S1301

An Act concerning real estate appraisals and supplementing P.L.1991, c.68 (C.45:14F-1 et seq.) and chapter 15 of Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the “Fair Appraisals Act.”

2. As used in this act:

“Appraisal” means a valuation of property as defined pursuant to P.L.1991, c.68 (C.45:14F-2).

“Board” means the State Real Estate Appraiser Board.

“Property” or “real estate” means an identified parcel or tract of land, for residential or commercial use, with improvements and including easements, rights of way, undivided or future interests, or similar rights in a tract of land, but does not include mineral rights, timber rights, growing crops, water rights, or similar interests severable from the land when the transaction does not involve the associated parcel or tract of land.

3. a. Consistent with the provisions of section 8 of P.L.1978, c.73 (C.45:1-21), a holder of a license or certificate under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) shall not discriminate in the appraisal of real estate on the basis of theactual or perceived race, creed, color, national origin, affectional or sexual orientation, sex, gender identity or expression, disability, or other characteristic protected under subsections g. and h. of section 11 of the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-12) of the property buyer, property owner, agents of the property buyer or owner, or present owners or occupants of the properties within the neighborhood of the property subject to appraisal.

b. (1) If the holder of a license, certificate, or registration is foundto have discriminated in the appraisal of real estate in violation of subsection a. of this section, the discriminatory appraisal shall be void and of no effect and, for a first violation,the board shall:

(a) order the holder to make restitution of the cost of the discriminatory appraisal; and

(b) require the holder to attend an anti-bias seminar approved by the board that shall include information on existing anti-discrimination laws and how they relate to housing and appraisals.

(2) If the holder of a license, certificate, or registration is found to have committed a second violation of subsection a. of this section, the board shall:

(a) suspend the license, certificate or registration and order the holder to make restitution of the cost of the discriminatory appraisal; and

(b) require the holder to attend an anti-bias seminar approved by the board that shall include information on existing anti-discrimination laws and how they relate to housing and appraisals.

(3) The board may restore the license, certificate, or registration of a holder found to have committed asecond violation of subsection a. of this section upon proof thatthe holder made restitution required pursuant to subparagraph (a) of paragraph (2) of this subsection and attended the anti-bias seminar approved by the board after a period of suspension of no less than 30 days.

(4) If the holder of a license, certificate, or registration is found to have committed a third violation of subsection a. of this section, the board shall, after appropriate notice and hearing, revoke the license, certificate, or registration and order the holder to make restitution of the cost of the discriminatory appraisal.

(5) The holder of a license, certificate, or registration that is found to have committed a violation of subsection a. of this section shall also be subject to a civil penalty not exceeding $10,000 for a first violation, $25,000 for a second violation occurring within five years of the first, and $50,000 for a third violation. A civil penalty imposed pursuant to this paragraph shall be collected by the board pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

(6) Any discriminatory appraisal of real estate by the holder of a license, certificate, or registration pursuant to subsection a. of this section shall be void and of no effect.

c. Whenever the board finds cause to suspend the license, certificate or registration of a holderpursuant to paragraph (2) of subsection b. of this section, the board shall notify the holder of the reasons therefor, in writing, and provide opportunity for a hearing in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). The board shall also provide the notification to the Division on Civil Rights within the Department of Law and Public Safety for review and appropriate action.

d. When the board receives a complaint of appraisal discrimination pursuant to subsection a. of this section, the board shall notify a complainant under this section of the option to file a complaint with the Division on Civil Rights pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.) and notify the Division on Civil Rights of the complaint of appraisal discrimination within 14 days of receiving the complaint. Any complaints of alleged discrimination shall be received and investigated by the Division on Civil Rights. If, upon investigation, a finding of discrimination is made, the division shall forward its findings to the board.

e. Nothing in this section shall be construed to limit in any way the board’s authority to take any action against the holder of a license, certificate, or registration based on discriminatory conduct or for any other reason or to limit any rights protected by or powers afforded to the Division on Civil Rights pursuant to the “Law Against Discrimination,” P.L.1945, c.169 (C.10:5-1 et seq.).

4. a. Upon first interaction with a property owner or agent of the property owner, a licensed real estate broker, broker-salesperson, or salesperson shall provide a property owner or agent of the property owner with a document, given free of charge and in a form and manner prescribed by the board, informing the property owner of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights in the Department of Law and Public Safety, any suspicion of a discriminatory appraisal by the holder of a license, certificate or registration pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislation as this bill).

b. (1) When receiving a report of an alleged discriminatory appraisal, the Division on Civil Rights shall ascertain the basis for the allegation and solicit from the complainant relevant demographic information, including but not limited to, the identity of the complainant within the characteristics listed pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The complainant may provide the demographic information solicited by the division on a voluntary basis.

(2) The division shall compile the demographic information of the complainants provided pursuant to paragraph (1) of this subsection and shall report in the aggregate the demographic information collected to the Governor and to the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1) on or before July 1, 2024.

c. Information concerning the prohibition of a discriminatory appraisal of real estate, including the statutory basis for prohibition, shall be published on the Division of Consumer Affairs website.

5. a.Upon first interaction with a property buyer or agent of the property buyer, a licensed real estate broker, broker-salesperson, or salesperson shall provide to the property buyer a document, given free of charge andprescribed by the State Real Estate Appraiser Board pursuant to section 4 of P.L. , c. (C. ) (pending before the legislature as this bill), informing the property buyer of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights in the Department of Public Safety, any suspicion of a discriminatory appraisal by the holder of a license certificate or registration pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. During a private sale of real estate, the property owner or agent of the property owner shall provide, upon first interaction with a property buyer or agent of the property buyer, a free document informing the property buyer of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights in the Department of Law and Public Safety, any suspicion of a discriminatory appraisal by the holder of a license, certificate or registration pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. Within three days of receiving an application for a mortgage loan, a licensed mortgage broker, real estate broker, broker-salesperson, or other mortgage salesperson shall provide the applicant with a document, given free of charge and in a form and manner prescribed by the board, informing the applicant of the opportunity to report, through the Internet website or telephone number of the Division on Civil Rights in the Department of Law and Public Safety, any suspicion of a discriminatory appraisal by the holder of a license, certificate or registration pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. This act shall take effect immediately.

STATEMENT

This bill concerns discriminatory appraisals of property on the basis of race, creed, color, national origin, or certain other characteristics. Under the bill, named the “Fair Appraisals Act,”

holders of an appraisal license, certificate, or appraisal management company registration, will be subject to fines or have their licenses, certificates, or registrations suspended or revoked, if the holder is found to have discriminated in the appraisal of real estate on the basis of the actual or perceived race, creed, color, national origin, affectional or sexual orientation, sex, gender identity or expression, disability, or other characteristic listed pursuant to New Jersey’s “Law Against Discrimination” of the property buyer, property owner, agents of the property buyer or owner, or present owners or occupants of the properties within the neighborhood of the property subject to appraisal. Any appraisal of real estate found to be discriminatory shall be void and of no effect and the holder of the license, certificate, or registration shall be required to make restitution of the cost of the discriminatory appraisal.

If the State Real Estate Appraiser Board suspends a holder of a license, certification or registration, then the board is required to notify the holder of the board’s rationale in writing. The board must also provide opportunity for a hearing to be held in accordance with the State’s Administrative Procedure Act.

Additionally, prior to the initiation of a property appraisal, a holder of a license, certification or registration is to provide a property owner or agent of the property owner with a document, given free of charge and in a form and manner prescribed by the State Real Estate Appraiser Board, informing the property owner of the opportunity to report, through the Division on Civil Rights within the Department of Law and Public Safety Internet website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certificate, or registration pursuant to the provisions of the bill. When receiving a report of an alleged discriminatory appraisal, the Division on Civil Rights shall ascertain the basis for the allegation and solicit from the complainant relevant demographic information, including but not limited to, the identity of the complainant within the characteristics listed under the bill. The complainant may provide the demographic information solicited by the division on a voluntary basis. Information concerning the prohibition of discriminatory appraisals of property, including the statutory basis for the prohibition, is to be published on the Division of Consumer Affairs website.

The bill requires a licensed real estate broker, broker-salesperson, or salesperson to provide, upon first interaction with a property owner or agent of the property owner, a free document informing the property owner of the opportunity to report any suspicion of a discriminatory appraisal.

The bill requires a property owner to provide, during a private sale of real estate and upon first interaction with a property buyer or agent of the property buyer, a free document informing the property buyer of the opportunity to report any suspicion of a discriminatory appraisal.

The bill requires a licensed mortgage broker, real estate broker, broker-salesperson, or other mortgage salesperson to, within three days of receiving a mortgage loan application, provide a mortgage loan applicant with a document informing the applicant of the opportunity to report any suspicion of a discriminatory appraisal to the Division on Civil Rights in the Department of Law and Public Safety.