HB464 Alabama 2011 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2011

Title

Real Estate Appraisal Management Companies, licensing and regulation by Real Estate Appraisers Board, Real Estate Appraisers Act, renamed the Alabama Real Estate Appraisers and Appraisal Management Company Registration Act, Secs. 34-27A-50 to 34-27A-63, inclusive, added; Secs. 34-27A-1, 34-27A-2 am'd.

Summary

The bill creates a new Alabama framework to license, register, and regulate appraisal management companies to protect appraiser independence in real estate appraisals.

What This Bill Does

It renames the current Real Estate Appraisers Act and adds a new article to regulate appraisal management companies (AMCs). AMCs must register with the Alabama Real Estate Appraisers Board, meet licensing and background-check requirements, post a bond, pay fees, and follow rules designed to maintain appraiser independence. The bill also sets standards for appraisers’ geographic competency, record-keeping, timely payment to appraisers, and prohibitions on coercion or improper influence, with board-enforced penalties for violations and due-process procedures for enforcement; several exemptions for certain financial institutions and transactions are provided.

Who It Affects

• Appraisal management companies and their owners, employees, and contractors: they must register with the board, meet eligibility requirements (including background checks and moral character), designate a principal contact, post a bond, pay annual and possible late fees, maintain records, ensure appraisers are properly licensed and geographically competent, and follow rules to preserve independence.
• Licensed or certified real estate appraisers in Alabama (and the appraisers on AMC panels): they must hold valid licenses or certifications, be geographically competent for assignments, be subject to oversight and reviews by AMCs and the board, and operate under independence protections that limit coercive practices and improper influence.

Key Provisions

• Renaming the Alabama Real Estate Appraisers Act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and creating a new Article 2 to specifically regulate AMCs.
• Unlawful to engage in AMC business or perform appraisal management services without AMC registration; requires registration through the board and provides for a one-year registration term.
• AMC registration requirements include detailed applicant information, proof of licensing for appraisers added to panels, geographic competency certification, periodic review of appraiser work for compliance with USPAP, and maintenance of service records for at least five years.
• Ownership, control, and character rules: AMC owners (and anyone with >10% ownership) must have good moral character and undergo background investigations; cannot employ someone who has had prior registrations/licenses denied or revoked unless subsequently reinstated; ensures all involved in appraisal work are properly licensed.
• Financial and administrative safeguards: post a $25,000 surety bond (or cash security), annual license renewal, and payment of applicable fees; AMCs must issue a registered number and publish a list of registered AMCs.
• Operational and independence standards: AMCs must verify geographic competency before assigning appraisers, ensure appraisers’ independence, and prohibit coercive practices; payment to appraisers must be made within 45 days of receiving a completed appraisal.
• Removal and due process: AMCs may remove an appraiser only with written notice, a description of alleged misconduct, and an opportunity for the appraiser to respond; board adjudicatory proceedings provide due process protections.
• Enforcement and penalties: the board may censure, suspend, revoke registration, or impose fines up to $25,000 for violations or improper practices; the board may adopt additional rules to implement the act.
• Exemptions and scope: the act does not apply to certain financial institutions or their departments/units, and certain scenarios where both the appraiser and client sign the appraisal upon completion are excluded.
• Effective date: the act becomes effective October 1, 2011, upon passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Licenses and Licensing