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News & Press: Industry News

Commercial Appraisal Exemption Increased by Feds

Tuesday, May 15, 2018  
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Although some federally related commercial real estate transactions have not required an appraisal since 1994, that exemption has now been expanded. The previous exemption amount that was established jointly by three federal banking agencies, exempted real estate-related transactions with a transaction value of $250,000 or less and specific real-estate secured business loans of $1 million or less. The agencies adopted a new rule effective April 9, 2018, that increases the commercial real estate appraisal exemption to $500,000 and revises the definition of "commercial real estate" to mean a real estate-related financial transaction that is not secured by a 1-to-4 family residential property.

The published regulation in the Federal Register can be found here.

California Land Title Association


1215 K Street #1816 Sacramento, CA 95814-3905
Email: mail@clta.org  |  Phone: 916-444-2647  |   Fax: 916-444-2851