InfoBytes Blog
Rhode Island enacts provisions for real estate appraisal
On June 20, the Rhode Island state governor signed SB 850 (the “Act”), which amends the Real Estate Appraiser Certification Act and the Real Estate Appraisal Management Company (AMC) Registration Act for consistency with federal laws and recommendations from the appraisal subcommittee. Among other things, the Act includes new terminology, including “covered transaction” and “state-licensed real estate appraiser.” This Act sets forth numerous additional provisions, one of which requires that appraisals must be performed by licensed or certified appraisers unless they are specifically exempt under federal law. Also amended are state-certified appraisers and state-licensed appraisers’ classifications. Specifically, the text defining residential property appraisal is replaced with a general statement that requirements for certification and licensing of appraisers will be “as required by the appraiser qualifications board of the appraisal foundation.” Another addition addresses the continuing education requirement for state-licensed and state-certified real estate appraisers, which now stipulates that up to one-half of an individual’s continuing education requirement may be completed by participation in certain educational activities approved by the board. Concerning registration, the Act contains a new subsection, detailing that AMCs cannot be registered in the state if any owner (an individual who owns more than 10 percent) of the AMC fails to submit to a background check or any owner is determined by the director to not have good moral character. Among other amendments, the Act also stipulates that registration is now valid for only one year (previously two years) after issuance.
The Act is effective upon passage.