Bill > S196

This bill modifies Massachusetts law regarding real estate appraisals by introducing several key provisions. First, it adds a new definition of "evaluation" to the existing law, which is described as an estimate of real property value made according to Interagency Appraisal and Evaluation Guidelines, used in financial transactions where a formal appraisal is not federally required. The bill also strengthens restrictions on who can prepare real estate appraisals, generally prohibiting anyone without a proper real estate appraisal license or certification from creating appraisal reports for compensation. Additionally, the bill creates a specific exemption for financial institutions, allowing them to engage individuals to perform "evaluations" without requiring full compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). When a licensed or certified real estate appraiser provides such an evaluation, they must include a disclosure stating that the document is not a formal appraisal and is not required to meet USPAP standards. These changes aim to provide more clarity and consumer protection in real estate valuation processes while maintaining flexibility for certain financial transactions.

Budget and Finance, Labor and Employment

https://malegislature.gov/Bills/194/S196