SACRAMENTO — California's more than 7,000 real estate appraisers, who have been expecting some type of state regulation, are about to get it.
Assembly Bill 3746 which defines standards for "certified" appraisals has passed the Legislature and is awaiting Gov. Deukmejian's signature. Up to now, there have been no California regulatory outlines for property appraisal, nor has there been any state regulation for appraisers.
Last fall, Sen. Joseph Montoya (D-Whittier) introduced a spot bill--one that could receive additions or refinements--on appraisal methods because data from the Office of Senate Research indicated a need to standardize state appraisal procedures.
AB 3746, introduced by Assemblyman Bill Lancaster (R-Covina), a compromise of former SB 1601 and AB 3746, represents the first state effort to correct overvaluation and abuses in this field. Standards outlined in the bill are those now followed by reputable private firms in the business; these are expected eventually to be required by all lenders.