Acting Governor Way Signs Legislation Prohibiting Discrimination in Real Estate Appraisals

Acting Governor Way today signed legislation explicitly prohibiting discriminatory practices in real estate appraisals and requiring real estate appraisers to complete anti-bias training.

The new law takes a critical step forward in combating home appraisal discrimination, a form of bias that significantly contributes to the racial wealth gap in New Jersey. The law updates the Real Estate Appraisal Act and confirms that it is illegal for real estate appraisers to consider certain personal characteristics when determining the value of a property, including race, color, religion, sex, sexual orientation, gender identity, age, marital status, disability, familial status, or national origin of current or future owners or occupants of the property or nearby property owners or occupants.

The law, enforced by the Appraisal Qualifications Board, provides yet another mechanism through which to address home appraisal discrimination. In January 2024, for instance, the Division on Civil Rights launched the Home Appraisal Discrimination Initiative and issued guidance regarding the application of the Law Against Discrimination to appraisal discrimination. With today’s signing, property owners will now have multiple avenues to seek remedies for home appraisal discrimination.

Additionally, the new law requires a real estate appraiser to complete a fair housing and appraisal bias education course offered by the Appraisal Qualifications Board of the Appraisal Foundation to satisfy the appraiser’s continuing education requirements. The purpose of this course is to educate appraisers on how to avoid bias in their work.

“When buying or owning a home in New Jersey, we must strive to provide our residents with fair and equal treatment,”said Acting Governor Tahesha Way. “For far too long, systems were in place that would perpetuate racial bias. With this bill, we will ensure that personal biases don’t influence appraisers.”

“Discrimination in the housing appraisal industry has prevented far too many – particularly people of color – from acquiring the benefits of community stability and wealth creation through homeownership,” said Attorney General Matthew J. Platkin. “By signing this legislation, Acting Governor Way is showing that the Legislature and the Murphy Administration are strongly committed to providing important protections for New Jersey residents.”

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3 COMMENTS

  1. The platitudes of this nonsensical let are astounding.
    For starters, an appraiser spray has a legal requirement to be fair in their assessments, as they have a duty both to the lender who hired them as well the borrower who is paying them.
    If the only factor is skin color of the neighbors, there is no basis to reduce the appraisal.
    If on the other hand, the comps on this side of the tracks are lower that would require a lower appraisal (even under this law).
    If the neighbors are black or white wouldn’t change the valuations, but a drug house next door would.

    If the appraiser gets greeted by a bunch of shirtless dudes throwing empty beer cans at him, then regardless of whether they are white trash, Hispanic, or black that would decrease the value.

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