2009 - 2010 LEGISLATURE
October 8, 2009 - Introduced by Senators Plale, Taylor, Lehman and Hansen,
cosponsored by Representatives
Zepnick, Young, Soletski, Jorgensen, Wood,
Fields, A. Williams, Richards, Dexter, Petrowski, Mason, Colon, Clark,
Sinicki and Hraychuck. Referred to Committee on Labor, Elections and
1An Act to repeal
458.02; to renumber
458.055; to renumber and amend
458.01 (3) and 458.09 (1); to amend
15.405 (10r) (a) 2., 458.03 (1) (f), 458.095 3
(title), 458.16 (1), 458.16 (2) and 458.21; and to create
458.01 (3) (a), 458.01 4
(5m), 458.055 (2m) and 458.19 (4) of the statutes; relating to: certification and
5licensure of real estate appraisers and requirements for appraisal reports and
6granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill makes changes to the licensure and certification of real estate
appraisers and the requirements for appraisal reports.
Licensure and certification
Under current law, the Department of Regulation and Licensing (DRL) issues
licenses and certificates to real estate appraisers. To obtain a license or certificate,
a person must satisfy specified requirements, including education, experience, and
examination requirements established in rules promulgated by DRL. Current law
prohibits a person who is not licensed or certified from using a title indicating that
he or she is "Wisconsin licensed," "Wisconsin certified," or something similar. In
addition, current law prohibits a person who is not licensed or certified from
describing or referring to an appraisal of real estate in this state as "Wisconsin
certified," "Wisconsin licensed," or something similar. However, current law allows
a person who is not licensed or certified to appraise real estate or cosign an appraisal
report, if the person does not violate the prohibitions described above.
This bill prohibits a person, for compensation, from performing a real estate
appraisal or preparing or cosigning a real estate appraisal report, unless he or she
is licensed or certified as a real estate appraiser by DRL. In addition, under the bill,
a person who is not licensed or certified may not, for compensation, engage in the
business or occupation of, or hold himself or herself out as, a real estate appraiser.
As a result, a person who is not licensed or certified may not, for compensation,
appraise real estate or cosign an appraisal report, even if he or she does not violate
the current prohibitions. The bill does not affect the requirements that a person
must satisfy to be licensed or certified.
There are three exceptions to the prohibitions created in the bill. First, a person
licensed by DRL under current law as a real estate salesperson or broker may
prepare a broker market analysis without being licensed as a real estate appraiser
under the bill. Under the bill, a "broker market analysis" is an analysis used solely
to establish a listing price or purchase price for a property. Second, the bill does not
apply to an "assessor," defined as a person who assesses real estate for property tax
purposes for a town, village, city, or county or the Department of Revenue (DOR).
Under current law, which this bill does not affect, assessors are regulated by DOR.
Third, the bill's prohibitions do not apply to an individual who is supervised by a
licensed or certified appraiser, under rules to be be promulgated by DRL.
In addition, the bill requires each certified or licensed appraiser to pay to DRL
the annual registry fee that is required by the Federal Financial Institutions
Examination Council. Under current law, a certified or licensed appraiser must pay
the fee to DRL only if he or she performs, or desires to perform, appraisals in certain
transactions overseen by federal agencies.
Under current law, an appraisal report prepared by a real estate appraiser
must comply with certain requirements, including stating whether the appraiser has
conducted an on-site inspection of the real estate or buildings or dwellings on the
This bill requires an appraisal report that pertains to residential real estate or
vacant land also to include information about conveyances of the real estate or land
within three years preceding the appraisal, including the sales prices or values of
ownership interests transferred, the identities of the grantors and grantees, and the
numbers assigned by the register of deeds for recording the conveyances.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB339, s. 1
15.405 (10r) (a) 2. of the statutes is amended to read:
(a) 2. One assessor, as defined in s. 458.09 (1) 458.01 (4m)
SB339, s. 2
458.01 (3) of the statutes is renumbered 458.01 (3) (intro.) and 3
amended to read:
(intro.) "Appraisal report" means a written communication of an 5
appraisal, but does not include any of the following:
6(b) A broker market analysis
SB339, s. 3
458.01 (3) (a) of the statutes is created to read:
(a) A report used to determine value for an assessment prepared by 9
an assessor under s. 70.32.
SB339, s. 4
458.01 (5m) of the statutes is created to read:
"Broker market analysis" means an analysis made by a broker or 12
salesperson licensed under ch. 452 within the scope of the broker's or salesperson's 13
licensure that is used solely to establish a listing price or to set a purchase price for 14
SB339, s. 5
458.02 of the statutes is repealed.
SB339, s. 6
458.03 (1) (f) of the statutes is amended to read:
(f) Promulgate rules specifying the manner in which certified 18
appraisers and licensed appraisers shall place their titles, as described in s. 458.055 19(1m) (a) and (c)
, and certificate numbers on appraisal reports and written appraisal 20
SB339, s. 7
458.055 of the statutes is renumbered 458.055 (1m).
SB339, s. 8
458.055 (2m) of the statutes is created to read:
(a) Except as provided in par. (b), no person may, for a fee, money, 24
or other thing of value, perform an appraisal, prepare or cosign an appraisal report, 25
or engage in the business or occupation of, or advertise or hold himself or herself out
as, or act temporarily or otherwise as an appraiser unless the person is a certified 2
appraiser or licensed appraiser.
(b) Paragraph (a) does not apply to any of the following:
1. An assessor.
2. An individual who is supervised by a licensed or certified appraiser pursuant 6
to rules promulgated by the department.
3. A broker or salesperson who is licensed under ch. 452 and who is performing 8
a broker market analysis.
SB339, s. 9
458.09 (1) of the statutes is renumbered 458.01 (4m) and amended 10
458.01 (4m) In this section, "assessor" "Assessor"
means an individual who 12
assesses or has assessed the value of real estate for property tax purposes for a town, 13
or county or the department of revenue.
SB339, s. 10
458.095 (title) of the statutes is amended to read:
(title) Temporary practice and use of titles; appraisers
16certified or licensed in other states.
SB339, s. 11
458.16 (1) of the statutes is amended to read:
Each certified appraiser shall place his or her title, as described in 19
s. 458.055 (1m) (a) and (c)
, and certificate number on each appraisal report and each 20
written appraisal agreement used by the certified appraiser in conducting appraisal 21
activities. The title and certificate number shall be placed in a manner specified by 22
the department in the rules promulgated under s. 458.03 (1) (f). The title "Wisconsin 23
certified residential appraiser" or "WI certified residential appraiser" may be used 24
only on an appraisal report or written appraisal agreement pertaining to commercial
real estate having a transaction value of not more than $250,000 or to residential real 2
SB339, s. 12
458.16 (2) of the statutes is amended to read:
Each licensed appraiser shall place his or her title, as described in 5
s. 458.055 (1m) (a) and (c)
, and certificate number on each appraisal report and each 6
written appraisal agreement used by the licensed appraiser in conducting appraisal 7
activities. The title and certificate number shall be placed in a manner specified by 8
the department in the rules promulgated under s. 458.03 (1) (f). The title "Wisconsin 9
licensed appraiser" or "WI licensed appraiser" may be used only on an appraisal 10
report or written appraisal agreement pertaining to real estate described in the rules 11
promulgated under s. 458.03 (1) (e).
SB339, s. 13
458.19 (4) of the statutes is created to read:
If the appraisal report pertains to residential real estate or vacant 14
land, the full sales price, or the value of the ownership interest transferred, as 15
specified on a return submitted under s. 77.22 (1), for any conveyance of the real 16
estate or land that was recorded by the register of deeds of the county in which the 17
real estate or land is located within the 3 years preceding the date of the appraisal 18
report; the identities of the grantor and grantee as specified in the return; and any 19
number that the register of deeds assigned to the conveyance related to the recording 20
of the conveyance. In this subsection, "conveyance" has the meaning given s. 77.21 21
SB339, s. 14
458.21 of the statutes is amended to read: