HOUSE BILL 971056
BY REPRESENTATIVES Pfiffner, George, Mace, McElhany, Paschall, and Tool;
also SENATOR Bishop.
CONCERNING FEES PAID TO REAL ESTATE APPRAISERS.
Be it enacted by the General Assembly of the State
SECTION 1. 1261702,
Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended
BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:
As used in this part 7, unless the context otherwise requires:
(2.5) "CONSULTING SERVICES"
MEANS SERVICES PERFORMED BY AN APPRAISER THAT DO NOT FALL WITHIN
THE DEFINITION OF AN "INDEPENDENT APPRAISAL" IN SUBSECTION
(4.5) OF THIS SECTION. "CONSULTING SERVICES" INCLUDES,
BUT IS NOT LIMITED TO, MARKETING, FINANCING AND FEASIBILITY STUDIES,
VALUATIONS, ANALYSES, AND OPINIONS AND CONCLUSIONS GIVEN IN CONNECTION
WITH REAL ESTATE BROKERAGE, MORTGAGE BANKING, AND COUNSELING AND
ADVOCACY IN REGARD TO PROPERTY TAX ASSESSMENTS AND APPEALS THEREOF;
EXCEPT THAT, IF IN RENDERING SUCH SERVICES THE APPRAISER ACTS
AS A DISINTERESTED THIRD PARTY, THE WORK SHALL BE DEEMED AN INDEPENDENT
APPRAISAL AND NOT A CONSULTING SERVICE. NOTHING IN THIS SUBSECTION
(2.5) SHALL BE CONSTRUED TO PRECLUDE A PERSON FROM ACTING AS AN
EXPERT WITNESS IN VALUATION APPEALS.
(4.5) "INDEPENDENT APPRAISAL"
MEANS AN ENGAGEMENT FOR WHICH AN APPRAISER IS EMPLOYED OR RETAINED
TO ACT AS A DISINTERESTED THIRD PARTY IN RENDERING AN UNBIASED
ANALYSIS, OPINION, OR CONCLUSION RELATING TO THE NATURE, QUALITY,
VALUE, OR UTILITY OF SPECIFIED INTERESTS IN OR ASPECTS OF IDENTIFIED
SECTION 2. 1261712
(1) and (3), Colorado Revised Statutes, 1991 Repl. Vol., as amended,
are amended to read:
1261712. Unlawful acts.
(1) It is unlawful for any person to:
(a) Violate any provision of this part
7 or, on and after July 1, 1996, to perform a real estate appraisal
in conjunction with a debt instrument that is federally guaranteed
or in the federal secondary market and regulated pursuant to title
12, U.S.C., without first having obtained a registration, license,
or certificate from the board pursuant to this part 7;
an appraiser or expert witness and receive a contingency fee;
except that a person may act as an agent and receive a contingency
fee if such person is not involved as an appraiser or expert witness
in the same case. ACCEPT A FEE FOR
AN INDEPENDENT APPRAISAL ASSIGNMENT THAT IS CONTINGENT UPON:
(I) THE REPORTING OF A PREDETERMINED ANALYSIS,
OPINION, OR CONCLUSION; OR
(II) THE ANALYSIS, OPINION, OR CONCLUSION
(III) THE CONSEQUENCES RESULTING FROM
THE ANALYSIS, OPINION, OR CONCLUSION;
(c) MISREPRESENT A CONSULTING SERVICE
AS AN INDEPENDENT APPRAISAL;
(d) FAIL TO DISCLOSE, IN CONNECTION WITH
A CONSULTING SERVICE FOR WHICH A CONTINGENT FEE IS OR WILL BE
PAID, THE FACT THAT A CONTINGENT FEE IS OR WILL BE PAID.
(3) A person who represents property owners
as an advocate in tax or valuation protests and appeals pursuant
to title 39, C.R.S., shall be exempt from the licensing requirements
of this part 7.
but when such person
represents property owners as an advocate and witness in tax or
valuation protests and appeals, such person shall disclose his
or her remuneration to the parties and to the arbitrator, the
board of assessment appeals, or the district court prior to the
arbitration or appeal.
SECTION 3. Effective date
applicability. This act shall take effect
upon passage, and shall apply to acts occurring on or after said
SECTION 4. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
GOVERNOR OF THE STATE OF COLORADO