If you have questions about whether a license is required, please consult the License Minnesota website at http://www.license.mn.gov/. Click on "A-Z Indexes" or "Browse by Topics." If the information there does not answer your question, please send an e-mail to email@example.com that explains your activities as specifically as possible.
Subdivision 1. Requirement. It is unlawful for a person, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly engage or attempt to engage in business as an appraisal management company, to directly or indirectly engage or attempt to perform appraisal management services, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a license issued by the commissioner under the provisions of this chapter.
"Appraisal" means (noun) the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. For purposes of Chapter 82C, all appraisals or assignments that are referred to involve one to four unit single-family properties.
Appraisal Management Company
"Appraisal management company" means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that directly or indirectly performs the following appraisal management services:
administers networks of independent contractors and/or employee appraisers to perform residential real estate appraisal assignments for clients;
receives requests for residential real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request; or
serves as a third-party broker of appraisal management services between clients and appraisers.
Appraisal Management Services
"Appraisal management services" means the process of directly or indirectly performing any of the following functions on behalf of a lender, financial institution, client, or any other person to:
administer an appraiser panel;
recruit, qualify, verify licensing or certification, and negotiate fees and service level expectations with persons who are part of an appraiser panel;
receive an order for an appraisal from one person, and deliver the order for the appraisal to an appraiser that is part of an appraiser panel for completion;
track and determine the status of orders for appraisals;
conduct quality control of a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal; or
provide a completed appraisal performed by an appraiser to one or more clients.
"Appraiser panel" means a network of licensed or certified appraisers who are independent contractors to the appraisal management company that have:
responded to an invitation, request, or solicitation from an appraisal management company, in any form, to perform appraisals for persons that have ordered appraisals through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as requested and assigned by the appraisal management company; and
been selected and approved by an appraisal management company to perform appraisals for any client of the appraisal management company that has ordered an appraisal through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as assigned by the appraisal management company.
"Controlling person" means:
any owner, officer, or director of an appraisal management company seeking to offer appraisal management services in Minnesota;
an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals;
an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company; or
an individual who enters into:
contractual relationships with clients for the performance of appraisal management services; and
agreements with employed and independent appraisers for the performance of real estate appraisal services.
Exempt from licensure as an appraisal management company are:
a person that exclusively employs appraisers on an employer and employee basis for the performance of appraisals, and: the employer is responsible for ensuring that the appraisals are performed by employees in accordance with USPAP; and the employer accepts all liability associated with the performance of the appraisal by the employee;
a department or unit within a financial institution that is subject to direct regulation by an agency of the United States government, or to regulation by an agency of Minnesota, that receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution, except that an appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a department or unit within a financial institution to which the provisions of Chapter 82C do not apply;
a person that enters into an agreement, whether written or otherwise, with an appraiser for the performance of an appraisal, and upon the completion of the appraisal, the report of the appraiser performing the appraisal is signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal, except that an appraisal management company may not avoid the requirements of Chapter 82C by requiring an employee of the appraisal management company that is an appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal management company; or
any governmental agency performing appraisals on behalf of that level of government or any agency performing ad valorem tax appraisals for county assessors.