No person shall engage in federally related real estate appraisal activity governed by this part or assume or use the title of or any title designation or abbreviation as a licensed appraiser in this state without an active license as defined in Section 11302. Any person who willfully violates this provision is guilty of a public offense punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail for not more than one year, or by a fine not exceeding ten thousand dollars ($10,000), or by both the imprisonment and fine. The possession of a license issued pursuant to this part does not preempt the application of other statutes including the requirement for specialized training or licensure pursuant to Article 3 (commencing with Section 750) of Chapter 2.5 of
Division 1 of the Public Resources Code.
Licensing and Certification of Real Estate AppraisersScope of Practice
Section § 11320
If you want to work as a real estate appraiser in California, you must have an active license. If you don't have this license and still act as an appraiser, you could face jail time, a fine up to $10,000, or both. Just having the license doesn't exempt you from needing any other required special training or licenses.
real estate appraisal active license licensed appraiser
Section § 11320.5
If a person or company wants to operate as an appraisal management company or advertise themselves as one, they must have a registration certificate from the bureau. Without this certificate, they are not allowed to do so.
No person or entity shall act in the capacity of an appraisal management company or represent itself to the public as an appraisal management company, either in its advertising or through its business name, without a certificate of registration from the bureau.
appraisal management company certificate of registration advertising
Section § 11321
In California, only individuals with a state-issued real estate appraiser license can use titles or abbreviations that suggest they are licensed appraisers. Additionally, only licensed appraisers can sign appraisals for federally related transactions. Trainee appraisers can also sign these appraisals, but only if a licensed appraiser signs off on them too. To use specific terms like 'state certified real estate appraiser' or abbreviations like SLREA or SCREA in their business, appraisers need to hold the appropriate valid licenses.
(a)CA Business & Professions Code § 11321(a) No person other than a state licensed real estate appraiser may assume or use that title or any title, designation, or abbreviation likely to create the impression of state licensure as a real estate appraiser in this state.
(b)CA Business & Professions Code § 11321(b) No person other than a licensee may sign an appraisal in a federally related transaction. A trainee licensed pursuant to Section 11327 may sign an appraisal in a federally related transaction if it is also signed by a licensee.
(c)CA Business & Professions Code § 11321(c) No person other than a licensee holding a current valid license at the residential level issued under this part to perform, make,
or approve and sign an appraisal may use the abbreviation SLREA in his or her real property appraisal business.
(d)CA Business & Professions Code § 11321(d) No person other than a licensee holding a current valid license at a certified level issued under this part to perform, make, or approve and sign an appraisal may use the term “state certified real estate appraiser” or the abbreviation SCREA in his or her real property appraisal business.
state licensed real estate appraiser use title appraisal signature
Section § 11323
This law says that if you're licensed to appraise something, you can't have your pay influenced by what value you come up with in that appraisal. Basically, your paycheck can't be tied to how high or low you say the value is.
No licensee shall engage in any appraisal activity if his or her compensation is dependent on or affected by the value conclusion generated by the appraisal.
appraisal activity compensation value conclusion
Section § 11324
Someone who isn't a certified appraiser can help prepare an appraisal for a federally related transaction, but they must work under the direct supervision of a licensed appraiser. The licensed appraiser must be the one to determine the final value. Additionally, the supervising appraiser is responsible for approving and signing the final report, ensuring it mentions the assistant and the work they did.
An individual who is not a licensee may assist in the preparation of an appraisal in a federally related transaction under the following conditions:
(a)CA Business & Professions Code § 11324(a) The assistance is under the direct supervision of an individual who is a licensed appraiser and the final conclusion as to value is made by a licensed appraiser.
(b)CA Business & Professions Code § 11324(b) The final appraisal document in a federally related transaction is approved and signed, with acceptance of full responsibility, by the supervising individual who is licensed by the state pursuant to this part, identifies the assisting individual, and identifies the scope of work performed by the
individual who assisted in preparation of the appraisal in a federally related transaction.
federally related transaction licensed appraiser supervision appraisal preparation
Section § 11325
The law requires the director to set rules for what kind of appraisal work licensed appraisers in California can do. These rules must at least meet the standards set by federal agencies that regulate financial institutions, as required by a 1989 federal law.
(a)CA Business & Professions Code § 11325(a) The director shall adopt regulations which determine the parameters of appraisal work which may be performed by licensed appraisers.
(b)CA Business & Professions Code § 11325(b) Regulations adopted by the director pursuant to this section shall, at a minimum, meet the standards established by federal financial institution regulatory agencies as required by Section 1112 of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Public Law 101-73.
licensed appraisers appraisal work regulations
Section § 11326
This law requires county assessors to share specific information like maps, permits, and sales data with the Bureau of Real Estate Appraisers when they are investigating appraiser conduct. If sharing this information incurs costs, the Bureau must reimburse the assessor for reasonable expenses.
(a)CA Business & Professions Code § 11326(a) The county assessor shall, upon request, disclose information, furnish abstracts, copies of maps, construction permits, notices of completion, sales confirmation, and permit access to all records in the county assessor’s office or branch offices, to the Bureau of Real Estate Appraisers when it is conducting an investigation related to professional conduct of appraisers.
(b)CA Business & Professions Code § 11326(b) Whenever the assessor discloses information, furnishes abstracts, and all of the above and permits access to records to the Bureau of Real Estate Appraisers, the bureau shall reimburse the assessor for any reasonable cost incurred as a result thereof.
county assessor Bureau of Real Estate Appraisers investigation
Section § 11327
This law requires the director to create detailed rules about how someone can apply for a trainee license in the real estate appraisal field. These rules must at least follow the basic guidelines set by the Appraisal Foundation.
The director shall adopt regulations governing the process and procedure of applying for a trainee license, which shall meet, at a minimum, the requirements of the Appraisal Foundation.
trainee license application Appraisal Foundation requirements real estate appraisal
Section § 11328
If you're involved in appraisals and need to prove your experience or if there's an investigation into wrongdoing, you have to give certain documents to the bureau when asked. This includes contracts, appraisals, and any related paperwork. These documents must remain confidential.
To substantiate documentation of appraisal experience, or to facilitate the investigation of illegal or unethical activities by a licensee, applicant, or other person acting in a capacity that requires a license, that licensee, applicant, or person shall, upon the request of the director, submit copies of the engagement letters, appraisals, or any work product that is addressed by the Uniform Standards of Professional Appraisal Practice, and all supporting documentation and data to the bureau. This material shall be confidential in accordance with the confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.
appraisal experience investigation illegal activities
Section § 11328.1
If someone is suspected of breaking certain rules, this section allows the director to ask them for documents related to the investigation. Those asked should provide the information within a set time. All information shared will be kept private.
If the director has a reasonable belief that a registrant, or person or entity acting in a capacity that requires a certificate of registration, has engaged in activities prohibited under this part, the director may submit a written request to the registrant, person, or entity, requesting copies of written material related to the director’s investigation. Any registrant, person, or entity receiving a written request from the director for information related to an investigation of prohibited activities shall submit that information to the director or the bureau within a reasonable period of time, which shall be specified by the director in the written request. Any material submitted shall be kept confidential by the director and the
bureau.
director investigation prohibited activities
