§ 25-34.1-11-13.5 — "Peers"; "scope of work"; deadline for appraisal management company to pay real estate appraiser; exceptions; inclusion of real estate appraiser's fee in appraisal report

Indiana § 25-34.1-11-13.5

• Jurisdiction: Indiana
• Title 25: PROFESSIONS AND OCCUPATIONS
• Art. 34.1: REAL ESTATE BROKERS AND
• Ch. 11: Appraisal Management Companies

Text

5. (a) As used in this section, "peers",
with respect to a real estate appraiser who performs an appraisal
assignment for an appraisal management company, means other real
estate appraisers who have expertise and competency in a similar type
of assignment.
(b) As used in this section, "scope of work", with respect to an
appraisal assignment, means the type and extent of research and
analysis in the appraisal assignment.
(c) Except as provided in subsection (d), an appraisal management
company that engages a real estate appraiser as an independent
contractor, as described in section 3 of this chapter, to perform an
appraisal under this chapter shall pay the real estate appraiser for the
appraisal not later than:
(1) the deadline indicated by the payment terms set forth in:
(A) the contract or agreement under which the appraisal
management company engages the real estate appraiser to
perform the appraisal, if applicable; or
(B) the real estate appraiser's invoice to the appraisal
management company if:
(i) a contract or an agreement described in clause (A) does
not exist with respect to the particular appraisal; or
(ii) a contract or an agreement described in clause (A) exists
with respect to the particular appraisal, but does not address
payment terms or clearly indicate a payment deadline; or
(2) forty-five (45) days after the delivery of the appraisal report to
the appraisal management company by the real estate appraiser if:
(A) a contract, an agreement, or an invoice described in
subdivision (1) does not exist with respect to the particular
appraisal; or
(B) a contract, an agreement, or an invoice described in
subdivision (1) exists with respect to the particular appraisal,
but does not address payment terms or clearly indicate a
payment deadline.
(d) The times set forth in subsection (c) for payment by an appraisal
management company for an appraisal performed by a real estate
appraiser under this chapter do not apply in the case of any of the
following:
(1) A breach by the real estate appraiser of the contract or
agreement under which the appraisal management company
engages the real estate appraiser to perform the appraisal.
(2) The inclusion in the appraisal report of one (1) or more
significant and material documented errors of law, regulation, or
appraisal standards.
(3) The failure of the real estate appraiser's scope of work to meet
or exceed:
(A) the expectations of parties who are regularly intended users
for similar assignments; and
(B) what the actions of the real estate appraiser's peers would
be in performing the same or a similar assignment.
(e) An appraisal management company may not prohibit a real
estate appraiser from including in an appraisal report the real estate
appraiser's fee amount for preparing the appraisal.

Legislative History

As added by P.L.15-2018, SEC.2.