, Chapter 20.2 (§ 54.1-2020 et seq.), and all things required or
expected of a state appraiser certifying and licensing agency under Title 11 of
the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C.
§ 3331 et seq.). The Board shall promulgate necessary regulations. The
Director shall have the authority to promulgate initial emergency regulations
upon the enactment of this chapter as necessary to comply with applicable
federal requirements, provided that within twelve months from the effective
date of such emergency regulations, the Board promulgates the regulations in
accordance with the Administrative Process Act (§ 2.2-4000 et seq.).
The Board shall include in its regulations educational and experience requirements as conditions for licensure, provisions for the supervision of appraiser practices, provisions for the enforcement of standards of professional appraiser practice, and provisions for the disposition of referrals of improper appraiser conduct from any person or any federal agency or instrumentality. This paragraph shall not be construed to limit the powers and authority of the Board.
The Board may set different education and experience requirements for licensed residential real estate appraisers, certified residential real estate appraisers, and certified general real estate appraisers. All applicants for licensure under this chapter shall meet applicable educational and experience requirements prior to licensure.
Applicants for licensure as a certified residential real estate appraiser or a certified general real estate appraiser shall successfully complete an examination administered or approved by the Board prior to licensure. The Board may set different examination requirements for certified residential real estate appraisers and certified general real estate appraisers. The Board may require that licensed residential real estate appraisers successfully complete an examination administered or approved by the Board prior to licensure or prior to the renewal of an initial license.
All regulations established by the Board shall satisfy any
minimum criteria that are necessary in order that the federal financial
institution's regulatory agencies recognize and accept licenses for licensed
residential real estate appraisers, certified residential real estate
appraisers, and certified general real estate appraisers, and
appraisal management companies issued by the Board.
§ 54.1-2021.1. (Effective July 1, 2014) Appraisal management companies; license required; posting of bond or letter of credit.
A. No person shall engage in business as an appraisal management company without a license issued by the Board.
Beginning July 1, 2014, the B. The Board may
issue a license to do business as an appraisal management company in the
Commonwealth to any applicant who has submitted a complete application and
provides satisfactory evidence that he has successfully:
1. Completed all requirements established by the Board that are consistent with this chapter and are reasonably necessary to implement, administer, and enforce the provisions of this chapter; and
2. Certified to the Board the following information, and such other information as may be reasonably required by the Board, regarding the person or entity seeking licensure:
a. The name of the person or entity;
b. The business address of the person or entity;
c. Phone contact information for the person or entity, and email address;
d. If the entity is not an entity domiciled in the Commonwealth, the name and contact information for the entity's agent for service of process in the Commonwealth;
e. If the entity is not an entity domiciled in the Commonwealth, proof that the entity is properly and currently registered with the Virginia State Corporation Commission;
f. The name, address, and contact information for any person or any entity that owns 10 percent or more of the appraisal management company;
g. The name, address, and contact information for a responsible person for the appraisal management company located in the Commonwealth, who shall be a person or entity licensed under Chapter 20.1 (§ 54.1-2009 et seq.);
h. That any person or entity that owns 10 percent or more of the appraisal management company has never had a license to act as an appraiser refused, denied, canceled, or revoked by the Commonwealth or any other state;
i. That the entity has a system in place to review the work of all appraisers that may perform appraisal services for the appraisal management company on a periodic basis to ensure that the appraisal services are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice;
j. That the entity maintains a detailed record of the following: (i) each request for an appraisal service that the appraisal management company receives; (ii) the name of each independent appraiser that performs the appraisal; (iii) the physical address or legal identification of the subject property; (iv) the name of the appraisal management company's client for the appraisal; (v) the amount paid to the appraiser; and (vi) the amount paid to the appraisal management company; and
k. That the entity has a system in place to ensure compliance with § 129E of the Truth in Lending Act (15 U.S.C. § 1601 et seq.).
B. C. Any person that owns 10 percent or more of
an appraisal management company and any controlling person of an appraisal
management company seeking to be licensed pursuant to this chapter shall be of
good moral character, as determined by the Board, and shall submit to a
background investigation, as determined by the Board.
C. D. In addition to the filing fee, each
applicant for licensure shall post either a bond or a letter of credit as
follows:
1. If a bond is posted, the bond shall (i) be in the amount of
$25,000 $100,000 or any other amount as set by regulation of the
Board, (ii) be in a form prescribed by regulation of the Board, and (iii)
accrue to the Commonwealth for the benefit of (a) a claimant against the
licensee to secure the faithful performance of the licensee's obligations under
this chapter or (b) an appraiser who has performed an appraisal for the
licensee for which the appraiser has not been paid. The aggregate liability of
the surety shall not exceed the principal sum of the bond. A party having a
claim against the licensee may bring suit directly on the surety bond. When a
claimant or an appraiser is awarded a final judgment in a court of competent
jurisdiction against a licensee of this section for the licensee's failure to
faithfully perform its obligations under this chapter or failure to pay an
appraiser who performed an appraisal, the claimant or the appraiser may file a
claim with the Board for a directive ordering payment from the bond issuer of
the amount of the judgment, court costs and reasonable attorney fees as awarded
by the court. Such claim shall be filed with the Board no later than 12 months
after the judgment becomes final. Upon receipt of the claim against the
licensee, the Board may cause its own investigation to be conducted. The amount
of the bond shall be restored by the licensee to the full amount required
within 15 days after the payment of any claim on the bond. If the licensee
fails to restore the full amount of the bond, the Board shall immediately
revoke the license of the licensee whose conduct resulted in payment from the
bond.
2. If a letter of credit is posted, the letter of credit shall
(i) be in the amount of $25,000 $100,000 or any other amount as
set by regulation of the Board, (ii) be irrevocable and in a form approved by
the Board, payable to the Department of Professional Occupational Regulation,
and (iii) be for the use and the benefit of (a) a claimant against the licensee
to secure the faithful performance of the licensee's obligations under this
chapter or (b) an appraiser who has performed an appraisal for the licensee for
which the appraiser has not been paid. The aggregate liability on the letter of
credit shall not exceed the principal sum of the letter of credit. When a claimant
or an appraiser is awarded a final judgment in a court of competent
jurisdiction against a licensee of this section for the licensee's failure to
faithfully perform its obligations under this chapter or failure to pay an
appraiser who performed an appraisal, the claimant or the appraiser may file a
claim with the Board for a directive ordering payment from the issuer of the
letter of credit of the amount of the judgment, court costs and reasonable
attorney fees as awarded by the court. Such claim shall be filed with the Board
no later than 12 months after the judgment becomes final. Upon receipt of the
claim against the licensee, the Board may cause its own investigation to be
conducted. Upon a draw against a letter of credit, the licensee shall provide a
new letter of credit in the amount required by this subdivision within 15 days
after payment of any claim on the letter of credit. If the licensee fails to
restore the full amount of the letter of credit, the Board shall immediately
revoke the license of the licensee whose conduct resulted in payment from the
bond.