HB2720 EnrolledLRB098 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7    (Section scheduled to be repealed on January 1, 2022)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

 

 

HB2720 Enrolled- 2 -LRB098 05475 MGM 35509 b

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

 

 

HB2720 Enrolled- 3 -LRB098 05475 MGM 35509 b

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, valuation waivers may
15be prepared by a licensed appraiser notwithstanding any other
16provision of this Act, and the following types of valuations
17are not appraisals and may not be represented to be appraisals,
18and a license is not required under this Act to perform such
19valuations if the valuations are performed by (1) an employee
20of the Illinois Department of Transportation who has completed
21a minimum of 45 hours of course work in real estate appraisal,
22including the principals of real estate appraisals, appraisal
23of partial acquisitions, easement valuation, reviewing
24appraisals in eminent domain, appraisal for federal aid highway
25programs, and appraisal review for federal aid highway programs
26and has at least 2 years' experience in a field closely related

 

 

HB2720 Enrolled- 4 -LRB098 05475 MGM 35509 b

1to real estate or (2) or an employee of a county engineer who
2is a registered professional engineer under the Professional
3Engineering Practice Act of 1989, under the following
4circumstances:
5        (A) a valuation waiver in an amount not to exceed
6    $10,000 prepared pursuant to the federal Uniform
7    Relocation Assistance and Real Property Acquisition
8    Policies Act of 1970, or prepared pursuant to the federal
9    Uniform Relocation Assistance and Real Property
10    Acquisition for Federal and Federally-Assisted Programs
11    regulations and which is performed by an employee of the
12    Illinois Department of Transportation and co-signed, with
13    a license number affixed, by another employee of the
14    Illinois Department of Transportation who is a registered
15    professional engineer under the Professional Engineering
16    Practice Act of 1989; and
17        (B) a valuation waiver in an amount not to exceed
18    $10,000 prepared pursuant to the federal Uniform
19    Relocation Assistance and Real Property Acquisition
20    Policies Act of 1970, or prepared pursuant to the federal
21    Uniform Relocation Assistance and Real Property
22    Acquisition for Federal and Federally-Assisted Programs
23    regulations and which is performed by a county engineer who
24    is employed by a county and is a registered professional
25    engineer under the Professional Engineering Practice Act
26    of 1989. In addition to his or her signature, the county

 

 

HB2720 Enrolled- 5 -LRB098 05475 MGM 35509 b

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

 

 

HB2720 Enrolled- 6 -LRB098 05475 MGM 35509 b

1person who violates this subsection (f) is guilty of a Class A
2misdemeanor for a first offense and a Class 4 felony for any
3subsequent offense.
4    (g) This Act does not apply to an employee, officer,
5director, or member of a credit or loan committee of a
6financial institution or any other person engaged by a
7financial institution when performing an evaluation of real
8property for the sole use of the financial institution in a
9transaction for which the financial institution would not be
10required to use the services of a State licensed or State
11certified appraiser pursuant to federal regulations adopted
12under Title XI of the federal Financial Institutions Reform,
13Recovery, and Enforcement Act of 1989, nor does this Act apply
14to the procurement of an automated valuation model.
15    "Automated valuation model" means an automated system that
16is used to derive a property value through the use of publicly
17available property records and various analytic methodologies
18such as comparable sales prices, home characteristics, and
19historical home price appreciations.
20(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.