What's Happening?
A public-interest law firm, the New Civil Liberties Alliance (NCLA), has filed a legal challenge against the South Carolina Real Estate Appraisers Board. The case, Kirton v. South Carolina Department of Labor, questions the board's actions against appraiser
Joseph Kirton, who was sanctioned under appraisal standards not legally adopted at the time of his appraisal. The NCLA argues that these standards, set by a private organization, were unconstitutionally enforced. The case highlights the broader issue of 'incorporation by reference,' where private rulebooks become binding law without public access, raising concerns about transparency and due process.
Why It's Important?
This case underscores significant concerns about regulatory practices in the real estate industry, particularly the use of 'incorporation by reference.' This practice allows private standards to become law without public scrutiny, potentially leading to arbitrary enforcement and increased compliance costs. The outcome of this case could impact how real estate professionals are regulated and the transparency of the rules they must follow. It also raises questions about the balance of power between state boards and private organizations, and the protection of due process rights for professionals in the industry.
What's Next?
The NCLA is seeking to have the board's sanctions against Kirton overturned, arguing for adherence to constitutional due process. The case could prompt a reevaluation of how appraisal standards are adopted and enforced, potentially leading to legislative changes to ensure greater transparency and accountability. The outcome may influence other states' regulatory practices and could lead to increased scrutiny of the role of private organizations in setting legally binding standards.
