HB 581 Summary

• Redefines "appraisal" under Ohio's Real Estate Appraiser Licensing Law to mean the act or process of developing an opinion of value of real property in conformity with uniform standards of professional appraisal practice.

• Establishes a new licensing and regulatory framework for appraisal management companies, including application requirements, criminal background checks for owners and controlling persons, and annual renewal provisions with fees not exceeding $2,000.

• Prohibits appraisal management companies and their employees from influencing appraisals through coercion, compensation, predetermined valuations, or other means that impair appraiser independence; includes specific restrictions on withholding payment and removing appraisers from panels without written notice.

• Creates disciplinary authority for the Real Estate Appraiser Board to assess civil penalties up to $25,000 per violation against appraisal management companies for unlicensed operation or other violations, with criminal penalties of fifth-degree felony for certain violations and first-degree misdemeanor for others.

• Requires appraisal management companies to maintain records for five years, verify licensed appraisers on their panels, disclose actual fees paid to appraisers separately from management fees, and compensate appraisers within 60 days of completed work; takes effect six months after enactment.