2007 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.
    Subd. 16. USPAP. "USPAP" means the Uniform Standards of Professional Appraisal
Practice established by the Appraisal Foundation.
History: 1989 c 341 art 1 s 1; 1991 c 97 s 1,2; 1993 c 309 s 22; 1994 c 461 s 3; 2005 c 100 s 8

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.
History: 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.
History: 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.
History: 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, not less than two members shall be
certified general real property appraisers, and not less than one member shall be certified by the
Appraisal Qualification Board of the Appraisal Foundation to teach the Uniform Standards of
Professional Appraisal Practice. The board is governed by section 15.0575.
    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 at least once every six months 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.
History: 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; 2001
c 161 s 16; 1Sp2005 c 1 art 4 s 7,8

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

82B.09 FEES.
    Subdivision 1. Amounts. (a) The following fees must be paid to the commissioner:
    (1) $150 for each initial individual real estate appraiser's license; and
    (2) $100 for each renewal.
    (b) In addition to the fees required under this subdivision, individual real estate appraisers
shall pay a technology surcharge of up to $40 under section 45.24, unless the commissioner has
adjusted the surcharge as permitted under that section.
    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.
History: 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; 1Sp2005 c 1 art 4 s 9; 2007 c 57 art 3 s 38

82B.095 APPRAISER QUALIFICATION COMPONENTS.
    Subdivision 1. Components before January 1, 2009. The three components required for
a real property appraiser license are education, experience, and examination. Applicants for a
class of license must document that they have met at least the component criteria that were in
effect at the time they completed that component, provided that at a minimum, the January 1,
2003, criteria has been met.
    Subd. 2. Components on or after January 1, 2009. (a) On or after January 1, 2009,
an applicant for a class of license must document that the applicant has met the education,
experience, and examination components in effect after January 1, 2008.
(b) Qualifications for all levels of licensing must conform to the Real Property Qualification
Criteria established by the Appraisal Qualifications Board for implementation effective January 1,
2008.
History: 2005 c 100 s 9; 2006 c 235 s 1

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 two years 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.
History: 1989 c 341 art 1 s 10; 2005 c 100 s 10

82B.11 CLASSES OF LICENSE.
    Subdivision 1. Generally. There are five classes of license for real estate appraisers.
    Subd. 2. Trainee real property appraiser. When a net income capitalization analysis is
not required by the uniform standards of professional appraisal practice, a trainee real property
appraiser may appraise residential real property or agricultural property.
    Subd. 3. Licensed residential real property appraiser. A licensed residential 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. (a) 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.
(b) The term of a temporary practice license is the lesser of:
(1) the time required to complete the assignment; or
(2) six months, with one extension allowed.
The appraiser may request one extension of no more than six months on a form provided
by the commissioner. If more than 12 months are necessary to complete the assignment, a new
temporary application and fee is required.
History: 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; 2005 c 100 s 11; 2006 c 235 s 2,3

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.
History: 1989 c 341 art 1 s 12

82B.13 EDUCATION PREREQUISITES.
    Subdivision 1. Trainee real property appraiser or licensed real property appraiser. As a
prerequisite for licensing as a trainee 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 prelicense courses. The courses must consist of 75 hours
of general real estate appraisal principles and the 15-hour national USPAP course.
(a) After January 1, 2008, a trainee real property appraiser applicant must present evidence
satisfactory to the commissioner that the person has successfully completed at least 75 hours of
prelicense courses approved by the commissioner.
(b) After January 1, 2008, a licensed real property appraiser applicant must present evidence
satisfactory to the commissioner that the person has successfully completed at least 150 hours of
prelicense courses approved by the commissioner.
    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. The credit hours required under this section may be credited to a
person for distance education courses that meet Appraiser Qualifications Board criteria.
    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 prelicense courses, with particular emphasis on the appraisal of one to four unit residential
properties. Fifteen of the 120 hours must include successful completion of the 15-hour national
USPAP course.
After January 1, 2008, a certified residential real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed:
(1) 200 hours of prelicense courses approved by the commissioner; and
(2) an associate degree from an accredited college or university. In lieu of the required
degree the applicant may present satisfactory documentation of completion of 21 semester credit
hours from an accredited college or university covering the following subject matter courses:
English composition; principles of economics (micro or macro); finance; algebra, geometry,
or higher mathematics; statistics; introduction to computer word processing/spreadsheets; and
business or real estate law. If an applicant has completed education requirements before January
1, 2008, no college degree is required.
    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
prelicense courses, with particular emphasis on the appraisal of nonresidential properties. Fifteen
of the 180 hours must include successful completion of the 15-hour national USPAP course.
After January 1, 2008, a certified general real property appraiser applicant must present
evidence satisfactory to the commissioner that the person has successfully completed:
(1) 300 hours of prelicense courses approved by the commissioner; and
(2) a bachelor's degree from an accredited college or university. In lieu of the required
degree the applicant may present satisfactory documentation of completion of 30 semester credit
hours from an accredited college or university covering the following subject matters courses:
English composition; micro economics; macro economics; finance; algebra, geometry, or higher
mathematics; statistics; introduction to computer word processing/spreadsheets; business or
real estate law; and two elective courses in accounting, geography, ag-economics, business
management, or real estate. If an applicant has complete education requirements before January 1,
2008, no college degree is required.
    Subd. 6. All appraiser license levels. The required course hours for all appraiser license
levels include completion of the 15-hour national USPAP course and specific core curriculum
courses and hours in accordance with the real property appraiser qualification criteria as defined
by the Appraisal Qualifications Board:

Trainee
Basic appraisal principles	30 hours
Basic appraisal procedures	30 hours
The 15-hour national USPAP course or its equivalent	15 hours
Trainee level total education requirements	75 hours
Licensed
Basic appraisal principles	30 hours
Basic appraisal procedures	30 hours
The 15-hour national USPAP course or its equivalent	15 hours
Residential market analysis and highest and best use	15 hours
Residential appraiser site valuation and cost approach	15 hours
Residential sales comparison and income approaches	30 hours
Residential report writing and case studies	15 hours
Licensed level total education requirements	150 hours
Certified residential
Basic appraisal principles	30 hours
Basic appraisal procedures	30 hours
The 15-hour national USPAP course or its equivalent	15 hours
Residential market analysis and highest and best use	15 hours
Residential appraiser site valuation and cost approach	15 hours
Residential sales comparison and income approaches	30 hours
Residential report writing and case studies	15 hours
Statistics, modeling, and finance	15 hours
Advanced residential applications and case studies	15 hours
Appraisal subject matter electives	20 hours
(May include hours over minimum shown above in other modules)
Certified residential level total education requirements	200 hours
Certified general
Basic appraisal principles	30 hours
Basic appraisal procedures	30 hours
The 15-hour national USPAP course or its equivalent	15 hours
General appraiser market analysis and highest and best use	30 hours
Statistics, modeling, and finance	15 hours
General appraiser sales comparison approach	30 hours
General appraiser site valuation and cost approach	30 hours
General appraiser income approach	60 hours
General appraiser report writing and case studies	30 hours
Appraisal subject matter electives	30 hours
(May include hours over minimum shown above in other modules)
Certified general level total education requirements	300 hours

    Subd. 7. Student tracking manual. It is the responsibility of students to record the
qualifying education they have completed in a student tracking manual broken down by required
core curriculum modules and subtopics, and to maintain an orderly record of education,
experience, and other requirements.
History: 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; 2005 c 100 s 12-15; 2006 c 235 s 4-8

82B.14 EXPERIENCE REQUIREMENT.
(a) As a prerequisite for licensing as a 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 obtained in no fewer than 12 months.
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 obtained in no fewer than 24 months.
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 obtained in no fewer than 30 months. At least 50 percent, or
1,500 hours, must be in nonresidential appraisal work.
(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.
(d) Experience for all classifications must be obtained after January 30, 1989, and must
be USPAP compliant.
History: 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; 2000 c 483 s 47; 2001 c 208 s 19; 2005 c 100 s 16; 2006 c 235 s 9

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.
History: 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.
History: 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.
History: 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.
History: 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. Classroom hour credit must not be accepted for courses
of less than two hours. As part of the continuing education requirements of this section, the
commissioner shall require that all real estate appraisers successfully complete the seven-hour
national USPAP update course every two years. 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. The credit hours
required under this section may be credited to a person for distance education courses that meet
Appraiser Qualifications Board criteria.
    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.
History: 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; 2002 c 387 s 10; 2005 c 100 s 17

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.
History: 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).
History: 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; to provide a market
analysis to facilitate the client's or employer's objectives; or to perform a limited appraisal. The
appraisal and the appraisal report must comply with the provisions of this chapter and the uniform
standards of professional appraisal practice.
History: 1989 c 341 art 1 s 21; 2002 c 387 s 11

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.
History: 1989 c 341 art 1 s 22

82B.221 [Repealed, 2005 c 100 s 18]

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 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.
History: 1991 c 97 s 14

82B.24 PRIVATE RIGHT OF ACTION.
    Subdivision 1. Remedies. Any person injured by a violation of the standards, duties,
prohibitions, or requirements of section 82B.20 or 82B.22 shall have a private right of action
and the court shall award:
(1) actual, incidental, and consequential damages;
(2) statutory damages of no less than $1,000 nor more than $2,000;
(3) punitive damages if appropriate, and as provided in sections 549.191 and 549.20; and
(4) court costs and reasonable attorney fees.
    Subd. 2. Private attorney general statute. A person injured by a violation of the standards,
duties, prohibitions, or requirements of section 82B.20 or 82B.22 also may bring an action under
section 8.31. A private right of action by a borrower under this chapter is in the public interest.
    Subd. 3. Remedies cumulative. The remedies provided in this section are cumulative and do
not restrict any other right or remedy otherwise available to the borrower.
History: 2007 c 74 s 6