SECTIONS 11422-11423 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 11422-11423

11422. The office shall, on or before February 1, 1994, and at
least annually thereafter, transmit to the appraisal subcommittee
specified in subdivision (e) of Section 11302 a roster of persons
licensed pursuant to this part.

11423. (a) For purposes of this section:
(1) "Applicant" means a person who has made a written request for
an extension of credit which is proposed to be secured by real
property. The term does not include a guarantor, surety, or other
person who will not be directly liable on the loan.
(2) "Appraisal" shall have the same meaning as set forth in
subdivision (b) of Section 11302.
(3) "Residential real property" means real property located in the
State of California containing only a one-to-four family residence.
(b) A lender in a loan transaction secured by real property shall
provide notice as described in this section to a loan applicant of
the applicant's right to receive a copy of the appraisal, provided he
or she has paid for the appraisal.
An applicant's written request for a copy of an appraisal must be
received by the lender no later than 90 days after (1) the lender has
provided notice of the action taken on the application, including a
notice of incompleteness, or (2) the application has been withdrawn.
(c) The lender shall mail or deliver a copy of an appraisal within
15 days after receiving a written request from the applicant, or
within 15 days after receiving the appraisal, whichever occurs later.
(d) Where the loan is proposed to be secured by residential real
property, the notice of the applicant's right to a copy of the
appraisal as provided in subdivision (b) shall be given in at least
10-point boldface type, as a separate document in a form that the
applicant may retain, and no later than 15 days after the lender
receives the written application. The notice shall specify that the
applicant's request for the appraisal must be in writing and must be
received by the lender no later than 90 days after the lender
provides notice of the action taken on the application or a notice of
incompleteness, or in the case of a withdrawn application, 90 days
after the withdrawal. An address to which the request should be sent
shall be specified in the notice. Release of the appraisal to the
applicant may be conditioned upon payment of the cost of the
appraisal.
(e) Where the loan is proposed to be secured by nonresidential
real property, the notice of the applicant's right to a copy of the
appraisal shall be given within 15 days of receiving the appraisal.
The notice shall specify that the applicant's request for a copy of
the appraisal must be in writing and that the request must be made
within the time specified in subdivision (b) and that the applicant
is only entitled to receive the appraisal or appraisals obtained by
the lender for the purpose of evaluating the applicant's pending
request for an extension of credit. Release of the appraisal to the
applicant may be conditioned upon payment of the cost of the
appraisal and the cost of duplicating the appraisal.
(f) Nothing in this section is intended to effect a change in
current law in any manner with respect to reliance on an appraisal by
anyone other than the lender who released the appraisal.
(g) This section does not apply to appraisals obtained by lenders
on property owned by the lender, nor to appraisals obtained by the
lender in anticipation of modifying any existing loan agreement if
the lender has not charged for the appraisal.
(h) In the case of loans secured by residential real property,
compliance with Regulation B (12 CFR Part 202 et seq.) of the Federal
Reserve Board is deemed to be compliance with the provisions of this
section and Section 10241.3.
(i) This section is in addition to any right of access to
appraisals that exists under any other provision of state or federal
law.