Real Property - Residential Sales - Communications During Appraisal Process

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1299*

HOUSE BILL 1299
N1 6lr2763
CF SB 817
By: Delegates Taylor, Addison, Alston, Amprey , Bartlett, Coley, Crutchfield,
Fennell, Harrison, Holmes, Ivey, Lehman, Lewis, J. Long, McCaskill, Odom,
Pasteur, Phillips, Roberson, Roberts, Simmons, Simpson, Taveras, Toles,
Turner, Valderrama, and Woods
Introduced and read first time: February 12, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Real Property – Residential Sales – Communications During Appraisal Process 2

FOR the purpose of requiring an appraiser to provide a certain notice to certain parties to 3
a residential real property appraisal under certain circumstances; authorizing 4
certain persons to submit certain additional data to an appraiser before an appraisal 5
is finalized for a certain purpose ; requiring an appraiser to include certain 6
information in an addendum to a certain report; and generally relating to residential 7
real property appraisal communications. 8

BY adding to 9
Article – Real Property 10
Section 14 –1001 through 14 –1005 to be under the new subtitle “Subtitle 10. 11
Appraisal Communication and Review Process” 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Real Property 17

SUBTITLE 10. APPRAISAL COMMUNICATION AND REVIEW PROCESS. 18

14–1001. 19

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21
2 HOUSE BILL 1299

(B) “APPRAISER” MEANS A N INDIVIDUAL LICENSED OR CERTIFIE D TO 1
PROVIDE REAL ESTATE APPRAISA L SERVICES UNDER TITLE 16 OF THE BUSINESS 2
OCCUPATIONS AND PROFESSIONS ARTICLE. 3

(C) “INTERESTED PARTY” INCLUDES A BUYER, A SELLER, A LICENSED REAL 4
ESTATE AGENT OF A BUYER OR SELLER, OR THE PROPERTY OWNER. 5

(D) “POINT OF CONTACT ” MEANS A N INDIVIDUAL DESIGNATED BY A 6
REQUESTOR TO RECEIVE COMMUNICATIONS FROM THE A PPRAISER REGARDING 7
VALUATION ISSUES RELATED TO THE PURCHASE OF RESIDENTIAL REAL PROPERTY. 8

(E) “REQUESTOR” MEANS THE LENDER , MORTGAGE BROKER , OR OTHER 9
INTERESTED PARTY WHO REQUESTS AN APPRAISAL OF RESIDENTIAL REAL 10
PROPERTY. 11

14–1002. 12

(A) AN APPRAISER SHALL NO TIFY THE POINT OF CO NTACT AND 13
INTERESTED PARTIES BEFORE COMPLETING AN APPRAISAL OF RESIDENTIAL REAL 14
PROPERTY IF THE APPRAISER MAKES A PRELIMINARY DETERMINATION THAT THE 15
APPRAISED VALUE OF THE PROPERTY MAY BE LESS THAN: 16

(1) THE CONTRACT PRICE; OR 17

(2) FOR A REFINANCE, THE ESTIMATED VALUE. 18

(B) (1) ON RECEIPT OF A NOTIC E UNDER SUBSECTION (A) OF THIS 19
SECTION, A REQUESTOR OR OTHER INTERESTED PARTY MAY SUBMIT ADDITIONAL 20
MARKET DATA OR COMPARABLE SALES DATA TO THE APPRAISER FOR THE PURPOSE 21
OF SUPPORTING THE CONTRACT PRICE OR ESTIMATED VALUE OF THE RESIDENTIAL 22
REAL PROPERTY. 23

(2) THE ADDITIONAL DATA SUBMITTED TO AN APPR AISER UNDER 24
PARAGRAPH (1) OF THIS SUBSECTION SHALL BE: 25

(I) IN A FORMAT SUBSTANTI ALLY SIMILAR TO THE 26
COMPARABLE SALES GRID USED IN A UNIFORM RESIDENTIAL APPRAISAL REPORT; 27
AND 28

(II) SUBMITTED WITHIN 2 DAYS AFTER THE DATE THE NOTICE 29
WAS RECEIVED. 30
HOUSE BILL 1299 3

(C) (1) THE ADDITIONAL MARKET DATA OR COMPARABLE SALES DAT A 1
SUBMITTED BY THE REQ UESTOR OR OTHER INTERESTE D PARTY UNDER 2
SUBSECTION (B) OF THIS SECTION SHALL BE RESIDENTIAL REAL PROPERTY SALES 3
THAT HAVE BEEN VERIFIED AS CLOSED. 4

(2) IF THE ADDITIONAL MARKET DATA OR COMPARABLE SALES DATA 5
SUBMITTED UNDER PARAGRAPH (1) OF THIS SUBSECTION ARE PENDING SALES, THE 6
SUBMISSION SHALL INCLUDE: 7

(I) ALL CONTRACT DOCUMENTATION; AND 8

(II) A BRIEF NARRATIVE EXPL AINING THE SIMILARIT IES OR 9
DIFFERENCES BETWEEN THE PENDING RESIDENTIAL REAL PROPERTY SALES, AND 10
THE RESIDENTIAL REAL PROPERTY THAT IS IN THE CONTRACT. 11

14–1003. 12

(A) AN APPRAISER SHALL CONS IDER ANY TIMELY SUBM ITTED 13
INFORMATION BEFORE FINALIZING AN APPRAISAL. 14

(B) A FINAL APPRAISAL REPO RT SHALL INCLUDE AN ADDENDUM TITLED 15
“APPRAISAL COMMUNICATION ADDENDUM” THAT INCLUDES: 16

(1) THE DATE THE NOTIFICATION UNDER § 14–1002 OF THIS 17
SUBTITLE WAS PROVIDED TO THE POINT OF CONTACT; 18

(2) THE OTHER INTERESTED PARTIES TO WHICH NOTIFICATION WAS 19
SENT, IF ANY; 20

(3) A SUMMARY OF THE INFORMATION RECEIVED FROM THE 21
REQUESTOR OR OTHER I NTERESTED PARTY REGA RDING THE MARKET DAT A OR 22
COMPARABLE SALES DATA; AND 23

(4) THE IMPACT, IF ANY, THE ADDITIONAL INFORMATION HAD ON THE 24
APPRAISER’S DETERMINATION OF T HE ESTIMATED VALU E OF THE RESIDENTIAL 25
REAL PROPERTY. 26

(C) IF THE ADDITIONAL INFORMATION SUBMITTED TO THE APPRAISER DID 27
NOT RESULT IN A CHANGE I N THE APPRAISED VALU E, THE APPRAISER SHALL 28
INCLUDE IN THE ADDENDUM REQUIRED UNDER SUBSECTION (B) OF THIS SECTION A 29
BRIEF EXPLANATION DE SCRIBING WHY THE INF ORMATION DID NOT ALT ER THE 30
ESTIMATED VALUE OF THE RESIDENTIAL REAL PROPERTY. 31
4 HOUSE BILL 1299

14–1004. 1

(A) LENDERS AND APPRAISAL MANAGEMENT COMPANIES SHALL MONITOR 2
APPRAISALS OF RESIDE NTIAL REAL PROPERTY FOR COMPLIANCE WITH THE 3
COMMUNICATION PROCESS REQUIRED UNDER THIS SUBTITLE. 4

(B) THE COMMISSIONER OF FINANCIAL REGULATION MAY ADOPT 5
REGULATIONS TO IMPLEMENT THIS SUBTI TLE, INCLUDING STANDARDS FOR 6
DOCUMENTATION, NOTIFICATION, AND DEADLINES. 7

14–1005. 8

(A) A PERSON MAY NOT USE T HE COMMUNICATION AND REVIEW PROCESS 9
ESTABLISHED UNDER TH IS SUBTITLE TO PRESSURE , INFLUENCE, OR COERCE AN 10
APPRAISER IN THE DEVELOPMENT, DETERMINATION, OR REPORTING OF AN 11
APPRAISAL FOR RESIDENTIAL REAL PROPERTY. 12

(B) A PERSON’S PARTICIPATION IN THE COMMUNICATION AND REVIEW 13
PROCESS ESTABLISHED UNDER THIS SUBTITLE MAY NOT ALONE CONSTITUTE AN 14
ACT OF PRESSURE, INFLUENCE, OR CORROSION UNDER STATE OR FEDERAL LAW. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17