SECTIONS 1917.040-1917.044 - California Statutes

CIVIL CODE

SECTION 1917.040-1917.044

1917.040. The fair market value of the real property securing a
shared appreciation loan shall be determined annually as provided in
this article. The lender shall select an independent appraiser
annually to perform an appraisal of the property subject to a shared
appreciation loan. The appraisal shall be performed within 30 days
preceding the anniversary date of the loan and a copy of the current
appraisal shall be sent by first-class mail to the borrower no later
than five days following the anniversary date of the loan, together
with a notice informing the borrower that the appraisal will
constitute a final and conclusive determination of the value of the
property for certain purposes and that if the borrower disputes the
amount of the appraisal, the borrower may procure an independent
appraisal as provided in Section 1917.041. The lender may require the
borrower to pay for the cost of the appraisal.

1917.041. If the borrower disputes the amount of the appraisal, the
borrower, within 30 days of the anniversary date of the loan, may
procure an appraisal of the property at the borrower's expense by a
qualified independent appraiser, and a copy of the appraisal shall be
sent by first-class mail to the lender within the 30-day period.

1917.042. If the appraisal by the appraiser selected by the
borrower is lower in amount than the appraisal by the appraiser
selected by the lender, the amount to be used to calculate the annual
adjustment shall be one-half of the sum of the two appraisals.

1917.043. The appraisal amount, as determined pursuant to Section
1917.040 if the borrower does not dispute the appraisal amount, or
1917.042 if the borrower disputes the appraisal amount, shall
constitute the value of the property from and after the anniversary
date of the loan for the purpose of determining the property's
adjusted fair market value under Section 1917.020.

1917.044. The qualifications of the appraisers may be specified by
the terms of the shared appreciation loan for purposes of this
article and Article 5 (commencing with Section 1917.050).