May 17, 2017
Minnesota Makes Significant Changes to Appraiser Law
Minnesota Gov. Mark Dayton on May 11 signed HF 593, legislation that makes several important changes to the state’s appraiser licensing and certification law, including issues concerning non-compliance with the appraiser licensing law and background checks.
Under the new law, an allegation of non-compliance with the appraiser licensing law that does not rise to the level of being a disciplinary action is not considered to be a formal complaint. This is an important provision because under current law, all allegations of non-compliance — including frivolous accusations — are complaints that must then be reported by the appraiser when asked if the appraiser has ever been the subject of a complaint. The new law will not require appraisers to report allegations that don’t result in a formal disciplinary action. Likewise, minor disciplinary actions are expunged from an appraiser’s public record five years after an appraiser completes any sanctions.
The new law also clarifies that only an applicant for an initial appraiser license must undergo a formal background investigation. Existing credential holders need only disclose at time of renewal if they have been convicted of any crimes involving moral turpitude or that are substantially related to the real estate valuation profession.
Importantly, the new law establishes a six-year statute of limitations on civil actions against real estate appraisers for issues not related to fraud or intentional misrepresentation. The statute of limitations accrues from the date on which the appraisal services are performed or completed.
The Government Relations Committee of the Appraisal Institute’s North Star Chapter was heavily involved in lobbying for the passage of HF 593, which takes effect July 1. This major bill is the second one proposed by the chapter that has been enacted into law in the last two years.
View a copy of HF 593.