The Real Estate Appraiser Licensing Act of 2002 (P.A. 92-0180)

Effective July 1, 2002, P.A. 92-0180 created the Real Estate Appraiser Licensing Act of 2002. 225 ILCS 458/1 et seq. (2002). The goal of the Act is to regulate the training and ensure the competency of persons engaged in real estate appraisal. Beginning on the effective date, it is unlawful for any person to act, advertise, or hold themselves out to be a real estate appraiser in connection with a federal-related transaction without being licensed under this Act. The Act does not apply to real estate brokers or salespersons licensed pursuant to the Real Estate Licensing Act of 2000 unless that person provides appraisal reports in connection with a federally-related transaction. Section 5-5. The Act also provides reciprocity guidelines and temporary practice permits for non-resident appraisers licensed in another state.

Under the Act, three classes of appraisers are created: general real estate appraiser, residential real estate appraiser, and associate real estate appraiser. All three classes of applicants must be at least 18 years of age, have a high school degree or an equivalency exam, pass an OBRE authorized exam and complete the requisite classroom hours. General and residential appraiser applicants must also complete the requisite appraisal experience requirements. Article 10 of the Act sets out the scope of practice of the different classes. No state licensed real estate appraiser licenses will be issued on or after September 30, 2003, under the Act.

A person guilty of unlicensed practice is guilty of a class A misdemeanor and, in addition to any legal penalties, must pay a civil penalty to OBRE not exceeding $10,000 for each violation. Section 5-5. The Act details the grounds for which disciplinary actions can be taken. Section 15-10. OBRE has discretion to refuse to renew or issue a license for violations of tax acts or nonpayment of child support. A license shall not be issued or renewed if the applicant has defaulted on and left uncorrected an educational loan or scholarship provided and guaranteed by any state commission or agency. Section 15. Providers of the educational courses required for licensing under the Act must be licensed by OBRE. Section 20. Beginning July 1, 2002, education providers must meet certain requirements as outlined in the Act.

Any fees, fines, and penalties received under the Act are deposited into the newly created Appraisal Administration Fund. Section 25-5. The Act also provides guidelines for appointment of persons to the new Real Estate Appraisal Board. The Board will hear and make decisions on disciplinary matters and offer recommendations regarding licensing, education, and rules created pursuant to the Act. Section 25-10. Finally, the OBRE Commissioner will appoint a Director of the Real Estate Appraisal Division to perform liaison duties between the OBRE and organizations and associations throughout the real estate appraisal industry.

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