Bill Text: IA HF682 | 2021-2022 | 89th General Assembly | Enrolled

---

Bill Title: A bill for an act relating to the Iowa appraisal standards and appraiser certification law, making penalties applicable, and including applicability provisions. (Formerly HSB 176.) Effective date: 07/01/2021. Applicability date: 07/01/2021.

Spectrum: Committee Bill

Status: (Passed) 2021-06-08 - Signed by Governor. H.J. 1210. [HF682 Detail]

Download: Iowa-2021-HF682-Enrolled.html

---

House File 682 - Enrolled
House File 682
AN ACT
RELATING TO THE IOWA APPRAISAL STANDARDS AND APPRAISER
CERTIFICATION LAW, MAKING PENALTIES APPLICABLE, AND
INCLUDING APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 543D.1, Code 2021, is amended to read as
follows:
543D.1 Short title.
This chapter shall be known and may be cited as the “Iowa
Voluntary Appraisal Standards and Appraiser Certification Law” .
Sec. 2. Section 543D.2, Code 2021, is amended by adding the
following new subsections:
NEW SUBSECTION . 4A. “Appraisal review” means developing
and communicating an opinion under the uniform standards of
professional appraisal practice review standards regarding the
quality of an appraiser’s work product, with or without also
providing an opinion of value, prepared as part of an appraisal
assignment. “Appraisal review” does not include quality control
solely to assure an appraisal report is complete, or to correct
grammatical, typographical, or similar errors.

House File 682, p. 2
NEW SUBSECTION . 8A. “Federally related transaction” means
any financial transaction related to real estate which a
federal financial institutions regulatory agency engages in,
contracts for, or regulates, and which requires the services
of an appraiser pursuant to federally related transaction
regulations.
NEW SUBSECTION . 8B. “Federally related transaction
regulations” means regulations established by the comptroller
of the currency, the board of governors of the federal reserve
system, the federal deposit insurance corporation, or the
national credit union administration pursuant to sections 1112,
1113, and 1114 of Tit. XI of the federal Financial Institutions
Reform, Recovery, and Enforcement Act, 12 U.S.C. §3341 – 3343.
Sec. 3. Section 543D.2, subsection 9, Code 2021, is amended
to read as follows:
9. “Review appraiser” means a person who is responsible
for the administrative approval of the appraised value of
real property or assures that appraisal reports conform to
the requirements of law and policy, or that the value of real
property estimated by appraisers represents adequate security,
fair market value, or other defined value conducting an
appraisal review .
Sec. 4. Section 543D.3, Code 2021, is amended to read as
follows:
543D.3 Purposes.
1. The purpose of this chapter is to establish standards
for real estate appraisals and a procedure for the mandatory
certification of real estate appraisers performing appraisals
for federally related transactions, the voluntary certification
of real estate appraisers performing appraisals not related to
federally related transactions, and the mandatory registration
of associate real estate appraisers.
1A. A person who performs an appraisal, other than an
appraisal review, for a federally related transaction as
it relates to real estate located in this state must be
a certified real estate appraiser under this chapter or a
registered associate real estate appraiser acting under the
direct supervision of a certified real estate appraiser if the
services of a certified real estate appraiser are required by

House File 682, p. 3
federal law or regulation.
2. A person who is not a certified real estate appraiser
under this chapter may appraise real estate for compensation if
certification is not required by this chapter or by federal or
state law, rule, or policy. However, an employee of the state
department of transportation whose duties include appraisals
of property pursuant to chapter 6B must be a certified real
estate appraiser under this chapter or a registered associate
real estate appraiser acting under the direct supervision
of a certified real estate appraiser. Notwithstanding this
subsection, in connection with the performance of an appraisal
of real estate located in this state, the use of the title
“certified real estate appraiser”, “associate real estate
appraiser”, or any other like title, including a title that
suggests an individual is certified under the laws of this or
another state, shall only be used to refer to or by individuals
who hold a certificate or registration under this chapter.
3. An employee of the state department of transportation
whose duties include appraisals of property pursuant to chapter
6B must be a certified real estate appraiser under this chapter
or a registered associate real estate appraiser acting under
the direct supervision of a certified real estate appraiser.
4. A person who is not a certified real estate appraiser
under this chapter but who is licensed under chapter 543B may
be compensated in the course of business for providing an
estimate of the probable selling price or leasing price of a
particular parcel of real estate or interest in real estate as
a comparative market analysis or a broker price opinion. Such
a comparative market analysis or broker price opinion shall not
be considered an appraisal for purposes of this chapter and
shall not be prepared for any purpose in lieu of an appraisal
when an appraisal is required by federal or state law.
Sec. 5. Section 543D.11, Code 2021, is amended to read as
follows:
543D.11 Certification by reciprocity.
1. If, in the determination by the board, another state
is deemed to have substantially equivalent certification
requirements, an applicant who is certified under the laws of
the other state may obtain a certificate as a certified real

House File 682, p. 4
estate appraiser upon terms and conditions as determined by the
board.
2. The board may recognize on a temporary basis the
certification or license of an appraiser issued by another
state, including where the property to be appraised is part
of a federally related transaction. An appraiser engaging in
such temporary practice shall apply for and obtain a temporary
practice permit from the board before performing any services
in relation to an appraisal, is subject to the full regulatory
jurisdiction of the board, and is governed by the laws and
rules administered by the board.
Sec. 6. Section 543D.15, subsection 1, Code 2021, is amended
to read as follows:
1. a. The term “certified real estate appraiser” title
“certified real estate appraiser”, “associate real estate
appraiser”, or any other like title shall only be used to refer
to individuals who hold the certificate or registration, as
applicable, and shall not be used in connection with or as part
of the name or signature of a firm, partnership, corporation,
or group, or in a manner that it may be interpreted as
referring to a firm, partnership, corporation, group, other
business entity, or anyone other than an individual holder of
the certificate or registration .
b. In connection with an appraisal assignment performed on
real estate located in this state, the title “certified real
estate appraiser”, “associate real estate appraiser”, or any
other like title, including a title that suggests an individual
is licensed or certified under the laws of this state or
another state, shall only be used to refer to individuals who
hold a certificate or registration under this chapter.
Sec. 7. Section 543D.20, subsection 5, Code 2021, is amended
to read as follows:
5. Persons who appraise real estate where certification is
not required by this chapter or by federal or state law, rule,
or policy, and who are not assisting a certified real estate
appraiser in the development or reporting of an appraisal
assignment that is required by this chapter , or by federal
or state law, rule, or policy to be performed by a certified
real estate appraiser, are not required to register with the

House File 682, p. 5
board. Notwithstanding this subsection, in connection with the
performance, or assistance in the performance, of an appraisal
of real estate located in this state, the use of the title
“associate real estate appraiser” or any other like title,
including a title that suggests an individual is an associate
real estate appraiser under the laws of this state or another
state, shall only be used to refer to individuals who hold a
registration under this chapter.
Sec. 8. Section 543D.21, subsection 4, Code 2021, is amended
by adding the following new paragraph:
NEW PARAGRAPH . 0a. A violation of section 543D.3,
subsections 1A, 2, or 3.
Sec. 9. Section 543D.21, subsection 4, paragraph c, Code
2021, is amended to read as follows:
c. A violation of section 543D.20, subsection 1 or 5 .
Sec. 10. Section 543D.22, subsections 1 and 3, Code 2021,
are amended to read as follows:
1. a. The Subject to paragraphs “b” and “c” , the board may
require a national criminal history check through the federal
bureau of investigation for applicants for certification or
registration, or for persons certified or registered , under
this chapter , if needed for credibility, to comply with
federal law or regulation, or the policies of the appraisal
qualification board of the appraisal foundation. The board
may alternatively require a national criminal history check
through the nationwide mortgage licensing system and registry,
as defined in section 535D.3 , when conducting background
investigations under this section, if authorized by applicable
federal law or regulation.
b. The board shall not require a national criminal
history check through the federal bureau of investigation
for applicants for upgraded certification or registration
if the applicant applies for the upgraded certification or
registration within twenty-four months following the date the
applicant obtained their original certification or registration
under this chapter.
c. By signing and submitting to the board a statement
declaring that there have been no changes to the applicant’s
criminal history since the date of the waiver specified

House File 682, p. 6
in subsection 4, and that there are no active or pending
complaints in any state against the applicant, any of the
following individuals may seek a waiver of the board’s
requirement to undergo a national criminal history check:
(1) An applicant for upgraded certification or registration
who obtained their original certification or registration under
this chapter more than twenty-four months prior to applying for
the upgraded certification or registration.
(2) An applicant for upgraded certification applying to the
board under a reciprocity agreement.
3. a. The Subject to paragraphs “b” and “c” , the board
may also request and obtain, notwithstanding section 692.2,
subsection 5 , criminal history data for applicants, certificate
holders, and registrants. A request for criminal history
data shall be submitted to the department of public safety,
division of criminal investigation, pursuant to section 692.2,
subsection 1 .
b. The board shall not request or obtain criminal history
data for applicants for upgraded certification or registration
if the applicant applies for the upgraded certification or
registration within twenty-four months following the date the
applicant obtained their original certification or registration
under this chapter.
c. By signing and submitting to the board a statement
declaring that there have been no changes to the applicant’s
criminal history data since the date of the waiver specified
in subsection 4, and that there are no active or pending
complaints in any state against the applicant, any of the
following individuals may seek a waiver of the board’s request
to obtain criminal history data:
(1) An applicant for upgraded certification or registration
who obtained their original certification or registration under
this chapter more than twenty-four months prior to applying for
the upgraded certification or registration.
(2) An applicant for upgraded certification applying to the
board under a reciprocity agreement.
Sec. 11. APPLICABILITY. The following applies to
applications for original certification or registration and
renewal certification or registration that are submitted to the

House File 682, p. 7
real estate appraiser examining board on or after the effective
date of this Act:
The section of this Act amending section 543D.22.
______________________________ ______________________________
PAT GRASSLEY JAKE CHAPMAN
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 682, Eighty-ninth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2021 ______________________________
KIM REYNOLDS
Governor