The New Jersey Appellate Division has held that the government can condemn easements for beach projects. In that case, the DEP sought voluntary easements from the landowners as part of a dune-and-berm system spanning the entire 18-mile length of Long Beach Island and 14 miles along Ocean County. The Court rejected the challenges of Ocean County property owners. The Court stated that the question was whether the specific eminent domain law at issue, N.J.S.A. 12:3-64, restricts the DEP to acquiring only a “fee simple” and not an easment. The appeals judges’ decision was based on the plain language of the statute and rejected the landowners’ arguments that the Legislature must have intended to limit the DEP’s authority to acquire only a fee simple.
Tennessee has enacted a law establishing a new statute of limitations regarding civil lawsuits and disciplinary actions against real estate appraisers. Under HB 376, any action to recover damages against a real estate appraiser must be brought within one year from the discovery of the act of omission giving rise to the action. However, in no event can an action be brought more than five years after the date the appraisal was performed.
Additionally, the Tennessee Real Estate Appraiser Commission cannot consider a complaint for a disciplinary acting that relates to an appraisal that was completed more than three years before the complaint was submitted.
The new law will take effect July 1, and will apply to appraisals performed after that date.
Florida has enacted a bill changing its appraiser licensing law. HB 927 includes changes advocated by the Appraisal Institute.
The law defines an “evaluation” as a “valuation permitted by any federal financial institutions regulatory agency for transactions that do not require an appraisal” and clarifies that a state-licensed appraiser may perform an evaluation. According to AI, appraisers in Florida were prevented from providing evaluations that are not in full compliance with the Uniform Standards of Professional Appraisal Practice even though federal requirements only call for compliance with the Interagency Appraisal and Evaluation Guidelines. State-licensed appraisers will now be able to perform services in compliance with federal requirements.
In addition, the law clarifies that the Florida Real Estate Appraiser Board has the authority to adopt rules allowing for the use of standards of professional practice other than USPAP for “nonfederally related transactions.” Such transactions include appraisal assignments for portfolio monitoring, financial reporting, litigation, tax and consulting, among other areas. The law requires appraisers using development and reporting standards other than those contained in USPAP to comply with USPAP Ethics and Competency Rules and other requirements adopted by the Board by rule. The law clarifies that any valuation work performed per standards other than USPAP cannot be used to satisfy the experience requirements for any Florida appraiser credential.
Tennessee has enacted a law that will prohibit the use of eminent domain to condemn land for industrial parks. It deletes the “industrial parks” exception for takings under 29-17-102 (E), . It also provides that any property taken must fall under the strict definition of “public use” as defined by T.C.A. 29-17-102, which references the Fifth Amendment of the U.S. Constitution and the Tennessee Constitution. In addition, it requires the condemning government body to compensate land owners for engineering fees, appraisal costs, and, in certain circumstances, legal fees that may be the result of a condemnation action. Roads, transportation projects, and utilities are exempt from these costs.
The Texas Senate approved an eminent domain bill intending to expand on current legislation. The bill’s author, State Senator Lois Kolkhorst, said “This bill is designed to build off of Senate Bill 18 six years later as we’ve learned through the process that there are things that can be improved on.”
The bill, SB 740, would require a condemnor to clearly inform landowners that they have the right to speak with a representative of the condemnor and a representative of the Attorney General’s Office, as well as consult with a licensed real estate broker. An offer to purchase land for purposes of eminent domain must be at least 150 percent of the per-acre value as determined in the latest tax appraisal or one based on a certified appraisal. The condemnor would be prohibited from contacting a property owner for three days following the offer to allow time to consider it.
The bill now heads to the Texas House for consideration.
The Georgia Legislature approved legislation allowing local governments to seize blighted property for economic development. House Judiciary Chairman Wendell Willard, R-Sandy Springs, said the change would give cities more options in dealing with persistently blighted areas. However, before a property is taken for an economic development project the condemnor must prove to a judge that the property is blighted and property owners can challenge that allegation.
The Appraisal Institute reported April 17 that 37 bills affecting the valuation profession are pending in 23 states. According to the Appraisal Institute, the proposed legislation includes:
Arizona SB 1197 which makes various changes to the state’s appraiser licensing law and appraisal management company oversight and registration law.
California SB 70 which allows a state-licensed or state-certified appraiser to deviate from the Uniform Standards of Professional Appraisal Practice in certain circumstances.
Connecticut SB 780 which allows real estate brokers and salespersons to estimate for a fee or other valuable consideration a probable property sale price or lease price.
Florida SB 716/HB 927 which makes changes to the state’s AMC law and would allow appraisers to perform evaluations in compliance with the Interagency Appraisal and Evaluation Guidelines and allow the Florida Real Estate Appraiser Board to consider the adoption of standards of valuation practice other than USPAP for use in non-federally related transactions.
Hawaii HB 50/SB 390 which enacts a comprehensive AMC oversight and registration law.
Illinois HB 722 which prohibits AMCs from passing along to appraisers any costs, fees or other expenses.
Illinois HB 723 which requires the fee paid to an appraiser be shown separately from the fee paid to an AMC in any residential real estate closing document that lists real estate appraisal fees.
Indiana SB 76 which requires AMCs to compensate appraisers within 30 days of their submitting an appraisal to an AMC.
Kansas SB 2414 which allows appraisers to utilize the Appraisal Institute’s Standards of Valuation Practice and Valuers’ Code of Professional Ethics when performing an appraisal for any purpose other than a real estate-related financial transaction, and would allow appraisers to perform evaluations.
Kentucky HB 443 which reorganizes the state’s appraiser licensing and certification agency.
Massachusetts SB 104 which enacts mandatory appraiser licensing.
Minnesota HF 593/SF 366 which clarifies that allegations that do not result in disciplinary action against an appraiser are not made public, and that a background check is only required for an initial appraiser application. It also provides for the sequestering of information related to disciplinary actions more than five years old and imposes a six-year statute of limitation on civil actions against real estate appraisers.
North Carolina HB 431/SB 576 which clarifies that state-licensed and state-certified appraisers may perform evaluations.
Nebraska LB 17 updates the state’s AMC law to bring it into compliance with federal minimum requirements and the state’s supervisor and trainee requirements so they’re consistent with the Appraiser Qualifications Board.
New Hampshire SB 53 updates the state’s existing AMC law to bring it into compliance with federal minimum requirements.
New Jersey AB 1973 enacts a comprehensive AMC oversight and registration program.
Oklahoma SB 533/HB 1505 requires appraisers to include an invoice in the appraisal report.
Oregon HB 2189 establishes an appraiser-specific statute of limitations.
Pennsylvania HB 863 establishes the parameters around which a real estate broker or salesperson may perform a broker price opinion or comparative market analysis.
Rhode Island SB 543/HB 5620 establishes a comprehensive AMC oversight and registration program in accordance with federal minimum requirements.
South Carolina S279 enacts a comprehensive AMC oversight and registration program in compliance with federal requirements.
Tennessee SB 279/HB 376 enacts a statute of limitations applicable to civil claims against real estate appraisers.
Texas SB 1516/HB 3261 makes various changes to the state’s existing AMC oversight and registration law.
Vermont HB 506 repeals both the requirement for criminal background checks for appraisers and the state’s existing AMC oversight and registration program, vesting that authority instead to the Vermont Real Estate Appraiser Board.
PA State Senator John C. Rafferty, Jr. has announced that he intends to introduce legislation to aid railroads that may have its property condemned by utilities. He states that “The use of ‘quick take’ condemnation proceedings by a public utility company to avoid legitimate safety and operational concerns is detrimental to public safety and contrary to law. My legislation would provide the railroad industry with the necessary means to ensure public utility companies comply with federal safety regulations and engineering standards in the event a pipeline is proposed or constructed in an active railroad’s right-of-way.”
The PA State House is considering a bill that would amend the state’s Real Estate Licensing Law. According the Bill’s sponsor, HB863 would define “a Broker Price Opinion (BPO) as ‘an estimate prepared by a broker, associate broker or salesperson that details the probable selling price of a particular parcel of real property and provides a varying level of detail about the property’s condition, market, and neighborhood, and information on comparable sales, but does not include an automated valuation model’ and provides standards.” The Bill is currently in the Professional Licensure Committee.
If passed, the legislation would:
- Ask utility companies to use existing project routes when building on private property
- Require all future routing to take place along boundary or section lines
- Require all projects to avoid impeding irrigation and use agricultural machinery
- Require 60% of all land acquired in eminent domain to be given voluntarily
- Provide tougher restrictions on how the utility company can use the land
- Limit the amount of pounds per square inch the company can put on the land
- Limit the number of times a utility company can apply to the Missouri Public Service Commission in pursuing eminent domain
Both bills are waiting to be assigned to committee.