What is the Fair Appraisal Act?

It is the set of California laws, enacted through Assembly Bill 948 in 2021, that prohibit bias in real estate appraisals. It works through three code sections: Business and Professions Code section 11424 prohibits appraisers from basing value on protected characteristics; Civil Code section 1102.6g requires a bias-notice in every contract for the sale of real property after July 1, 2022; and an amendment to Government Code section 12955 makes appraiser discrimination a fair-housing violation. It also added anti-bias continuing education for appraisers.

What notice does Civil Code section 1102.6g require?

It requires that every contract for the sale of real property entered into after July 1, 2022 contain, in at least 8-point type, a notice stating that any appraisal must be unbiased and not influenced by improper or illegal considerations such as the listed protected characteristics. The notice also explains how to report a biased appraisal and file a complaint with the Bureau of Real Estate Appraisers. Separately, under subdivision (b), a licensed person refinancing a first-lien purchase-money loan secured by residential real property of no more than four dwelling units must deliver the same notice.

How does the Act connect appraisal bias to fair-housing law?

By amending Government Code section 12955, part of the Fair Employment and Housing Act, to state that it is unlawful for an appraiser or appraisal business to discriminate in the availability or performance of appraisal services because of protected characteristics. This means a biased appraisal can be both a licensing violation under section 11424 and a fair-housing violation under section 12955, exposing the appraiser to enforcement on two independent fronts.

Do California appraisers have to take anti-bias training?

Yes. The Act added continuing-education requirements so that California appraisers must complete coursework in cultural competency and in the elimination of bias as part of initial licensing and renewal. The goal is to build awareness of how unconscious bias can enter a valuation and to reinforce that value must rest on the property and the market rather than on the characteristics of the people connected to it.

Should I cite "AB 948" on the exam?

It is better to know the code sections. AB 948 is the 2021 bill that created these rules, but the enforceable law lives in Business and Professions Code section 11424, Civil Code section 1102.6g, and Government Code section 12955. Exam questions and real-world compliance turn on those sections, so associating each remedy — prohibition, disclosure, fair-housing hook — with its section is more useful than remembering the bill number alone.

California Fair Appraisal Act: Appraisal Bias (11424)

TL;DR

California's Fair Appraisal Act, enacted through Assembly Bill 948 in 2021, attacks bias in the property-appraisal process from three directions, and its individual code sections are what the exam tests. First, Business and Professions Code section 11424 prohibits a licensed appraiser from basing an opinion of value, even partially, on the race, color, religion, gender, gender expression, age, national origin, disability, marital status, source of income, sexual orientation, familial status, employment status, or military status of the owners or occupants of the subject property or of nearby properties. Second, Civil Code section 1102.6g requires that every contract for the sale of real property entered into after July 1, 2022 contain a specific notice, in at least 8-point type, stating that any appraisal must be unbiased and explaining how to report a discriminatory appraisal to the Bureau of Real Estate Appraisers. Third, the Act amended Government Code section 12955, part of the Fair Employment and Housing Act, to make it unlawful for an appraiser or appraisal business to discriminate in the availability or performance of appraisal services, and it added continuing-education requirements in cultural competency and elimination of bias. The practical takeaway is that appraisal bias is now independently illegal under licensing law, contract-disclosure law, and fair-housing law at the same time.

Why California enacted the Fair Appraisal Act

The Fair Appraisal Act responded to documented cases in which homes owned by people of color were appraised well below market value, with the valuation rising sharply when the owner's identity was concealed during a second appraisal. Because an artificially low appraisal can block a sale, a refinance, or the building of equity, biased valuation is a fair-housing problem, not merely a professional-standards problem. California's response, Assembly Bill 948, deliberately spread its remedies across several codes so that a biased appraisal violates more than one body of law at once.

For exam purposes, the important move is to connect each remedy to its code section rather than to the bill number. A search result or study aid may refer to "AB 948," but the enforceable law lives in the Business and Professions Code, the Civil Code, and the Government Code. Knowing which section does what is the difference between recognizing the topic and actually answering a question about it.

The prohibition: Business and Professions Code section 11424

The core substantive rule is in Business and Professions Code section 11424. It provides that a licensee shall not base, either partially or completely, an analysis or opinion of market value on protected characteristics of the present or prospective owners or occupants of the subject property, or of the owners or occupants of properties in the vicinity. The protected characteristics listed include race, color, religion, gender and gender expression, age, national origin or ancestry, disability, marital status, source of income, sexual orientation, familial status, employment status, and military status. The lists overlap but are not word-for-word identical across the licensing, contract-notice, and fair-housing provisions, so an exam question should be tied to the specific code section being tested.

This is a direct prohibition on the appraiser's methodology: value must rest on the property and the market, not on who lives there or nearby. It complements longstanding appraisal ethics rules that already forbid bias, but it puts the prohibition squarely into California licensing law, enforceable by the Bureau of Real Estate Appraisers, which regulates appraiser licensing and discipline in the state.

The disclosure: Civil Code section 1102.6g

The Act also added a mandatory notice to the sale process. Under Civil Code section 1102.6g, after July 1, 2022 every contract for the sale of real property must contain, in no less than 8-point type, a prescribed notice stating that any appraisal of the property is required to be unbiased and not influenced by improper considerations such as the protected characteristics listed in the statute. The notice also tells the consumer how to report a concern about a biased appraisal and how to file a complaint with the Bureau of Real Estate Appraisers. A related lender notice applies separately: under subdivision (b), a licensed person refinancing a first-lien purchase-money loan secured by residential real property of no more than four dwelling units must deliver the same notice, before or with the loan estimate or mortgage loan disclosure statement.

This places section 1102.6g alongside California's other transaction notices and disclosures that ride along with a real-property sale. It is a disclosure-and-awareness tool rather than a valuation rule: it does not change how an appraisal is done, but it guarantees that buyers and sellers are told bias is prohibited and are given a path to report it. For how it sits among the state's required transfer disclosures, see our guide to the Transfer Disclosure Statement.

The fair-housing hook and education requirements

Finally, the Act amended Government Code section 12955 — a core provision of the Fair Employment and Housing Act — to specify that it is unlawful for an appraiser or an appraisal management company to discriminate against any person in making appraisal services available, or in the performance of those services, because of protected characteristics. This matters because it routes appraisal discrimination into California's fair-housing enforcement machinery, alongside the remedies that already apply to discrimination in sales and lending.

The Act also added continuing-education requirements: California appraisers must complete coursework in cultural competency and in the elimination of bias as part of licensing and renewal. Because the same conduct can now violate licensing law under section 11424 and fair-housing law under section 12955 simultaneously, an appraiser who lets bias affect a valuation faces overlapping exposure. For the broader fair-housing framework this connects to, see our guides to the Fair Employment and Housing Act and the Holden Act on financial discrimination in lending.

Frequently Asked Questions

What is the Fair Appraisal Act?: It is the set of California laws, enacted through Assembly Bill 948 in 2021, that prohibit bias in real estate appraisals. It works through three code sections: Business and Professions Code section 11424 prohibits appraisers from basing value on protected characteristics; Civil Code section 1102.6g requires a bias-notice in every contract for the sale of real property after July 1, 2022; and an amendment to Government Code section 12955 makes appraiser discrimination a fair-housing violation. It also added anti-bias continuing education for appraisers.
What does Business and Professions Code section 11424 prohibit?: It prohibits a licensed appraiser from basing an opinion of market value, in whole or in part, on the protected characteristics of the owners or occupants of the subject property or of nearby properties. Those characteristics include race, color, religion, gender and gender expression, age, national origin, disability, marital status, source of income, sexual orientation, familial status, employment status, and military status. In short, value must be based on the property and the market, not on who lives there.
What notice does Civil Code section 1102.6g require?: It requires that every contract for the sale of real property entered into after July 1, 2022 contain, in at least 8-point type, a notice stating that any appraisal must be unbiased and not influenced by improper or illegal considerations such as the listed protected characteristics. The notice also explains how to report a biased appraisal and file a complaint with the Bureau of Real Estate Appraisers. Separately, under subdivision (b), a licensed person refinancing a first-lien purchase-money loan secured by residential real property of no more than four dwelling units must deliver the same notice.
How does the Act connect appraisal bias to fair-housing law?: By amending Government Code section 12955, part of the Fair Employment and Housing Act, to state that it is unlawful for an appraiser or appraisal business to discriminate in the availability or performance of appraisal services because of protected characteristics. This means a biased appraisal can be both a licensing violation under section 11424 and a fair-housing violation under section 12955, exposing the appraiser to enforcement on two independent fronts.
Do California appraisers have to take anti-bias training?: Yes. The Act added continuing-education requirements so that California appraisers must complete coursework in cultural competency and in the elimination of bias as part of initial licensing and renewal. The goal is to build awareness of how unconscious bias can enter a valuation and to reinforce that value must rest on the property and the market rather than on the characteristics of the people connected to it.
Should I cite "AB 948" on the exam?: It is better to know the code sections. AB 948 is the 2021 bill that created these rules, but the enforceable law lives in Business and Professions Code section 11424, Civil Code section 1102.6g, and Government Code section 12955. Exam questions and real-world compliance turn on those sections, so associating each remedy — prohibition, disclosure, fair-housing hook — with its section is more useful than remembering the bill number alone.

Bottom Line

California's Fair Appraisal Act, enacted through AB 948 in 2021, makes appraisal bias illegal on three fronts at once. Business and Professions Code section 11424 prohibits an appraiser from basing value, even partially, on protected characteristics of the owners or occupants of the subject or nearby properties. Civil Code section 1102.6g requires an 8-point-type bias notice in every contract for the sale of real property entered into after July 1, 2022, telling consumers appraisals must be unbiased and how to report a violation; a related lender notice applies separately on refinances of residential property of no more than four units. And an amendment to Government Code section 12955 folds appraiser discrimination into the Fair Employment and Housing Act, while new continuing-education rules require cultural-competency and elimination-of-bias coursework. Because the same biased valuation can violate licensing law and fair-housing law simultaneously, the exposure is layered. For related fair-housing topics, see our guides to the Fair Employment and Housing Act, the Holden Act, and the Transfer Disclosure Statement.

Source: California Civil Code § 1102.6g (Justia) · Business and Professions Code § 11424 (FindLaw) · Bureau of Real Estate Appraisers — AB 948 summary