N.J. Admin. Code § 13:40A-9.11

Current through Register Vol. 56, No. 16, August 19, 2024

Section 13:40A-9.11 - Prohibited acts

(a) No employee, director, officer, agent, independent contractor, or other third-party acting on behalf of an appraisal management company shall:

1. Procure or attempt to procure a registration or renewal by knowingly making a false statement, submitting false information, or refusing to provide complete information in response to a question in an application for registration or renewal;

2. Willfully violate N.J.S.A. 45:14F-1et seq., or this chapter;

3. Improperly influence, or attempt to improperly influence, the development, reporting, result, or a review of an appraisal through intimidation, coercion, extortion, bribery, or any other manner, including:

i. Withholding payment for appraisal services;

ii. Threatening to exclude an appraiser from future work or threatening to demote or terminate in order to improperly obtain a desired result;

iii. Conditioning payment of an appraisal fee upon the opinion, conclusion, or valuation to be reached; or

iv. Requesting that an appraiser report a predetermined opinion, conclusion, or valuation or the desired valuation of any person or entity;

4. Alter, amend, or change an appraisal report submitted by an appraiser without the appraiser's knowledge and written consent;

5. Remove an independent appraiser from an appraiser panel without prior written notice to the appraiser, with the prior written notice including evidence of the following, if applicable:

i. The appraiser's illegal conduct;

ii. A violation of the Uniform Standards of Professional Appraiser Practice, the Act, or this chapter;

iii. Improper or unprofessional conduct; and

iv. Substandard performance or other substantive deficiencies;

6. Require an appraiser to sign any indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents or employees for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed by the appraiser;

7. Prohibit lawful communications between the appraiser and any other person who the appraiser, in the appraiser's professional judgment, believes possesses information that would be relevant;

8. Engage in any other act or practice that impairs or attempts to impair a real estate appraiser's independence, objectivity, and impartiality;

9. Fail to timely respond to any subpoena or any other request for information;

10. Fail to timely obey an administrative order of the Board; or

11. Fail to fully cooperate in any investigation.

(b) Except for an individual conducting an administrative quality control examination to each employee of, or independent contractor to, an appraisal management company that performs a USPAP Standard 3 review of an appraisal report on property located in this State shall be an appraiser with the proper level of licensure or certification as required by this chapter.

(c) An appraisal management company that engages in any of the prohibited acts set forth in (a) above may subject the registrant to denial, suspension, or revocation of registration, or the levying of fines or imposition of civil penalties in accordance with N.J.S.A. 45:14F-49(a).

N.J. Admin. Code § 13:40A-9.11

Adopted by 51 N.J.R. 1124(a), effective 7/1/2019