Sec.20-529e-2. Qualifications for registration

(a) Registration of appraisal management companies shall be granted only to persons or recognized legal entities who have, as determined to the commissioner’s satisfaction, an appropriate knowledge of real estate appraisal practice, are competent to transact the business of an appraisal management company in such manner as to safeguard the interests of the public, and who bear a good reputation for honesty, truthfulness and fair dealing. Appraisal management companies shall:

(1) Register with and be subject to supervision by the Department of Consumer Protection;

(2) Verify that only certified appraisers or properly licensed provisional appraisers are used to complete appraisals on properties located within the state of Connecticut;

(3) Ensure that all company employees or agents directly involved with the review of appraisals comply with chapter 400g of the Connecticut General Statutes and the USPAP;

(4) Require that appraisals are conducted independently and are free from inappropriate influence or coercion, and that appraisers are not encouraged by any means to misstate or misrepresent the value of a subject property, pursuant to section 20-529b(d) of the Connecticut General Statutes.

(b) The controlling person, compliance manager and each person who owns ten (10) percent or more of an appraisal management company shall be of good moral character, as determined by the department, and shall submit to a criminal background investigation at the request of the department. Each individual shall pay all required fees to perform the requested criminal background investigation, or shall provide a certified copy of the criminal background investigation conducted in the applicant’s home state. The criminal background investigation shall have been performed within sixty (60) days of the date the completed application for registration, or amendment thereof, is received by the department.

(c) An appraisal management company shall assure that any appraiser being added to its appraiser panel to appraise properties in Connecticut holds a valid Connecticut license or certification, as applicable, pursuant to chapter 400g of the Connecticut General Statutes. The appraisal management company shall verify the status of the appraiser by contacting the department or utilizing the National Registry.

(d) If an appraisal management company has a good faith belief that a real estate appraiser in Connecticut has violated applicable law or the USPAP, or has engaged in unethical conduct regarding an appraisal, it shall file a complaint with the department. The complaint shall be filed within a reasonable time frame, not to exceed two (2) years from the date the appraisal is submitted to the client. A copy of the complaint shall be forwarded by the appraisal management company to the real estate appraiser.

(e) An appraisal management company seeking registration shall demonstrate to the department that each person who approves an appraiser for the company or reviews an appraiser's work for the company is a certified appraiser in good standing.

(Effective November 10, 2015; Amended September 30, 2021)