Legislation would establish statewide standards for appraisals, mitigating risk for residents
(BOSTON–1/18/2024) Today, the Massachusetts Senate passed legislation to enhance consumer protections for residents receiving appraisals for their own real estate, or prospective real estate. Senator Cindy F. Friedman (D-Arlington) joined her colleagues to advance the bill.
S.2550—An Act providing consumers with equal protection for all real estate appraisals—would require that all real estate appraisals in the state be conducted exclusively by certified or licensed appraisers. If passed into law, the bill would help build consumer trust in the appraisal process by ensuring appraisers are qualified and fall under appropriate regulatory oversight.
“It is so important that we protect consumers when they purchase real estate, especially given the challenges the shortage of affordable housing puts on those looking to buy a home,” said Senator Friedman, Vice Chair of the Senate Committee on Ways and Means. “This bill affords a sense of security to consumers often making the largest purchase in their life, ensuring that real estate appraisals are performed only by certified and qualified appraisers.”
Under current law, Massachusetts allows any person, without having to meet any standards such as education and experience, to perform valuation services for estate settlements, divorces, business dissolutions or litigation, among other things. This exposes consumers to unreasonable risk, as an individual who is not licensed or certified may prepare unsupportable valuations while operating outside of regulatory oversight and accountability. Unlicensed appraisers also mean that there is no recourse by state’s Division of Occupational Licensure when a consumer is harmed. … Read more.