AN ACT TO EMPOWER THE NORTH CAROLINA APPRAISAL BOARD TO ESTABLISH AND ENFORCE THE PAYMENT OF REASONABLE AND CUSTOMARY FEES FOR REAL ESTATE APPRAISALS.
Amends GS 93E-1-4 to add and define the terms client and net compensation.
Enacts new GS 93E-1-9.1 to require the North Carolina Appraisal Board (Board) to publish at least every three years, a schedule of customary and reasonable rates of compensation for appraisals based on the market area where the real property is situated. Specifies measures that may be used to set the rates and factors that must be included in the rates. This statute applies only for appraisals for one- to four-family residential properties. Requires the Board to publish the rate schedule no later than 180 days after the act becomes law.
Amends GS 93E-2-4 to require an appraisal management company renewing registration to provide four specified pieces of information to the Board, including the total net compensation paid for all appraisals performed and the total net compensation paid for all complex property appraisal assignments performed.
Amends GS 93E-2-8 to allow the Board to take disciplinary action for the failure to pay reasonable and customary fees to appraisers. Also allows taking disciplinary action when an application for renewal that contains any false or misleading statements. Allows the Board to audit a registrant to determine the appraisal management company's compliance with new GS 93E-1-9.1.
Enacts new GS 93E-2-12 requiring an appraisal management company to separately state to a client the amount of net compensation paid to an appraiser for the appraisals performed and any fees charged by the appraisal management company for appraisal management services associated with the administration of the appraisal process.
Amends GS 53-244.111 to make it illegal, in the course of any residential mortgage loan transaction, to fail to disclose and distinguish, in writing, the separate amounts paid in compensation to an appraiser for the appraisal performed and for appraisal management services reported by an appraisal management company.
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