Appraisal Management Company General Information
Appraisal Management Company means a person who, for compensation, acts as a third party intermediary by contracting with independent real estate appraisers to perform appraisals for other persons.
Appraisal Management Services means any of the following functions:
oTo recruit, qualify, verify licensing or certification, or negotiate fees and service level expectations with independent real estate appraisers on behalf of a person seeking an appraisal.
oTo receive an order for an appraisal from a person and deliver the order for completion to an independent real estate appraiser.
oTo track and determine the status of orders for appraisals.
oTo conduct quality control of a completed appraisal before delivery of the appraisal to the client who ordered the appraisal.
oTo provide a completed appraisal performed by a real estate appraiser to one (1) or more clients.
Note: The term does not include transportation or communication of an appraisal or order for an appraisal without concern for the appraisal information in the appraisal or the order for an appraisal, including transportation or communication by the United States Postal Service, a delivery company, a courier, or an internet service provider.
Appraisal Review means the USPAP Standard 3 process of developing and communicating an opinion about the quality of an independent real estate appraiser's work that is performed as part of an appraisal assignment made by an appraisal management company. However, the term does not include an examination of an appraisal solely for grammatical errors, typographical errors, or similar errors; or a quality control examination for completeness.
Note: An individual who performs an appraisal review must hold a license or certificate under IC 25-34.1-3-8 or a license as a real estate broker under IC 25-34.1.
Certificate of Registration Requirement
An appraisal management company may not perform appraisal management services unless the appraisal management company has obtained a certificate of registration from the board under this chapter.
Information and Registration Fee Requirements
An appraisal management company that wishes to obtain or renew a certificate of registration under this chapter must submit the following information to the board online:
oThe registration fee of $500
oThe name of the person seeking registration
oThe business address of the person seeking registration
oThe telephone contact information of the person seeking registration
o The name, address, and contact information of each person that has an ownership share in an appraisal management company that equals or exceeds five percent (5%) of the total ownership share of the appraisal management company
o Any other information that the board reasonably requires
Renewal of Registration
A certificate of registration issued to an appraisal management company expires two (2) years after the date on which the certificate of registration is issued.
The fee for renewal of an AMC registration is $500.
Restrictions on Appraisal Management Companies
A person may not own an interest in an appraisal management company if the person has had the person's license or certificate to act as a real estate appraiser in Indiana or any other state revoked and the license or certificate has not been reinstated. An appraisal management company may only hire an independent contractor to perform an appraisal who holds a license or certificate under IC 25-34.1-3-8 or a license as a real estate broker under IC 25-34.1 and is in good standing. An appraisal management company may not corrupt or improperly influence a real estate appraiser in violation of IC 24-5-23.5-7.
Service Requests; Record Requirements
An appraisal management company performing appraisal management services shall maintain a record of each service request for an appraisal that the appraisal management company receives. The following must be included in a record maintained under this subsection:
o The person making the service request
o The date on which the service request is made
o The property to be appraised
o The real estate appraiser who performed the appraisal
o A copy of the appraisal produced for the service request
o The individuals who reviewed the appraisal
o The date on which the appraisal was delivered to the person who made the service request
o The costs and fees for the appraisal management services performed by the appraisal management company
o Statutes and regulations governing the real estate appraisal profession are found in various parts of the Indiana Code.
o The costs and fees for the appraisal performed by the real estate appraiser
Note: An appraisal management company shall keep these records for not less than six (6) years after the date on which the service request was made.
Appraisals; Standards Compliance
An appraisal management company is responsible for ensuring an appraisal complies with standards established in the USPAP and by the board.
An appraisal management company that violates this chapter is subject to disciplinary sanctions under IC 25-1-11-12. The board may impose a civil penalty of not more than ten thousand dollars ($10,000) for each violation of this chapter. A civil penalty collected under this section must be deposited in the investigative fund established by IC 25-34.1-8-7.5.
Penalty for Failure to Register
A person who performs appraisal management services without a certificate of registration under this chapter commits a Class A infraction. The attorney general, the Board, or the prosecuting attorney of any county in which a violation occurs may maintain an action in the name of the state to enjoin a person from violating this section.