Under part a new law, a real estate property appraiser must complete a continuing education course within two years of receiving a real estate appraiser’s license that teaches how to recognize and prevent valuation bias.
This continuing education provision takes effect Sept. 1, 2021. A real property appraiser who has received a license prior to the effective date of this section must complete the course by Aug. 31, 2023.
The law defines valuation bias as an appraisal methodology or technique that harms a protected class, as defined by the 1968 federal Fair Housing Act that prohibits discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, handicap and family status.
The law’s sponsors — Rep. Ginny Klevorn (DFL-Plymouth) and Sen. Gary Dahms (R-Redwood Falls) — say valuation bias occurs when homes in minority neighborhoods are undervalued by real estate property appraisers, which widens the generational wealth gap between minority families and white families.
Effective May 7, 2021, state law is clarified to ensure that continuing education courses for real estate appraisers are free from commercial bias, such as by limiting the display of logos from the company offering a course. It also allows real estate appraisal courses to be taught online during a COVID-related peacetime emergency declared by the governor.
Provisions that take effect Aug. 1, 2021, specify that professional real estate appraisal organizations will be permitted to establish requirements for the design and delivery of online continuing education courses and clarify which federal guidelines apply to certain real estate valuations.