AB 472

This bill makes changes to the licensure and certification of real estate

appraisers and the requirements for appraisal reports.

Licensure and certification

Under current law, the Department of Regulation and Licensing (DRL) issues

licenses and certificates to real estate appraisers. To obtain a license or certificate,

a person must satisfy specified requirements, including education, experience, and

examination requirements established in rules promulgated by DRL. Current law

prohibits a person who is not licensed or certified from using a title indicating that

he or she is "Wisconsin licensed," "Wisconsin certified," or something similar. In

addition, current law prohibits a person who is not licensed or certified from

describing or referring to an appraisal of real estate in this state as "Wisconsin

certified," "Wisconsin licensed," or something similar. However, current law allows

a person who is not licensed or certified to appraise real estate or cosign an appraisal

report, if the person does not violate the prohibitions described above.

This bill prohibits a person, for compensation, from performing a real estate

appraisal or preparing or cosigning a real estate appraisal report, unless he or she

is licensed or certified as a real estate appraiser by DRL. In addition, under the bill,

a person who is not licensed or certified may not, for compensation, engage in the

business or occupation of, or hold himself or herself out as, a real estate appraiser.

As a result, a person who is not licensed or certified may not, for compensation,

appraise real estate or cosign an appraisal report, even if he or she does not violate

the current prohibitions. The bill does not affect the requirements that a person

must satisfy to be licensed or certified.

There are three exceptions to the prohibitions created in the bill. First, a person

licensed by DRL under current law as a real estate salesperson or broker may

prepare a broker market analysis without being licensed as a real estate appraiser

under the bill. Under the bill, a "broker market analysis" is an analysis used solely

to establish a listing price or purchase price for a property. Second, the bill does not

apply to an "assessor," defined as a person who assesses real estate for property tax

purposes for a town, village, city, or county or the Department of Revenue (DOR).

Under current law, which this bill does not affect, assessors are regulated by DOR.

Third, the bill's prohibitions do not apply to an individual who is supervised by a

licensed or certified appraiser, under rules to be be promulgated by DRL.

In addition, the bill requires each certified or licensed appraiser to pay to DRL

the annual registry fee that is required by the Federal Financial Institutions

Examination Council. Under current law, a certified or licensed appraiser must pay

the fee to DRL only if he or she performs, or desires to perform, appraisals in certain

transactions overseen by federal agencies.

Appraisal reports

Under current law, an appraisal report prepared by a real estate appraiser