ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2097
(By Delegates Farris and Beane)
[Passed March 11, 1995; in effect ninety days from passage.]
AN ACT to amend and reenact sections four and five, article fourteen,
chapter thirty-seven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to circumstances under which the
requirement that appraisements of property be performed by licensed or
certified appraisers does not apply; increasing the value of real estate
which certain financial institutions may consider to be potential
collateral for a loan below which the requirement that an appraisement of
the real estate be performed by a licensed or certified appraiser does not
apply from one hundred thousand dollars to two hundred fifty thousand
dollars; requiring that loan customers be notified of the financial
institution's intention to use an evaluation rather than an appraisement
of the real estate in such circumstance and provide the customer the
opportunity to elect an evaluation by a certified or licensed appraiser;
payment of the cost of such elected evaluation; increasing the membership of the real estate appraiser licensing and certification board from seven
to nine members; increasing the number of members of the board who must be
real estate appraisers having at least five years experience in appraisal
as a principal line of work immediately preceding their appointment from
two to four members; and increasing the number of members which may be
appointed to the board from each congressional district from one to two
members.
Be it enacted by the Legislature of West Virginia:
That sections four and five, article fourteen, chapter thirty-seven
of the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 14. THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION ACT.
§37-14-4. Exceptions to license or certification requirement.
This article does not apply to:
(a) A real estate broker or salesperson licensed by this state who,
in the ordinary course of his or her business, gives an opinion to a
potential seller or third party as to the recommended listing price of
real estate or an opinion to a potential purchaser or third party as to
the recommended purchase price of real estate, when this opinion as to the
listing price or the purchase price is not to be referred to as an
appraisal, no opinion is rendered as to the value of the real estate and
no fee is charged;
(b) A casual or drive-by inspection of real estate in connection with a consumer loan secured by the said real estate, when the inspection is
not referred to as an appraisal, no opinion is rendered as to the value of
the real estate and no fee is charged for the inspection;
(c) An employee who renders an opinion as to the value of real estate
for his full-time employer, for the employer's internal use only and
performed in the regular course of the employee's position, when the
opinion is not referred to as an appraisal and no fee is charged;
(d) Appraisals of personal property, including, but not limited to,
jewelry, household furnishings, vehicles and manufactured homes not
attached to real estate;
(e) Any officer or employee of the United States, or of the state of
West Virginia or a political subdivision thereof, when the employee or
officer is performing his official duties: Provided, That such individual
does not furnish advisory service for compensation to the public or act as
an independent contracting party in West Virginia or any subdivision
thereof in connection with the appraisal of real estate or real property:
Provided, however, That this exception shall not apply with respect to
federally related transactions as defined in Title XI of the United States
Code, entitled "Financial Institutions Reform, Recovery, and Enforcement
Act of 1989"; and
(f) Any evaluation of the value of real estate serving as collateral
for a loan made by a financial institution insured by the federal deposit insurance corporation: Provided, That: (1) The amount of the loan is
equal to or less than two hundred fifty thousand dollars; (2) the
evaluation is used solely by the lender in its records to document the
collateral value; (3) the evaluation clearly indicates on its face that it
is for the lender's internal use only; (4) the evaluation shall not be
labeled an "appraisal"; and (5) the evaluation be on a form approved by
the board. Individuals performing these evaluations may be compensated
for their services.
The lender shall notify its customer if it intends to
use an unlicensed evaluator and give that customer the opportunity to
elect an evaluation, by a certified or licensed appraiser, the cost of
which shall be paid as agreed between the lender and the customer.
§37-14-5. Board created; appointment, qualifications, terms,
oath, etc., of members; quorum; meetings; when members are
disqualified from participation; compensation; records;
office space; personnel.
(a) There is hereby created the West Virginia real estate appraiser
licensing and certification board which consists of nine members
appointed by the governor with the advice and consent of the Senate. Each
member shall be a resident of the state of West Virginia. Four members
shall be real estate appraisers having at least five years' experience in
appraisal as a principal line of work immediately preceding their
appointment, two members shall be selected from financial institutions
having at least five years' experience in real estate lending, and three members who shall not be engaged in the practice of real estate appraisal,
real estate brokerage or sales or have any financial interest in such
practices. No member of the board may concurrently be a member of the
West Virginia real estate commission. Not more than two appraiser members
may be appointed from each congressional district.
(b) Appointments shall be for a three-year term, except of the
members first appointed, three shall serve for two years and one for one
year. Each real estate appraiser appointed after the first day of
January, one thousand nine hundred ninety-one, shall have appraisal as
their principal work and must be a state certified real estate appraiser
under this article at the time of appointment and during the term of
appointment. No member appointed shall serve for more than six
consecutive years. Before entering upon the performance of his duties,
each member shall subscribe to the oath required by section five, article
four of the Constitution of this state. The governor shall, within sixty
days following the occurrence of a vacancy on the board, fill the same by
appointing a person for the unexpired term of, and meeting the same
requirements for membership as, the person vacating said office. Any
member may be removed by the governor in case of incompetency, neglect of
duty, gross immorality or malfeasance in office.
(c) The board shall elect a chairman. A majority of the members of
the board shall constitute a quorum. The board shall meet at least once in each calendar quarter on a date fixed by the board. The board may,
upon its own motion, or shall upon the written request of three members of
the board, call additional meetings of the board upon at least twenty-four
hours' notice. No member shall participate in a proceeding before the
board to which a corporation, partnership or unincorporated association is
a party, and of which he is or was at any time in the preceding twelve
months a director, officer, owner, partner, employee, member or
stockholder. A member may disqualify himself from participation in a
proceeding for any other cause deemed by him to be sufficient. Each
member shall receive fifty dollars for each day or portion thereof spent
in attending meetings of the board and shall be reimbursed for all
reasonable and necessary expenses incurred incidental to his duties as a
member of the board.
(d) The board shall keep an accurate record of all of its proceedings
and make certificates thereupon as may be required by law.