NAR Changes their Commission Structure

Mark Toon

In March of 2024 the National Association of Realtors agreed to pay $418 million in damages as a settlement to a $1.8 billion jury verdict awarded to homeowner’s who argued that NAR’s rules on agent commissions forced sellers to pay excessive fees at sale. Commissions of 6% were split between the sales agent and the buyer’s agent. However starting in July 2024, compensation for brokers can not be listed on MLS, and buyer agents must enter into a written agreement with their buyers. Typical buyer closing costs include the down payment, loan origination, points, home inspection, appraisal and other expenses. With the new agreement, how do these costs get funded? Will some costs now be considered as sales concessions?

Mark Toon is a Senior Real Estate Broker with My Home Group in Mesa, Arizona. Mark has almost 50 years in the real estate industry, and will speak to the challenges the new ruling brings to the NAR, and the real estate industry as a whole. Please join Mark and the chapter in a Zoom call at noon on Tuesday June 4, 2024.


Tour of Keys to Change - Homeless Service Center

Culinary Dropout

What happens to people that are evicted from their homes? In 2023, there were 83,236 eviction filings in Maricopa county, an increase of more than 23% from 2022. Higher rents and a housing shortage in metro Phoenix are the biggest drivers of increasing evictions and a growing population of homeless.  What do people do when evicted? How many become homeless? What can they do to help themselves, and what resources are available to them?

On Tuesday March 5th the Phoenix Chapter of the Appraisal Institute will sponsor a tour of Keys to Change, (formerly the Human Services Campus), followed by a luncheon at the Old Spaghetti Factory. Keys to Change is a 13 acre campus in downtown Phoenix that offers over a dozen resources for the homeless.

Click on the following link to register for the tour on March 5th at 9:30 am. Register Here


Fall Forum Was a Great Success!

Fall Forum

Dale Cooper was recognized by Jim Driskill, President of the Phoenix Chapter of the Appraisal Institute, for his efforts on the passage of HB2230, a bill to limit appraiser liability to four years.  Dale was also awarded the Y.T and Louise Lee Lum Award at the 2023 Chapter Leadersip Program in Louisville, KY last month.   The purpose of the Y.T. and Louise Lee Lum Award is to recognized worth individuals who have made a distinguised contribution to the appraisal profession during the immediate preceding year. 

Also at the Fall Forum members Steve MacDonald and Kevin Neal put together an exciting program featuring speakers with specialized knowledge of the economy and specific property types in Arizona.  Featured speakers and their Power Point presentations include:


Fall Forum 2023 Has Been Scheduled!

Victory Celebration

It's Back Yet Again!! The Phoenix Chapter of the Appraisal Institute is excited to announced our annual Fall Forum on Real Estate Trends will be held on Wednesday, November 8th, 2023. As always, our forum will provide an overview of Arizona's economy, with local experts providing their view on development in central Arizona, along with presentations on specific property types. This year’s Fall Forum will be on November 8, 2023 and will be held at the same location as the previous one - (Desert Willow Conference Center – 4340 East Cotton Center, Suite 100). The forum will provide 7.0 hours of Continuing Education hours for the State of Arizona. There will be 9 presenters, speaking on a variety of topics as outlined under the "Meetings" tab.  This seminar includes a continental breakfast, lunch, and drinks and snacks throughout the day.

Click on the following link to register for the Fall Forum November 8th, 2023: Register Here    (Click the meetings tab for a schedule of speakers)!


Victory Celebration for passage of HB2230!

COAA Celebrate

For those Appraisal Institute members that often ask, “what the heck do you guys spend all our dues money on? The answer is sometimes, “we have a party”.

On May 24th, 2023 we held a statewide “Victory Celebration” at the Culinary Dropout to mark the passage of HB2230, which limits appraiser liability to 4 years, and was signed by Governor Hobbs on April 19, 2023. The new legislation becomes law 90 days after the end of the 2023 legislative session.

Although this successful legislative effort was spearheaded by the Phoenix Chapter, (and Dale Cooper in particular), it was a statewide effort, with all appraisers in the state asked to contact their Arizona State Representatives and speak in favor of the Bill. And they did.

Victory Celebration

Besides Dale, I would like to thank:
Southern Arizona Chapter of the Appraisal Institute and President Michael Bernstein
Coalition of Arizona Appraisers, and President Tanya Kleinschmidt
Real Estate Appraisers of Southern Arizona and President Christine Plunkett.

According to the Arizona Department of Financial Institutions, there are about 2,200 appraisers licensed in Arizona. Of those 2,200, only about 1,700 live in the state, with about 400-500 having reciprocal licenses with out of state addresses. Yet this small group of 1,700 appraisers reached out to their legislators, and were able to have a positive impact on the profession. This legislation offers a rare bit of good news to our industry.

COAA

Going forward the Chapter and I will be working on providing meetings of interest to all of our members, with special emphasis on our annual Fall Forum. This year we are hoping to involve more appraisal trainees by offering scholarships to cover the cost of tuition, allowing new appraisers the opportunity to meet with grizzled veteran appraisers.

Yours,
Jim Driskill
PCAI President
History of the Bill: Click Here!


Statute Of Limitations Bill Signed by Governor Hobbs!

Suns Celebrate

Appraiser Liability Bill HB2230 was signed by Governor Hobbs on April 19, 2023, and is now law in Arizona!  I would like to thank all of the appraisers in Arizona for their work at passing this essential legislation that will help with the personal economic security of licensed valuations professionals in our great state.    In addition to our board, I would like to thank the Southern Arizona Chapter of the Appraisal Institute, the Coalition of Arizona Appraisers, and the Real Estate Appraisers of Southern Arizona, all of whom mobilized their members to contact their Legislators in support of this bill. 

Special thanks goes out to Scott Dibiasio, Manager of State and Industry Affairs at the Appraisal Institute, and Dale Cooper, former President of PCAI and our current registered lobbyist.

Together we accomplished something great for our profession, and everyone should be proud that a small group of 2,000 were able to advocate for our vocation and get something done!

Yours 
Jim Driskill
President of PCAI

History of the Bill: Click Here!


Statute Of Limitations Bill Passes Senate - On to Governor Hobbs

Jim Driskill and Michael Bernstein

Appraiser Liability Bill HB2230 passed the Arizona Senate April 12, 2023, on a vote of 16-14-1.  There was a suprising amount of opposition to the Bill, but this could have been in connection with negative perceptions of the Bill’s sponsor, Liz Harris, who was expelled from the House of Representatives after having brought in a speaker to the Legislature in February that accused Hobb’s and other state government officials of taking bribes from a Mexican drug cartel.

Because of the politics, HB2230 is at a precarious state, all appraisers are encourge to contact the Governor and encourage her to sign the bill into law.  The Governor's contact information is given below.

Office of the Arizona Governor
State Capitol Executive Tower, West Wing
1700 W. Washington Street, Suite 230
Phoenix, Arizona 85007

Phone:  (602) 542-4331
email link:  Click Here!

Again the intent of the legislation is to limit the time frame that an appraiser can be sued for malpractice, negligence, errors, mistakes, omissions, or a breach - to 4 years.  Contact the Governor today!


Statute Of Limitations Bill Passes Judicial & Rules Committee

Senate Committee

Appraiser Liability Bill HB2230 passed the Arizona Judicial Committee on March 9, 2023, and then passed the Senate Rules Committee on March 20, 2023.  The bill had two "no" votes, on the Judicial Committee, and three "no" votes from the Rules Committee, but none-the-less passed both committees.   The bill now goes the Senate floor.

According to the Arizona Legislative website, the bill has 27 Request to Speak (RTS) in favor of the bill, and 2 RTS against the bill.  According to the website, Wendy Briggs of the American Property Casualty Insurance Association was against the bill, along with Jeanne Kentch, Mohave County Assessor.   A link to the Arizona legislature's website to track the bill can be found here.

The intent of the legislation is to limit the time frame that an appraiser can be sued for malpractice, negligence, errors, mistakes, omissions, or a breach - to 4 years.  Contact your Arizona Senator today!


Statute Of Limitations Bill Passes in the House!

Jim Driskill and Michael Bernstein

Appraiser Liability Bill HB2230 passed the Arizona House on Wednesday February 22, 2023.  The bill only had two "no" votes, coming from Cesar Aguilar in District 26, and Analise Ortiz in District 24.  While this is certainly good news, the bill now goes to the Arizona Senate, where a similar bill died 4 years ago.  For those Arizona appraisers that have not yet done so, please contact your respective senator from your district.  Your district Senate representative, their phone numbers, and their email addresses can be found by using the links below.

Again, the intent of the legislation is to limit the time frame that an appraiser can be sued for malpractice, negligence, errors, mistakes, omissions, or a breach - to 4 years.  Contact your Arizona Senator today!


Statute Of Limitations for Appraisers Introducted in 2023 Legislature

Liz Harris

Liz Harris, Arizona State Representative for District 13, has introduced a Statute of Limitations for appraisal reports.  The intent of the legislation is to limit the time frame that an appraiser can be sued for malpractice, negligence, errors, mistakes, omissions, or a breach - to 4 years.  Exceptions would include a claim that the appraiser knowingly and intentionally committed fraud, or made a gross misrepresentation.     Co-sponsors as of this writing include Rachel Jones, District 17, and Austin Smith, District 29.  The proposed bill number is HB 2230, and can be found here, (click link). 

Current law provides for a "two year" statute of limitations, but the two years is based on when the aggrieved party "discovers" a problem with the appraisal.  In practice, this means that an aggrieved party can "discover" a problem 3 years after the appraisal was written, or 7 years, or 10 years, or 15 years, or 20 years, or 25 years, etc.  Given that the two year limit only starts when the aggrieved party says it starts, there is no current practical limit to appraiser liability in Arizona. 

Appraisers are encouraged to contact their legislators and ask them to vote for this legislation, (House Bill 2230). 

If you don't know who your legislator is, you can figure it out by clicking on the link below and entering your home address:
Find my legislative District, (click here).   

Once you know your legislative district, the name, address and email of your legislator can be found below:
 A list of legislators can be found here, (click).   

Sample letters to legislators can be found below:    
Sample Letter A
Sample letter (A) can be found here, (Click).

Sample Letter B:
Sample Letter (B) can be found here, (Click).   

Additional Talking Points to Legislators can be found below:    
Additional Talking Points, (Click).

Talking Points to Legislators from Dale Cooper 
 Dale Cooper Talking Points, (Click).

Talking Points From Scott DiBiasio
 Scott DiBiasio Talking Points, (Click).


Arizona A.I. Presidents Meet, Statute Of Limitations for Appraisers...

Jim Driskill and Michael Bernstein

The Fall Forum will provided 7.0 hours of Continuing Education credit for Arizona appraisers. The forum included a continental breakfast, lunch, drinks and snacks throughout the day.   This event, which keeps getting better every year, was organized by PCAI Education Committee co-chars Steve MacDonald, MAI, SRA, and Kevin Neal, MAI.  

If you have questions about the Fall Forum or any PCAI activity, please contact Jenny at aiphoenix152@gmail.com


John Wyatt Finishes Two Year Term

John Wyatt and Jim Driskill

John Wyatt, MAI is in the process of finishing his two year term as President of the Phoenix Chapter of the Appraisal Institute.   John was awarded a plaque at the Fall Forum by incoming President Jim Driskill, MAI SRA.  

By the Numbers - As of November 2022, the chapter currently has 96 Designated Members, of which 8 are life members, 4 are semi-retired, 26 are Designated as residential.  We have 28 Candidates, and 27 Practicing Affiliates. 

Looking to serve your Chapter and network some more? Look no further. PCAI needs members to serve on the following committees. 

Nomination Committee (helps facilitate annual chapter elections by seeking qualified candidates)

Education Committee (if you want to provide your input on classes that you feel should be offered by the Chapter - this is the committee for you).

Candidate Guidance Committee (looking to give back your time to assist PCAI members in getting their Designation? This is the committee for that).

If you are interested in any of these positions, please reach out to the Chapter office at: aiphoenix152@gmail.com