May 17, 2017
New Jersey, South Carolina Enact AMC Laws
New Jersey and South Carolina enacted new laws requiring the registration and oversight of appraisal management companies; 42 states now have such laws.
New Jersey Gov. Chris Christie on May 11 signed AB 1973, legislation that requires an appraiser employee or contractor performing an appraisal review (Uniform Standards of Professional Appraisal Practice Standard 3) to be licensed in the state and have at least the same level of licensure as the appraiser performing the appraisal that is the subject of the review. Additionally, the law requires AMCs to pay appraisers within 60 days from the date on which the appraisal is transmitted by the appraiser to the AMC.
While most of the law is effective immediately, AMCs operating in New Jersey will not be required to register with the State Real Estate Appraiser Board until 60 days after the adoption of regulations concerning the registration process.
South Carolina Gov. Henry McMaster on May 11 signed SB 279, legislation that prohibits AMCs from using an appraisal “for any purpose other than its intended use without the appraiser’s or the intended user’s consent.” The law also requires employees and contractors performing USPAP Standard 3 reviews to be licensed or certified in the state. AMCs also are now required to “compensate appraisers at a rate that is customary and reasonable for appraisals being performed in the market area of the property being appraised” within 45 days of the date on which the appraisal is transmitted.
The Appraisal Institute’s South Carolina Chapter was among the stakeholders lobbying for passage of SB 279, which is effective immediately.
View a copy of AB 1973and SB 279.