RULES AND REGULATIONS
STATE BOARD OF CERTIFIED
REAL ESTATE APPRAISERS
[ 49 PA. CODE CH. 36 ]
Appraiser Trainees; Initial and Continuing Education; Supervised Experience; Practice Standards
[40 Pa.B. 3956]
[Saturday, July 17, 2010]The State Board of Certified Real Estate Appraisers (Board) amends Chapter 36 (relating to State Board of Certified Real Estate Appraisal) to read as set forth in Annex A.
The final-form rulemaking accomplishes the following: (1) establishes a regulatory scheme for the appraiser trainee license, which was added to the Real Estate Appraisers Certification Act (REACA) (63 P. S. §§ 457.1—457.19) by the act of July 8, 2008 (P. L. 833, No. 59) and the act of October 9, 2008 (P. L. 1380, No. 103); (2) amends and clarifies initial education, continuing education and supervised experience requirements for certified appraisers, consistent with Federal criteria that are binding on the Board under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) (Pub. L. No. 101-173, 103 Stat. 183); (3) clarifies appraiser practice standards regarding supervision and use of titles; and (4) harmonizes requirements for certified Pennsylvania evaluators with those for certified appraisers.
Summary of Comments, Responses and Changes to Proposed Rulemaking
The Board published a notice of proposed rulemaking at 39 Pa.B. 5423 (September 19, 2009) with a 30-day public comment period. The Board received a general comment in support of the proposed rulemaking from the Pennsylvania Association of Realtors.
The Board received comments from the Independent Regulatory Review Commission (IRRC) and the House Professional Licensure Committee (HPLC) as part of the review of the proposed rulemaking under the Regulatory Review Act (71 P. S. §§ 745.1—745.12). The Board did not receive comments from the Senate Consumer Protection and Professional Licensure Committee (SCP/PLC) as part of its review of the proposed rulemaking under the Regulatory Review Act.
§ 36.2. Application process
Section 36.2 establishes the procedure for applying for certification as a residential or general real estate appraiser. Section 36.2(e) provides that, except as otherwise stated 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 increased education or experience requirements that take effect between the applicant's initial filing of an application and the applicant's passing the certification examination.
The final-form rulemaking amends § 36.2 to include the procedure for applying for licensure as an appraiser trainee. One of the amendments to § 36.2(e) provided that an applicant for licensure as an appraiser trainee shall comply with increased education requirements that take effect between the applicant's filing of an application that is disapproved and the applicant's filing of a new application.
IRRC questioned the intent of this amendment to § 36.2(e), which was not specifically discussed in the preamble of the proposed rulemaking. IRRC also asked how or when increased education requirements would take effect; how the Board would notify applicants of increased requirements; and whether increased requirements would be implemented through future rulemaking.
The intent of the amendment is to clarify that an applicant for an appraiser trainee license shall meet the education requirements that are in effect at the time of licensure. This is consistent with the general rule applicable to applicants for residential and general appraiser certification. Increased education requirements for appraiser trainees would be implemented by the Board through rulemaking. The impetus for future rulemaking would be if the requirements adopted by this final-form rulemaking should prove to be inadequate. The Board would publicize pending changes in trainee qualifications in its online newsletter and in special mailings to residential and general appraisers and to individuals who had previously submitted nonqualifying applications for licensure.
§ 36.11. Qualifications for certification as residential real estate appraiser
§ 36.12. Qualifications for certification as general real estate appraiser
Sections 36.11 and 36.12 are identically structured sections that set forth the qualifications for certification as a residential and general appraiser, respectively. Sections 36.11 and 36.12 were last amended on July 21, 2007, to implement new education and experience requirements prescribed by the Appraiser Qualifications Board (AQB), an independent body charged under the FIRREA with establishing the minimum initial education, continuing education, experience and examination requirements for state-credentialed real estate appraisers. The AQB's new education requirements took effect January 1, 2008.
Sections 36.11(b) and 36.12(b) provide that effective January 1, 2008, an applicant for residential or general appraiser certification, respectively, shall have completed 200 or 300 classroom hours, respectively, in a prescribed appraisal curriculum, while §§ 36.11(d) and 36.12(d) provide that effective January 1, 2008, an applicant for residential or general appraiser certification, respectively, shall possess at least an associate's degree or a bachelor's degree, respectively, or an equivalent number of college credits. These sections exempt from the new education requirements an applicant who had satisfied, before January 1, 2008, the former 120-classroom hour requirement for residential appraiser certification or the former 180-classroom hour requirement for general appraiser certification.
The exception to the new education requirements for an applicant who satisfied the former education requirements before January 1, 2008, reflects a segmented approach, rather than a firm date approach, to implementation of the AQB's new education requirements. Under the firm date approach, an appraiser certificate would not be issued to an applicant on or after January 1, 2008, unless the applicant satisfied the increased classroom hour requirement. The AQB allowed states the option of implementing the new education requirements through either the firm date approach or the segmented approach. In promulgating the new requirements in 2007, the Board opted for the segmented approach to minimize the potential disruption to the career plans of those persons who, at the time of the adoption of new regulations, were then taking steps to satisfy the education and experience requirements for appraiser certification.
The final-form rulemaking amends §§ 36.11(b) and 36.12(b) to provide that the increased classroom hour requirement does not apply to an applicant who submits an otherwise qualifying application before January 1, 2012, that includes evidence of the applicant's having satisfied the former classroom hour requirement before January 1, 2008. The purpose is to establish a reasonable period of time after January 1, 2008, during which an applicant who satisfied the former classroom hour requirement may qualify for appraiser certification without having to complete the increased classroom hour requirement. The Board determined that placing a 4-year limit on the grandfathering effect of the segmented approach to implementation of the increased classroom hour requirement is desirable because it eliminates the possibility that persons could be credentialed as residential or general appraisers in the distant future who lack the level of appraisal education that users of appraisal services would have come to expect of newly credentialed appraisers.
IRRC questioned whether the proposed 4-year time frame for a grandfathered applicant is too generous, considering that the experience requirement for residential and general appraiser certification can be completed in as little as 24 months and 30 months, respectively, and that experience can be acquired contemporaneously with classroom hours after a minimum of 75 classroom hours have been completed. The Board regards 4 years as an appropriate time frame because it takes into account the fact that many apprentice appraisers acquire their qualifying experience on a part-time basis, depending on the availability of appraisal assignments from their supervising appraisers.
Sections 36.11(b) and (d) and 36.12(b) and (d) reference an applicant's obligation to provide evidence of having completed the requisite classroom hours in appraisal subjects. IRRC recommended that the final-form rulemaking clarify what the Board considers appropriate documentation of classroom hours. The Board does not believe a clarification is necessary for these sections. The Board's application for residential or general appraiser certification, which can be downloaded from the Board's web site, provides detailed instructions to prospective applicants about the acceptable forms of documentation needed to establish their compliance with education and experience requirements for certification.
Sections 36.11(b) and (d) and 36.12(b) and (d) also reference an applicant's obligation to complete the 15-hour National Uniform Standards of Professional Appraisal Practice (USPAP) Course ''or equivalent course.'' IRRC recommended that the final-form rulemaking clarify how the Board will determine what course is equivalent to the 15-hour National USPAP Course. The AQB, which developed the 15-hour National USPAP Course, determines what is an acceptable equivalent. The final-form rulemaking revises §§ 36.11(b) and (d) and 36.12(b) and (d) to reflect this clarification.
The HPLC noted that the proposed rulemaking inadvertently misplaced two brackets in §§ 36.11(b) and 36.12(b) that identified material for elimination. The Legislative Reference Bureau corrected the errors before the proposed rulemaking was published in the Pennsylvania Bulletin.
§ 36.12a. Qualifications for licensure as appraiser trainee
The final-form rulemaking adds § 36.12a, which sets forth the requirements for licensure as an appraiser trainee. Section 36.12a(b)(2) provides that with respect to each of the three courses that comprise the 75-hour education requirement for licensure, an appraiser trainee candidate shall have passed ''an examination pertinent to the course.'' IRRC recommended that the Board clarify what is meant by ''an examination pertinent to the course.'' The Board does not believe a clarification of the phrase is necessary because its meaning is not likely to be misunderstood by trainee candidates. Identical language applies to residential and general appraiser candidates in §§ 36.11(b)(1) and 36.12(b)(1), respectively. The usage was derived from the AQB's education criteria, which provides that an individual seeking credit for classroom hours in an appraisal subject shall have passed ''an examination pertinent to that educational offering.''
Section 36.12a(b)(4) permits a trainee candidate to utilize a distance education course if the course that meets the following criteria: (1) is approved by the Board; (2) is presented either by an accredited college or university that offers distance education courses in other disciplines or by a course provider that has received approval of course content from the Board or the AQB through its Course Approval Program and approval of course design and delivery mechanism from the International Distance Education Certification Center; (3) requires completion of a written examination proctored by an official approved by the college, university or other course provider; and (4) meets the course content and classroom hour requirements prescribed by the Board. These distance education requirements are the same as those applicable to residential and general appraiser candidates in §§ 36.11(b)(4) and 36.12(b)(4), respectively.
The HPLC asked whether there is a limit on the number of classroom hours that can be obtained through distance education. There is not a limit, either for appraiser trainee candidates or for residential and general appraiser candidates. The HPLC also asked how a written examination for a distance education course is proctored. The proctoring standard, established by the AQB, requires that the proctor be physically present to administer the written examination.
Section 36.12a(d) provides that 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. IRRC asked when the Board would consider additional renewals appropriate and whether there would be a limit on the number of additional renewals. IRRC also asked what the Board considers good cause for an additional renewal and what procedures a trainee would have to follow to request an additional renewal.
Section 36.12a(d) expressly restricts the Board's authority to grant a trainee more than four renewals to those circumstances establishing good cause. While not susceptible of precise definition, ''good cause'' would apply to circumstances in which a relaxation of the four-renewal limit is necessary to avoid an unjust result. Among the possible circumstances that might give rise to a bona fide claim of good cause are military service, lack of apprenticeship opportunities, and serious, extended illness. The Board is not limited in the number of additional renewals that it may grant to a trainee who establishes good cause. The Board does not consider it necessary to prescribe by regulation specific procedures for a trainee to follow in requesting one or more additional renewals; if the Board should determine that a request needs to be made in a particular format, it can develop an application or request form that a trainee can download from the Board's web site for submission.
§ 36.13. Experience options for preparation of appraisal reports
Section 36.13 sets forth the standards by which the Board evaluates experience acquired in the preparation of appraisal reports by a candidate for certification as a residential or general appraiser. The final-form rulemaking amends § 36.13(a) to establish July 1, 2010, as the date by which an appraisal assistant shall be licensed as an appraiser trainee to continue acquiring qualifying experience in the preparation of appraisal reports. Because publication of final-form rulemaking will not occur until July 2010, the final-form rulemaking revises § 36.13(a) to extend the deadline by which an appraisal assistant must obtain an appraiser trainee license to October 1, 2010. The extended deadline will allow the Board sufficient time to process license applications from persons currently employed as appraisal assistants so that their acquisition of qualifying experience may continue without interruption.
§ 36.52. Use of certificate number and title
Section 36.52 requires a certified appraiser to place his name, signature and certificate number immediately adjacent to or immediately below the appraiser's title on each appraisal report and appraisal agreement. Section 36.52 references the titles of ''Pennsylvania certified general real estate appraiser,'' ''Pennsylvania certified residential real estate appraiser'' and ''Pennsylvania certified broker/appraiser'' and provides an example of how these titles, together with the other required information, should appear on an appraisal report or appraisal agreement. The final-form rulemaking amends § 36.52 to permit ''substantially similar'' titles to be substituted for those referenced in the section. IRRC asked why an appraiser would need to use a ''substantially similar'' title given the list of titles already in § 36.52. IRRC also asked what the Board considers a ''substantially similar'' title.
The current regulation sets forth a separate title for use by each of the three classes of certified appraiser, that is, broker/appraiser, residential appraiser and general appraiser. The titles are not interchangeable among the certification classes. As stated in the proposed rulemaking, the need to allow appraisers to use a substantially similar version of their titles arises from the fact that some of the commercial software and templates that appraisers use to prepare appraisal reports cannot be easily modified to accommodate their titles. A substantially similar title would likely be a shortened or abbreviated version of the prescribed title that provides enough information to identify the certification class of the user.
§ 36.54. Duties of supervisory appraiser
Section 36.54 sets forth the supervisory duties of a residential or general appraiser when utilizing the services of an appraisal assistant, an appraiser trainee or another appraiser. Consistent with the amendment to § 36.13(a) (relating to experience options for preparation of appraisal reports) regarding the revised deadline by which an appraisal assistant shall obtain an appraiser trainee license, the final-form rulemaking extends the deadline by which a residential or general appraiser must cease utilizing the services of an appraisal assistant from July 1, 2010, to October 1, 2010.
Statutory Authority
Section 5(2) of the REACA (63 P. S. § 457.5(2)) and section 3 of the Assessors Certification Act (ACA) (63 P. S. § 458.3) authorize the Board to promulgate regulations as necessary to carry out the provisions of the REACA and the ACA, respectively. Additionally, section 9(a) of the REACA (63 P. S. § 457.9(a)) authorizes the Board to establish fees for its operations by regulation.
Fiscal Impact
The final-form rulemaking requires applicants for licensure as appraiser trainees to pay an application fee of $75 to the Board. The fee will generate approximately $30,000 in biennial revenues for the Board, based on projections that the Board will receive approximately 400 license applications biennially. The final-form rulemaking also requires those seeking to become licensed as appraiser trainees to incur costs in obtaining qualifying education for licensure. Although these costs cannot be quantified, they do not add to the overall cost of becoming credentialed as a residential or general appraiser because the coursework that is necessary for licensure as an appraiser trainee is part of the coursework that is necessary for certification as a residential or general appraiser.
The final-form rulemaking does not have a direct fiscal impact on the public or on other agencies and political subdivisions of this Commonwealth.
Paperwork Requirements
The final-form rulemaking requires each prospective appraiser trainee to file a license application with the Board and, once licensed, to file a biennial renewal application to retain the right to practice as a trainee. The Board is required to develop application forms for initial licensure and biennial renewal of licensure as well as an appraiser trainee checklist for use by trainees and their supervisory real estate appraisers in documenting the nature of trainees' work in the preparation of appraisal reports. The final-form rulemaking does not create additional paperwork for residential and general appraisers because they are already required to use checklists to document the experience acquired by appraisal assistants in their employ. The final-form rulemaking does not create additional paperwork for the general public or the Commonwealth and its political subdivisions.
Effective Date
The final-form rulemaking will be effective upon publication in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 9, 2009, the Board submitted a copy of the notice of proposed rulemaking, published at 39 Pa.B. 5423, to IRRC and to the HPLC and the SCP/PLC for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC, the HPLC and the SCP/PLC were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board has considered all comments from IRRC, the HPLC, the SCP/PLC and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on May 5, 2010, the final-form rulemaking was approved by the HPLC. On June 2, 2010, the final-form rulemaking was deemed approved by the SCP/PLC. Under section 5.1(e) of the Regulatory Review Act, IRRC met on June 3, 2007, and approved the final-form rulemaking.
Additional Information
Persons who require additional information about the final-form rulemaking should submit inquiries to Heidy M. Weirich, Administrator, State Board of Certified Real Estate Appraisers, P. O. Box 2649, Harrisburg, PA 17105-2649, (717) 783-4866, ST-APPRAISE@state.pa.us.
Findings
The Board finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law and all comments were considered.
(3) The amendments to the final-form rulemaking do not enlarge the original purpose of the proposed rulemaking.
(4) The final-form rulemaking adopted by this order is necessary and appropriate for the administration of the REACA and the ACA.
Order
The Board, acting under the REACA and the ACA, orders that:
(a) The regulations of the Board, 49 Pa. Code Chapter 36, are amended by amending §§ 36.1—36.3, 36.6, 36.42, 36.51, 36.52 and 36.262 and by adding § 36.12a to read as set forth at 39 Pa.B. 5423; and by amending §§ 36.11—36.13 and 36.54 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(b) The Board shall submit this order and Annex A to the Office of Attorney General and the Office of General Counsel for approval as required by law.
(c) The Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) The final-form rulemaking shall take effect upon publication in the Pennsylvania Bulletin.
DANIEL A. BRADLEY,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 40 Pa.B. 3471 (June 19, 2010).)
Fiscal Note: Fiscal Note 16A-7015 remains valid for the final adoption of the subject regulations.
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
QUALIFICATIONS FOR
CERTIFICATION OR LICENSURE§ 36.11. Qualifications for certification as 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, 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.
(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:
* * * * * (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.
* * * * * § 36.12. Qualifications for certification as 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, 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.
(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:
* * * * * (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.
* * * * * § 36.13. Experience options for preparation of appraisal reports.
(a) An applicant for certification as a residential real estate appraiser or a general real estate appraiser 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:
(i) As a licensed real estate broker under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101—455.902) and Chapter 35 (relating to State Real Estate Commission).
(ii) As an elected officer, director or 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 connection with a loan transaction.
(iii) As a certified broker/appraiser.
(iv) 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).
(v) As a certified residential real estate appraiser assisting a certified general real estate appraiser in an appraisal of nonresidential property or an appraisal of residential property of more than four dwelling units, provided the residential appraiser satisfies the requirements of subsection (d).
(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 experience is acquired before October 1, 2010, and the assistant satisfies the requirements of subsection (b).
(iii) As a licensed appraiser trainee assisting a certified residential real estate appraiser or certified general real estate appraiser, provided the trainee satisfies the requirements of subsection (c).
(iv) As a certified residential real estate appraiser assisting a general real estate appraiser in an appraisal of nonresidential property or an appraisal of residential property of more than four dwelling units, provided the residential appraiser satisfies the requirements of subsection (d).
(b) An assistant to a certified general real estate appraiser or certified residential real estate 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 comply with USPAP.
(4) The assistant shall complete and co-sign a Board-approved appraisal assistant checklist that relates to the assistant's work on the appraisal report.
(5) Unless the appraisal assistant checklist is made part of the appraisal report, the assistant shall co-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 real property appraisal assistance.
(c) A licensed appraiser trainee shall observe the following requirements when preparing an appraisal report for a certified general real estate appraiser or certified residential real estate appraiser:
(1) The trainee may not be supervised by more than one residential or general appraiser on each appraisal assignment.
(2) The trainee shall perform an inspection of the interior and exterior of the property.
(3) The trainee may not arrive at an independent determination of value.
(4) The trainee shall comply with USPAP.
(5) The trainee shall complete and co-sign a Board-approved appraiser trainee checklist that relates to the trainee's work on the appraisal report and that is made part of the appraisal report submitted to the client.
(d) A certified residential real estate appraiser shall observe 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.
STANDARDS OF PROFESSIONAL
APPRAISAL PRACTICE§ 36.54. Duties of supervisory appraiser.
(a) A certified residential real estate appraiser or certified general real estate appraiser who utilizes an appraisal assistant before October 1, 2010, 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 until the assistant has logged 300 hours of appraisal experience or until the supervising appraiser determines the assistant is competent under USPAP to perform the physical inspection unaccompanied, whichever is the longer period.
(4) Co-sign the appraisal report as a certified real estate appraiser under § 36.52 (relating to use of certificate number and title) and, unless the appraisal assistant checklist referenced in paragraph (5) is made part of the appraisal report submitted to the client, 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 real property appraisal assistance.
(5) Co-sign a Board-approved appraisal assistant checklist that has been completed by the assistant and 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.
(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' experience as a residential or general appraiser.
(2) Supervise no more than three trainees at one time.
(3) Directly supervise and control the trainee's work, assuming total responsibility for the contents of the appraisal report, including all value conclusions.
(4) Accompany the trainee during the physical inspection of the property until the trainee has logged 300 hours of appraisal experience or until the supervising appraiser determines the trainee is competent under USPAP to perform the physical inspection unaccompanied, whichever is the longer period.
(5) Co-sign a Board-approved appraiser trainee checklist that has been completed by the trainee, relates to the trainee's work on the appraisal report and is made part of the appraisal report submitted to the client.
(6) Provide a current or former trainee who is applying for appraiser certification with copies of designated appraisal reports requested by the Board to verify the 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.
[Pa.B. Doc. No. 10-1277. Filed for public inspection July 16, 2010, 9:00 a.m.]
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