[36 Pa.B. 2530]
[Continued from previous Web Page]
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 36. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS
Subchapter A. [GENERAL PROVISIONS] CERTIFIED REAL ESTATE APPRAISERS
GENERAL PROVISIONS § 36.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
AQB--The Appraiser Qualifications Board of the Appraisal Foundation.
* * * * * Certified broker/appraiser--A person who holds a certificate issued under authority of section 6(a)(3) of the act (63 P. S. § 457.6(a)(3)) and who is authorized to perform appraisals of all types of real property in non-Federally-related transactions.
Certified general real estate appraiser--A person who holds a certificate issued under authority of section 6(a)(2) and (e) of the act and § 36.12 (relating to qualifications for certification as general real estate appraiser) and who is authorized to perform appraisals of all types of real property in all transactions, whether Federally-related or non-Federally-related.
Certified real estate appraiser--A certified broker/appraiser, certified residential real estate appraiser or certified general real estate appraiser.
Certified residential real estate appraiser--A person who holds a certificate issued under authority of section 6(a)(1) and (d) of the act and § 36.11 (relating to qualifications for certification as residential real estate appraiser) and who is authorized to perform appraisals of residential properties of one-to-four dwelling units in all transactions, whether Federally-related or non-Federally-related.
Distance education--An educational process based on the geographical separation of the learner and instructor, which provides interaction between the learner and instructor and includes testing. Examples include CD or DVD ROM, on-line learning, correspondence courses, video conferencing, and video and remote television courses.
* * * * * [State certified general real estate appraiser--A person who satisfies the requirements of the act and this chapter, pertaining to the appraisal of residential and nonresidential real property utilized in connection with Federally related transactions, and who holds a current, valid certificate issued under the act and this chapter.
State certified residential real estate appraiser--A person who satisfies the certification requirements of the act and this chapter, pertaining solely to the appraisal of residential real property utilized in connection with Federally-related transactions, and who holds a current, valid certificate under the act and this chapter.]
USPAP--The Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation.
§ 36.2 Application process.
(a) Application form. A person interested in becoming [State certified as] a certified residential real estate appraiser or a certified general real estate appraiser shall complete and file with the Board a notarized application form and an application fee. Application forms may be obtained [from the Administrative Office of] by visiting the Board's website at www.dos. state.pa.us/real or by writing, telephoning or e-mailing the Board[,] at Post Office Box 2649, Harrisburg, [Pennsylvania] PA 17105-2649, (717) 783-4866, or ST-APPRAISE@state.pa.us, respectively.
(b) Application fee. The application fee for certification as a residential or general real estate appraiser is set forth in § 36.6 (relating to fees). Application fees are nonrefundable. Payments [shall] must be in the form of a personal check or money order made payable to the ''Commonwealth of Pennsylvania.''
(c) Approved applications. Subject to the provisions of subsection (e), an approved application will be valid for 1 year from the date of approval. If an applicant does not pass the certification examination within this 1-year period, the applicant's application will be considered to have been withdrawn. If the applicant wishes to take the examination after 1 year from the date of approval, a new application, along with the required fee, shall be submitted to the Board. [The application will be reviewed on the basis of statutes and regulations in effect at the time the new application is received by the Board.]
(d) Disapproved applications. Subject to the provisions of subsection (e), an applicant whose application has been disapproved by the Board will be notified in writing of the reasons for the disapproval, and will have 1 year from the date of disapproval to correct the deficiencies or to file a request for reconsideration. A request for reconsideration [shall] must give the reason for the applicant's request, [shall] be accompanied by documentary materials not previously submitted which the applicant wishes the Board to consider and may include a request for an informal interview with the Board. If a request for reconsideration is denied or, subject to the provisions of subsection (e), an applicant is unable to correct the deficiencies which resulted in the disapproval of the application within 1 year from the date of disapproval, a new application, along with the required fee, shall be submitted to the Board. [An applicant's new application will be reviewed on the basis of statutes and regulations in effect at the time the new application is received by the Board.]
(e) Compliance with new requirements. [If the education or experience criteria established by the Appraiser Qualifications Board of the Appraisal Foundation (AQB) are amended during the 1-year period following application approval under subsection (c), the applicant will be required to satisfy the new education or experience requirements established by the AQB as a condition of receiving certification from the Board. If the AQB's education or experience criteria is amended during the 1-year period following application disapproval under subsection (d), the applicant will have 1 year from the date of application disapproval to correct the deficiencies which resulted in application disapproval and to satisfy the AQB's new education or experience requirements.] Except as otherwise provided in §§ 36.11 and 36.12 (relating to qualifications for certification as residential real estate appraiser; and qualifications for certification as general real estate appraiser), an applicant shall comply with any increased education or experience requirements that take effect between the applicant's filing of an initial application and the applicant's passing the certification examination.
§ 36.3. Examinations.
(a) The examination required for certification as a residential [or general] real estate appraiser is the [National] AQB-endorsed Uniform State Certified Residential Real Property Appraiser Examination [issued or endorsed by the Appraiser Qualifications Board of the Appraisal Foundation] or its equivalent. The examination required for certification as a general real estate appraiser is the AQB-endorsed Uniform State Certified General Real Property Appraiser Examination or its equivalent. The certification [examination will be] examinations are administered by a professional testing organization under contract with the Board at times and places established by the [Board] professional testing organization.
(b) [General information regarding the real estate appraiser examinations and instructions regarding examination scheduling will be prepared by the professional testing organization under contract with the Board and compiled in a candidate booklet to be made available to each candidate whose State-certified real estate appraiser application has been approved by the Board.] Interested persons may obtain information about the certification examinations from the professional testing organization. Contact information for the professional testing organization appears on the Board's website at www.dos.state.pa.us/real.
QUALIFICATIONS FOR CERTIFICATION § 36.11. [Residential] Qualifications for certification as residential real estate appraiser.
(a) Overview. An applicant for certification as a residential real estate appraiser shall be of good moral character, meet the following education and experience requirements prior to examination, and pass an examination for certification as a residential real estate appraiser. Neither a real estate salesperson's license nor a real estate broker's license issued under the Real Estate Licensing and Registration Act (63 P. S. § 455.101--455.902) is a prerequisite to certification as a residential real estate appraiser.
[(1) Education] (b) Appraisal classroom hours. An applicant shall submit evidence to the Board of having completed 120 classroom hours of courses in subjects related to real estate appraisal, including the 15-hour National [Uniform Standards of Professional Appraisal Practice] USPAP Course, together with coverage of the topics listed in [paragraph (2)] subsection (c)(1). Effective January 1, 2008, an applicant shall submit evidence to the Board of having completed 200 classroom hours in the appraisal curriculum set forth in subsection (c)(2), except that the new requirement does not apply to an applicant who has satisfied the existing education requirement before January 1, 2008.
[(i)] (1) Length of classroom hour requirement. Credit toward the classroom hour requirement will only be granted when the length of the [educational offering] course is at least 15 hours, and the applicant successfully completes an examination pertinent to [that educational offering] the course. A classroom hour is defined as 50 minutes out of each 60 minute segment.
[(ii)] (2) Teaching credit. Credit toward the classroom hour requirement may be awarded to teachers of appraisal courses for actual classroom time, but credit will not be given for course repetition. A teacher requesting credit for the classroom hour requirement may not request credit for experience. [A teacher may request credit for either the classroom hour or experience requirement, but not both. No more than 300 hours will be granted to teachers requesting credit toward the experience requirement for teaching of appraisal courses.]
[(iii)] (3) * * *
[(iv) Correspondence courses] (4) Distance education. [Correspondence courses may be] A distance education course is acceptable to meet the classroom hour requirement if [each] the course is approved by the Board and meets the following conditions:
[(A)] (i) The course [has been] is presented by [an accredited (Commission on Colleges or a regional accreditation association) college or university which offers correspondence programs in other disciplines] one of the following:
(A) An accredited (Commission on Colleges or a regional accreditation association) college or university that offers distance education programs in other disciplines.
(B) A course provider that has received approval for course design and delivery mechanism from the International Distance Education Certification Center and approval for course content from the Board or from the AQB through its Course Approval Program.
[(B)] (ii) The applicant successfully completes a written examination [administered at a location] proctored by an official approved by the college [or], university or other course provider.
[(C)] (iii) The content and length of the course [meets] meet the requirements of [subparagraph (i) and paragraph (2)] paragraph (1) and subsection (c), respectively.
[(v) Video and remote television courses. Video and remote television courses may be acceptable to meet the classroom hour requirement if each offering is approved by the Board and meets the following conditions:
(A) The course has been presented by an accredited (Commission on Colleges or a regional accreditation association) college or university which offers similar programs in other disciplines.
(B) The applicant successfully completes a written examination administered at a location by an official approved by the college or university.
(C) The content and length of the course meets the requirements of subparagraph (i) and paragraph (2).
(vi)] (5) Credit for challenge examination. The Board may [grant credit for courses if] accept toward the classroom hour requirement a course for which the applicant obtained credit from the course provider by challenge examination without attending the [courses] course, if [that credit was granted by] the course provider granted credit prior to July 1, 1990, and the Board is satisfied with the quality of the challenge examination that was administered by the course provider.
[(2) Mandatory course topics] (c) Content of appraisal education. [Applicants] The content of an applicant's appraisal education shall be as follows:
(1) An applicant who is subject to the 120-classroom hour requirement in subsection (b) shall demonstrate that [their education] the classroom hours included coverage of the following topics [listed in this paragraph], with particular emphasis on the appraisal of one-to-four unit residential properties:
* * * * * (2) An applicant who is subject to the 200-classroom hour requirement in subsection (b) shall demonstrate that the classroom hours satisfy the following curriculum requirements:
(i) Basic appraisal principles (30 hours).
(A) Real property concepts and characteristics.
(I) Basic real property concepts.
(II) Real property characteristics.
(III) Legal description.
(B) Legal considerations.
(I) Forms of ownership.
(II) Public and private controls.
(III) Real estate contracts.
(IV) Leases.
(C) Influences on real estate.
(I) Governmental.
(II) Economic.
(III) Social.
(IV) Environmental, geographic and physical.
(D) Types of value.
(I) Market value.
(II) Other value types.
(E) Economic principles.
(I) Classical economic principles.
(II) Application and illustrations of the economic principles.
(F) Overview of real estate markets and analysis.
(I) Market fundamentals, characteristics and definitions.
(II) Supply analysis.
(III) Demand analysis.
(IV) Use of market analysis.
(G) Ethics and how they apply in appraisal theory and practice.
(ii) Basic appraisal procedures (30 hours).
(A) Overview of approaches to value.
(B) Valuation procedure.
(I) Defining the problem.
(II) Collecting and selecting the data.
(III) Analyzing.
(IV) Reconciling and final value opinion.
(V) Communicating the appraisal.
(C) Property description.
(I) Geographic characteristics of the land/site.
(II) Geologic characteristics of the land/site.
(III) Location and neighborhood characteristics.
(IV) Land/site considerations for highest and best use.
(V) Improvements--architectural styles and types of construction.
(D) Residential applications.
(iii) National USPAP Course or Equivalent (15 hours).
(A) Preamble and ethics rules.
(B) Standard 1.
(C) Standard 2.
(D) Standards 3 to 10.
(E) Statements and advisory opinions.
(iv) Residential market analysis and highest and best use (15 hours).
(A) Residential markets and analysis.
(I) Market fundamentals, characteristics and definitions.
(II) Supply analysis.
(III) Demand analysis.
(IV) Use of market analysis.
(B) Highest and best use.
(I) Test constraints.
(II) Application of highest and best use.
(III) Special considerations.
(IV) Market analysis.
(V) Case studies.
(v) Residential appraiser site valuation and cost approach (15 hours).
(A) Site valuation.
(I) Methods.
(II) Case studies.
(B) Cost approach.
(I) Concepts and definitions.
(II) Replacement/reproduction cost new.
(III) Accrued depreciation.
(IV) Methods of estimating accrued depreciation.
(V) Case studies.
(vi) Residential sales comparison and income approaches (30 hours).
(A) Valuation principles and procedures--sales comparison approach.
(B) Valuation principles and procedures--income approach.
(C) Finance and cash equivalency.
(D) Financial calculator introduction.
(E) Identification, derivation and measurement of adjustments.
(F) Gross rent multipliers.
(G) Partial interests.
(H) Reconciliation.
(I) Case studies and applications.
(vii) Residential report writing and case studies (15 hours).
(A) Writing and reasoning skills.
(B) Common writing problems.
(C) Form reports.
(D) Report options and USPAP compliance.
(E) Case studies.
(viii) Statistics, modeling and finance (15 hours).
(A) Statistics.
(B) Valuation models (AVMs and mass appraisal).
(C) Real estate finance.
(ix) Advanced residential applications and case studies (15 hours).
(A) Complex property, ownership and market conditions.
(B) Deriving and supporting adjustments.
(C) Residential market analysis.
(D) Advanced case studies.
(x) Appraisal subject matter electives (20 hours).
(d) Postsecondary education.
(1) Effective January, 1, 2008, an applicant shall submit evidence to the Board of having satisfied one of the following requirements:
(i) Possession of an associate's degree, or higher, from an accredited college or university.
(ii) Completion of 21 semester credit hours in the following college-level subjects at an accredited college or university:
(A) English composition.
(B) Principles of economics (micro or macro).
(C) Finance.
(D) Algebra, geometry or higher mathematics.
(E) Statistics.
(F) Introduction to computers--word processing/spreadsheets.
(G) Business or real estate law.
(2) This subsection does not apply to an applicant who completed 120 classroom hours of qualifying appraisal education under subsection (b) before January 1, 2008.
[(3)] (e) Experience.
(1) In addition to meeting the education requirements, an applicant shall submit evidence to the Board of having [completed] acquired 2,500 hours of acceptable appraisal experience [obtained] during [no fewer than] a period of at least 24 months. [Fifty percent] At least 50% of the experience [obtained] acquired by an applicant [shall] must be in the actual preparation of real estate appraisal reports, which [include a] includes physical [inspection] inspections of the interior and exterior of the subject [property] properties, in accordance with § 36.13 (relating to experience options regarding preparation of appraisal reports). Hours may be treated as cumulative to achieve the necessary 2,500 hours of appraisal experience. Cumulative is defined to mean that experience may be acquired over any time period in excess of 24 months. There is no minimum number of hours which must be acquired in any 12 months. The following will serve as an example:
Year 1 400 Hours Year 2 800 Hours Year 3 200 Hours Year 4 500 Hours Year 5 600 Hours Total 2,500 Hours (2) Experience acquired after January 1, 1991, must comply with USPAP. Experience acquired after August 2, 1993, will not be accepted unless the applicant has first completed 45 classroom hours of appraisal education, including 15 hours on USPAP. Acceptable categories of appraisal experience [includes] include:
* * * * * (iii) Review appraisals[, if the reviews are in compliance with Standard 3 of the Uniform Standards of Professional Appraisal Practice].
* * * * * (viii) [Teaching of appraisal courses; however, no more than 300 hours will be granted to teachers requesting credit toward the experience requirement for teaching of appraisal courses and no credit will be given for course repetition.
(ix)] Real estate related experience such as that of an officer of a lending institution, if the experience consists of the actual performance or professional review of real estate appraisals [in compliance with the Uniform Standards of Professional Appraisal Practice].
(ix) Evaluations under FIRREA in accordance with requirements of Federal financial institution regulatory agencies.
(x) Case studies or practicum courses that are approved by the AQB Course Approval Program.
[(4) State certified residential real estate appraiser. An applicant who has passed an examination and who is certified under this section will be deemed to have met the minimum criteria for the certified residential real property appraiser classification adopted by the Appraiser Qualifications Board of the Appraisal Foundation, and shall be qualified to perform residential real property appraisals in Federally-related and non-Federally related transactions without regard to value.]
§ 36.12. [General] Qualifications for certification as general real estate appraiser.
(a) Overview. An applicant for certification as a general real estate appraiser shall be of good moral character, meet the following education and experience requirements prior to examination, and pass an examination for certification as a general real estate appraiser. Neither a real estate salesperson's license nor a real estate broker's license issued under the Real Estate Licensing and Registration Act (63 P. S. § 455.101--455.902) is a prerequisite to certification as a general real estate appraiser.
[(1) Education] (b) Appraisal classroom hours. An applicant shall submit evidence to the Board of having completed 180 classroom hours of courses in subjects related to real estate appraisal, including the 15-hour National [Uniform Standards of Professional Appraisal Practice] USPAP Course, together with coverage of the topics listed in [paragraph (2)] subsection (c)(1). Effective January 1, 2008, an applicant shall submit evidence to the Board of having completed 300 classroom hours in the appraisal curriculum set forth in subsection (c)(2), except that the new requirement does not apply to an applicant who has satisfied the existing education requirement before January 1, 2008.
[(i)] (1) Length of classroom hour requirement. Credit toward the classroom hour requirement will only be granted when the length of the [educational offering] course is at least 15 hours, and the applicant successfully completes an examination pertinent to [that educational offering] the course. A classroom hour is defined as 50 minutes out of each 60 minute segment.
[(ii)] (2) Teaching credit. Credit toward the classroom hour requirement may be awarded to teachers of appraisal courses for actual classroom time, but credit will not be given for course repetition. A teacher requesting credit for the classroom hour requirement may not request credit for experience. [A teacher may request credit for either the classroom hour or experience requirement, but not both. No more than 300 hours will be granted to teachers requesting credit toward the experience requirement for teaching of appraisal courses.]
[(iii)] (3) Providers of appraisal courses. Credit for the classroom hour requirement may be obtained from accredited colleges or universities and community or junior colleges. Subject to Board approval under § 36.31 (relating to provider registration/appraisal courses), credit for the classroom hour requirement may also be obtained from real estate appraisal or real estate related organizations, State or Federal agencies or commissions, proprietary schools and other providers.
[(iv) Correspondence courses] (4) Distance education. [Correspondence courses may be] A distance education course is acceptable to meet the classroom hour requirement if [each] the course is approved by the Board and meets the following conditions:
[(A)] (i) The course [has been] is presented by [an accredited (Commission on Colleges or a regional accreditation association) college or university which offers correspondence programs in other disciplines] one of the following:
(A) An accredited (Commission on Colleges or a regional accreditation association) college or university that offers distance education programs in other disciplines.
(B) A course provider that has received approval for course design and delivery mechanism from the International Distance Education Certification Center and approval for course content from the Board or from the AQB through its Course Approval Program.
[(B)] (ii) The applicant successfully completes a written examination [administered at a location] proctored by an official approved by the college [or], university or other course provider.
[(C)] (iii) The content and length of the course [meets] meet the requirements of [subparagraph (i) and paragraph (2)] paragraph (1) and subsection (c), respectively.
[(v) Video and remote television courses. Video and remote television courses may be acceptable to meet the classroom hour requirement if each offering is approved by the Board and meets the following conditions:
(A) The course has been presented by an accredited (Commission on Colleges or a regional accreditation association) college or university which offers similar programs in other disciplines.
(B) The applicant successfully completes a written examination administered at a location by an official approved by the college or university.
(C) The content and length of the course meets the requirements of subparagraph (i) and paragraph (2).
(vi)] (5) Credit for challenge examination. The Board may [grant credit for courses if] accept toward the classroom hour requirement a course for which the applicant obtained credit from the course provider by challenge examination without attending the [courses] course, if [credit was granted by] the course provider granted credit prior to July 1, 1990, and the Board is satisfied with the quality of the challenge examination that was administered by the course provider.
[(2) Mandatory course topics] (c) Content of appraisal education. [Applicants] The content of an applicant's appraisal education must be as follows:
(1) An applicant who is subject to the 180-classroom hour requirement in subsection (b) shall demonstrate that [their education] the classroom hours included coverage of the following topics [listed in this paragraph], with particular emphasis on the appraisal of nonresidential properties. Residential is defined as one to four residential units.
* * * * * (2) An applicant who is subject to the 300-hour classroom requirement in subsection (b) shall demonstrate that the classroom hours satisfy the following curriculum requirements:
(i) Basic appraisal principles (30 hours).
(A) Real property concepts and characteristics.
(I) Basic real property concepts.
(II) Real property characteristics.
(III) Legal description.
(B) Legal considerations.
(I) Forms of ownership.
(II) Public and private controls.
(III) Real estate contracts.
(IV) Leases.
(C) Influences on real estate.
(I) Governmental.
(II) Economic.
(III) Social.
(IV) Environmental, geographic and physical.
(D) Types of value.
(I) Market value.
(II) Other value types.
(E) Economic principles.
(I) Classical economic principles.
(II) Application and illustrations of the economic principles.
(F) Overview of real estate markets and analysis.
(I) Market fundamentals, characteristics and definitions.
(II) Supply analysis.
(III) Demand analysis.
(IV) Use of market analysis.
(G) Ethics and how they apply in appraisal theory and practice.
(ii) Basic appraisal procedures (30 hours).
(A) Overview of approaches to value.
(B) Valuation procedure.
(I) Defining the problem.
(II) Collecting and selecting the data.
(III) Analyzing.
(IV) Reconciling and final value opinion.
(V) Communicating the appraisal.
(C) Property description.
(I) Geographic characteristics of the land/site.
(II) Geologic characteristics of the land/site.
(III) Location and neighborhood characteristics.
(IV) Land/site considerations for highest and best use.
(V) Improvements--architectural styles and types of construction.
(D) Residential applications.
(iii) National USPAP Course or equivalent (15 hours).
(A) Preamble and ethics rules.
(B) Standard 1.
(C) Standard 2.
(D) Standards 3 to 10.
(E) Statements and advisory opinions.
(iv) General appraiser market analysis and highest and best use (30 hours).
(A) Real estate markets and analysis.
(I) Market fundamentals, characteristics and definitions.
(II) Supply analysis.
(III) Demand analysis.
(IV) Use of market analysis.
(B) Highest and best use.
(I) Test constraints.
(II) Application of highest and best use.
(III) Special considerations.
(IV) Market analysis.
(V) Case studies.
(v) General appraiser site valuation and cost approach (30 hours).
(A) Site valuation.
(I) Methods.
(II) Case studies.
(B) Cost approach.
(I) Concepts and definitions.
(II) Replacement/reproduction cost new.
(III) Accrued depreciation.
(IV) Methods of estimating accrued depreciation.
(V) Case studies.
(vi) General appraiser sales comparison approach (30 hours).
(A) Value principles.
(B) Procedures.
(C) Identification and measurement of adjustments.
(D) Reconciliation.
(E) Case studies.
(vii) General appraiser income approach (60 hours).
(A) Overview.
(B) Compound interest.
(C) Lease analysis.
(D) Income analysis.
(E) Vacancy and collection loss.
(F) Estimating operating expenses and reserves.
(G) Reconstructed income and expense statement.
(H) Stabilized net operating income estimate.
(I) Direct capitalization.
(J) Discounted cash flow.
(K) Yield capitalization.
(L) Partial interests.
(M) Case studies.
(viii) General appraiser report writing and case studies (30 hours).
(A) Writing and reasoning skills.
(B) Common writing problems.
(C) Report options and USPAP compliance.
(D) Case studies.
(ix) Statistics, modeling and finance (15 hours).
(A) Statistics.
(B) Valuation Models (AVMs and mass appraisal).
(C) Real estate finance.
(x) Appraisal subject matter electives (30 hours)
(d) Postsecondary education.
(1) Effective January 1, 2008, an applicant shall submit evidence to the Board of having satisfied one of the following requirements:
(i) Possession of a bachelor's degree, or higher, from an accredited college or university.
(ii) Completion of 30 semester credit hours in the following college-level subjects at an accredited college or university:
(A) English composition.
(B) Macro economics.
(C) Micro economics.
(D) Finance.
(E) Algebra, geometry or higher mathematics.
(F) Statistics.
(G) Introduction to computers--word processing/spreadsheets.
(H) Business or real estate law.
(I) Two elective courses in accounting, geography, ag-economics, business management or real estate.
(2) This subsection does not apply to an applicant who completed 180 classroom hours of qualifying appraisal education under subsection (b) before January 1, 2008.
[(3)] (e) Experience.
(1) In addition to meeting the education requirements, an applicant shall submit evidence to the Board of having [completed] acquired 3,000 hours of acceptable appraisal experience, including 1,500 hours in nonresidential work, [obtained] during [no fewer] a period of no less than 30 months. [Fifty percent] At least 50% of the experience [obtained] acquired by an applicant shall be in the actual preparation of real estate appraisal reports, which [include a] includes physical [inspection] inspections of the interior and exterior of the subject [property] properties, in accordance with § 36.13 (relating to experience options regarding preparation of appraisal reports). Hours may be treated as cumulative to achieve the necessary 3,000 hours of appraisal experience. Cumulative is defined to mean that experience may be acquired over any time period in excess of 30 months. There is no minimum number of hours which must be acquired in any 1 year. The following will serve as an example:
Year 1 1,000 Hours Year 2 800 Hours Year 3 100 Hours Year 4 1,000 Hours Year 5 100 Hours l Total 3,000 Hours (2) Experience acquired after January 1, 1991, must comply with USPAP. Experience acquired after August 2, 1993, will not be accepted unless the applicant has first completed 45 classroom hours of appraisal education, including 15 hours on USPAP. Acceptable categories of appraisal experience [includes] include:
* * * * * (iii) Review appraisals[, if the reviews are in compliance with Standard 3 of the Uniform Standards of Professional Appraisal Practice].
* * * * * (viii) [Teaching of appraisal courses; however, no more than 300 hours will be granted to teachers requesting credit toward the experience requirement for teaching of appraisal courses and no credit will be given for course repetition.
(ix)] Real estate experience such as that of an officer of a lending institution, if the experience consists of the actual performance or professional review of real estate appraisals [in compliance with the Uniform Standards of Professional Appraisal Practice].
(ix) Evaluations under FIRREA in accordance with requirements of Federal financial institution regulatory agencies.
(x) Case studies or practicum courses that are approved by the AQB Course Approval Program.
[(4) State certified general real estate appraiser. An applicant who has passed examination and who is certified under this section will be deemed to have met the minimum criteria for the Certified General Real Property Appraiser Classification adopted by the Appraiser Qualifications Board of the Appraisal Foundation, and shall be qualified to perform residential and nonresidential real property appraisals in Federally related and non-Federally-related transactions without regard to value.]
§ 36.13. Experience options for preparation of appraisal reports.
(a) An applicant [seeking to meet the experience requirements] for certification as a residential real estate appraiser or a general real estate appraiser [may do so by] under §§ 36.11 and 36.12 (relating to qualifications for certification as residential real estate appraiser; and qualifications for certification as general real estate appraiser) shall have acquired experience in the preparation of appraisal reports in one or more of the following:
(1) Prior to September 3, 1998:
[(1)] (i) [Performing real estate appraisals which are not required by FIRREA to be performed by State-certified or State-licensed real estate appraisers,] As a licensed real estate broker under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101--455-901) and Chapter 35 (relating to State Real Estate Commission).
[(2)] (ii) [Performing appraisals or other evaluations of real estate in connection with a loan transaction in the capacity of] As an elected officer, director or [employe] employee of a banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws, when acting on behalf of the institution [in performing the appraisal] in connection with a loan transaction.
(iii) As a certified broker/appraiser.
[(3)] (iv) [Assisting in the preparation of a real estate appraisal required by FIRREA to be performed by a State-certified or State-licensed real estate appraiser, under the supervision of a certified residential real estate appraiser or a certified general real estate appraiser, if the certified real estate appraiser:] As an assistant to a certified residential real estate appraiser or certified general real estate appraiser, provided the assistant satisfies the requirements of subsection (b).
[(i) Directly supervises and controls the applicant's work, assuming total responsibility for the content of the appraisal documents and value conclusions. The applicant may not arrive at an independent determination of value.
(ii) Personally makes a physical inspection of the interior and exterior of the subject property, unless an interior and complete exterior inspection of the property is not possible as of the effective date of the appraisal--that is, where improvements have been destroyed, removed or not yet built; inspections are not legally or contractually possible; the appraiser is denied access by the property owner; or, a contract stipulates a ''drive-by'' appraisal.
(iii) Signs the appraisal document as ''certified real estate appraiser'' and has the applicant sign as ''assistant to the certified real estate appraiser.'']
(2) On or after September 3, 1998:
(i) As a certified broker/appraiser.
(ii) As an assistant to a certified residential real estate appraiser or certified general real estate appraiser, provided the assistant satisfies the requirements of subsection (b).
(b) [Experience obtained after August 2, 1993, will only be acceptable to the Board if an applicant shows evidence of first having completed 45 classroom hours in subjects related to real estate appraisal in §§ 36.11(2) and 36.12(2) (relating to residential real estate appraiser; and general real estate appraiser), which includes at least 15 hours of the Uniform Standards of Professional Appraisal Practice. Appraisal experience obtained prior to August 2, 1993, will not be subject to the educational requirement imposed by this section.] An assistant to a certified general appraiser or certified residential appraiser shall observe the following requirements when preparing an appraisal report:
(1) The assistant shall perform an inspection of the interior and exterior of the property.
(2) The assistant may not arrive at an independent determination of value.
(3) The assistant shall sign the appraisal report as ''assistant to the certified real estate appraiser'' or be referenced in the certification section of the appraisal report, or in an addendum to the appraisal report, as having provided significant professional assistance.
CONTINUING EDUCATION § 36.41. Continuing education requirement.
(a) Continuing education for certified [general appraisers, residential appraisers and broker/appraisers] real estate appraisers is necessary to ensure that they maintain and increase their skill, knowledge and competency in real estate appraising. Except as provided in subsection (b), [every general] a certified real estate appraiser[, residential appraiser and broker/appraiser] shall complete 28 classroom hours of continuing education--including [at least 4 hours on the Uniform Standards of Professional Appraisal Practice] the 7-hour National USPAP Update Course, or an equivalent 7-hour course approved by the AQB, and at least 2 hours on the act, this chapter and the policies of the Board--during each biennial renewal period as a condition of renewal of certification for the next biennial renewal period. [Effective with renewal of certification for the 2005-2007 biennial renewal period, the 7-hour National USPAP Update Course, or an equivalent 7-hour course approved by the Appraiser Qualifications Board, will replace the minimum 4-hour requirement on the USPAP.]
(b) A certified general real estate appraiser or residential real estate appraiser whose initial certification becomes effective between January 1 and June 30 of a biennial renewal year will not be required to furnish proof of continuing education as a condition of renewal of certification in that biennial renewal year.
[(c) The Board will accept continuing education hours completed by a certified broker/appraiser between January 1, 2001, and June 30, 2001, toward the continuing education requirement for renewal of certification for the 2003-2005 biennial renewal period.]
§ 36.43. [Correspondence courses/video and remote television presentations] Distance education.
[(a) Correspondence courses. Correspondence courses may be] A distance education course is acceptable for continuing education credit [provided] if it is approved by the Board and meets the following conditions:
(1) The course [has been] is presented by [an accredited (Commission on Colleges or a regional accrediting association) college or university which offers correspondence programs in other disciplines.] one of the following:
(i) A course provider that presents the course to an organized group in an instructional setting with a person qualified and available to answer questions, provide information and monitor attendance.
(ii) An accredited (Commission on Colleges or a regional accreditation association) college or university that offers distance education programs in other disciplines.
(iii) A course provider that has received approval for course design and delivery mechanism from the International Distance Education Certification Center and approval for course content from the Board or from the AQB through its Course Approval Program.
(2) [An individual] With regard to a course presented under paragraph (1)(ii) or (iii), the certified real estate appraiser successfully completes a written examination [administered at a location] proctored by an official approved by the college [or], university or other course provider.
(3) The [offering is equivalent to a minimum of 10 classroom hours in length and is consistent with the accepted topics listed in] content and length of the course meet the requirements of § 36.42[(a)] (relating to continuing education subject matter).
[(b) Video and remote television presentations. Video and remote television presentations are acceptable for continuing education credit if the presentation is for an organized group in an instructional setting, with a qualified resource person available to answer questions and provide information or if the following exist:
(1) The offering has been presented by an accredited (Commission on Colleges or a regional accreditation association) college or university which offers similar programs in other disciplines.
(2) An individual successfully completes a written examination administered at a location by an official approved by the college or university.
(3) The offering is equivalent to a minimum of 10 classroom hours in length and is consistent with the accepted topics listed in § 36.42(a).]
§ 36.51. [Uniform Standards of Professional Appraisal Practice] Compliance with USPAP.
[Certified real estate appraisers are under a duty to perform a physical inspection of the interior and complete exterior of the subject property on appraisals required by FIRREA to be performed by a State-certified or State-licensed real estate appraiser, unless an interior and complete exterior inspection is not possible as of the effective date of the appraisal-that is, when improvements have been destroyed, removed or not yet built; inspections are not legally or contractually possible; the appraiser is denied access by the property owner; or, a contract stipulates a ''drive-by'' appraisal. Certified appraisers shall perform real estate appraisals in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated and adopted by the Appraisal Standards Board (ASB) of the Appraisal Foundation. The USPAP will be amended by the ASB and published annually in separate yearly bound editions. A copy of the USPAP may be obtained from the Appraisal Foundation, 1029 Vermont Avenue, N.W., Suite 900, Washington, D.C. 20005, (202) 347-7722. A violation of one or more provision of the USPAP may result in disciplinary action by the Board under the authority of section 11(a)(6) of the act (63 P. S. § 457.11(a)(6)).] A certified real estate appraiser shall perform an appraisal in accordance with USPAP. A certified real estate appraiser who violates one or more provisions of USPAP may be subject to disciplinary action under the act. A certified real estate appraiser can obtain a current edition of USPAP by writing, telephoning or e-mailing the Appraisal Foundation at 1029 Vermont Avenue, N.W., Suite 900, Washington D.C. 20005-3517, (202) 347-7722, or info@appraisalfounda tion.org, respectively.
§ 36.52. Use of certificate number and title.
[Each] A certified real estate appraiser shall place his name, signature and certificate number adjacent to or immediately below the title ''Pennsylvania certified general real estate appraiser,'' [or] ''Pennsylvania certified residential real estate appraiser'' or ''Pennsylvania certified broker/appraiser,'' as appropriate, on each written appraisal report and each written appraisal agreement [used by the certified appraiser certificate holder in conducting appraisal activities]. Professional designations may be included adjacent to the signature, if applicable. The following will serve as an example:
/s/ _________________
John Doe, (Professional designation, if applicable)
[Pa.] Pennsylvania Certified Residential Real Estate Appraiser
Certification number [1234] RL-999999-L§ 36.54. Supervision of appraisal assistant.
A certified residential real estate appraiser or certified general real estate appraiser who utilizes an appraisal assistant shall:
(1) Provide written notification to the Board of the name and address of the assistant when the assistant begins work for the appraiser.
(2) Directly supervise and control the assistant's work, assuming total responsibility for the contents of the appraisal report, including all value conclusions.
(3) Accompany the assistant during the physical inspection of the property as follows:
(i) In the case of an assistant who is not a certified residential real estate appraiser, accompany the assistant during the physical inspection of the property until the assistant has logged 300 hours of experience or until the supervising appraiser determines the assistant is competent under USPAP to perform the physical inspection unaccompanied, whichever is the longer period.
(ii) In the case of an assistant who is a certified residential real estate appraiser seeking to obtain qualifying experience for certification as a general real estate appraiser, accompany the assistant during the physical inspection of the property until the supervising appraiser determines the assistant is competent under USPAP to perform the physical inspection unaccompanied.
(4) Sign the appraisal report as a certified real estate appraiser under § 36.52 (relating to use of certificate number and title) and either have the assistant sign the appraisal report as assistant to the certified real estate appraiser or identify the assistant in the certification section of the appraisal report, or in addendum to the appraisal report, as having provided significant professional assistance.
(5) Sign a Board-approved appraisal assistant checklist that has been completed by the assistant and that relates to the assistant's work on the appraisal report.
(6) Provide a current or former assistant who is applying for appraiser certification with copies of designated appraisal reports and appraisal assistant checklists requested by the Board to verify the assistant's experience.
MISCELLANEOUS PROVISIONS § 36.91. Reactivation of lapsed certification.
[(a)] A [certificate holder] certified real estate appraiser whose certification has lapsed [by failing] for failure to biennially renew certification may apply to the Board for reactivation of certification by paying [the current biennial renewal fee as set forth in § 36.6 (relating to fees), meeting the continuing education requirement of § 36.41 (relating to purpose) for the current renewal period and submitting documentation to verify the period of time in which the certificate holder abstained from performing appraisals in connection with Federally-related transactions in this Commonwealth and from holding himself out as a State-certified real estate appraiser] the renewal fee required under § 36.6 (relating to fees) and providing documentation of having completed 28 hours of continuing education as required under § 36.41 (relating to continuing education requirement) within the 2-year period immediately preceding the date of filing of the reactivation application. A certified real estate appraiser who performed an appraisal, or held himself out as an appraiser, during a period when his certification was lapsed may be subject to disciplinary action by the Board under section 3 of the act (63 P. S. § 457.3) in addition to being required to pay late renewal fees under section 225 of the Bureau of Professional and Occupational Affairs Fee Act (63 P. S. § 1401-225).
[(b) A certificate holder will not be assessed a late renewal fee for the preceding biennial periods in which the certificate holder abstained from the performance of appraisals in connection with Federally-related transactions in this Commonwealth and from holding himself out as a State-certified real estate appraiser.
(c) A certificate holder whose certificate has lapsed by failing to biennially renew certification is prohibited from performing an appraisal in connection with a Federally-related transaction in this Commonwealth unless the certification is reactivated. If a certificate holder performs an appraisal in connection with a Federally-related transaction in this Commonwealth or holds himself out as a State-certified real estate appraiser during a period in which the certificate holder's certification is not renewed, the certificate holder shall pay a late renewal fee of $5 for each month or part of the month beyond the date specified for renewal, as provided in section 225 of the Bureau of Professional and Occupational Affairs Fee Act (63 P. S. § 1401-225), in addition to the prescribed biennial renewal fee. The certificate holder may also be subject to disciplinary action by the Board for performing an appraisal in connection with a Federally-related transaction in this Commonwealth or for holding himself out as a State-certified real estate appraiser without a current certificate, or both.]
Subchapter C. CERTIFIED PENNSYLVANIA EVALUATORS
QUALIFICATIONS FOR CERTIFICATION § 36.224. [Correspondence] Distance education courses.
[Correspondence courses will be] A distance education course is acceptable to meet the classroom hour requirement if [each] the course is approved by the Board and meets the following conditions:
(1) The course is presented by [an accredited college or university which offers correspondence programs in other disciplines.] one of the following:
(i) An accredited (Commission on Colleges or a regional accreditation association) college or university that offers distance education programs in other disciplines.
(ii) A course provider that has received approval for course design and delivery mechanism from the International Distance Education Certification Center and approval for course content from the Board or from the AQB through its Course Approval Program.
(2) The applicant successfully completes a written examination [administered] proctored by an official approved by the college [or], university or other course provider.
(3) The content and length of the courses [meets] meet the requirements of § 36.222[(a) and (b)] (relating to required courses of study).
§ 36.225. [Video and remote television courses] (Reserved).
[Video and remote television courses will be acceptable to meet the classroom hour requirement if each offering is approved by the Board and meets the following conditions:
(1) The course has been presented by an accredited college or university which offers similar programs in other disciplines.
(2) An applicant successfully completes a written examination administered by an official approved by the college or university.
(3) The content and length of the course meets the requirement of § 36.222(a) and (b) (relating to required courses of study).]
CONTINUING EDUCATION § 36.261. Continuing education requirement.
(a) [Continuing education of 28 classroom hours per biennium, including at least 4 hours on the Uniform Standards of Professional Appraisal Practice and at least 2 hours on the Assessors Certification Act (63 P. S. §§ 458.1--458.16), this chapter and the policies of the Board, shall be required of a certified Pennsylvania evaluator as a condition of biennial renewal of certification.] Except as provided in subsection (b), a certified Pennsylvania evaluator shall complete 28 classroom hours of continuing education--including at least 4 hours on USPAP and at least 2 hours on the act, this chapter and the policies of the Board--during each biennial renewal period as a condition of renewal of certification for the next biennial renewal period. Effective with renewal of certification for the 2007-2009 biennial renewal period, the USPAP requirement shall be the 7-hour National USPAP Update Course or an equivalent 7-hour course approved by the AQB.
(b) A certified Pennsylvania evaluator whose initial certification becomes effective between January 1 and June 30 of a biennial renewal year will not be required to furnish proof of continuing education as a condition of biennial renewal of certification in that biennial renewal year.
§ 36.263. [Correspondence courses/video and remote television presentations] Distance education.
[(a) Correspondence courses. Correspondence courses will be] A distance education course is acceptable for continuing education credit if it is approved by the Board and meets the following conditions:
(1) The course [has been] is presented by [an accredited college or university which offers correspondence programs in other disciplines] one of the following:
(i) A course provider that presents the course to an organized group in an instructional setting with a person qualified and available to answer questions, provide information and monitor attendance.
(ii) An accredited (Commission on Colleges or a regional accreditation association) college or university that offers distance education programs in other disciplines.
(iii) A course provider that has received approval for course design and delivery mechanism from the International Distance Education Certification Center and approval for course content from the Board or from the AQB through its Course Approval Program.
(2) [An individual] With regard to a course presented under paragraph (1)(ii) or (iii), the certified Pennsylvania evaluator successfully completes a written examination [administered] proctored by an official approved by the college [or], university or other course provider.
(3) The [offering is at least 10 classroom hours in length and covers the accepted topics in] content and length of the course meets the requirements of § 36.262 (relating to continuing education subject matter).
[(b) Video and remote television presentations. Video and remote television presentations are acceptable for continuing education credit if the presentation is for an organized group in an instructional setting, with a qualified resource person available to answer questions and provide information or if the following conditions are met:
(1) The offering has been presented by an accredited college or university which offers similar programs in other disciplines.
(2) An individual successfully completes a written examination administered by an official approved by the college or university.
(3) The offering is at least 10 classroom hours in length and covers the accepted topics listed in § 36.262.]
REACTIVATION OF CERTIFICATION § 36.271. Reactivation of lapsed certification.
(a) A certified Pennsylvania evaluator whose certification has lapsed [by failing] for failure to biennially renew certification may apply to the Board for reactivation of certification by paying [the current biennial renewal fee as set forth in § 36.6 (relating to fees), meeting the continuing education requirement established by law and regulation for the current biennial renewal period and submitting documentation to verify the period of time in which the certified Pennsylvania evaluator abstained from performing valuations of real property for ad valorem tax purposes in this Commonwealth and from holding himself out as a certified Pennsylvania evaluator] the renewal fee required under § 36.6 (relating to fees) and providing documentation of having completed 28 hours of continuing education as required under § 36.261 (relating to continuing education requirement) within the 2-year period immediately preceding the date of filing of the reactivation application. A certified Pennsylvania evaluator who performed a valuation of real property for ad valorem tax purposes, or held himself out as a certified Pennsylvania evaluator, during a period when his certification was lapsed may be subject to disciplinary action by the Board under the act in addition to being required to pay late renewal fees under section 225 of the Bureau of Professional and Occupational Affairs Fee Act (63 P. S. § 1401-225).
[(b) A certified Pennsylvania evaluator will not be assessed a late renewal fee for the preceding biennial periods in which the certified Pennsylvania evaluator abstained from the performance of valuations of real property for ad valorem tax purposes in this Commonwealth and from holding himself out as a certified Pennsylvania evaluator.
(c) A certified Pennsylvania evaluator whose certification has lapsed by failing to biennially renew certification is prohibited from performing valuations of real property for ad valorem tax purposes in this Commonwealth unless the certification status is reactivated. If a certified Pennsylvania evaluator performs valuations of real property for ad valorem tax purposes in this Commonwealth or holds himself out as a certified Pennsylvania evaluator during a period in which the certified Pennsylvania evaluator's certification is not renewed, the certified Pennsylvania evaluator shall pay a late renewal fee of $5 for each month or part of the month beyond the date specified for renewal, as provided in section 225 of the Bureau of Professional and Occupational Affairs Fee Act (63 P. S. § 1401-225), in addition to the prescribed biennial renewal fee. The certified Pennsylvania evaluator may also be subject to disciplinary action by the Board for performing valuations of real property for ad valorem tax purposes in this Commonwealth or for holding himself out as a certified Pennsylvania evaluator without a current certificate, or both.]
STANDARDS OF PROFESSIONAL CONDUCT § 36.281. Standards of Professional Conduct.
* * * * * Standard 1. General duties.
Certified Pennsylvania evaluators shall perform their duties in accordance with the general and specific county assessment laws and generally accepted assessment standards. Certified Pennsylvania evaluators shall perform all assessments in accordance with [the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated and adopted by the Appraisal Standards Board of the Appraisal Foundation] USPAP. [The USPAP will be amended by the ASB and published annually in separate yearly bound editions. A] Certified Pennsylvania evaluators may obtain a copy of the current edition of the USPAP [may be obtained from ] by writing, telephoning or e-mailing the Appraisal Foundation[,] at 1029 Vermont Avenue, N.W., Suite 900, Washington, D.C. 20005-3517, (202) 347-7722 or info@appraisal foundation.org, respectively.
* * * * *
[Pa.B. Doc. No. 06-932. Filed for public inspection May 26, 2006, 9:00 a.m.]
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