1999 Minnesota Statutes

CHAPTER 82B. Real estate appraisers

     82B.02 Definitions. 

    Subdivision 1.    Scope.  For the purposes of this 
 chapter, the terms in this section have the meanings given them. 

    Subd. 2.    Analysis.  "Analysis" means a study of real 
 estate or real property other than estimating value. 

    Subd. 3.    Appraisal or real estate appraisal.  
 "Appraisal" or "real estate appraisal" means an analysis, 
 opinion, or conclusion relating to the nature, quality, value, 
 or utility of named interests in, or aspects of, identified real 
 estate for purposes of preparing an appraisal report.  An 
 appraisal may be classified by subject matter into either a 
 valuation or an analysis. 

    Subd. 4.    Appraisal assignment.  "Appraisal assignment"
 means an engagement for which an appraiser is employed or 
 retained to act, or would be perceived by third parties or the 
 public as acting, as a disinterested third party in giving an 
 unbiased analysis, opinion, or conclusion relating to the 
 nature, quality, value, or utility of named interests in, or 
 aspects of, identified real estate. 

    Subd. 5.    Appraisal report.  "Appraisal report" means 
 an oral or written communication of an appraisal for 
 compensation that is not a contingent fee as defined in section 
 82B.22 given or signed by a licensed real estate appraiser.  

    Subd. 6.    Board.  "Board" means the real estate 
 appraisal advisory board established under section 82B.05. 

    Subd. 7.    Commissioner.  "Commissioner" means the 
 commissioner of commerce. 

    Subd. 8.    Real estate appraiser.  "Real estate 
 appraiser" means a person who develops and communicates real 
 estate appraisals and who holds a current, valid license issued 
 under this chapter. 

    Subd. 9.    Market analysis.  "Market analysis" means a 
 price opinion prepared by a licensed real estate salesperson or 
 broker for marketing purposes. 

    Subd. 10.    Real estate.  "Real estate" means an 
 identified parcel or tract of land, including improvements, if 
 any. 

    Subd. 11.    Real property.  "Real property" means one 
 or more defined interests, benefits, and rights inherent in the 
 ownership of real estate. 

    Subd. 12.    Standards of professional practice.  
 "Standards of professional practice" means the uniform standards 
 of professional appraisal practice of the Appraisers Standards 
 Board of the Appraisal Foundation in effect as of January 1, 
 1991, or other version of these standards the commissioner may 
 by order designate. 

    Subd. 13.    Valuation.  "Valuation" means an estimate 
 of value of real estate or real property. 

    Subd. 14.    Transaction value.  "Transaction value" 
 means: 

    (1) for loans or other extensions of credit, the amount of 
 the loan or extension of credit; 

    (2) for sales, leases, purchases, and investments in or 
 exchanges of real property, the market value of the real 
 property interest involved; and 

    (3) for the pooling of loans or interests in real property 
 for resale or purchase, the amount of the loan or market value 
 of the real property calculated with respect to each such loan 
 or interest in real property. 

    Subd. 15.    Residential real property or residential real 
 estate.  "Residential real property" or "residential real 
 estate" means property occupied by, or intended to be occupied 
 by, one to four families as their residence. 

    HIST: 1989 c 341 art 1 s 1; 1991 c 97 s 1,2; 1993 c 309 s 22; 
 1994 c 461 s 3 

     82B.03 Prohibitions. 

    Subdivision 1.    License required.  (a) It is unlawful 
 for a person to act as a real estate appraiser in this state 
 unless licensed under this chapter. 

    (b) Only persons licensed under this chapter may advertise 
 or represent themselves to be real estate appraisers. 

    (c) No person, other than a licensed real estate appraiser, 
 may assume or use that title or a title, designation, or 
 abbreviation likely to create the impression of licensure as a 
 real estate appraiser by this state.  

    Subd. 2.    License not required.  (a) An officer or 
 employee of a corporation, partnership, or other business entity 
 may act as a real estate appraiser without obtaining a license 
 under this chapter if the corporation, partnership, or other 
 business entity in which the person is employed or is an officer 
 has an interest in the real estate that is the subject of the 
 appraisal as owners, lenders, investors, or insurers. 

    (b) Notwithstanding licensure under this chapter, any 
 appraisal conducted by a person exempt under this subdivision is 
 only subject to the guidelines for real estate appraisal 
 policies and review procedures of the Federal Deposit Insurance 
 Corporation, the Office of Thrift Supervision, the Federal 
 Reserve Board, the Farm Credit Administration, the National 
 Credit Union Administration, or the comptroller of the currency, 
 if the appraisal was conducted only within the scope and purpose 
 of this subdivision. 

    (c) If a real estate appraisal is made by a person who is 
 exempt from licensing under this subdivision, the person for 
 whom the appraisal is conducted must be given written notice 
 that the appraisal was not conducted by a licensed appraiser, 
 and the appraisal report must clearly state that it was 
 conducted by an interested party and not by a licensed real 
 estate appraiser. 

    HIST: 1989 c 341 art 1 s 2; 1993 c 257 s 44 

     82B.035 Exemption. 

    Subdivision 1.    Market analysis.  This chapter does 
 not apply to a licensed real estate salesperson or broker who, 
 in the ordinary course of the licensee's business, gives a 
 market analysis of the price of real estate, if the market 
 analysis is not referred to or construed as an appraisal. 

    Subd. 2.    Assessors.  Nothing in this chapter shall be 
 construed as requiring the licensing of persons employed and 
 acting in their capacity as assessors for political subdivisions 
 of the state. 

    Subd. 3.    Geologists or engineers.  This chapter does 
 not apply to an appraisal, analysis, opinion, or conclusion as 
 to the value of oil, gas, coal, and other mineral resources 
 performed by an engineer registered as provided in sections 
 326.01 to 326.15 or by a certified professional geologist, 
 unless the appraisal, analysis, opinion, or conclusion of value 
 is performed in connection with a federally related transaction 
 subject to the requirements of United States Code, title 12, 
 section 3331, et seq., the federal Financial Institutions 
 Reform, Recovery, and Enforcement Act of 1989. 

    Subd. 4.    Department of revenue.  This chapter does 
 not require persons employed by, or under contract to, the 
 department of revenue to be licensed in order to perform, 
 conduct, or assist in, an appraisal done within the scope of 
 their employment or contract duties. 

    HIST: 1989 c 341 art 1 s 3; 1993 c 309 s 23; 1993 c 375 art 3 
 s 1 

     82B.04 Responsibility for agents. 

    A real estate appraiser is responsible for the acts of 
 persons acting on the appraiser's behalf.  

    HIST: 1989 c 341 art 1 s 4 

     82B.05 Real estate appraiser advisory board. 

    Subdivision 1.    Members.  The real estate appraiser 
 advisory board consists of 15 members appointed by the 
 commissioner of commerce.  Three of the members must be public 
 members, four must be consumers of appraisal services, and eight 
 must be real estate appraisers of whom not less than two members 
 shall be registered real property appraisers, licensed real 
 property appraisers, or certified residential real property 
 appraisers and not less than two members shall be certified 
 general real property appraisers. 

    Subd. 2. Repealed, 1991 c 97 s 17 

    Subd. 3.    Terms.  The term of office for members is 
 three years. 

    Upon expiration of their terms, members of the board shall 
 continue to hold office until the appointment and qualification 
 of their successors.  No person may serve as a member of the 
 board for more than two consecutive terms.  The commissioner may 
 remove a member for cause. 

    Subd. 4.    Practice of public members prohibited.  The 
 public members of the board may not be engaged in the practice 
 of real estate appraising. 

    Subd. 5.    Conduct of meetings.  Places of regular 
 board meetings must be decided by the vote of members.  Written 
 notice must be given to each member of the time and place of 
 each meeting of the board at least ten days before the scheduled 
 date of regular board meetings.  The board shall establish 
 procedures for emergency board meetings and other operational 
 procedures, subject to the approval of the commissioner.  

    The members of the board shall elect a chair from among the 
 members to preside at board meetings. 

    A quorum of the board is eight members.  

    The board shall meet as determined by a majority vote of 
 the members or a call of the commissioner. 

    Subd. 6.    Compensation.  Each member of the board is 
 entitled to a per diem allowance of $35 for each meeting of the 
 board at which the member is present and for each day or 
 substantial part of a day actually spent in the conduct of the 
 business of the board, plus all appropriate expenses unless a 
 greater amount is authorized by section 15.0575. 

    HIST: 1989 c 341 art 1 s 5; 1991 c 97 s 3; 1992 c 363 art 1 s 
 2; 1993 c 309 s 24,31 

     82B.06 Powers of the board. 

    The board shall make recommendations to the commissioner as 
 the commissioner requests on: 

    (1) rules with respect to each category of licensed real 
 estate appraiser, the type of educational experience, appraisal 
 experience, and equivalent experience that will meet the 
 requirements of this chapter; 

    (2) examination specifications for each category of 
 licensed real estate appraiser, to assist in providing or 
 obtaining appropriate examination questions and answers, and 
 procedures for grading examinations; 

    (3) rules with respect to each category of licensed real 
 estate appraiser, the continuing education requirements for the 
 renewal of licensing that will meet the requirements provided in 
 this chapter; 

    (4) periodic review of the standards for the development 
 and communication of real estate appraisals provided in this 
 chapter and rules explaining and interpreting the standards; and 

    (5) other matters necessary in carrying out the provisions 
 of this chapter. 

    HIST: 1989 c 341 art 1 s 6 

     82B.07 Powers of the commissioner. 

    The commissioner shall: 

    (1) receive applications for licenses; 

    (2) establish the procedures for processing applications 
 for licensing; 

    (3) issue a license for appraisers; 

    (4) maintain a registry of the names and addresses of 
 people licensed under this chapter; 

    (5) keep records and all application materials submitted to 
 the commissioner; 

    (6) conduct investigations; 

    (7) deny, revoke, and suspend licenses; and 

    (8) take other actions necessary to carry out the purposes 
 of this chapter.  

    HIST: 1989 c 341 art 1 s 7 

     82B.08 Licensing requirements. 

    Subdivision 1.    Generally.  The commissioner shall 
 issue a license as a real estate appraiser to a person who 
 qualifies for the license under the terms of this chapter. 

    Subd. 2.    Qualification of applicants.  An applicant 
 must be at least 18 years of age when making application. 

    Subd. 3.    Application for license; contents.  (a) An 
 applicant for a license must apply in writing upon forms 
 prescribed by the commissioner.  Each application must be signed 
 and sworn to by the applicant and must be accompanied by the 
 license fee required by this chapter. 

    (b) An application must contain information required by the 
 commissioner consistent with the provisions and purposes of this 
 chapter. 

    (c) An application must give the applicant's name, age, 
 residence address, and the name and place of business. 

    (d) The commissioner may require additional information the 
 commissioner considers appropriate to administer this chapter. 

    (e) When filing an initial application or application for 
 renewal for a license, the applicant shall state that the person 
 agrees to comply with the standards set forth in this chapter 
 and that the person understands the types of misconduct for 
 which disciplinary proceedings may be started against a licensed 
 real estate appraiser. 

    (f) The application for original licensing, renewal 
 licensing, and examination must specify the classification of 
 licensing being applied for and previously granted. 

    Subd. 4.    Effective date of license.  Initial licenses 
 issued under this chapter are valid for a period not to exceed 
 two years.  The commissioner shall assign an expiration date to 
 each initial license so that approximately one-half of all 
 licenses expire each year.  Each initial license must expire on 
 August 31 of the expiration year assigned by the commissioner. 

    Subd. 5.    Renewals.  (a) Licenses renewed under this 
 chapter are valid for a period of 24 months.  Persons whose 
 applications have been properly and timely filed who have not 
 received notice of denial of renewal are considered to have been 
 approved for renewal and may continue to transact business as a 
 real estate appraiser whether or not the renewed license has 
 been received on or before September 1 of the renewal year.  
 Application for renewal of a license is considered to have been 
 timely filed if received by the commissioner by, or mailed with 
 proper postage and postmarked by, August 1 of the renewal year.  
 Applications for renewal are considered properly filed if made 
 upon forms duly executed and sworn to, accompanied by fees 
 prescribed by this chapter and containing information the 
 commissioner requires.  

    (b) Persons who have failed to make a timely application 
 for renewal of a license and who have not received the renewal 
 license as of September 1 of the renewal year are unlicensed 
 until the time the license has been issued by the commissioner 
 and is received. 

    Subd. 6.    Notice.  Notice in writing must be given to 
 the commissioner by each licensee of any change in personal 
 name, trade name, address or business location not later than 
 ten days after the change.  The commissioner shall issue a new 
 license if required for the unexpired period. 

    Subd. 7.    Nonresidents.  A nonresident of Minnesota 
 may be licensed as a real estate appraiser upon compliance with 
 all provisions of this chapter. 

    HIST: 1989 c 341 art 1 s 8; 1994 c 632 art 4 s 39,40 

     82B.09 Fees. 

    Subdivision 1.    Amounts.  The following fees must be 
 paid to the commissioner for each initial individual real estate 
 appraiser's license:  $150 if the license expires more than 12 
 months after issuance, $100 if the license expires less than 12 
 months after issuance; and a fee of $100 for each renewal. 

    Subd. 2.    Forfeiture.  All fees must be kept by the 
 commissioner and are nonreturnable, except that an overpayment 
 of a fee shall be refunded upon proper application.  

    HIST: 1989 c 341 art 1 s 9; 1992 c 513 art 3 s 29; 1994 c 632 
 art 4 s 41; 1997 c 200 art 1 s 49 

     82B.10 Examinations. 

    Subdivision 1.    Generally.  An applicant for a license 
 must pass an examination conducted by the commissioner.  The 
 examinations must be of sufficient scope to establish the 
 competency of the applicant to act as a real estate appraiser. 

    Subd. 2.    Reexaminations.  An examination must be 
 required before renewal of a license that has been suspended, or 
 before the issuance of a license to a person whose license has 
 been ineffective for a period of two years.  No reexamination is 
 required of an individual who has failed to renew an existing 
 license because of absence from the state while on active duty 
 with the armed services of the United States of America.  

    Subd. 3.    Examination frequency.  The commissioner 
 shall hold examinations at times and places the commissioner 
 determines.  

    Subd. 4.    Period for application.  An applicant who 
 obtains an acceptable score on an examination must file an 
 application and obtain the license within one year of the date 
 of successful completion of the examination or a second 
 examination must be taken to qualify for the license.  

    Subd. 5.    Renewal; examination.  Except as provided in 
 subdivision 2, no examination is required for the renewal of a 
 license.  However, a licensee who has been licensed in the state 
 of Minnesota and who fails to renew the license for a period of 
 two years must be required by the commissioner to again take an 
 examination. 

    Subd. 6.    Examination eligibility; revocation.  No 
 applicant may take an examination if a license as a real estate 
 appraiser has been revoked in this or another state within two 
 years of the date of the application. 

    Subd. 7.    Reciprocity.  This section may be waived by 
 the commissioner for individuals of other jurisdictions if:  (1) 
 a written reciprocal licensing agreement is in effect between 
 the commissioner and the licensing officials of that 
 jurisdiction, (2) the individual is licensed in that 
 jurisdiction, and (3) the licensing requirements of that 
 jurisdiction are substantially similar to the provisions of this 
 chapter. 

    Subd. 8.    Fees.  The commissioner may assess an 
 examination fee sufficient to recover the actual direct costs of 
 holding the examination.  

    HIST: 1989 c 341 art 1 s 10 

     82B.11 Classes of license. 

    Subdivision 1.    Generally.  There are five classes of 
 license for real estate appraisers. 

    Subd. 2.    Registered real property appraiser.  When a 
 net income capitalization analysis is not required by the 
 uniform standards of professional appraisal practice, a 
 registered real property appraiser may appraise residential real 
 property or agricultural property. 

    Subd. 3.    Licensed real property appraiser.  A 
 licensed real property appraiser may appraise noncomplex 
 residential property or agricultural property having a 
 transaction value less than $1,000,000 and complex residential 
 or agricultural property having a transaction value less than 
 $250,000. 

    Subd. 4.    Certified residential real property appraiser. 
  A certified residential real property appraiser may appraise 
 residential property or agricultural property without regard to 
 transaction value or complexity. 

    Subd. 5.    Certified general real property appraiser.  
 A certified general real property appraiser may appraise all 
 types of real property. 

    Subd. 6.    Temporary practice.  The commissioner shall 
 issue a license for temporary practice as a real estate 
 appraiser under subdivision 3, 4, or 5 to a person certified or 
 licensed by another state if: 

    (1) the property to be appraised is part of a federally 
 related transaction and the person is licensed to appraise 
 property limited to the same transaction value or complexity 
 provided in subdivision 3, 4, or 5; 

    (2) the appraiser's business is of a temporary nature; and 

    (3) the appraiser registers with the commissioner to obtain 
 a temporary license before conducting appraisals within the 
 state. 

    HIST: 1989 c 341 art 1 s 11; 1991 c 97 s 4; 1992 c 363 art 1 s 
 3; 1992 c 587 art 4 s 1,2; 1993 c 309 s 25 

     82B.12 Examination requirement. 

    An original license as a licensed real estate appraiser 
 must be issued to a person who has demonstrated through a 
 written examination process that the appraiser has the following 
 qualifications: 

    (1) appropriate knowledge of technical terms commonly used 
 in or related to real estate appraising, appraisal report 
 writing, and economic concepts applicable to real estate; 

    (2) understanding the principles of land economics, real 
 estate appraisal processes, and problems likely to be 
 encountered in gathering, interpreting, and processing of data 
 in carrying out appraisal disciplines; 

    (3) understanding the standards for the development and 
 communication of real estate appraisals as provided in this 
 chapter; 

    (4) knowledge of theories of depreciation, cost estimating, 
 methods of capitalization, and the mathematics of real estate 
 appraisal that are appropriate for the classification of license 
 for which the person is applying; 

    (5) knowledge of other principles and procedures 
 appropriate for the classification of license for which the 
 person is applying; 

    (6) basic understanding of real estate law; and 

    (7) understanding the types of misconduct and ethical 
 considerations for which disciplinary proceedings may be started 
 against a licensed real estate appraiser. 

    HIST: 1989 c 341 art 1 s 12 

     82B.13 Education prerequisites. 

    Subdivision 1.    Registered real property appraiser or 
 licensed real property appraiser.  As a prerequisite for 
 licensing as a registered real property appraiser or licensed 
 real property appraiser, an applicant must present evidence 
 satisfactory to the commissioner that the person has 
 successfully completed at least 90 classroom hours of courses. 
 The courses must consist of 75 hours of general real estate 
 appraisal principles and 15 hours related to standards of 
 professional appraisal practice and the provisions of this 
 chapter.  

    Subd. 2. Repealed, 1991 c 97 s 17 

    Subd. 3.    Commissioner's approval; rules.  The courses 
 and instruction and procedures of courses must be approved by 
 the commissioner.  The commissioner may adopt rules to 
 administer this section.  These rules must, to the extent 
 practicable, conform to the rules adopted for real estate and 
 insurance education.  

    Subd. 4.    Certified residential real property appraiser. 
  As a prerequisite for licensing as a certified residential 
 real property appraiser, an applicant must present evidence 
 satisfactory to the commissioner that the person has 
 successfully completed at least 120 classroom hours of courses, 
 including 15 hours related to the standards of professional 
 appraisal practice and the provisions of this chapter, with 
 particular emphasis on the appraisal of one to four unit 
 residential properties. 

    Subd. 5.    Certified general real property appraiser.  
 As a prerequisite for licensing as a certified general real 
 property appraiser, an applicant must present evidence 
 satisfactory to the commissioner that the person has 
 successfully completed at least 180 classroom hours of courses, 
 including 15 hours related to the standards of professional 
 appraisal practice and the provisions of this chapter, with 
 particular emphasis on the appraisal of nonresidential 
 properties. 

    HIST: 1989 c 341 art 1 s 13; 1991 c 97 s 5-7; 1992 c 587 art 4 
 s 3; 1993 c 309 s 31; 1997 c 222 s 37-39 

     82B.14 Experience requirement. 

    (a) As a prerequisite for licensing as a registered real 
 property appraiser or licensed real property appraiser, an 
 applicant must present evidence satisfactory to the commissioner 
 that the person has obtained 2,000 hours of experience in real 
 property appraisal. 

    As a prerequisite for licensing as a certified residential 
 real property appraiser, an applicant must present evidence 
 satisfactory to the commissioner that the person has obtained 
 2,500 hours of experience in real property appraisal. 

    As a prerequisite for licensing as a certified general real 
 property appraiser, an applicant must present evidence 
 satisfactory to the commissioner that the person has obtained 
 3,000 hours of experience in real property appraisal. 

    (b) Each applicant for license under section 82B.11, 
 subdivision 3, 4, or 5, shall give under oath a detailed listing 
 of the real estate appraisal reports or file memoranda for which 
 experience is claimed by the applicant.  Upon request, the 
 applicant shall make available to the commissioner for 
 examination, a sample of appraisal reports that the applicant 
 has prepared in the course of appraisal practice. 

    (c) Applicants may not receive credit for experience 
 accumulated while unlicensed, if the experience is based on 
 activities which required a license under this section. 

    HIST: 1989 c 341 art 1 s 14; 1991 c 97 s 8; 1992 c 587 art 4 s 
 4; 1993 c 309 s 26; 1997 c 222 s 40 

     82B.15 Nonresident service of process. 

    Subdivision 1.    Appointment of commissioner.  A 
 nonresident, before being licensed as a real estate appraiser, 
 shall appoint the commissioner and a successor or successors in 
 office as true and lawful attorney, upon whom may be served all 
 legal process in an action or proceedings against the person, or 
 in which the person may be a party, in relation to or involving 
 a transaction covered by this chapter or a rule or order under 
 this chapter.  The appointment is irrevocable.  Service upon the 
 attorney is as valid and binding as if due and personal service 
 had been made upon the person.  The appointment is effective 
 upon the issuance of the license in connection with which the 
 appointment was filed. 

    Subd. 2.    Effect of nonappointment.  The commission of 
 an act constituting a violation of this chapter or rule or order 
 adopted under this chapter by a nonresident person who has not 
 appointed the commissioner as attorney in compliance with 
 subdivision 1, is conclusively considered an irrevocable 
 appointment by the person of the commissioner and a successor or 
 successors in an action or proceedings against the nonresident 
 or in which the nonresident may be a party in relation to or 
 involving the violation.  The violation is a signification of 
 agreement that all legal process that is served is as valid and 
 binding upon the nonresident as if due and personal service had 
 been made. 

    Subd. 3.    Procedure.  Service of process under this 
 section shall be made in compliance with section 45.028, 
 subdivision 2.  

    HIST: 1989 c 341 art 1 s 15; 1991 c 97 s 9; 1992 c 564 art 2 s 
 16 

     82B.16 Principal place of business and notice. 

    A licensed real estate appraiser shall advise the 
 commissioner of the address of the person's principal place of 
 business and all other addresses at which the person is now 
 engaged in the business of preparing real property appraisal 
 reports. 

    When a licensed real estate appraiser changes a place of 
 business, the person shall immediately give written notification 
 of the change to the commissioner and apply for an amended 
 license. 

    A licensed real estate appraiser shall notify the 
 commissioner of the person's current residence address. 

    HIST: 1989 c 341 art 1 s 16 

     82B.17 License designation. 

    When a real estate appraiser uses the designation real 
 estate appraiser or similar terms in an appraisal report or in a 
 contract or other instrument used by the license holder in 
 conducting real property appraisal activities or in 
 advertisements, the appraiser shall place the appraiser's 
 license number adjacent to or immediately below the designation 
 used and indicate the class of license held. 

    HIST: 1989 c 341 art 1 s 17; 1991 c 97 s 10; 1992 c 363 art 1 
 s 4 

     82B.18 Use of term. 

    The term "real estate appraiser" may only be used to refer 
 to individuals who hold a license under this chapter.  The term 
 may not be used following or immediately in connection with the 
 name or signature of a firm, partnership, corporation, or group; 
 or in a manner that might cause it to be interpreted as 
 referring to a firm, partnership, corporation, group, or anyone 
 other than an individual holder of the license. 

    No license may be issued under this chapter to a 
 corporation, partnership, firm, or group.  This does not prevent 
 a licensed real estate appraiser from signing an appraisal 
 report on behalf of a corporation, partnership, firm, or group 
 practice. 

    HIST: 1989 c 341 art 1 s 18; 1991 c 97 s 11 

     82B.19 Continuing education. 

    Subdivision 1.    License renewals.  A licensed real 
 estate appraiser shall present evidence satisfactory to the 
 commissioner of having met the continuing education requirements 
 of this chapter before the commissioner renews a license. 

    The basic continuing education requirement for renewal of a 
 license is the completion by the applicant either as a student 
 or as an instructor, during the immediately preceding term of 
 licensing, of at least 30 classroom hours of instruction in 
 courses or seminars that have received the approval of the 
 commissioner.  As part of the continuing education requirements 
 of this section, the commissioner shall require that all real 
 estate appraisers receive at least four hours of training each 
 license period in courses in laws or regulations on standards of 
 professional practice.  If the applicant's immediately preceding 
 term of licensing consisted of 12 or more months, but fewer than 
 24 months, the applicant must provide evidence of completion of 
 15 hours of instruction during the license period.  If the 
 immediately preceding term of licensing consisted of fewer than 
 12 months, no continuing education need be reported. 

    Subd. 2.    Rules.  (a) The commissioner may adopt rules 
 to assure that persons renewing their licenses as licensed real 
 estate appraisers have current knowledge of real property 
 appraisal theories, practices, and techniques that will provide 
 a high degree of service and protection to those members of the 
 public with whom they deal in a professional relationship under 
 authority of their license.  

    (b) To the extent the commissioner considers it 
 appropriate, courses or parts of courses may be considered to 
 satisfy both continuing education requirements under this 
 section and continuing real estate education requirements. 

    (c) As a prerequisite for course approval, sponsors shall 
 submit proposed monitoring methods, and systems for recording 
 attendance sufficient to ensure that participants receive course 
 credit only for portions actually attended. 

    Subd. 3.    Reinstatements.  A license as a real estate 
 appraiser that has been revoked as a result of disciplinary 
 action by the commissioner may not be reinstated unless the 
 applicant presents evidence of completion of the continuing 
 education required by this chapter.  This requirement may not be 
 imposed upon an applicant for reinstatement who has been 
 required to successfully complete the examination for real 
 estate appraiser as a condition to reinstatement of a license. 

    Subd. 4.    Renewal of accreditation.  The commissioner 
 is authorized to establish a procedure for renewal of course 
 accreditation. 

    HIST: 1989 c 341 art 1 s 19; 1991 c 97 s 12; 1992 c 363 art 1 
 s 5; 1993 c 309 s 27; 1994 c 632 art 4 s 42; 1996 c 439 art 3 s 
 11; 1997 c 222 s 41 

     82B.20 Prohibited practices. 

    Subdivision 1.    Enforcement.  The license of a 
 licensed real estate appraiser may be denied, revoked, or 
 suspended, or the person may be otherwise disciplined in 
 accordance with this chapter, upon any of the grounds set forth 
 in this section.  

    Subd. 2.    Conduct prohibited.  No person may: 

    (1) obtain or try to obtain a license under this chapter by 
 knowingly making a false statement, submitting false 
 information, refusing to provide complete information in 
 response to a question in an application for license, or through 
 any form of fraud or misrepresentation; 

    (2) fail to meet the minimum qualifications established by 
 this chapter; 

    (3) be convicted, including a conviction based upon a plea 
 of guilty or nolo contendere, of a crime that is substantially 
 related to the qualifications, functions, and duties of a person 
 developing real estate appraisals and communicating real estate 
 appraisals to others; 

    (4) engage in an act or omission involving dishonesty, 
 fraud, or misrepresentation with the intent to substantially 
 benefit the license holder or another person or with the intent 
 to substantially injure another person; 

    (5) engage in a violation of any of the standards for the 
 development or communication of real estate appraisals as 
 provided in this chapter; 

    (6) fail or refuse without good cause to exercise 
 reasonable diligence in developing an appraisal, preparing an 
 appraisal report, or communicating an appraisal; 

    (7) engage in negligence or incompetence in developing an 
 appraisal, in preparing an appraisal report, or in communicating 
 an appraisal; 

    (8) willfully disregard or violate any of the provisions of 
 this chapter or the rules of the commissioner for the 
 administration and enforcement of the provisions of this 
 chapter; 

    (9) accept an appraisal assignment when the employment 
 itself is contingent upon the appraiser reporting a 
 predetermined estimate, analysis, or opinion, or where the fee 
 to be paid is contingent upon the opinion, conclusion, or 
 valuation reached, or upon the consequences resulting from the 
 appraisal assignment; 

    (10) violate the confidential nature of governmental 
 records to which the person gained access through employment or 
 engagement as an appraiser by a governmental agency; 

    (11) offer, pay, or give, and no person shall accept, any 
 compensation or other thing of value from a real estate 
 appraiser by way of commission-splitting, rebate, finder's fee, 
 or otherwise in connection with a real estate appraisal.  This 
 prohibition does not apply to transactions among persons 
 licensed under this chapter if the transactions involve 
 appraisals for which the license is required; 

    (12) engage or authorize a person, except a person licensed 
 under this chapter, to act as a real estate appraiser on the 
 appraiser's behalf; 

    (13) violate standards of professional practice; 

    (14) make an oral appraisal report without also making a 
 written report within a reasonable time after the oral report is 
 made; 

    (15) represent a market analysis to be an appraisal report; 

    (16) give an appraisal in any circumstances where the 
 appraiser has a conflict of interest, as determined under rules 
 adopted by the commissioner; or 

    (17) engage in other acts the commissioner by rule 
 prohibits. 

    HIST: 1989 c 341 art 1 s 20; 1992 c 464 art 1 s 10 

     82B.201 Criminal penalty. 

    A person is guilty of a gross misdemeanor and may be 
 sentenced to imprisonment for not more than one year or to 
 payment of a fine of not more than $3,000, or both, if the 
 person: 

    (1) violates section 82B.20, subdivision 2, clause (4); 

    (2) performs unlicensed activities, if a license is 
 required under this chapter; or 

    (3) violates any order issued by the commissioner related 
 to conduct prohibited by clause (1). 

    HIST: 1999 c 137 s 5; 1999 c 209 s 1; 1999 c 223 art 2 s 15,80 

     82B.21 Classification of services. 

    A client or employer may retain or employ a licensed real 
 estate appraiser to act as a disinterested third party in giving 
 an unbiased estimate of value or analysis.  A client or employer 
 may also retain or employ a licensed real estate appraiser to 
 provide a market analysis to facilitate the client's or 
 employer's objectives.  In either case, the appraisal and the 
 appraisal report must comply with the provisions of this chapter.

    HIST: 1989 c 341 art 1 s 21 

     82B.22 Contingent fees. 

    A licensed real estate appraiser may not accept a 
 commission for an appraisal assignment that is contingent upon 
 the appraiser reporting a predetermined estimate, analysis, or 
 opinion, or is contingent upon the opinion, conclusion, or 
 valuation reached, or upon the consequences resulting from the 
 appraisal assignment. 

    A licensed real estate appraiser who enters into an 
 agreement to perform a market analysis may be paid a fixed fee 
 or a fee that is contingent on the results achieved by the 
 specialized services. 

    If a licensed real estate appraiser enters into an 
 agreement to perform a market analysis for a contingent fee, 
 this fact must be clearly stated in each written and oral 
 report.  In each written report, this fact must be clearly 
 stated in a prominent location in the report and also in each 
 letter of transmittal and in the licensing statement made by the 
 appraiser in the report. 

    HIST: 1989 c 341 art 1 s 22 

     82B.221 Transition period provisions. 

    (a) The commissioner may issue a license as provided under 
 section 82B.11, subdivision 3, 4, or 5, to a person who 
 satisfies the requirements of sections 82B.10, 82B.12, and 
 82B.13, but has not satisfied the requirement of section 82B.14, 
 provided the person provides evidence satisfactory to the 
 commissioner that they have acquired the equivalent of two years 
 of experience in real property appraisal by September 1, 1993. 

    (b) The commissioner may issue a license as provided under 
 section 82B.11, subdivision 3, 4, or 5, to a person who has 
 satisfied the requirements of sections 82B.10, 82B.12, and 
 82B.14, but who has not satisfied the requirements of section 
 82B.13, provided the person provides evidence satisfactory to 
 the commissioner of completion of the appropriate licensing 
 prerequisite education by September 1, 1993. 

    (c) Failure to meet the requirements of paragraph (a) or 
 (b) shall be grounds for revocation of a real estate appraiser's 
 license. 

    HIST: 1991 c 97 s 13 

  82B.225 Repealed, 1989 c 341 art 1 s 26; 1991 c 97 s 17; 
  1992 c 363 art 1 s 6 

     82B.23 Federal certification. 

    Subdivision 1.    Requirement.  The commissioner shall 
 certify and transmit to the appraisal subcommittee established 
 pursuant to the Federal Institutions Reform, Recovery, and 
 Enforcement Act of 1989, Public Law Number 100-73, the names of 
 those licensees who have satisfied the requirements for 
 certification established by the appraisal subcommittee and to 
 collect and transmit any required fees. 

    Subd. 2.    Publication of federal certification criteria. 
  The commissioner shall file the federal certification 
 criteria with the revisor of statutes for publication in 
 Minnesota Rules.  The revisor has the same editorial power over 
 these criteria as the revisor has for rules adopted pursuant to 
 chapter 14. 

    HIST: 1991 c 97 s 14