CHAPTER 11. APPRAISAL MANAGEMENT COMPANIES
IC 25-34.1-11
Chapter 11. Appraisal Management Companies
IC 25-34.1-11-1
"Appraisal"
Sec. 1. As used in this chapter, "appraisal" has the meaning setforth in IC 24-5-23.5-1.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-2
"Appraisal management company"
Sec. 2. As used in this chapter, "appraisal management company"means a person that, for compensation, acts as a third partyintermediary by contracting with independent real estate appraisersto perform appraisals for other persons.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-3
"Appraisal management services"
Sec. 3. (a) As used in this chapter, "appraisal managementservices" means any of the following functions:
(1) To recruit, qualify, verify licensing or certification, ornegotiate fees and service level expectations with independentreal estate appraisers on behalf of a person seeking an appraisal.
(2) To receive an order for an appraisal from a person anddeliver the order for completion to a independent real estateappraiser.
(3) To track and determine the status of orders for appraisals.
(4) To conduct quality control of a completed appraisal beforedelivery of the appraisal to the client who ordered the appraisal.
(5) To provide a completed appraisal performed by a real estateappraiser to one (1) or more clients.
(b) The term does not include transportation or communication ofan appraisal or order for an appraisal without concern for theappraisal information in the appraisal or the order for an appraisal,including transportation or communication by the United StatesPostal Service, a delivery company, a courier, or an Internet serviceprovider.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-4
"Board"
Sec. 4. As used in this chapter, "board" refers to the real estateappraiser licensure and certification board established byIC 25-34.1-8-1.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-5
"Person"
Sec. 5. (a) As used in this chapter, "person" means an individual
engaged in a trade or business, an association, a partnership, alimited partnership, a limited liability company, a corporation, or asimilar entity.
(b) The term does not include an employee.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-6
"Real estate appraiser"
Sec. 6. As used in this chapter, "real estate appraiser" means aperson who:
(1) prepares an appraisal for a real estate transaction in Indiana;and
(2) meets one (1) or more of the following:
(A) Is licensed as a real estate broker under IC 25-34.1 andperforms real estate appraisals within the scope of theperson's license.
(B) Holds a real estate appraiser license or certificate issuedunder IC 25-34.1-8.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-7
"USPAP"
Sec. 7. "USPAP" refers to the Uniform Standards of ProfessionalAppraisal Practice, as published by the Appraisal Standards Boardof the Appraisal Foundation, under the authority of Title XI of thefederal Financial Institutions Reform, Recover, and Enforcement Act(12 U.S.C. 3331-3351).
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-8
Certificate of registration required
Sec. 8. An appraisal management company may not performappraisal management services unless the appraisal managementcompany has obtained a certificate of registration from the boardunder this chapter.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-9
Information and fee required for registration
Sec. 9. (a) An appraisal management company that wishes toobtain or renew a certificate of registration under this chapter mustsubmit the following information to the board on forms prescribed bythe board:
(1) The name of the person seeking registration.
(2) The business address of the person seeking registration.
(3) The telephone contact information of the person seekingregistration.
(4) The name, address, and contact information of each personthat has an ownership share in an appraisal managementcompany that equals or exceeds five percent (5%) of the total
ownership share of the appraisal management company.
(5) Any other information that the board reasonably requires.
(b) An appraisal management company that wishes to obtain orrenew a certificate of registration must pay the fee established undersection 15 of this chapter.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-10
Issuance of a certificate of registration
Sec. 10. (a) The board shall issue a certificate of registration to anappraisal management company that:
(1) has furnished the information required by section 9(a) ofthis chapter in the manner prescribed by the board; and
(2) paid the fee required under section 9(b) of this chapter.
(b) A certificate of registration issued to an appraisal managementcompany under this chapter expires two (2) years after the date onwhich the certificate of registration is issued.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-11
Restrictions on appraisal management companies
Sec. 11. (a) A person may not own an interest in an appraisalmanagement company if the person has had the person's license orcertificate to act as a real estate appraiser in Indiana or any otherstate revoked and the license or certificate has not been reinstated.
(b) An appraisal management company may only hire anindependent contractor to perform an appraisal who:
(1) holds a license or certificate under IC 25-34.1-3-8 or alicense as a real estate broker under IC 25-34.1; and
(2) is in good standing.
(c) An appraisal management company may not corrupt orimproperly influence a real estate appraiser in violation ofIC 24-5-23.5-7.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-12
Appraisal reviews
Sec. 12. (a) As used in this section, "appraisal review" means theUSPAP Standard 3 process of developing and communicating anopinion about the quality of an independent real estate appraiser'swork that is performed as part of an appraisal assignment made by anappraisal management company. However, the term does not include:
(1) an examination of an appraisal solely for grammaticalerrors, typographical errors, or similar errors; or
(2) a quality control examination for completeness.
(b) An individual who performs an appraisal review must hold alicense or certificate under IC 25-34.1-3-8 or a license as a real estatebroker under IC 25-34.1.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-13
Service requests; record requirements
Sec. 13. (a) An appraisal management company performingappraisal management services shall maintain a record of eachservice request for an appraisal that the appraisal managementcompany receives. The following must be included in a recordmaintained under this subsection:
(1) The person making the service request.
(2) The date on which the service request is made.
(3) The property to be appraised.
(4) The real estate appraiser who performed the appraisal.
(5) A copy of the appraisal produced for the service request.
(6) The individuals who reviewed the appraisal.
(7) The date on which the appraisal was delivered to the personwho made the service request.
(8) The costs and fees for the appraisal management servicesperformed by the appraisal management company.
(9) The costs and fees for the appraisal performed by the realestate appraiser.
(b) An appraisal management company shall keep the recordsdescribed in subsection (a) for not less than six (6) years after thedate specified in subsection (a)(2).
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-14
Registration forms
Sec. 14. The board shall prescribe forms for the registration ofappraisal management companies under this chapter.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-15
Registration fee
Sec. 15. (a) The board shall establish the registration fee to bepaid by an appraisal management company seeking registration underthis chapter. The amount of the registration fee must be the lesser of:
(1) the amount determined by the board to be sufficient for theadministration of appraisal management registrations under thischapter when aggregated with all the registration fees paid byappraisal management companies seeking registration underthis chapter; or
(2) five hundred dollars ($500).
(b) Registration fees collected under this section must bedeposited in the investigative fund established by IC 25-34.1-8-7.5.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-16
Appraisals; standards compliance
Sec. 16. An appraisal management company is responsible forensuring an appraisal complies with standards established:
(1) in the USPAP; and (2) by the board.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-17
Disciplinary sanctions
Sec. 17. (a) An appraisal management company that violates thischapter is subject to disciplinary sanctions under IC 25-1-11-12.
(b) The board may impose a civil penalty of not more than tenthousand dollars ($10,000) for each violation of this chapter.
(c) A civil penalty collected under this section must be depositedin the investigative fund established by IC 25-34.1-8-7.5.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-18
Penalty for failure to register
Sec. 18. (a) A person who performs appraisal managementservices without a certificate of registration under this chaptercommits a Class A infraction.
(b) The attorney general, the board, or the prosecuting attorney ofany county in which a violation occurs may maintain an action in thename of the state to enjoin a person from violating this section.
As added by P.L.77-2010, SEC.2.
IC 25-34.1-11-19
Authority to adopt rules
Sec. 19. The board may adopt rules under IC 4-22-2 that the boardconsiders necessary or advisable for the administration of thischapter.
As added by P.L.77-2010, SEC.2.