§ 3323. Unprofessional conduct

(a) The following conduct by a licensee and the conduct set forth in 3 V.S.A. § 129a constitute unprofessional conduct. When that conduct is by an applicant or a person who later becomes an applicant, it may constitute grounds for denial of a license:

(1) Procuring or attempting to procure a license under this chapter by knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for licensure, or through any form of fraud or misrepresentation.

(2) An act or omission involving dishonesty, fraud, or misrepresentation with the intent to benefit the licensee or another person or with the intent to injure another person.

(3) Violation of any of the standards for the development or communication of real estate appraisals established under the Act.

(4) Failure or refusal to exercise reasonable diligence in developing an appraisal, preparing a report, or communicating an appraisal.

(5) Negligence or incompetence in developing an appraisal, in preparing a report, or in communicating an appraisal.

(6) Accepting an appraisal assignment when the employment itself is contingent upon the appraiser reporting a predetermined analysis or opinion, or where the fee to be paid for the performance of the appraisal assignment is contingent upon the opinion, conclusion, or valuation reached, or upon the consequences resulting from the appraisal assignment.

(7) Violating the confidential nature of governmental records to which the licensee gained access through employment or engagement as an appraiser by a governmental agency.

(8) Violating any term or condition of a license restricted by the Office.

(9) Failing to comply with practice standards adopted by the Director.

(b) The following conduct by an appraisal management company and the conduct set forth in 3 V.S.A. § 129a constitute unprofessional conduct. An appraisal management company includes agents acting on behalf of the registrant in the acquisition, delivery, or use of a real estate appraisal produced by a licensed real estate appraiser. When that conduct is by an applicant or an entity that later becomes an applicant for registration, it may constitute grounds for denial of a license:

(1) Influencing or attempting to influence the development, reporting, result, or review of a real estate appraisal through coercion, compensation, inducement, intimidation, or other manner intended to affect the independent judgment of a licensed real estate appraiser, including:

(A) Withholding or threatening to withhold timely payment for a real estate appraisal report.

(B) Withholding or threatening to withhold future business or work opportunities from a licensed real estate appraiser.

(C) Expressly or implicitly promising future business or work-related compensation for a real estate appraiser.

(D) Ordering or paying for real estate appraisal services based on predetermined valuations or other conclusions to be reached by a licensed real estate appraiser.

(E) Requesting or suggesting that a licensed real estate appraiser provide an estimated, predetermined, or desired valuation in a real estate appraisal report or provide estimated values or comparable sales prior to completion of the appraisal report.

(2) Altering or otherwise changing a completed appraisal report submitted by a licensed appraiser.

(3) Using an appraisal report submitted by an appraiser for a transaction other than the one for which it was developed.

(4) Requiring an independent appraiser to enter into an agreement requiring the independent appraiser to defend, to indemnify, or to hold harmless the registrant or other third party for the development, use, or contents of a real estate appraisal. This subdivision shall not affect a licensee's or a registrant's professional liability to consumers or to other licensees or registrants.

(5) Using or possessing an independent licensed real estate appraiser's digital signature, seal, or other similar stamp of endorsement.

(c) Registrants shall only transmit an exact copy of the completed appraisal to the client or other intended user.

(d) [Repealed.]

(e) Appeals from disciplinary orders and final license denials shall be governed by the provisions of 3 V.S.A. § 130a. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 14; 1997, No. 145 (Adj. Sess.), § 55; 2007, No. 29, § 49; 2009, No. 103 (Adj. Sess.), § 48; 2019, No. 30, § 21.)