[48 Pa.B. 3955]
[Saturday, July 7, 2018]
[Continued from previous Web Page]
QUALIFICATIONS FOR CERTIFICATION OR LICENSURE § 36.11. 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.
(b) Appraisal classroom hours. 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). This requirement does not apply to an applicant who submits an otherwise qualifying application before January 1, 2013, that shows evidence of the applicant's having completed 120 classroom hours of courses related to real estate appraisal, including the 15-hour National USPAP Course or equivalent course approved by the AQB, together with coverage of the topics listed in subsection (c)(1), before January 1, 2008.
(1) Length of classroom hour requirement. Credit toward the classroom hour requirement will only be granted when the length of the course is at least 15 hours, and the applicant successfully completes an examination pertinent to the course. A classroom hour is defined as 50 minutes out of each 60 minute segment.
(2) 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.]
(a) General qualifications. An applicant for certification as a residential real estate appraiser shall:
(1) Be of good moral character.
(2) Satisfy the education and experience requirements in this section prior to the date of examination.
(3) Pass an AQB-approved examination for certification as a residential real estate appraiser.
(4) Satisfy the requirements in the AQB Qualification Criteria for certification as a residential real estate appraiser.
(b) Appraisal classroom hours. An applicant for certification as a residential real estate appraiser shall submit evidence to the Board of having completed the classroom hours required by the AQB Qualification Criteria as of the date of the application.
(1) Length of classroom hour and courses; course examination requirement.
(i) The length of classroom hours and courses must comply with the requirements in the AQB Qualification Criteria.
(ii) Credit toward the classroom hour requirement will be granted only if the applicant successfully completes an examination pertinent to the course and attends at least the minimum length of time, as required by the AQB Qualification Criteria, to receive course credit.
(iii) The course examination must comply with the requirements in the AQB Qualification Criteria.
(2) Providers of appraisal courses. Credit for the classroom hour requirement may be obtained from types of providers in the AQB Qualification Criteria subject to the following:
(i) Credit for the classroom hour requirement may be obtained from accredited colleges or universities and community or junior colleges.
(ii) Real estate appraisal or real estate related organizations, State or Federal agencies or commissions, proprietary schools and other providers are subject to Board approval under § 36.31 (relating to provider registration/appraisal courses).
(3) Distance education. Distance education courses must comply with the requirements in the AQB Qualification Criteria. A distance education course is acceptable to meet the classroom hour requirement if the course is approved by the Board and meets all of the following conditions:
(i) The course is presented by 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 IDECC and approval for course content from the Board or from the AQB through its Course Approval Program.
(ii) The applicant successfully completes a written examination proctored by an official approved by the college, university or other course provider.
(iii) The length and content of the course meet the requirements of paragraph (1) and subsection (c), respectively.
[(c) Content of appraisal education. The content of an applicant's appraisal education must be as follows:
(1) An applicant who is subject to the 120-classroom hour requirement in subsection (b) shall demonstrate that the classroom hours included coverage of the following topics, with particular emphasis on the appraisal of one-to-four unit residential properties:
(i) Influences in real estate value.
(A) Physical and environmental.
(B) Economic.
(C) Governmental and legal.
(D) Social.
(ii) Legal considerations in appraisal.
(A) Real estate versus real property.
(B) Real property versus personal property.
(C) Limitations on real estate ownership.
(D) Legal rights and interests.
(E) Forms of property ownership.
(F) Legal descriptions.
(G) Transfer of title.
(iii) Type of values.
(A) Market value or value in exchange.
(B) Price.
(C) Cost.
(D) Investment value.
(E) Value in use.
(F) Assessed value.
(G) Insurable value.
(iv) Economic principles.
(A) Anticipation.
(B) Balance.
(C) Change.
(D) Competition.
(E) Conformity.
(F) Contribution.
(G) Increasing and decreasing returns.
(H) Opportunity cost.
(I) Substitution.
(J) Supply and demand.
(K) Surplus productivity.
(v) Real estate markets and analysis.
(A) Characteristics of real estate markets.
(B) Absorption analysis.
(C) Role of money and capital markets.
(D) Real estate financing.
(vi) Valuation process.
(A) Definition of the problem.
(B) Collection and analysis of data.
(C) Analysis of highest and best use.
(D) Application and limitations of each approach to value.
(E) Reconciliation and final value estimate.
(F) The appraisal report.
(vii) Property description.
(A) Site description.
(B) Improvement description.
(C) Basic construction and design.
(viii) Highest and best use analysis.
(A) Four tests.
(B) Vacant site or as if vacant.
(C) As improved.
(D) Interim use.
(ix) Appraisal math and statistics.
(A) Compound interest concepts.
(B) Statistical concepts used in appraisal.
(x) Sales comparison approach.
(A) Research and selection of comparables.
(B) Elements of comparison.
(C) Adjustment process.
(D) Application of sales comparison approach.
(xi) Site value.
(A) Sales comparison.
(B) Land residual.
(C) Allocation.
(D) Extraction.
(E) Plottage and assemblage.
(xii) Cost approach.
(A) Steps in cost approach.
(B) Application of the cost approach.
(xiii) Income approach.
(A) Gross rent multiplier analysis.
(B) Estimation of income and expenses.
(C) Operating expense ratios.
(D) Direct capitalization.
(xiv) Valuation of partial interests.
(A) Life estates.
(B) Undivided interest in commonly held property
(C) Easements.
(D) Timeshares.
(E) Cooperatives.
(F) Leased fee estate.
(G) Leasehold estate.
(xv) Appraisal standards and ethics.
(xvi) Narrative report writing.
(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) Computer science.
(G) Business or real estate law.
(2) This requirement does not apply to an applicant who submits an otherwise qualifying application before January 1, 2012, that shows evidence of the applicant's having completed 120 classroom hours of courses related to real estate appraisal, including the 15-hour National USPAP Course or equivalent course approved by the AQB, together with coverage of the topics listed in subsection (c)(1), before January 1, 2008.]
(c) Content of appraisal education.
(1) The content of an applicant's appraisal education must comply with the qualifying education requirements in the AQB Qualification Criteria and as specified in the Required Core Curriculum in the AQB Qualification Criteria.
(2) All courses must consist of instruction in the subject areas in Guide Note 1 of the AQB Qualification Criteria or any successor Guide Note.
(d) Postsecondary education. An applicant for certification as a residential real estate appraiser shall satisfy the postsecondary education requirements in the AQB Qualification Criteria.
(e) Experience. An applicant's experience must comply with all of the following:
[(1) In addition to meeting the education requirements, an applicant shall submit evidence to the Board of having acquired 2,500 hours of acceptable appraisal experience during a period of at least 24 months. At least 1,250 hours of the experience acquired by an applicant must be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject 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] (1) An applicant for certification as a residential real estate appraiser shall satisfy the experience requirements in the AQB Qualification Criteria.
(2) At least 50% of the total experience requirement shall be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject properties in accordance with § 36.13 (relating to experience options for preparation of appraisal reports; experience logs).
[(2)] (3) Effective January 1, 2008, experience must be acquired after January 30, 1989, and 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 prior to acquiring the experience. Effective January 1, 2020, experience credit may be obtained only by individuals who possess a license as an appraiser trainee.
(4) Acceptable categories of appraisal experience include all of the following:
(i) Fee and staff appraisals.
(ii) Ad valorem tax appraisals, if the [appraiser can demonstrate that the appraiser used techniques to value properties similar to those used by other appraisers and that the appraiser] applicant can demonstrate that the applicant used techniques to value properties similar to those used by appraisers and that the applicant effectively used the appraisal process.
(iii) Review appraisals.
(iv) Appraisal analysis (synonymous with an appraisal).
(v) Real estate counseling, if the counselor can satisfactorily demonstrate that:
(A) The client clearly asked for counseling services.
(B) The client was informed that the counselor's time would be devoted to counseling services, which are separate from other real estate functions such as appraising, sales management and mortgage lending.
(C) A file memorandum was prepared on each assignment indicating the nature of the assignment, recommendations and disposition.
(D) Compensation for the counseling services was separate from other real estate services rendered.
(vi) Highest and best use analysis.
(vii) Feasibility analysis/study.
(viii) 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.
(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.
§ 36.12. 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.
(b) Appraisal classroom hours. 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). This requirement does not apply to an applicant who submits an otherwise qualifying application before January 1, 2013, that shows evidence of the applicant's having completed 180 classroom hours of courses related to real estate appraisal, including the 15-hour National USPAP Course or equivalent course approved by the AQB, together with coverage of the topics listed in subsection (c)(1), before January 1, 2008.
(1) Length of classroom hour requirement. Credit toward the classroom hour requirement will only be granted when the length of the course is at least 15 hours, and the applicant successfully completes an examination pertinent to the course. A classroom hour is defined as 50 minutes out of each 60 minute segment.
(2) 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.
(3) Distance education. A distance education course is acceptable to meet the classroom hour requirement if the course is approved by the Board and meets the following conditions:
(i) The course is presented by 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 IDECC and approval for course content from the Board or from the AQB through its Course Approval Program.
(ii) The applicant successfully completes a written examination proctored by an official approved by the college, university or other course provider.
(iii) The length and content of the course meet the requirements of paragraph (1) and subsection (c), respectively.
(c) Content of appraisal education. 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 the classroom hours included coverage of the following topics, with particular emphasis on the appraisal of nonresidential properties. Residential is defined as one to four residential units.
(i) Influences on real estate value.
(A) Physical and environmental.
(B) Economic.
(C) Governmental and legal.
(D) Social.
(ii) Legal considerations in appraisal.
(A) Real estate versus real property.
(B) Real property versus personal property.
(C) Limitations on real estate ownership.
(D) Legal rights and interests.
(E) Forms of property ownership.
(G) Legal descriptions.
(H) Transfer of title.
(iii) Type of values.
(A) Market value or value in exchange.
(B) Price.
(C) Cost.
(D) Investment value.
(E) Value in use.
(F) Assessed value.
(G) Insurable value.
(H) Going concern value.
(iv) Economic principles.
(A) Anticipation.
(B) Balance.
(C) Change.
(D) Competition.
(E) Conformity.
(F) Contribution.
(G) Increasing and decreasing returns.
(H) Opportunity cost.
(I) Substitution.
(J) Supply and demand.
(K) Surplus productivity.
(v) Real estate markets and analysis.
(A) Characteristics of real estate markets.
(B) Absorption analysis.
(C) Role of money and capital markets.
(D) Real estate financing.
(vi) Valuation process.
(A) Definition of the problem.
(B) Collection and analysis of data.
(C) Analysis of highest and best use.
(D) Application and limitations of each approach to value.
(E) Reconciliation and final value estimate.
(F) The appraisal report.
(vii) Property description.
(A) Site development.
(B) Improvement description.
(C) Basic construction and design.
(viii) Highest and best use analysis.
(A) Four tests.
(B) Vacant site or as if vacant.
(C) As improved.
(D) Interim use.
(ix) Appraisal math and statistics.
(A) Compound interest concepts.
(B) Statistical concepts used in appraisal.
(x) Sales comparison approach.
(A) Research and selection of comparables.
(B) Elements of comparison.
(C) Adjustment process.
(D) Application of sales comparison approach.
(xi) Site value.
(A) Sales comparison.
(B) Land residual.
(C) Allocation.
(D) Extraction.
(E) Ground rent capitalization.
(F) Subdivision analysis.
(G) Plottage and assemblage.
(xii) Cost approach.
(A) Steps in cost approach.
(B) Application of the cost approach.
(xiii) Income approach.
(A) Estimation of income and expenses.
(B) Operating statement ratios.
(C) Direct capitalization.
(D) Cash flow estimates (before tax only).
(E) Measures of cash flow.
(F) Discounted cash flow analysis (DCF).
(xiv) Valuation of partial interests.
(A) Interests created by a lease.
(B) Lease provisions.
(C) Valuation considerations.
(D) Other partial interests.
(xv) Appraisal standards and ethics.
(xvi) Narrative report writing.
(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) Macroeconomics.
(C) Microeconomics.
(D) Finance.
(E) Algebra, geometry or higher mathematics.
(F) Statistics.
(G) Computer science.
(H) Business or real estate law.
(I) Two elective courses in accounting, geography, ag-economics, business management or real estate.
(2) This requirement does not apply to an applicant who submits an otherwise qualifying application before January 1, 2012, that shows evidence of the applicant's having completed 180 classroom hours of courses related to real estate appraisal, including the 15-hour National USPAP Course or equivalent course approved by the AQB, together with coverage of the topics listed in subsection (c)(1), before January 1, 2008.]
(a) General qualifications. An applicant for certification as a general real estate appraiser shall:
(1) Be of good moral character.
(2) Satisfy the education and experience requirements in this section as of the date of the examination.
(3) Pass an AQB-approved examination for certification as a general real estate appraiser.
(4) Satisfy all the requirements in the AQB Qualification Criteria for certification as a general real estate appraiser.
(b) Appraisal classroom hours. An applicant for certification as a general real estate appraiser shall submit evidence to the Board of having completed the classroom hours required by the AQB Qualification Criteria as of the date of application.
(1) Length of classroom hour and courses; course examination requirement.
(i) The length of classroom hours and courses must comply with the requirements in the AQB Qualification Criteria.
(ii) Credit toward the classroom hour requirement will be granted only if the applicant successfully completes an examination pertinent to the course and attends at least the minimum length of time, as required by the AQB Qualification Criteria, to receive course credit.
(iii) The course examination must comply with the requirements in the AQB Qualification Criteria.
(2) Providers of appraisal courses. Credit for the classroom hour requirement may be obtained from the types of providers in the AQB Qualification Criteria subject to all of the following:
(i) Credit for the classroom hour requirement may be obtained from accredited colleges or universities and community or junior colleges.
(ii) Real estate appraisal or real estate related organizations, State or Federal agencies or commissions, proprietary schools and other providers are subject to Board approval under § 36.31 (relating to provider registration/appraisal courses).
(3) Distance education. Distance education courses must comply with the requirements in the AQB Qualification Criteria. A distance education course is acceptable to meet the classroom hour requirement if the course is approved by the Board, and meets all of the following conditions:
(i) The course is presented by 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 IDECC and approval for course content from the Board or from the AQB through its Course Approval Program.
(ii) The applicant successfully completes a written examination proctored by an official approved by the college, university or other course provider.
(iii) The length and content of the course meet the requirements of paragraph (1) and subsection (c), respectively.
(c) Content of appraisal education.
(1) The content of an applicant's appraisal education must comply with the qualifying education requirements in the AQB Qualification Criteria and as specified in the Required Core Curriculum in the AQB Qualification Criteria.
(2) All courses must consist of instruction in the subject areas in Guide Note 1 of the AQB Qualification Criteria or any successor Guide Note.
(d) Postsecondary education. An applicant for certification as a general real estate appraiser shall satisfy the postsecondary education requirements in the AQB Qualification Criteria.
(e) Experience. An applicant's experience must comply with all of the following:
[(1) In addition to meeting the education requirements, an applicant shall submit evidence to the Board of having acquired 3,000 hours of acceptable appraisal experience, including 1,500 hours in nonresidential work, during a period of no less than 30 months. At least 1,500 hours of the experience acquired by an applicant shall be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject 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 Total 3,000 Hours] (1) An applicant for certification as a general real estate appraiser shall satisfy the experience requirements in the AQB Qualification Criteria.
(2) At least 50% of the total experience requirement must be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject properties, in accordance with § 36.13 (relating to experience options for preparation of appraisal reports; experience logs).
[(2)] (3) Effective January 1, 2008, experience must be acquired after January 30, 1989, and 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 prior to acquiring the experience. Effective January 1, 2020, experience credit can be obtained only by individuals who possess a license as an appraiser trainee or a certification as a residential real estate appraiser.
(4) Acceptable categories of appraisal experience include:
(i) Fee and staff appraisals.
(ii) Ad valorem tax appraisals, if the [appraiser can demonstrate that the appraiser used techniques to value properties similar to those used by other appraisers and that the appraiser] applicant can demonstrate that the applicant used techniques to value properties similar to those used by appraisers and that the applicant effectively used the appraisal process.
(iii) Review appraisals.
(iv) Appraisal analysis (synonymous with an appraisal).
(v) Real estate counseling, if the counselor can satisfactorily demonstrate that:
(A) The client clearly asked for counseling services.
(B) The client was informed that the counselor's time would be devoted to counseling services, which are separate from other real estate functions such as appraising, sales management and mortgage lending.
(C) A file memorandum was prepared on each assignment, indicating the nature of the assignment, recommendations and disposition.
(D) Compensation for the counseling services was separate from other real estate services rendered.
(vi) Highest and best use analysis.
(vii) Feasibility analysis/study.
(viii) 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.
(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.
§ 36.12a. Qualifications for licensure as appraiser trainee.
[(a) Overview. An applicant for licensure as an appraiser trainee shall be of good moral character and meet the education requirements prescribed by this section. 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 for licensure as an appraiser trainee.
(b) Appraisal classroom hours. An applicant shall submit evidence to the Board of having completed 75 classroom hours in the appraisal curriculum in paragraph (1), except that this requirement does not apply to an applicant who had satisfied the education requirement for certification as a residential real estate appraiser that was in effect as of December 31, 2007.
(1) Content of appraisal education. An applicant's classroom hours must 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.
(2) Examination requirement; length of classroom hour. Credit towards the classroom hour requirement will only be granted when the applicant successfully completes an examination pertinent to the course. A classroom hour is defined as 50 minutes out of each 60 minute segment.
(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.]
(a) General qualifications. An applicant for licensure as an appraiser trainee shall:
(1) Be of good moral character.
(2) Satisfy the education requirements in this section.
(3) Complete a course that, at a minimum, complies with the specifications for course content established by the AQB Qualification Criteria, which is specifically oriented to the requirements and responsibilities of supervisory appraisers and licensed appraiser trainees.
(4) Satisfy the requirements in the AQB Qualification Criteria for licensure as an appraiser trainee.
(b) Appraisal classroom hours. An applicant for licensure as an appraiser trainee shall comply with the qualifying educational standards required by the AQB Qualification Criteria.
(1) Content of appraisal education.
(i) The content of an applicant's appraisal education must comply with the qualifying education requirements in the AQB Qualification Criteria.
(ii) All courses must consist of instruction in the subject areas in Guide Note 1 of the AQB Qualification Criteria or any successor Guide Note.
(2) Length of classroom hour and courses; course examination requirement. The length of classroom hours and course requirements must comply with all of the following:
(i) The length of classroom hours and courses must comply with the requirements in the AQB Qualification Criteria.
(ii) Credit toward the classroom hour requirement will be granted only when the applicant successfully completes an examination pertinent to the course and attends at least the minimum length of time, as required by the AQB Qualification Criteria, to receive course credit.
(iii) The course examination must comply with the requirements in the AQB Qualification Criteria.
(3) Providers of appraisal courses. Credit for the classroom hour requirement may be obtained from the types of providers in the AQB Qualification Criteria subject to all of the following:
(i) Credit for the classroom hour requirement may be obtained from accredited colleges or universities and community or junior colleges.
(ii) Real estate appraisal or real estate related organizations, State or Federal agencies or commissions, proprietary schools and other providers are subject to Board approval under § 36.31 (relating to provider registration/appraisal courses).
(4) Distance education. Distance education courses must comply with the requirements in the AQB Qualification Criteria. A distance education course is acceptable to meet the classroom hour requirement if the course is approved by the Board and meets all of the following conditions:
(i) The course is presented by 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 IDECC and approval for course content from the Board or from the AQB through its Course Approval Program.
(ii) The applicant successfully completes a written examination proctored by an official approved by the college, university or other course provider.
(iii) The content and classroom hours of the course meet the requirements of paragraphs (1) and (2).
(c) Noneligibility for licensure. A certified real estate appraiser is not eligible to be licensed as an appraiser trainee.
(d) Limitation on license renewal. An appraiser trainee license may not be biennially renewed more than four times unless the Board, for good cause shown and on a case-by-case basis, should determine that one or more additional renewals is warranted.
§ 36.13. Experience options for preparation of appraisal reports; experience logs.
* * * * * (b) [An] For experience acquired before October 1, 2010, an assistant to a certified general real estate appraiser or certified residential real estate appraiser shall [observe] comply with all of the following requirements when preparing an appraisal report:
* * * * * (c) A licensed appraiser trainee shall [observe] comply with all of the following requirements when preparing an appraisal report for a certified general real estate appraiser or certified residential real estate appraiser:
* * * * * (d) A certified residential real estate appraiser shall [observe] comply with all of the following requirements when preparing an appraisal report for a certified general real estate appraiser:
(1) The residential appraiser shall perform an inspection of the interior and exterior of the property.
(2) The residential appraiser may not arrive at an independent determination of value.
(3) The residential appraiser shall comply with USPAP.
(4) The residential appraiser shall co-sign the appraisal report as set forth in § 36.52 (relating to use of certificate number and title) and ensure that the nature of his significant real property appraisal assistance is specified in the report.
(5) Jointly maintain an appraisal experience log with the general real estate appraiser on forms provided by the Board.
(e) The licensed appraiser trainee shall jointly maintain an appraisal experience log with the supervisory appraiser on forms provided by the Board. An appraisal experience log must comply with the requirements in the AQB Qualification Criteria.
CONTINUING EDUCATION § 36.41. Continuing education requirement.
(a) Continuing education for certified real estate appraisers and licensed appraiser trainees is necessary to ensure that they maintain and increase their skill, knowledge and competency in real estate appraising. Except as provided in subsection (b), [a certified real estate appraiser shall complete 28 classroom hours of continuing education—including the 7-hour National USPAP Update Course, or an equivalent 7-hour course approved by the AQB, and] certified real estate appraisers and licensed appraiser trainees shall satisfy the continuing education requirements in the AQB Qualification Criteria, which must include 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.
(b) A certified general real estate appraiser [or], residential real estate appraiser or licensed appraiser trainee whose initial certification or license 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.
§ 36.42. [Continuing education subject matter.] Subject matter and sources of continuing education.
[(a) The following subjects are acceptable for continuing education:
(1) Ad valorem taxation.
(2) Arbitration.
(3) Business courses related to the practice of real estate appraisal.
(4) Development cost-estimating.
(5) Ethics and standards of professional practice.
(6) Land use planning, zoning and taxation.
(7) Management, leasing, brokerage and timesharing.
(8) Property development.
(9) Real estate appraisal.
(10) Real estate financing and investment.
(11) Real estate law.
(12) Real estate litigation.
(13) Real estate appraisal related computer applications.
(14) Real estate securities and syndication.
(15) Real property exchange.
(16) Mass appraisal model building.
(17) Mass appraisal model calibration.
(18) Assessment administration.
(19) Mapping.
(b) Credit toward the classroom hour requirement will be granted only when the length of the education offering is at least 2 hours. A classroom hour is defined as 50 minutes out of each 60 minute segment.]
(a) Continuing education subject matter and sources must comply with the requirements in the AQB Qualification Criteria.
(b) Subjects acceptable for continuing education include the subjects in the AQB Qualification Criteria.
(c) Credit for the classroom hour requirement may be obtained from 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.
(d) Educational offerings which cover real estate appraisal related topics other than those [listed in subsection (a)] in subsection (b) may be acceptable for continuing education credit if the applicant can demonstrate to the Board that the topic or program contributed to the applicant's professional competence and is consistent with the purpose of continuing education as stated in § 36.41 (relating to [purpose] continuing education requirement).
[(e) Continuing education credit may also be granted—up to 50% of the biennial requirement—for participation, other than as a student, in appraisal educational processes and programs. Examples of activities for which credit may be granted include teaching, program development, authorship of textbooks or similar activities which the applicant can demonstrate to the Board are equivalent to obtaining continuing education.]
§ 36.43. Distance education.
Distance education courses must comply with the requirements in the AQB Qualification Criteria. A distance education course is acceptable for continuing education credit if it is approved by the Board and meets all of the following conditions:
(1) The course is presented by 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 IDECC and approval for course content from the Board or from the AQB through its Course Approval Program.
(2) With regard to a course presented under paragraph (1)(ii) or (iii), the certified real estate appraiser or the licensed appraiser trainee either successfully completes a written examination proctored by an official approved by the college, university or other course provider or successfully completes the course mechanisms required for course accreditation that evidence the learner's mastery and fluency of the course content.
(3) The content and length of the course meet the requirements of § 36.42 (relating to [continuing education subject matter] subject matter and sources of continuing education).
STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE § 36.54. Duties of supervisory appraiser.
* * * * * (b) A certified residential real estate appraiser or certified general real estate appraiser who utilizes a licensed appraiser trainee shall:
(1) Have at least 5 [years'] years of experience as a residential real estate or general real estate appraiser.
(2) Comply with the supervisory appraiser requirements in the AQB Qualification Criteria.
(3) Provide written notification to the Board of the name and address of the licensed appraiser trainee before the trainee begins work for the appraiser.
(4) Be a certified residential real estate appraiser or certified general real estate appraiser in this Commonwealth for at least 3 years immediately preceding the supervisory appraiser's notification to the Board.
(5) Be a certified residential real estate appraiser or certified general real estate appraiser in good standing in this Commonwealth.
(i) The supervisory appraiser shall be in good standing in this Commonwealth for at least 3 years immediately preceding the supervisory appraiser's notification to the Board.
(ii) The supervisory appraiser shall be in good standing while serving as a supervisor.
(6) Have not received from the Board or any jurisdiction any disciplinary action that affects or affected the supervisor's legal eligibility to engage in appraisal practice within 3 years immediately preceding the supervisory appraiser's notification to the Board.
(7) Prior to supervising a licensed appraiser trainee, complete a course, that, at a minimum, complies with the specifications for course content established by the AQB Qualification Criteria, which is specifically oriented to the requirements and responsibilities of supervisory appraisers and licensed appraiser trainees.
[(2)] (8) Supervise no more than three licensed appraiser trainees at one time.
[(3)] (9) Directly supervise and control the licensed appraiser trainee's work, assuming total responsibility for the contents of the appraisal report, including all value conclusions.
[(4)] (10) Accompany the licensed appraiser trainee during the physical inspection of the property until the licensed appraiser trainee has logged 300 hours of appraisal experience or until the supervising appraiser determines the licensed appraiser trainee is competent under USPAP to perform the physical inspection unaccompanied, whichever is the longer period.
[(5)] (11) Co-sign a Board-approved appraiser trainee checklist that has been completed by the licensed appraiser trainee, relates to the licensed appraiser trainee's work on the appraisal report and is made part of the appraisal report submitted to the client.
(12) Jointly maintain an appraisal experience log with the licensed appraiser trainee. An appraisal experience log must comply with the requirements in the AQB Qualification Criteria.
[(6)] (13) Provide a current or former licensed appraiser trainee who is applying for appraiser certification with copies of designated appraisal reports requested by the Board to verify the licensed appraiser trainee's experience.
(c) A certified general real estate appraiser who utilizes a certified residential real estate appraiser as an assistant for an appraisal of nonresidential property or an appraisal of residential property of more than four dwelling units shall:
(1) Directly supervise and control the residential appraiser's work, assuming total responsibility for the contents of the appraisal report, including all value conclusions.
(2) Accompany the residential appraiser during the physical inspection of the property until the general appraiser determines the residential appraiser is competent under USPAP to perform the physical inspection unaccompanied.
(3) Co-sign the appraisal report as set forth in § 36.52 and specify in the appraisal report the nature of the significant real property appraisal assistance rendered by the residential appraiser.
(4) Provide the residential appraiser, at the time of application for general appraiser certification, with copies of designated appraisal reports requested by the Board to verify the residential appraiser's experience.
(5) Jointly maintain an appraisal experience log with the general real estate appraiser on forms provided by the Board.
(6) Comply with the requirements in the AQB Qualification Criteria.
[Pa.B. Doc. No. 18-1033. Filed for public inspection July 6, 2018, 9:00 a.m.]
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