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CHAPTER 1103

CHAPTER 1103. REAL ESTATE APPRAISERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1103.001. SHORT TITLE.

This chapter may be cited as the Texas Appraiser Licensing and Certification Act.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

 

Sec. 1103.002. PURPOSE. The purpose of this chapter is to:

(1) conform state law relating to the regulation of real estate appraisers to the requirements adopted under Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989; and

(2) enforce standards for the appraisal of real property.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 131 (H.B. 2375), Sec. 1, eff. May 27, 2011.

 

Sec. 1103.003. DEFINITIONS. In this chapter:

(1) “Appraisal” means, regardless of whether prepared for a federally related transaction:

(A) an opinion of value; or

(B) the act or process of developing an opinion of value.

(2) “Appraisal Foundation” means The Appraisal Foundation, as defined by 12 U.S.C. Section 3350, or its successor.

(2-a) “Appraisal review” has the meaning assigned by Section 1104.003.

(2-b) “Appraisal Standards Board” means the Appraisal Standards Board of the Appraisal Foundation, or its successor.

(3) “Appraisal Subcommittee” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council, or its successor.

(4) “Appraiser Qualifications Board” means the Appraiser Qualifications Board of the Appraisal Foundation, or its successor.

(4-a) “Appraiser trainee” means an appraiser trainee licensed under this chapter.

(4-b) “Automated valuation model” means an automated system used to derive the value of real property through publicly available property records and various analytic methodologies, including comparable sales prices, home characteristics, and historical home price appreciations.

(5) “Board” means the Texas Appraiser Licensing and Certification Board.

(5-a) “Certified appraiser” means a person who is certified under this chapter to practice as a certified general or certified residential appraiser.

(6) “Commissioner” means the commissioner of the Texas Appraiser Licensing and Certification Board.

(6-a) “Federally related transaction” means a real estate-related transaction that:

(A) requires the services of an appraiser; and

(B) is engaged in, contracted for, or regulated by a federal financial institution regulatory agency.

(6-b) “Federal financial institution regulatory agency” means:

(A) the Board of Governors of the Federal Reserve System;

(B) the Federal Deposit Insurance Corporation;

(C) the Office of the Comptroller of the Currency;

(D) the Consumer Financial Protection Bureau;

(E) the National Credit Union Administration; or

(F) the successors of any of those agencies.

(6-c) “Federally regulated financial institution” means:

(A) a depository institution as defined by Section 3, Federal Deposit Insurance Act (12 U.S.C. Section 1813) or a subsidiary of a depository institution; or

(B) a federal credit union or a state credit union as defined by Section 101, Federal Credit Union Act (12 U.S.C. Section 1752), a subsidiary of a credit union, or a credit union service organization.

(7) “Licensed appraiser” means a person who is licensed under this chapter to practice as a residential real estate appraiser.

(7-a) “Non-bank financial institution” means:

(A) a residential mortgage loan company licensed under Chapter 156, Finance Code;

(B) a mortgage banker regulated under Chapter 157, Finance Code; or

(C) a regulated lender licensed under Chapter 342, Finance Code.

(8) “Supervisory appraiser” means a supervisory appraiser as defined by the Appraiser Qualifications Board.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 703 (S.B. 381), Sec. 1, eff. September 1, 2005.

Acts 2011, 82nd Leg., R.S., Ch. 131 (H.B. 2375), Sec. 2, eff. May 27, 2011.

Acts 2015, 84th Leg., R.S., Ch. 950 (S.B. 1007), Sec. 1, eff. January 1, 2016.

Acts 2021, 87th Leg., R.S., Ch. 700 (H.B. 2533), Sec. 1, eff. June 15, 2021.

Sec. 1103.004. APPLICABILITY OF CHAPTER. This chapter does not apply to:

(1) a person who is authorized by law to perform an evaluation of real property for or to provide an evaluation of real property to another person;

(2) a real estate broker licensed under Chapter 1101 or a sales agent acting under the authority of a sponsoring broker who provides to another person a written analysis, opinion, or conclusion relating to the estimated price of real property if the analysis, opinion, or conclusion:

(A) is not referred to as an appraisal;

(B) is given in the ordinary course of the broker’s business; and

(C) is related to the actual or potential acquisition, disposition, encumbrance, or management of an interest in real property;

(3) an appraiser certified by a jurisdiction other than this state who performs an appraisal review of an appraisal performed on real property in this state, if the appraiser does not offer an opinion of value as part of the appraisal review;

(4) an employee of a federally regulated financial institution or any other person engaged by the institution who performs an evaluation of real property for use by the institution in a transaction for which the institution is not required to use the services of a licensed or certified appraiser under federal regulations adopted under Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. Section 1833e) or under applicable state law;

(5) an employee of a non-bank financial institution or any other person engaged by the institution who provides an analysis, assessment, opinion, conclusion, notation, or compilation of data concerning the value of an interest in real property for use by the institution; or

(6) the procurement or use of an automated valuation model.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 703 (S.B. 381), Sec. 22, eff. September 1, 2005.

Acts 2011, 82nd Leg., R.S., Ch. 131 (H.B. 2375), Sec. 3, eff. May 27, 2011.

Acts 2015, 84th Leg., R.S., Ch. 950 (S.B. 1007), Sec. 2, eff. January 1, 2016.

Acts 2021, 87th Leg., R.S., Ch. 700 (H.B. 2533), Sec. 2, eff. June 15, 2021.

Sec. 1103.006. APPLICATION OF SUNSET ACT. The Texas Appraiser Licensing and Certification Board is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the board is abolished and this chapter and Chapter 1104 expire September 1, 2031.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.

 

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 950 (S.B. 1007), Sec. 3, eff. January 1, 2016.

Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 19, eff. September 1, 2019.

Acts 2021, 87th Leg., R.S., Ch. 850 (S.B. 713), Sec. 5.02, eff. June 16, 2021.

Blog Author

Patrick O’Connor, MAI, Owner and President
Patrick O’Connor has been active in reducing property taxes, providing expert witness testimony and appraising commercial real estate property since 1983. Pat is active in publishing analyses and data with respect to the real estate market, while being a highly regarded media spokesperson for the real estate community. He holds a MAI, the highest achievable designation from the Appraisal Institute, and is a licensed senior property tax consultant. Pat earned a Master of Business Administration from Harvard University. In 2001, he authored the first definitive consumer guide to Texas property taxes, Cut Your Texas Property Taxes.

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We work tirelessly to protest and lower your taxes with:

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Property Tax Protection Program™ Benefits

  • No flat fees or upfront costs.  No cost ever unless your property taxes are reduced.
  • All practical efforts are made every year to reduce your property taxes.
  • Never miss another appeal deadline.
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  • You do not have to accept the appraisal district’s initial guesstimate of value.
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  • Some years are good – typically 6 to 7 out of 10 will result in tax reduction for you.
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