CHAPTER 36-21B
REAL ESTATE APPRAISERS
36-21B-1 Appraisers to be certified, licensed, or registered--Injunction for violation.
36-21B-2 Definitions.
36-21B-2.1 Repealed.
36-21B-2.2 Criminal background checks.
36-21B-2.3 Grounds for denying issuance of certificate.
36-21B-3 Promulgation of rules.
36-21B-4 Promulgation of rules to establish fees for certification of appraisers.
36-21B-5 Fees credited to Real Estate Appraisers Fund.
36-21B-6 Legislative appropriations of Real Estate Appraiser Fund.
36-21B-7 Penalty for violation of statute or rule.
36-21B-8 Application of chapter.
36-21B-9 36-21B-9. Repealed by SL 2001, ch 210, § 2.
36-21B-10 Contested cases--Assessment of expenses.
36-21B-11 Improper influence on real estate appraisals prohibited--Grounds for discipline.
36-21B-12 Conduct not constituting improper influence on real estate appraisals.
36-21B-13 Evaluation for federally insured depository institution.
36-21B-1. Appraisers to be certified, licensed, or registered--Injunction for violation.
Any person who performs a real estate appraisal or advertises or holds himself or herself out to the general public as a real estate appraiser in this state shall be certified, licensed, or registered by the Department of Labor and Regulation unless exempt under another provision of this chapter or another provision of statute. Any person who violates this section may be restrained by permanent injunction in any court of competent jurisdiction, at the suit of the attorney general or any citizen of the state.
Source: SL 1995, ch 223, § 1; SL 2004, ch 17, § 236; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2011, ch 182, § 1.
36-21B-2. Definitions.
Terms used in this chapter mean:
(1) "Appraisal," the act or process of developing an opinion of value of real estate for another and for compensation;
(2) "Appraisal practice," any valuation service, including appraisal, appraisal review, or appraisal consulting, performed by a person acting as an appraiser;
(3) "Evaluation," a valuation of real estate prepared for a federally insured depository institution for a transaction that, pursuant to regulations promulgated by one or more federal financial institution regulatory agency, qualifies for the appraisal threshold exemption, business loan exemption, or subsequent transaction exemption; and
(4) "Federal financial institution regulatory agency," the Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, or Board of Governors of the Federal Reserve System.
Source: SL 1995, ch 223, § 2; SL 2013, ch 180, § 2; SL 2020, ch 164, § 1.
36-21B-2.2. Criminal background checks.
Each applicant for initial certification, licensure, or registration as a state-registered appraiser, state-licensed appraiser, state-certified residential appraiser, or state-certified general appraiser in this state shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. Upon application, the department shall submit completed fingerprint cards to the Division of Criminal Investigation. Upon completion of the criminal background check, the Division of Criminal Investigation shall forward to the department all information obtained as a result of the criminal background check. This information must be obtained prior to certification of the applicant. The department may require a state and federal criminal background check for any licensee who is the subject of a disciplinary investigation by the department. Failure to submit or cooperate with the criminal background investigation is grounds for denial of an application or may result in revocation of a license. The applicant shall pay for any fees charged for the cost of fingerprinting and the criminal background investigation.
Source: SL 2014, ch 182, § 1; SL 2021, ch 179, § 2.
36-21B-2.3. Grounds for denying issuance of certificate.
The department shall deny issuance of a certificate to any applicant who:
(1) Has had the ability to perform appraisals revoked in any governmental jurisdiction within the five year period immediately preceding the date of application;
(2) Has been convicted of, or pled guilty or nolo contendere to, a felony in a domestic or foreign court either during the five-year period immediately preceding the date of the application for certification, licensure, or registration or at any time preceding the date of application, if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering; or
(3) Has failed to demonstrate character and general fitness which commands the confidence of the community and warrants a determination that the applicant will operate honestly, fairly, and efficiently with the purposes of this chapter.
Source: SL 2014, ch 182, § 2.
36-21B-3. Promulgation of rules.
The secretary of the Department of Labor and Regulation may promulgate rules pursuant to chapter 1-26 relating to appraisers and appraisals in the following areas:
(1) Certification, licensing, and registration of appraisers;
(2) Definition of terms;
(3) Uniform standards of professional appraisal practice;
(4) Application for and issuance of certificates;
(5) Examinations and examination procedures;
(6) Pre-certification education criteria and continuing education;
(7) Qualifications for and upgrading of a certificate;
(8) Transactions requiring certified, licensed, or registered appraisers;
(9) Renewal and late renewal procedures;
(10) Certificate by reciprocity;
(11) Temporary practice and permits;
(12) Grounds for disciplinary actions including denial, revocation, suspension, censure, and reprimand;
(13) Conflict of interest and investigation;
(14) Advertising by certified, licensed, or registered appraisers;
(15) Retention and inspection of records, and rosters of appraisers;
(16) Appraiser membership, competency, and independence;
(17) Review of appraisals and contracting for investigations;
(18) Inspection, examination, and photocopy of appraisal records for audit purposes;
(19) Inactive status;
(20) Exemptions and standards allowing appraisers to perform an evaluation for a federally insured depository institution;
(21) An appraiser experience training program under which licensees may obtain requisite experience hours; and
(22) Fees for participation in the appraiser experience training program.
Source: SL 1993, ch 293, § 2; SL 1995, ch 223, § 3; § 36-21A-117; SL 2004, ch 17, § 237; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2020, ch 164, § 3; SL 2021, ch 168, § 34; SL 2021, ch 180, § 1.
36-21B-4. Promulgation of rules to establish fees for certification of appraisers.
The secretary of the Department of Labor and Regulation may promulgate rules pursuant to chapter 1-26 to establish fees for the certification, licensing, and registration of real estate appraisers as follows:
(1) Application fees not to exceed five hundred dollars;
(2) Renewal fees not to exceed five hundred dollars;
(3) Examination fee not to exceed three hundred dollars;
(4) Late renewal fee not to exceed two hundred dollars;
(5) Upgrade fee not to exceed five hundred dollars;
(6) Reciprocity fee not to exceed five hundred dollars;
(7) National registry fee not to exceed eighty dollars;
(8) Education course approval fee not to exceed fifty dollars;
(9) Temporary permit fee not to exceed five hundred dollars.
The Department of Labor and Regulation may recover the costs of photocopying and postage when providing appraiser rosters and the uniform standards of professional practice.
Source: SL 1995, ch 223, § 4; SL 2009, ch 191, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2011, ch 183, § 1.
36-21B-5. Fees credited to Real Estate Appraisers Fund.
All moneys coming into the custody of the Department of Labor and Regulation including certificate fees, renewal fees, reciprocity fees, penalty fees, and any other payments, shall be deposited by the department to the state treasurer weekly, or as prescribed by the state treasurer. The state treasurer shall credit the moneys to the South Dakota Real Estate Appraiser Fund. Expenditures from this fund shall only be paid on warrants drawn by the state auditor and approved by the department.
Source: SL 1995, ch 223, § 7; SL 2004, ch 17, § 238; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
36-21B-6. Legislative appropriations of Real Estate Appraiser Fund.
Any expenditure of money out of the South Dakota Real Estate Appraiser Fund shall be made only upon appropriation by the Legislature through either the general appropriations act or a special appropriations bill.
Source: SL 1995, ch 223, § 7A.
36-21B-7. Penalty for violation of statute or rule.
The secretary of the Department of Labor and Regulation may impose a monetary penalty not to exceed one thousand dollars or require additional educational course requirements, or both, of a person licensed pursuant to this chapter upon proof of a violation of the rules relating to appraisers and appraisals as adopted by the department pursuant to chapter 1-26 or a violation of this chapter.
Source: SL 1993, ch 293, § 5; SL 1995, ch 223, § 8; SL 2004, ch 17, § 239; SL 2009, ch 191, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
36-21B-8. Application of chapter.
Unless required by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub.L. No. 101-73, 103 Stat. 183 (1989), 12 U.S.C. § 3310, et seq., this chapter does not apply to the following:
(1) Any public officer while performing public duties;
(2) Any bank, trust company, savings and loan association, public utility, or any land mortgage or farm loan association organized under the laws of this state or the United States or their employees, if engaged in the transaction of business within the scope of its corporate powers as provided by law;
(3) Any person licensed as a real estate broker under chapter 36-21A when appraising within the scope of the broker's license; or
(4) Any employee of any person or entity enumerated in this section.
Source: SL 1995, ch 223, § 10.
36-21B-10. Contested cases--Assessment of expenses.
The secretary may assess to a licensee or applicant all or part of the actual expenses of a contested case proceeding resulting in the discipline or censure of the licensee, suspension or revocation of the licensee's license, or the denial of a license to the applicant.
Source: SL 2001, ch 210, § 1.
36-21B-11. Improper influence on real estate appraisals prohibited--Grounds for discipline.
No real estate appraiser with an interest in a real estate transaction or the financing of any loan secured by real estate involving an appraisal assignment may improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal by:
(1) Coercion, extortion, or bribery;
(2) Withholding or threatened withholding of payment for an appraisal fee;
(3) Conditioning of the payment of an appraisal fee upon the opinion, conclusion, or valuation to be reached;
(4) Requesting that the appraiser report a predetermined opinion, conclusion, or valuation or the desired valuation of any person; or
(5) Any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity, and impartiality.
A violation of this section may constitute grounds for discipline against a real estate appraiser who is registered, licensed, or certified pursuant to the laws of the State of South Dakota.
Source: SL 2009, ch 192, § 1.
36-21B-12. Conduct not constituting improper influence on real estate appraisals.
No person violates § 36-21B-11 solely by asking a real estate appraiser to consider additional, appropriate property information, or to provide further detail, substantiation, or explanation for the appraiser's value conclusion, or to correct errors in the appraisal report, or by withholding payment of an appraisal fee based on a bona fide dispute regarding the appraiser's compliance with the appraisal standards adopted by the Department of Labor and Regulation pursuant to this chapter. A person does not violate § 36-21B-11 solely by retaining a real estate appraiser from panels or lists on a rotating basis, or by supplying an appraiser with information the appraiser is required to analyze under the appraisal standards adopted by the department, such as agreements of sale, options, or listings of the property to be valued.
Source: SL 2009, ch 192, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
36-21B-13 . Evaluation for federally insured depository institution.
A certified, licensed, or registered appraiser may provide an evaluation of real estate for a federally insured depository institution if the evaluation is permitted by law, regulation, or regulatory guidance. Any evaluation by an appraiser must be conducted in accordance with federal and state laws and rules, regulatory guidelines, and the most current appraisal and evaluation guidelines established for federally insured depository institutions by one or more federal financial institution regulatory agency.
Source: SL 2020, ch 164, § 4.
