Real estate: Uniform Standards of Professional Appraisal Practice.
The passage of SB 131 could have significant ramifications for the real estate appraisal industry, as it enables licensees to engage in less stringent appraisal practices for a longer period. This extension affords appraisers greater flexibility in handling restricted reports, contingent upon obtaining client consent and ensuring the reports are not related to federally connected transactions or certain residential properties. Proponents of the bill argue that this extension prevents unnecessary compliance burdens on appraisers, enabling them to serve their clients more efficiently.
Senate Bill 131, introduced by Senator Bates, aims to amend Section 11319 of the Business and Professions Code, specifically regarding the Uniform Standards of Professional Appraisal Practice. This bill extends an existing expiration date that exempts real estate appraisers from complying with certain standards regarding restricted appraisal reports. Initially set to expire on January 1, 2020, the bill proposes to extend this exemption until January 1, 2022. This change allows appraisers to operate under more relaxed rules under outlined conditions until the new expiration date.
The bill has garnered a mix of support and opposition. Supporters assert that maintaining flexibility in appraisal practices is vital for operational efficiency within the market, particularly in the context of a rapid real estate landscape. Conversely, critics worry that extending such exemptions could lead to reduced professionalism and standards within the appraisal field, potentially jeopardizing the integrity of property evaluations. They contend that consumers must have consistent access to high-quality appraisal services to ensure fair market practices.