As used in this part 6, unless the context otherwise
requires:
(1) (a) Appraisal, appraisal report, or real estate appraisal means a
written or oral analysis, opinion, or conclusion relating to the nature, quality, value,
or utility of specified interests in, or aspects of, identified real estate that is
transmitted to the client upon the completion of an assignment. These terms
include a valuation, which is an opinion of the value of real estate, and an analysis,
which is a general study of real estate not specifically performed only to determine
value; except that the terms include a valuation completed by an appraiser
employee of a county assessor as defined in section 39-1-102 (2).
(b) The terms do not include an analysis, valuation, opinion, conclusion,
notation, or compilation of data by an officer, director, regularly salaried employee,
or agent of a financial institution or its affiliate, made for internal use only by the
financial institution or affiliate, concerning an interest in real estate that is owned
or held as collateral by the financial institution or affiliate and that is not
represented or deemed to be an appraisal except to the financial institution, the
agencies regulating the financial institution, and any secondary markets that
purchase real estate secured loans. An appraisal prepared by an officer, director,
regularly salaried employee, or agent of a financial institution who is not licensed or
certified under this part 6 must contain a written notice that the preparer is not
licensed or certified as an appraiser under this part 6.
(c) Appraisal, appraisal report, or real estate appraisal does not include
a federally authorized waiver valuation, as defined in 49 CFR 24.2 (a)(33), as
amended.
(2) (a) Appraisal management company or AMC means, in connection
with valuing properties collateralizing mortgage loans or mortgages incorporated
into a securitization, any external third party authorized either by a creditor in a
consumer credit transaction secured by a consumer's principal dwelling that
oversees an appraiser panel or by an underwriter of, or other principal in, the
secondary mortgage markets that oversees an appraiser panel to:
(I) Recruit, select, and retain appraisers;
(II) Contract with licensed and certified appraisers to perform appraisal
assignments;
(III) Manage the process of having an appraisal performed, including
providing administrative duties such as receiving appraisal orders and appraisal
reports, submitting completed appraisal reports to creditors and underwriters,
collecting fees from creditors and underwriters for services provided, and
reimbursing appraisers for services performed; or
(IV) Review and verify the work of appraisers.
(b) Appraisal management company or AMC does not include:
(I) A corporation, limited liability company, sole proprietorship, or other
entity that directly performs appraisal services;
(II) A corporation, limited liability company, sole proprietorship, or other
entity that does not contract with appraisers for appraisal services, but that solely
distributes orders to a client-selected panel of appraisers; and
(III) A mortgage company, or its subsidiary, that manages a panel of
appraisers who are engaged to provide appraisal services on mortgage loans either
originated by the mortgage company or funded by the mortgage company with its
own funds.
(3) Board means the board of real estate appraisers created in section 12-10-603.
(4) Client means the party or parties who engage an appraiser or an
appraisal management company for a specific assignment.
(5) Consulting services means services performed by an appraiser that do
not fall within the definition of an independent appraisal in subsection (7) of this
section. Consulting services includes marketing, financing and feasibility studies,
valuations, analyses, and opinions and conclusions given in connection with real
estate brokerage, mortgage banking, and counseling and advocacy in regard to
property tax assessments and appeals thereof; except that, if in rendering the
services the appraiser acts as a disinterested third party, the work is deemed an
independent appraisal and not a consulting service. Nothing in this subsection (5)
precludes a person from acting as an expert witness in valuation appeals.
(5.5) Evaluation means an opinion about the market value of real estate
that is:
(a) Made in accordance with the 2010 Interagency Appraisal and Evaluation
Guidelines developed by the following federal agencies that regulate financial
institutions:
(I) The federal reserve board;
(II) The office of the comptroller of the currency;
(III) The federal deposit insurance corporation;
(IV) The office of thrift supervision; and
(V) The national credit union administration; and
(b) Provided to a financial institution for use in a real-estate-related
transaction for which an appraisal is not required by the federal agencies listed in
subsection (5.5)(a) of this section.
(6) Financial institution means any bank or savings association, as
those terms are defined in 12 U.S.C. sec. 1813, any state bank incorporated under
title 11, any state or federally chartered credit union, or any company that has direct
or indirect control over any of those entities.
(7) Independent appraisal means an engagement for which an appraiser is
employed or retained to act as a disinterested third party in rendering an unbiased
analysis, opinion, or conclusion relating to the nature, quality, value, or utility of
specified interests in or aspects of identified real estate.
(8) (a) Panel or appraiser panel means a network, list, or roster of
licensed or certified appraisers approved by an AMC to perform appraisals as
independent contractors for the AMC.
(b) Appraisers on an AMC's appraiser panel include both:
(I) Appraisers accepted by the AMC for consideration for future appraisal
assignments in covered transactions or for secondary mortgage market
participants in connection with covered transactions; and
(II) Appraisers engaged by the AMC to perform one or more appraisals in
covered transactions or for secondary mortgage market participants in connection
with covered transactions.
(c) An appraiser is an independent contractor for purposes of this subsection
(8) if the appraiser is treated as an independent contractor by the AMC for
purposes of federal income taxation.
(9) (a) Real estate appraiser or appraiser means a person who provides an
estimate of the nature, quality, value, or utility of an interest in, or aspect of,
identified real estate and includes one who estimates value and who possesses the
necessary qualifications, ability, and experience to execute or direct the appraisal
of real property.
(b) Real estate appraiser or appraiser does not include:
(I) A person who conducts appraisals strictly of personal property;
(II) A person licensed as a broker pursuant to part 2 of this article 10 who
provides an opinion of value that is not represented as an appraisal and is not used
for purposes of obtaining financing;
(III) A person licensed as a certified public accountant pursuant to article 100
of this title 12, and otherwise regulated, as long as the person does not represent
his or her opinions of value for real estate as an appraisal;
(IV) A corporation, acting through its officers or regularly salaried
employees, when conducting a valuation of real estate property rights owned, to be
purchased, or sold by the corporation;
(V) A person who conducts appraisals strictly of water rights or of mineral
rights;
(VI) A right-of-way acquisition agent, an appraiser who is licensed and
certified pursuant to this part 6, or any other individual who has sufficient
understanding of the local real estate market to be qualified to make a waiver
valuation when the agent, appraiser, or other qualified individual is employed by or
contracts with a public entity and provides an opinion of value that is not
represented as an appraisal and when, for any purpose, the property or portion of
property being valued is valued at not more than the specified amount permitted by
federal law and 49 CFR 24.102 (c)(2), as amended;
(VII) An officer, director, regularly salaried employee, or agent of a financial
institution or its affiliate who makes, for internal use only by the financial institution
or affiliate, an analysis, evaluation, opinion, conclusion, notation, or compilation of
data with respect to an appraisal so long as the person does not make a written
adjustment of the appraisal's conclusion as to the value of the subject real
property;
(VIII) An officer, director, regularly salaried employee, or agent of a financial
institution or its affiliate who makes an internal analysis, valuation, opinion,
conclusion, notation, or compilation of data concerning an interest in real estate
that is owned or held as collateral by the financial institution or its affiliate; or
(IX) A person who represents property owners as an advocate in tax or
valuation protests and appeals pursuant to title 39.
(10) Uniform standards of professional appraisal practice means the
standards for the appraisal profession in the United States, as adopted by congress
in 1989 through the federal Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, Pub.L. 101-73, as amended, and that the Appraisal
Foundation periodically updates.