The New Jersey assembly member who introduced an appraisal anti-discrimination bill last week has introduced a second bill with more detailed requirements to be imposed on appraisers, appraisal management companies (AMCs) and real estate agents/brokers – including a requirement that they provide sellers of residential property with a pamphlet about how to file a complaint against an appraiser or AMC regarding suspected discrimination in an appraisal.
Like the prior proposal, this bill (A-5185) would establish jurisdiction for the New Jersey State Real Estate Appraiser Board to revoke, suspend or fine appraisers and AMCs who knowingly engage in discriminatory appraisal practices regarding residential property based on the property buyer’s or owner’s race, religion or national origin. What this bill takes further is the proposed imposition of a requirement that appraisers and AMCs (and agents and brokers too) provide sellers of residential properties with the anti-discrimination complaint information document to be developed by the appraiser board. Even individuals and groups urging for more protective legislation may see the bill as off target, however, because neither residential appraisers nor AMCs customarily have contact with a property seller prior to initiating most appraisals and it’s primarily borrowers who have made recent allegations about discrimination.
Here is the full text of the New Jersey bill with the new requirements in bold (and certain code references omitted):
1. a. A holder of a license or certification under [the Real Estate Appraisers Act] or registration under [the Appraisal Management Company Registration and Regulation Act] shall not discriminate in the appraisal of a residential property on the basis of the race, creed, color, or national origin of the property buyer or property seller.
b. If the [New Jersey State Real Estate Appraiser] board determines, after appropriate investigation, that the holder of a license, certification, or registration has knowingly engaged in the discriminatory appraisal of a residential property on the basis of the property buyer’s or property seller’s race, creed, color, or national origin, the board may suspend or revoke the license, certification or registration, levy a fine, or impose a civil penalty.
c. Whenever the board finds cause to fine or suspend or revoke the license, certification or registration of a holder, the board shall notify the holder of the reasons therefor, in writing, and provide opportunity for a hearing in accordance with the “Administrative Procedure Act,” . . ..
2. a. Prior to the initiation of a residential property appraisal, a holder of a license or certification under [the Real Estate Appraisers Act] or registration under [the Appraisal Management Company Registration and Regulation Act] shall provide a property seller with a document, in a form and manner prescribed by the board, informing the property seller of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of a property buyer or seller’s race, creed, color, or national origin.
b. Information concerning the prohibition of discriminatory appraisals of residential property, including the statutory basis for prohibition, shall be published on the Division of Consumer Affairs website.
3. Upon first interaction with a property buyer, a licensed real estate broker, broker-salesperson, or salesperson shall provide to the property buyer a document, prescribed by the New Jersey Real Estate Appraiser Board . . ., informing the property buyer of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license or certification under [the Real Estate Appraisers Act] or registration under [the Appraisal Management Company Registration and Regulation Act] on the basis of a property buyer or seller’s race, creed, color, or national origin.
4. This act shall take effect immediately.
