SECTIONS 11302 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 11302

11302. For the purpose of applying this part, the following terms,
unless otherwise expressly indicated, shall mean and have the
following definitions:
(a) "Agency" means the Business, Transportation and Housing
Agency.
(b) "Appraisal" means a written statement independently and
impartially prepared by a qualified appraiser setting forth an
opinion in a federally related transaction as to the market value of
an adequately described property as of a specific date, supported by
the presentation and analysis of relevant market information.
The term "appraisal" does not include an opinion given by a real
estate licensee or engineer or land surveyor in the ordinary course
of his or her business in connection with a function for which a
license is required under Chapter 7 (commencing with Section 6700) or
Chapter 15 (commencing with Section 8700) of Division 3, or Chapter
3 (commencing with Section 10130) or Chapter 7 (commencing with
Section 10500) and the opinion shall not be referred to as an
appraisal. This part does not apply to a probate referee acting
pursuant to Sections 400 to 408, inclusive, of the Probate Code
unless the appraised transaction is federally related.
(c) "Appraisal Foundation" means the Appraisal Foundation that was
incorporated as an Illinois not-for-profit corporation on November
30, 1987.
(d) (1) "Appraisal management company" means any person or entity
that satisfies all of the following conditions:
(A) Maintains an approved list or lists, containing 11 or more
independent contractor appraisers licensed or certified pursuant to
this part, or employs 11 or more appraisers licensed or certified
pursuant to this part.
(B) Receives requests for appraisals from one or more clients.
(C) For a fee paid by one or more of its clients, delegates
appraisal assignments for completion by its independent contractor or
employee appraisers.
(2) "Appraisal management company" does not include any of the
following, when that person or entity directly contracts with an
independent appraiser:
(A) Any bank, credit union, trust company, savings and loan
association, or industrial loan company doing business under the
authority of, or in accordance with, a license, certificate, or
charter issued by the United States or any state, district,
territory, or commonwealth of the United States that is authorized to
transact business in this state.
(B) Any finance lender or finance broker licensed pursuant to
Division 9 (commencing with Section 22000) of the Financial Code,
when acting under the authority of that license.
(C) Any residential mortgage lender or residential mortgage
servicer licensed pursuant to Division 20 (commencing with Section
50000) of the Financial Code, when acting under the authority of that
license.
(D) Any real estate broker licensed pursuant to Part 1 (commencing
with Section 10000) of Division 4 of the Business and Professions
Code, when acting under the authority of that license.
(3) "Appraisal management company" does not include any person
licensed to practice law in this state who is working with or on
behalf of a client of that person in connection with one or more
appraisals for that client.
(e) "Appraisal Subcommittee" means the Appraisal Subcommittee of
the Federal Financial Institutions Examination Council.
(f) "Controlling person" means one or more of the following:
(1) An officer or director of an appraisal management company, or
an individual who holds a 10 percent or greater ownership interest in
an appraisal management company.
(2) An individual employed, appointed, or authorized by an
appraisal management company that has the authority to enter into a
contractual relationship with clients for the performance of
appraisal services and that has the authority to enter into
agreements with independent appraisers for the completion of
appraisals.
(3) An individual who possesses the power to direct or cause the
direction of the management or policies of an appraisal management
company.
(g) "Director" means the Director of the Office of Real Estate
Appraisers.
(h) "Federal financial institutions regulatory agency" means the
Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, Office of Thrift Supervision,
Federal Home Loan Bank System, National Credit Union Administration,
and any other agency determined by the director to have jurisdiction
over transactions subject to this part.
(i) "Federally related real estate appraisal activity" means the
act or process of making or performing an appraisal on real estate or
real property in a federally related transaction and preparing an
appraisal as a result of that activity.
(j) "Federally related transaction" means any real estate-related
financial transaction which a federal financial institutions
regulatory agency engages in, contracts for or regulates and which
requires the services of a state licensed real estate appraiser
regulated by this part. This term also includes any transaction
identified as such by a federal financial institutions regulatory
agency.
(k) "License" means any license, certificate, permit,
registration, or other means issued by the office authorizing the
person to whom it is issued to act pursuant to this part within this
state.
(l) "Licensure" means the procedures and requirements a person
shall comply with in order to qualify for issuance of a license and
includes the issuance of the license.
(m) "Office" means the Office of Real Estate Appraisers.
(n) "Registration" means the procedures and requirements with
which a person or entity shall comply in order to qualify to conduct
business as an appraisal management company.
(o) "Secretary" means the Secretary of Business, Transportation
and Housing.
(p) "State licensed real estate appraiser" is a person who is
issued and holds a current valid license under this part.
(q) "Uniform Standards of Professional Appraisal Practice" are the
standards of professional appraisal practice established by the
Appraisal Foundation.
(r) "Course provider" means a person or entity that provides
educational courses related to professional appraisal practice.