WEST VIRGINIA LEGISLATURE
2024 REGULAR SESSION
ENROLLED
House Bill 5582
BY DELEGATE PHILLIPS
[Passed March 7, 2024; in effect ninety days from passage.]
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1 AN ACT to amend and reenact §30-38-1, §30-38-3, §30-38-6, §30-38-7, and §30-38-11 of the
2 Code of West Virginia, 1931, as amended, relating to updating the requirements regarding
3 real estate appraisal licenses.
Be it enacted by the Legislature of West Virginia:
ARTICLE 38. THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION
ACT.
§30-38-1. Real estate appraiser license required; exceptions.
1 (a) It is unlawful for any person, for compensation or valuable consideration, to prepare a
2 valuation appraisal or a valuation appraisal report relating to real estate or real property in this
3 state without first being licensed or certified as provided in this article. This section shall not be
4 construed to apply to persons who do not render significant professional assistance in arriving at
5 a real estate appraisal analysis, opinion or conclusion. Nothing in this article may be construed to
6 prohibit any person who is licensed to practice in this state under any other law from engaging in
7 the practice for which he or she is licensed.
8 (b) No person other than a person licensed or certified under this article may use the title
9 of licensed appraiser or certified appraiser or any title, designation or abbreviation likely to create
10 the impression that the person is licensed or certified by the state.
11 (c) This article does not apply to:
12 (1) A real estate broker or salesperson licensed by this state who, in the ordinary course
13 of his or her business, gives an opinion to a potential seller or third party as to the recommended
14 listing price of real estate or an opinion to a potential purchaser or third party as to the
15 recommended purchase price of real estate, when this opinion as to the listing price or the
16 purchase price is not to be referred to as an appraisal, no opinion is rendered as to the value of
17 the real estate and no fee is charged;
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18 (2) A casual or drive-by inspection of real estate in connection with a consumer loan
19 secured by the real estate, when the inspection is not referred to as an appraisal, no opinion is
20 rendered as to the value of the real estate and no fee is charged for the inspection;
21 (3) An employee who renders an opinion as to the value of real estate for his or her full-
22 time employer, for the employer's internal use only and performed in the regular course of the
23 employee's position, when the opinion is not referred to as an appraisal and no fee is charged;
24 (4) Appraisals of personal property, including, but not limited to, jewelry, household
25 furnishings, vehicles and manufactured homes not attached to real estate;
26 (5) Any officer or employee of the United States, or of the State of West Virginia or a
27 political subdivision thereof, when the employee or officer is performing his or her official duties:
28 Provided, That such individual does not furnish advisory service for compensation to the public
29 or act as an independent contracting party in West Virginia or any subdivision thereof in
30 connection with the appraisal of real estate or real property: Provided, however, That this
31 exception shall not apply with respect to federally related transactions as defined in Title XI of the
32 United States Code, entitled "Financial Institutions Reform, Recovery, and Enforcement Act of
33 1989"; or
34 (6) An individual not licensed in accordance with §30-38-1, et seq. of this code who
35 completes an evaluation of the value of real estate serving as collateral for a loan made by a
36 financial institution insured by the federal deposit insurance corporation: Provided, That the
37 evaluation is in a format that includes the following statements in a conspicuous location and in
38 bold print: "This evaluation has been prepared in compliance with §30-38-1(c)(6) and the following
39 conditions are satisfied, (A) The amount of the loan is equal to or less than the federal de minimus
40 threshold; (B) the evaluation is used solely by the lender in its records to document the collateral
41 value; (C) the evaluation clearly indicates on its face that it is for the lender's internal use only;
42 (D) the evaluation is not labeled an appraisal and explicitly states that the evaluation was
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43 performed by an individual that is not licensed as an appraiser in accordance with §30-38-1, et
44 seq. Individuals performing these evaluations may be compensated for their services.
§30-38-3. Definitions.
1 As used in this article, the following terms have the following meanings:
2 (a) "Appraisal" means an analysis, opinion, or conclusion prepared by a real estate
3 appraiser relating to the nature, quality, value, or utility of specified interests in, or aspects of,
4 identified real estate or identified real property. An appraisal may be classified by the nature of
5 the assignment as a valuation appraisal, an analysis assignment, or a review assignment.
6 (b) "Analysis assignment" means an analysis, opinion, or conclusion prepared by a real
7 estate appraiser that relates to the nature, quality, or utility of identified real estate or identified
8 real property.
9 (c) "Appraisal foundation" means the appraisal foundation established on November 30,
10 1987, as a not-for-profit corporation under the laws of Illinois.
11 (d) "Appraisal report" means any communication, written or oral, of an appraisal. An
12 appraisal report may be classified by the nature of the assignment as a "valuation report",
13 "analysis report", or "review report". For purposes of this article, the testimony of an appraiser
14 dealing with the appraiser’s analyses, conclusions, or opinions concerning identified real estate
15 or identified real property is considered an oral appraisal report.
16 (e) "Board" means the real estate appraiser licensing and certification board established
17 by the provisions of this article.
18 (f) "Certified appraisal report" means a written appraisal report that is certified by a state
19 licensed or certified real estate appraiser. When a real estate appraiser identifies an appraisal
20 report as "certified", the real estate appraiser must indicate the type of licensure or certification
21 he or she holds. By certifying an appraisal report, a state licensed residential real estate appraiser,
22 a state certified general real estate appraiser, or a state certified residential real estate appraiser
23 represents to the public that the report meets the appraisal standards established by this article.
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24 (g) "Certified real estate appraiser" means a person who holds a current, valid certification
25 as a state certified residential real estate appraiser or a state certified general real estate appraiser
26 issued to him or her under the provisions of this article.
27 (h) "Complex appraisal" means an appraisal that: (1) For nonresidential property, relies
28 on all three approaches to value, being the cost approach, the income approach, and the sales
29 comparison approach, or does not have the characteristics of a noncomplex appraisal; and (2)
30 for residential property, relies to any significant degree on at least two of the three approaches to
31 value, with one approach being the sales comparison approach, or one in which the property to
32 be appraised, the form of ownership, or the market conditions are atypical.
33 (i) "Cost approach" means an approach to valuing real estate that requires an appraiser
34 to: (1) Develop an opinion of site value by an appropriate appraisal method or technique; (2)
35 analyze comparable cost data as are available to estimate the cost new of the improvements if
36 any; and (3) analyze comparable data as are available to estimate the difference between the
37 cost new and the present worth of the improvements, also called accrued depreciation.
38 (j) "Evaluation" means an opinion about the market value of real estate that is:
39 (1) Made in accordance with the 2010 "Interagency Appraisal and Evaluation Guidelines"
40 developed by the following federal agencies that regulate financial institutions: The Federal
41 Reserve Board; The Office of the Comptroller of the Currency; The Federal Deposit Insurance
42 Corporation; The Office of Thrift Supervision; and the National Credit Union Administration,
43 (2) Provided to a financial institution for use in a real estate related transaction for which
44 an appraisal is not required by the federal agencies listed in subsection (j)(1) of this section.
45 (k) "Income approach" means an approach to valuing real estate that requires an
46 appraiser to: (1) Analyze comparable rental data as are available to estimate the market rental of
47 the property; (2) analyze comparable operating expense data as are available to estimate the
48 operating expenses of the property; (3) analyze comparable data as are available to estimate
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49 rates of capitalization or rates of discount; and (4) base projections of future rent and expenses
50 on reasonably clear and appropriate evidence.
51 (l) "Licensed real estate appraiser" means a person who holds a current, valid license as
52 a state licensed residential real estate appraiser issued to him or her under the provisions of this
53 article.
54 (m) "Noncomplex appraisal" means an appraisal for which: (1) There is an active market
55 of essentially identical properties; (2) adequate data is available to the appraiser; (3) adjustments
56 to comparable sales are not large in the aggregate, specifically not exceeding the trading range
57 found in the market of essentially identical properties; and (4) for residential properties, the
58 contract sales price falls within the market norm or median sales price for homes or lots within the
59 same area.
60 (n) "Real estate" means an identified parcel or tract of land, including improvements, if
61 any.
62 (o) "Real estate appraisal activity" means the act or process of making an appraisal of real
63 estate or real property and preparing an appraisal report.
64 (p) "Real estate appraiser" means a person who engages in real estate appraisal activity
65 for a fee or other valuable consideration.
66 (q) "Real property interests" means one or more defined interests, benefits, or rights
67 inherent in the ownership of real estate.
68 (r) "Review assignment" means an analysis, opinion, or conclusion prepared by a real
69 estate appraiser that forms an opinion as to the adequacy and appropriateness of a valuation
70 appraisal or an analysis assignment.
71 (s) "Sales comparison approach" means an approach to valuing real estate that requires
72 an appraiser to analyze such comparable sales data as are available to indicate a value
73 conclusion.
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74 (t) "Valuation appraisal" means an analysis, opinion, or conclusion prepared by a real
75 estate appraiser that estimates the value of an identified parcel of real estate or identified real
76 property at a particular point in time.
§30-38-6. Board created; appointments, qualifications, terms, oath, removal of members;
quorum; meetings; disqualification from participation; compensation; records;
employing staff.
1 (a) The West Virginia Real Estate Appraiser Licensing and Certification Board, which
2 consists of nine members appointed by the Governor with the advice and consent of the Senate,
3 is continued.
4 (1) Each member shall be a resident of the State of West Virginia, except the appraisal
5 management company representative is not required to be a resident of West Virginia.
6 (2) Four members shall be certified real estate appraisers having at least five years'
7 experience in appraisal as a principal line of work immediately preceding their appointment, and
8 shall remain certified real estate appraisers throughout their terms.
9 (3) Two members shall have at least five years' experience in real estate lending as
10 employees of financial institutions.
11 (4) Two members may not be engaged in the practice of real estate appraisal, real estate
12 brokerage or sales, or have any financial interest in these practices.
13 (5) One member shall be a representative from an appraisal management company
14 registered under the provisions of §30-38A-1, et seq. of this code.
15 (6) No member of the board may concurrently be a member of the West Virginia Real
16 Estate Commission.
17 (7) Not more than three appraiser members may be appointed from a congressional
18 district.
19 (b) Members will be appointed for three-year terms, which are staggered in accordance
20 with the initial appointments under prior enactment of this act.
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21 (1) No member may serve for more than three consecutive terms.
22 (2) Before entering upon the performance of his or her duties, each member shall
23 subscribe to the oath required by section five, article IV of the constitution of this state.
24 (3) The Governor shall, within 60 days following the occurrence of a vacancy on the board,
25 fill the vacancy by appointing a person who meets the requirements of this section for the
26 unexpired term.
27 (4) Any member may be removed by the Governor in case of incompetency, neglect of
28 duty, gross immorality, or malfeasance in office.
29 (c) The board shall elect a chairman.
30 (d) A majority of the members of the board constitutes a quorum.
31 (e) The board shall meet at least once in each calendar quarter on a date fixed by the
32 board.
33 (1) The board may, upon its own motion, or shall upon the written request of three
34 members of the board, call additional meetings of the board upon at least 24 hours' notice.
35 (2) No member may participate in a proceeding before the board to which a corporation,
36 partnership, or unincorporated association is a party, and of which he or she is or was at any time
37 in the preceding 12 months a director, officer, owner, partner, employee, member, or stockholder.
38 (3) A member may disqualify himself or herself from participation in a proceeding for any
39 other cause the member considers sufficient.
40 (f) The appointed members will receive compensation and expense reimbursement in
41 accordance with the provisions of §30-1-11 of this code.
42 (g) The board may employ and authorize staff as necessary to perform the functions of
43 the board, to be paid out of the board fund created by the provisions of this article. Persons
44 employed by any real estate agent, broker, appraiser, or lender, or by any partnership,
45 corporation, association, or group engaged in any real estate business, may not be employed by
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46 the board. The board may hire a licensed or certified appraiser whose license status is inactive
47 or who is not employed by any of the prohibited employers listed.
§30-38-7. General powers and duties.
1 The board shall:
2 (a) Define by rule the type of educational experience, appraisal experience and equivalent
3 experience that will meet the statutory requirements of this article;
4 (b) Establish examination specifications as prescribed herein and provide for appropriate
5 examinations;
6 (c) Establish registration requirements and procedures for appraisal management
7 companies under the provisions of §30-38a-1, et seq.;
8 (d) Approve or disapprove applications for certification and licensure;
9 (e) Approve or disapprove applications for registration under the provisions of §30-38a-1,
10 et seq.;
11 (f) Define by rule continuing education requirements for the renewal of certifications and
12 licenses;
13 (g) Censure, suspend or revoke licenses and certification as provided in this article;
14 (h) Suspend or revoke registrations under the provisions of §30-38a-1, et seq.;
15 (i) Hold meetings, hearings and examinations;
16 (j) Establish procedures for submitting, approving and disapproving applications;
17 (k) Maintain an accurate registry of the names, addresses and contact information of all
18 persons certified or issued a license to practice under this article;
19 (l) Maintain an accurate registry of the names, addresses and contact information of all
20 persons and firms registered under the provisions of article thirty-eight-a of this chapter;
21 (m) Maintain accurate records on applicants and licensed or certified real estate
22 appraisers;
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23 (n) Maintain accurate records on applicants under the provisions of article thirty-eight-a of
24 this chapter;
25 (o) Issue to each licensed or certified real estate appraiser a copy of their current active
26 license credential via an electronic format of the board’s choosing;
27 (p) Issue registration numbers to registrants under the provisions of article thirty-eight-a of
28 this chapter;
29 (q) Deposit all fees collected by the board to the credit of the West Virginia appraiser
30 licensing and