HB2720 EngrossedLRB098 05475 MGM 35509 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Real Estate Appraiser Licensing Act of 2002
5is amended by changing Section 5-5 as follows:
 
6    (225 ILCS 458/5-5)
7    (Section scheduled to be repealed on January 1, 2022)
8    Sec. 5-5. Necessity of license; use of title; exemptions.
9    (a) It is unlawful for a person to (i) act, offer services,
10or advertise services as a State certified general real estate
11appraiser, State certified residential real estate appraiser,
12or associate real estate trainee appraiser, (ii) develop a real
13estate appraisal, (iii) practice as a real estate appraiser, or
14(iv) advertise or hold himself or herself out to be a real
15estate appraiser without a license issued under this Act. A
16person who violates this subsection is guilty of a Class A
17misdemeanor for a first offense and a Class 4 felony for any
18subsequent offense.
19    (a-5) It is unlawful for a person, unless registered as an
20appraisal management company, to solicit clients or enter into
21an appraisal engagement with clients without either a certified
22residential real estate appraiser license or a certified
23general real estate appraiser license issued under this Act. A

 

 

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1person who violates this subsection is guilty of a Class A
2misdemeanor for a first offense and a Class 4 felony for any
3subsequent offense.
4    (b) It is unlawful for a person, other than a person who
5holds a valid license issued pursuant to this Act as a State
6certified general real estate appraiser, a State certified
7residential real estate appraiser, or an associate real estate
8trainee appraiser to use these titles or any other title,
9designation, or abbreviation likely to create the impression
10that the person is licensed as a real estate appraiser pursuant
11to this Act. A person who violates this subsection is guilty of
12a Class A misdemeanor for a first offense and a Class 4 felony
13for any subsequent offense.
14    (c) The licensing requirements of this Act do not require a
15person who holds a valid license pursuant to the Real Estate
16License Act of 2000, to be licensed as a real estate appraiser
17under this Act, unless that person is providing or attempting
18to provide an appraisal report, as defined in Section 1-10 of
19this Act, in connection with a federally-related transaction.
20Nothing in this Act shall prohibit a person who holds a valid
21license under the Real Estate License Act of 2000 from
22performing a comparative market analysis or broker price
23opinion for compensation, provided that the person does not
24hold himself out as being a licensed real estate appraiser.
25    (d) Nothing in this Act shall preclude a State certified
26general real estate appraiser, a State certified residential

 

 

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1real estate appraiser, or an associate real estate trainee
2appraiser from rendering appraisals for or on behalf of a
3partnership, association, corporation, firm, or group.
4However, no State appraisal license or certification shall be
5issued under this Act to a partnership, association,
6corporation, firm, or group.
7    (e) This Act does not apply to a county assessor, township
8assessor, multi-township assessor, county supervisor of
9assessments, or any deputy or employee of any county assessor,
10township assessor, multi-township assessor, or county
11supervisor of assessments who is performing his or her
12respective duties in accordance with the provisions of the
13Property Tax Code.
14    (e-5) For the purposes of this Act, the following types of
15valuations are not appraisals and may not be represented to be
16appraisals, valuation waivers may be prepared by a licensed
17appraiser notwithstanding any other provision of this Act and a
18license is not required under this Act to perform such
19valuations if the valuations are performed by an employee of
20the Illinois Department of Transportation or an employee of a
21county under the following circumstances:
22        (1) if performed by an employee of the Illinois
23    Department of Transportation, a valuation waiver in an
24    amount not to exceed $10,000, performed by a licensed
25    professional engineer under the Professional Engineering
26    Practice Act of 1989 or co-signed by a State certified

 

 

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1    general appraiser, and prepared under the federal Uniform
2    Relocation Assistance and Real Property Acquisition
3    Policies Act of 1970;
4        (2) if performed by an employee of the Illinois
5    Department of Transportation, a valuation waiver in an
6    amount not to exceed $10,000, performed by a licensed
7    professional engineer under the Professional Engineering
8    Practice Act of 1989 or co-signed by a State certified
9    general appraiser, and prepared under the federal Uniform
10    Relocation Assistance and Real Property Acquisition for
11    Federal and Federally-Assisted Programs regulations;
12        (3) if performed by a county engineer employed by a
13    county who is a licensed professional engineer under the
14    Professional Engineering Practice Act of 1989, a valuation
15    waiver in an amount not to exceed $10,000 prepared under
16    the federal Uniform Relocation Assistance and Real
17    Property Acquisition Policies Act of 1970;
18        (4) if performed by a county engineer employed by a
19    county who is a licensed professional engineer under the
20    Professional Engineering Practice Act of 1989, a valuation
21    waiver in an amount not to exceed $10,000 prepared under
22    the federal Uniform Relocation Assistance and Real
23    Property Acquisition for Federal and Federally-Assisted
24    Programs regulations;
25        (5) a valuation waiver in an amount not to exceed
26    $10,000 and limited to the valuation of a temporary

 

 

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1    easement prepared under the federal Uniform Relocation
2    Assistance and Real Property Acquisition Policies Act of
3    1970; or
4        (6) a valuation waiver in an amount not to exceed
5    $10,000 and limited to the valuation of a temporary
6    easement prepared under the federal Uniform Relocation
7    Assistance and Real Property Acquisition for Federal and
8    Federally-Assisted Programs regulations.
9        (1) a valuation waiver in an amount not to exceed
10    $10,000 prepared pursuant to the federal Uniform
11    Relocation Assistance and Real Property Acquisition
12    Policies Act of 1970, as amended; or
13        (2) a valuation waiver in an amount not to exceed
14    $10,000 prepared pursuant to the federal Uniform
15    Relocation Assistance and Real Property Acquisition for
16    Federal and Federally-Assisted Programs regulations.
17    Nothing in this subsection (e-5) shall be construed to
18allow the State of Illinois, a political subdivision thereof,
19or any public body to acquire real estate by eminent domain in
20any manner other than provided for in the Eminent Domain Act.
21    (f) A State real estate appraisal certification or license
22is not required under this Act for any of the following:
23        (1) A person, partnership, association, or corporation
24    that performs appraisals of property owned by that person,
25    partnership, association, or corporation for the sole use
26    of that person, partnership, association, or corporation.

 

 

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1        (2) A court-appointed commissioner who conducts an
2    appraisal pursuant to a judicially ordered evaluation of
3    property.
4However, any person who is certified or licensed under this Act
5and who performs any of the activities set forth in this
6subsection (f) must comply with the provisions of this Act. A
7person who violates this subsection (f) is guilty of a Class A
8misdemeanor for a first offense and a Class 4 felony for any
9subsequent offense.
10    (g) This Act does not apply to an employee, officer,
11director, or member of a credit or loan committee of a
12financial institution or any other person engaged by a
13financial institution when performing an evaluation of real
14property for the sole use of the financial institution in a
15transaction for which the financial institution would not be
16required to use the services of a State licensed or State
17certified appraiser pursuant to federal regulations adopted
18under Title XI of the federal Financial Institutions Reform,
19Recovery, and Enforcement Act of 1989, nor does this Act apply
20to the procurement of an automated valuation model.
21    "Automated valuation model" means an automated system that
22is used to derive a property value through the use of publicly
23available property records and various analytic methodologies
24such as comparable sales prices, home characteristics, and
25historical home price appreciations.
26(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.