SB351 Alabama 2010 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2010

Title

Real Estate Appraisal Management Companies, subject to regulation by Real Estate Appraisers Board, Real Estate Appraisers Act, renamed the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act, Secs. 34-27A-50 to 34-27A-64, inclusive, added; Secs. 34-27A-1, 34-27A-2 am'd.

Summary

SB351 would create a regulatory framework requiring appraisal management companies to register, be overseen by the Alabama Real Estate Appraisers Board, and follow new rules on licensing, operations, and enforcement.

What This Bill Does

It renames the existing Alabama Real Estate Appraisers Act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and adds regulation of appraisal management companies. It requires AMCs to apply for registration, maintain a $20,000 bond, pass background checks, and renew annually. It sets standards for appraiser panels, fee disclosures, audits, recordkeeping, and protections against improper influence, with enforcement powers including censure, suspension, revocation, and fines up to $25,000. It also outlines due-process procedures and certain exemptions.

Who It Affects

• Appraisal management companies operating in Alabama: they must register with the Real Estate Appraisers Board, meet character/financial requirements, post a bond, designate a controlling person, and comply with ongoing regulatory duties.
• Licensed or certified appraisers (and individuals performing appraisal services for AMCs): they must be verified as licensed/certified, appear on AMC panels, and work within the board’s regulatory framework that governs independence, audits, and contractual relationships.

Key Provisions

• Renames the act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and creates Article 2 to govern AMCs.
• Requires mandatory AMC registration with the Real Estate Appraisers Board, including application forms, background checks, good moral character, financial stability, and a $20,000 surety bond, with annual renewals.
• Imposes ownership, controlling-person, and employment restrictions to prevent previously sanctioned individuals from owning or running an AMC; requires background investigations and good character.
• Mandates that AMCs designate a controlling person, provide a main contact, verify licensure of appraisers, review appraiser work for compliance with USPAP, and keep detailed service records.
• Requires AMCs to disclose appraiser fee schedules and board reviews methodologies, with public disclosure of substantive results after review.
• Provides the Alabama Real Estate Appraisers Board with enforcement tools (censure, suspension, revocation, fines up to $25,000) and outlines adjudicatory procedures and due process protections.
• Establishes exemptions for certain employer-employee arrangements and some federally regulated units within financial institutions; sets an effective date a few months after passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Licenses and Licensing