Session of 1998
                   
HOUSE BILL No. 2772
         
By Committee on Financial Institutions
         
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            9             AN ACT relating to real estate appraisers; amending K.S.A. 58-4102 and
10             58-4103 and repealing the existing sections.
11            
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 58-4102 is hereby amended to read as follows:
14       58-4102. As used in this act:
15           (a) ``Appraisal'' or ``real estate appraisal'' means an analysis, opinion
16       or conclusion prepared by a real estate appraiser relating to the nature,
17       quality, value or utility of specified interests in, or aspects of, identified
18       real estate. An appraisal may be classified by subject matter into either a
19       valuation or an analysis. A valuation is an estimate of the value of real
20       estate or real property. An analysis is a study of real estate or real property
21       other than estimating value.
22           (b) ``Appraisal assignment'' means an engagement for which an ap-
23       praiser is employed or retained to act, or would be perceived by third
24       parties or the public as acting, as a disinterested party in rendering an
25       unbiased analysis, opinion or conclusion relating to the nature, quality,
26       value or utility of specified interests in, or aspects of, identified real estate.
27           (c) ``Appraiser'' means a person who develops and communicates real
28       estate appraisals and holds a current valid certification or license issued
29       to such person under the provisions of K.S.A. 58-4101 et seq., and amend-
30       ments thereto.
31           (c) (d) ``Board'' means the real estate appraisal board established pur-
32       suant to the provisions of this act.
33           (d) (e) ``Federal law'' means title XI of the financial institutions re-
34       form, recovery and enforcement act of 1989 (12 U.S.C. 3331 et seq.) and
35       any other federal law, and any regulations adopted pursuant thereto.
36           (e) ``Federally related transaction'' means any real estate-related fi-
37       nancial transaction which: (1) A federal financial institutions regulatory
38       agency or the resolution trust corporation engages in, contracts for or
39       regulates; and (2) requires the services of an appraiser.
40           (f) ``Real estate'' means an identified parcel or tract of land, including
41       improvements, if any.
42           (g) ``Real estate appraisal organization'' means any nationally recog-
43       nized organization of professional appraisers.

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  1           (h) ``Real estate-related financial transaction'' means any transaction
  2       involving: (1) The sale, lease, purchase, investment in or exchange of real
  3       property, including interests in property or the financing thereof; (2) the
  4       refinancing of real property or interests in real property; and (3) the use
  5       of real property or interests in property as security for a loan or invest-
  6       ment, including mortgage-backed securities.
  7           (i) (h) ``Real property'' means one or more defined interests, benefits
  8       and rights inherent in the ownership of real estate.
  9           (j) (i) ``Specialized services'' means those appraisal services which do
10       not fall within the definition of appraisal assignment. Specified services
11       may include valuation work and analysis work. Regardless of the intention
12       of the client or employer, if the appraiser would be perceived by third
13       parties or the public as acting as a disinterested party in rendering an
14       unbiased analysis, opinion or conclusion, the work is classified as an ap-
15       praisal assignment and not specialized services.
16           (k) (j) A ``state certified appraiser'' means a person who develops and
17       communicates real estate appraisals and who holds a current, valid cer-
18       tificate issued to such person under the provisions of this act.
19           (l) (k) A ``state licensed appraiser'' means a person who develops and
20       communicates real estate appraisals and holds a current, valid license
21       issued to such person under the provisions of this act.
22           (m) (l) ``Written appraisal'' means a written statement used in con-
23       nection with a federally real estate related transaction that is indepen-
24       dently and impartially prepared by a licensed or certified appraiser setting
25       forth an opinion of defined value of an adequately described property as
26       of a specific date, supported by presentation and analysis of relevant mar-
27       ket information.
28           Sec. 2. K.S.A. 58-4103 is hereby amended to read as follows: 58-
29       4103. (a) Except as provided in subsection (b), no person, other than a
30       state certified or licensed appraiser, shall:
31           (1) Engage in any written appraisal ;n connection with a federally
32       related transaction for which certification or licensure is required pur-
33       suant to federal law which forms the basis of a loan which is sold in the
34       secondary market; or
35           (2) assume or use the title of state certified or licensed appraiser or
36       any title, designation or abbreviation likely to create the impression of
37       certification as a real estate appraiser by this state.
38           (b) The board shall recognize on a temporary basis the certification
39       or license of an appraiser issued by another state in accordance with
40       federal law if:
41           (1) The property to be appraised is part of a federally real estate
42       related transaction ;µrsuant to federal law;
43           (2) the appraiser's business in this state is of a temporary nature; and

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  1           (3) the appraiser registers with the board, as prescribed by the board.
  2           (c) Violation of subsection (a) is a class B misdemeanor.
  3           (d) The provisions of this act requiring certification or licensure or
  4       the issuance of a certificate or license authorizing the practice of real
  5       estate appraisal shall not be construed to prevent a person who is not a
  6       state certified or licensed real estate appraiser from appraising real estate
  7       for compensation if state certification or licensure is not required pur-
  8       suant to federal law.
  9           (e) (d) An individual who is not a state certified or licensed appraiser
10       may assist in the preparation of an appraisal if: (1) The assistant is under
11       the direct supervision of an individual who is a state licensed or certified
12       appraiser; and (2) the final appraisal document is approved and signed by
13       an individual who is a state certified or licensed appraiser.
14           Sec. 3. K.S.A. 58-4102 and 58-4103 are hereby repealed.
15           Sec. 4. This act shall take effect and be in force from and after its
16       publication in the statute book.
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