Appraiser From Out of State Entitled to Temporary License

Stuart has been an appraiser since 1964. He holds appraisal licenses in Montana, Connecticut and Washington. Under federal law, Stuart contacted the California Office of Real Estate Appraisers to apply for a temporary reciprocal appraisal license.

California appraisal license officials told Stuart he could not apply for a California temporary reciprocal license but that he should apply for a permanent appraisal license instead. He submitted an application for a permanent California license. However, he was then told his application was incomplete.

Eighteen months later, still without a reciprocal California temporary appraisal license as authorized by federal law, Stuart sued the state of California and employees of the Office of Real Estate Appraisers. His license was quickly issued.

Stuart then amended his lawsuit, adding claims against the license officials and alleging violation of his 14th Amendment constitutional property and due process rights.

If you were the judge, would you rule Stuart’s constitutional rights were violated by California’s refusal to issue him a reciprocal temporary appraisal license?

The judge said yes.

Under federal law, a licensed appraiser in any state has a right to a temporary reciprocal license in another state, the judge said. The three requirements are: (1) the property to be appraised is part of a federally related transaction, (2) the appraiser’s business in the state is temporary in nature and (3) the appraiser must register with the state of temporary practice, he said.

In addition to meeting the federal law requirements for a temporary reciprocal appraisal license, the judge said, Stuart has presented evidence that California appraisal license officials violated his 14th Amendment constitutional property and due process rights.

The California appraisal officials’ ministerial acts in refusing to allow Stuart to apply for and obtain the temporary appraisal license were not shielded by qualified immunity, the judge ruled. They can be held personally liable to Stuart for damages, the judge ruled.

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Based on the 2001 U.S. Court of Appeals decision in Groten vs. State of California, 251 Fed.3d 844.