(a)CA Civil Law Code § 1090.5(a) No person with an interest in a real estate transaction involving a valuation shall improperly influence or attempt to improperly influence the development, reporting, result, or review of that valuation, through coercion, extortion, bribery, intimidation, compensation, or instruction. For purposes of this section, a valuation is defined as an estimate of the value of real property in written or
electronic form, other than one produced solely by an automated valuation model or system. Prohibited acts include, but are not limited to, the following:
(1)CA Civil Law Code § 1090.5(a)(1) Seeking to influence a person who prepares a valuation to report a minimum or maximum value for the property being valued. Such influence may include, but is not limited to:
(A)CA Civil Law Code § 1090.5(a)(1)(A) Requesting that a person provide a preliminary estimate or opinion of value prior to entering into a contract with that person for valuation services.
(B)CA Civil Law Code § 1090.5(a)(1)(B) Conditioning whether to hire a person based on an expectation of the value conclusion likely to be returned by that person.
(C)CA Civil Law Code § 1090.5(a)(1)(C) Conditioning the amount of a person’s compensation on the value conclusion returned by that person.
(D)CA Civil Law Code § 1090.5(a)(1)(D) Providing to a person an anticipated, estimated, encouraged, or desired valuation prior to their completion of a valuation.
(2)CA Civil Law Code § 1090.5(a)(2) Withholding or threatening to withhold timely payment to a person or entity that prepares a valuation, or provides valuation management functions, because that person or entity does not return a value at or above a certain amount.
(3)CA Civil Law Code § 1090.5(a)(3) Implying to a person who prepares a valuation that current or future retention of that person depends on the amount at which the person estimates the value of real property.
(4)CA Civil Law Code § 1090.5(a)(4) Excluding a person who prepares a valuation from consideration for future engagement because the person reports a value that does not meet or exceed a predetermined threshold.
(5)CA Civil Law Code § 1090.5(a)(5) Conditioning the compensation paid to a person who prepares a valuation on consummation of the real estate transaction for which the valuation is prepared.
(6)CA Civil Law Code § 1090.5(a)(6) Requesting the payment of compensation to achieve higher priority in the assignment of valuation business.
(b)CA Civil Law Code § 1090.5(b) Subdivision (a) does not prohibit a person with an interest in a real estate transaction from doing any of the following:
(1)CA Civil Law Code § 1090.5(b)(1) Asking a person who performs a valuation to do any of the following:
(A)CA Civil Law Code § 1090.5(b)(1)(A) Consider additional, appropriate property information, including information about comparable properties.
(B)CA Civil Law Code § 1090.5(b)(1)(B) Provide further detail, substantiation, or explanation
for the person’s value conclusion.
(C)CA Civil Law Code § 1090.5(b)(1)(C) Correct errors in a valuation report.
(2)CA Civil Law Code § 1090.5(b)(2) Obtaining multiple valuations, for purposes of selecting the most reliable valuation.
(3)CA Civil Law Code § 1090.5(b)(3) Withholding compensation due to breach of contract or substandard performance of services.
(4)CA Civil Law Code § 1090.5(b)(4) Providing a copy of the sales contract in connection with a purchase transaction.
(c)CA Civil Law Code § 1090.5(c) If a person who violates this section is licensed or registered under any state licensing or registration law and the violation occurs within the course and scope of the person’s duties as a licensee or registrant, the violation shall be deemed a violation of that law.
(d)CA Civil Law Code § 1090.5(d) Nothing
in this section shall be construed to authorize communications that are otherwise prohibited under existing law.
