Real estate: Uniform Standards of Professional Appraisal Practice.
The legislation changes the standard operational procedures within the appraisal profession, particularly for cases where appraisers work on residential properties. By permitting restricted reports under specific conditions, the bill encourages a more flexible approach for appraisal presentations, which proponents argue facilitates a more targeted communication to clients. This change could result in a faster turnaround of reports, potentially benefiting clients who seek timely assessments of property values.
Senate Bill 70, introduced by Senator Bates, amends Section 11319 of the California Business and Professions Code to adjust the regulatory oversight of real estate appraisal practices. The bill seeks to provide a temporary waiver of compliance for licensed appraisers with respect to certain provisions of the Uniform Standards of Professional Appraisal Practice (USPAP). Specifically, it allows appraisers to restrict appraisal reports to intended users if they obtain explicit prior consent from the client, thus loosening some restrictions that traditionally bind appraisal reports to a broader audience until January 1, 2020.
The sentiment surrounding SB 70 was largely supportive within the appraisal community, as many professionals view the changes as necessary adaptations to meet client demands. Supporters argue that the bill acknowledges the complex nature of real estate transactions and the need for appraisers to cater to client needs without being impeded by overly rigid reporting requirements. However, some concerns were voiced by industry watchdogs who worry that easing these standards could lead to conflicts of interest or reduced accountability in appraisal practices.
Notably, the bill emphasizes the necessity of client consent, which is a critical point of contention. Critics argue that even with the requirement for consent, the potential for diminished transparency and oversight remains significant. They contend that any reduction in standardized reporting may undermine the integrity of appraisals, which are foundational to real estate transactions. The inclusion of conditions that specify exclusions on federally related transactions and residential dwellings further fuels debates on the adequacy of protections in place for consumers.