North Carolina Proposed Law Would Address Reasonable and Customary Appraisal Fees
North Carolina’s House Bill 577, introduced April 2, 2015, would seek to address reasonable and customary appraisal fees. Some of the proposals in the Bill would:
- Require the NC Appraisal Board to publish a “schedule of customary and reasonable rates of compensation for appraisals based on the market area where the real property is situated.”
- Establish rates by fee studies that would exclude assignments ordered by known appraisal management companies.
- Require rates to be “measured by the net compensation amount received by the appraiser.”
- Allow for payments above the scheduled rates for complex assignments.
- Only apply to one to four family residential properties.
- Require AMCs to provide to the Board, at renewal time, details on the AMCs number of appraisals and net compensation data.
Rep. John Szoka of Cumberland County and Rep. David R. Lewis of Harnett County are the primary sponsors of the Bill. Rep. Jason Saine of Lincoln County is a co-sponsor. The Bill has been referred to the House Committee on Banking. If it receives a favorable report there, it is currently scheduled to go to the House Finance Committee.
NOTE: Mel Black discusses House Bill 577 as well as other current and relevant appraisal matters in his appraisal continuing education courses. Please visit www.brightpathedu.com for a full list of scheduled courses.