(225 ILCS 459/10)
Sec. 10.
Definitions.
In this Act:
"Address of record" means the designated address recorded by the Department in the applicant's or registrant's application file or registration file maintained by the Department's registration maintenance unit. It is the duty of the applicant or registrant to inform the Department of any change of address, and the changes must be made either through the Department's website or by contacting the Department's registration maintenance unit within a prescribed time period as defined by rule.
"Applicant" means a person or entity who applies to the Department for a registration under this Act.
"Appraisal" means (noun) the act or process of developing an opinion of value; an opinion of value (adjective) of or pertaining to appraising and related functions.
"Appraisal firm" means an appraisal entity that is 100% owned and controlled by a person or persons licensed in Illinois as a certified general real estate appraiser or a certified residential real estate appraiser. An appraisal firm does not include an appraisal management company.
"Appraisal management company" means any corporation, limited liability company, partnership, sole proprietorship, subsidiary, unit, or other business entity that directly or indirectly performs the following appraisal management services: (1) administers networks of independent contractors or employee appraisers to perform real estate appraisal assignments for clients; (2) receives requests for real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request; or (3) otherwise serves as a third-party broker of appraisal management services between clients and appraisers.
"Appraisal report" means a written appraisal by an appraiser to a client.
"Appraisal practice service" means valuation services performed by an individual acting as an appraiser, including, but not limited to, appraisal, appraisal review, or appraisal consulting.
"Appraiser" means a person who performs real estate or real property appraisals.
"Assignment result" means an appraiser's opinions and conclusions developed specific to an assignment.
"Board" means the Real Estate Appraisal Administration and Disciplinary Board.
"Client" means the party or parties who engage an appraiser by employment or contract in a specific appraisal assignment.
"Controlling Person" means:
(1) an owner, officer, or director of an entity
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| seeking to offer appraisal management services; |
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(2) an individual employed, appointed, or authorized |
| by an appraisal management company who has the authority to: |
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(A) enter into a contractual relationship with a |
| client for the performance of an appraisal management service or appraisal practice service; and |
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(B) enter into an agreement with an appraiser for |
| the performance of a real estate appraisal activity; or |
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(3) an individual who possesses, directly or |
| indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company. |
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"Coordinator" means the Coordinator of the Appraisal Management Company Registration Unit of the Department or his or her designee.
"Department" means the Department of Financial and Professional Regulation.
"Entity" means a corporation, a limited liability company, partnership, a sole proprietorship, or other entity providing services or holding itself out to provide services as an appraisal management company or an appraisal management service.
"End-user client" means any person who utilizes or engages the services of an appraiser through an appraisal management company.
"Financial institution" means any bank, savings bank, savings and loan association, credit union, mortgage broker, mortgage banker, registrant under the Consumer Installment Loan Act or the Sales Finance Agency Act, or a corporate fiduciary, subsidiary, affiliate, parent company, or holding company of any registrant, or any institution involved in real estate financing that is regulated by State or federal law.
"Person" means individuals, entities, sole proprietorships, corporations, limited liability companies, and partnerships, foreign or domestic, except that when the context otherwise requires, the term may refer to a single individual or other described entity.
"Quality control review" means a review of an appraisal report for compliance and completeness, including grammatical, typographical, or other similar errors, unrelated to developing an opinion of value.
"Real estate" means an identified parcel or tract of land, including any improvements.
"Real estate related financial transaction" means any transaction involving:
(1) the sale, lease, purchase, investment in, or |
| exchange of real property, including interests in property or the financing thereof; |
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(2) the refinancing of real property or interests in |
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(3) the use of real property or interest in property |
| as security for a loan or investment, including mortgage backed securities. |
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"Real property" means the interests, benefits, and rights inherent in the ownership of real estate.
"Secretary" means the Secretary of Financial and Professional Regulation.
"USPAP" means the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board under Title XI.
"Valuation" means any estimate of the value of real property in connection with a creditor's decision to provide credit, including those values developed under a policy of a government sponsored enterprise or by an automated valuation model or other methodology or mechanism.
(Source: P.A. 97-602, eff. 8-26-11.) |
(225 ILCS 459/15)
Sec. 15.
Exemptions.
Nothing in this Act shall apply to any of the following:
(1) an agency of the federal, State, county, or
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| municipal government or an officer or employee of a government agency, or person, described in this Section when acting within the scope of employment of the officer or employee; |
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(2) a corporate relocation company when the |
| appraisal is not used for mortgage purposes and the end user client is an employer company; |
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(3) any person licensed in this State under any |
| other Act while engaged in the activities or practice for which he or she is licensed; |
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(4) any person licensed to practice law in this |
| State who is working with or on behalf of a client of that person in connection with one or more appraisals for that client; |
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(5) an appraiser that enters into an agreement, |
| whether written or otherwise, with another appraiser for the performance of an appraisal, and upon the completion of the appraisal, the report of the appraiser performing the appraisal is signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal, except that an appraisal management company may not avoid the requirement of registration under this Act by requiring an employee of the appraisal management company who is an appraiser to sign an appraisal that was completed by another appraiser who is part of the appraisal panel of the appraisal management company; |
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(6) any person acting as an agent of the Illinois |
| Department of Transportation in the acquisition or relinquishment of land for transportation issues to the extent of their contract scope; or |
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(7) a design professional entity when the appraisal |
| is not used for mortgage purposes and the end user client is an agency of State government or a unit of local government. |
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In the event that the Final Interim Rule of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act provides that an appraisal management company is a subsidiary owned and controlled by a financial institution regulated by a federal financial institution's regulatory agency and is exempt from State appraisal management company registration requirements, the Department, shall, by rule, provide for the implementation of such an exemption.
(Source: P.A. 97-602, eff. 8-26-11.) |
(225 ILCS 459/25)
Sec. 25.
Powers and duties of the Department.
Subject to the provisions of this Act:
(1) The Department may ascertain the
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| qualifications and fitness of applicants for registration and pass upon the qualifications of applicants for registration. |
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(2) The Department may conduct hearings on |
| proceedings to refuse to issue or renew or to revoke registrations or suspend, place on probation, or reprimand persons or otherwise discipline individuals or entities subject to this Act. |
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(3) The Department may formulate all rules |
| required for the administration of this Act. With the exception of emergency rules, any proposed rules, amendments, second notice materials, and adopted rule or amendment materials or policy statements concerning appraisal management companies shall be presented to the Real Estate Appraisal Administration and Disciplinary Board for review and comment. The recommendations of the Board shall be presented to the Secretary for consideration in making final decisions. |
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(4) The Department may maintain rosters of the |
| names and addresses of all registrants, and all persons whose registrations have been suspended, revoked, or denied renewal for cause within the previous calendar year or otherwise disciplined. These rosters shall be available upon written request and payment of the required fee as established by rule. |
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(Source: P.A. 97-602, eff. 8-26-11.) |
(225 ILCS 459/40)
Sec. 40.
Qualifications for registration.
(a) The Department may issue a certification of registration to practice under this Act to any applicant who applies to the Department on forms provided by the Department, pays the required non-refundable fee, and who provides the following:
(1) the business name of the applicant seeking
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(2) the business address or addresses and contact |
| information of the applicant seeking registration; |
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(3) if the business applicant is not a corporation |
| that is domiciled in this State, then the name and contact information for the company's agent for service of process in this State; |
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(4) the name, address, and contact information for |
| any individual or any corporation, partnership, limited liability company, association, or other business applicant that owns 10% or more of the appraisal management company; |
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(5) the name, address, and contact information for a |
| designated controlling person; |
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(6) a certification that the applicant will utilize |
| Illinois licensed appraisers to provide appraisal services within the State of Illinois; |
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(7) a certification that the applicant has a system |
| in place utilizing a licensed Illinois appraiser to review the work of all employed and independent appraisers that are performing real estate appraisal services in Illinois for the appraisal management company on a periodic basis, except for a quality control review, to verify that the real estate appraisal assignments are being conducted in accordance with USPAP; |
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(8) a certification that the applicant maintains a |
| detailed record of each service request that it receives and the independent appraiser that performs the real estate appraisal services for the appraisal management company; |
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(9) a certification that the employees of the |
| appraisal management company working on behalf of the appraisal management company directly involved in providing appraisal management services, will be appropriately trained and familiar with the appraisal process to completely provide appraisal management services; |
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(10) an irrevocable Uniform Consent to Service of |
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(11) a certification that the applicant shall comply |
| with all other requirements of this Act and rules established for the implementation of this Act. |
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(b) Applicants have 3 years from the date of application to complete the application process. If the process has not been completed in 3 years, the application shall be denied, the fee shall be forfeited, and the applicant must reapply and meet the requirements in effect at the time of reapplication.
(Source: P.A. 97-602, eff. 8-26-11.) |
(225 ILCS 459/65)
Sec. 65.
Disciplinary actions.
(a) The Department may refuse to issue or renew, or may revoke, suspend, place on probation, reprimand, or take other disciplinary or non-disciplinary action as the Department may deem appropriate, including imposing fines not to exceed $25,000 for each violation, with regard to any registration for any one or combination of the following:
(1) Material misstatement in furnishing
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| information to the Department. |
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(2) Violations of this Act, or of the rules |
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(3) Conviction of, or entry of a plea of guilty or |
| nolo contendere to any crime that is a felony under the laws of the United States or any state or territory thereof or that is a misdemeanor of which an essential element is dishonesty, or any crime that is directly related to the practice of the profession. |
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(4) Making any misrepresentation for the purpose |
| of obtaining registration or violating any provision of this Act or the rules adopted under this Act pertaining to advertising. |
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(5) Professional incompetence.
(6) Gross malpractice.
(7) Aiding or assisting another person in |
| violating any provision of this Act or rules adopted under this Act. |
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(8) Failing, within 30 days after requested, to |
| provide information in response to a written request made by the Department. |
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(9) Engaging in dishonorable, unethical, or |
| unprofessional conduct of a character likely to deceive, defraud, or harm the public. |
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(10) Discipline by another state, District of |
| Columbia, territory, or foreign nation, if at least one of the grounds for the discipline is the same or substantially equivalent to those set forth in this Section. |
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(11) A finding by the Department that the |
| registrant, after having his or her registration placed on probationary status, has violated the terms of probation. |
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(12) Willfully making or filing false records or |
| reports in his or her practice, including, but not limited to, false records filed with State agencies or departments. |
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(13) Filing false statements for collection of fees |
| for which services are not rendered. |
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(14) Practicing under a false or, except as |
| provided by law, an assumed name. |
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(15) Fraud or misrepresentation in applying for, or |
| procuring, a registration under this Act or in connection with applying for renewal of a registration under this Act. |
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(16) Being adjudicated liable in a civil proceeding |
| for violation of a state or federal fair housing law. |
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(17) Failure to obtain or maintain the bond required |
| under Section 50 of this Act. |
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(b) The Department may refuse to issue or may suspend without hearing as provided for in the Civil Administrative Code the registration of any person who fails to file a return, or to pay the tax, penalty or interest shown in a filed return, or to pay any final assessment of the tax, penalty, or interest as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.
(Source: P.A. 97-602, eff. 8-26-11.) |
(225 ILCS 459/165)
Sec. 165.
Prohibited activities.
(a) No person or entity acting in the capacity of an appraisal management company shall improperly influence or attempt to improperly influence the development, reporting, result, or review of any appraisal by engaging, without limitation, in any of the following:
(1) Withholding or threatening to withhold timely
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| payment for a completed appraisal, except where addressed in a mutually agreed upon contract. |
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(2) Withholding or threatening to withhold, either |
| expressed or by implication, future business from, or demoting, or terminating, or threatening to demote or terminate an Illinois licensed or certified appraiser. |
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(3) Expressly or impliedly promising future business, |
| promotions, or increased compensation for an independent appraiser. |
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(4) Conditioning an assignment for an appraisal |
| service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached in an appraisal report. |
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(5) Requesting that an appraiser provide an |
| estimated, predetermined, or desired valuation in an appraisal report or provide estimated values or sales at any time prior to the appraiser's completion of an appraisal report. |
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(6) Allowing or directing the removal of an appraiser |
| from an appraisal panel without prior written notice to the appraiser. |
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(7) Requiring an appraiser to sign a |
| non-compete clause when not an employee of the entity. |
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(8) Requiring an appraiser to sign any sort |
| of indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, employees, or independent contractors for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed by the appraiser. |
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(9) Prohibiting or attempting to prohibit the |
| appraiser from including or referencing the appraisal fee, the appraisal management company name or identity, or the client's or lender's name or identity within the body of the appraisal report. |
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(10) Require an appraiser to collect a fee from the |
| borrower or occupant of the property to be appraised. |
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(11) Knowingly withholding any end-user client |
| guidelines, policies, requirements, standards, assignment conditions, and special instructions from an appraiser prior to the acceptance of an appraisal assignment. |
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(b) A person or entity may not structure an appraisal assignment or a contract with an independent appraiser for the purpose of evading the provisions of this Act.
(c) No registrant or other person or entity may alter, modify, or otherwise change a completed appraisal report submitted by an independent appraiser, including without limitation, by doing either of the following:
(1) permanently or temporarily removing the |
| appraiser's signature or seal; or |
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(2) adding information to, or removing information |
| from, the appraisal report with an intent to change the value conclusion or the condition of the property. |
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(d) No appraisal management company may require an appraiser to provide it with the appraiser's digital signature or seal. However, nothing in this Act shall be deemed to prohibit an appraiser from voluntarily providing his or her digital signature or seal to another person on an assignment-by-assignment basis, in accordance with USPAP.
(e) Nothing in this Act shall prohibit an appraisal management company from requesting that an appraiser:
(1) consider additional appropriate property |
| information, including the consideration of additional comparable properties to make or support an appraisal; |
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(2) provide further detail, substantiation, or |
| explanation for the appraiser's value conclusion; or |
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(3) correct factual errors in the appraisal report.
(Source: P.A. 97-602, eff. 8-26-11.) |