Montana Modernizes Appraiser Licensing with HB 872: Enhancing Flexibility and Efficiency in Property Valuation
On May 13, Montana Governor signed into law HB 872, a legislative update that significantly refines the state’s real estate appraiser licensing regulations. This new statute introduces important clarifications regarding the scope of services that licensed and certified real estate appraisers may provide, particularly in relation to financial institutions.
Central to HB 872 is the formal recognition that appraisers are authorized to perform evaluations defined as calculated estimates of market value conducted in accordance with federal guidelines without the necessity of a full, formal appraisal when such an appraisal is not mandated by federal law. This distinction between an evaluation and a formal appraisal provides greater flexibility in property valuation processes.
The implications of this change are noteworthy. Financial institutions may now rely on evaluations from licensed or certified appraisers as a valid alternative to full appraisals in appropriate circumstances. This approach can lead to expedited valuation timelines and potential cost savings, while maintaining adherence to established federal standards.
For appraisers, HB 872 expands professional opportunities by legitimizing evaluations as part of their service offerings. It also positions Montana as a state responsive to evolving market needs and regulatory environments, fostering an appraisal framework that balances thoroughness with efficiency.
The law will take effect on July 1, 2025. As it comes into force, stakeholders across Montana’s real estate and financial sectors can expect a more streamlined and adaptable approach to property valuation, aligning state regulations with practical market realities and federal guidelines.
In summary, Montana’s enactment of HB 872 represents a strategic advancement in appraisal regulation, one that supports both the integrity of property valuation and the dynamic needs of today’s real estate market.
