Acting Governor Way signs legislation prohibiting discrimination in real estate appraisals
NEW JERSEY – Acting Governor Way Monday 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,” Way said. “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.”
“We thank the Legislature and the Murphy Administration for taking this important step to address an insidious discriminatory practice that has contributed to the wealth gap in our state,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “The legislation signed into law today confronts the problem of appraisal bias head-on, provides meaningful measures to eradicate it, and promotes equal access to the wealth-building potential of homeownership for all New Jerseyans.”
“Discriminatory practices in home appraisals harm our residents and have the potential to harm entire communities. New Jersey’s civil rights laws offer crucial protections against home appraisal discrimination, and this bill underscores the strength of our state’s commitment to combating appraisal discrimination,” said Sundeep Iyer, Director of the Division on Civil Rights. “The signing of this legislation will play an important role in the ongoing fight to tackle barriers to homeownership and generational wealth-building in our state. I am grateful to Governor Murphy and the Legislature for their leadership on this critical issue.”
The primary sponsors of A2280/S1311 are Assemblywoman Lopez, Assemblywoman Reynolds-Jackson, Assemblywoman McCoy, Senator Pou, and Senator Ruiz.
