No. 38894 (Amendment): Rule R162-2g. Real Estate Appraiser Licensing and Certification Administrative Rules

(Amendment)

DAR File No.: 38894
Filed: 10/01/2014 03:54:30 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Appraiser Qualifications Board (AQB) of the Appraisal Foundation has adopted rule changes that affect appraisers in Utah. The purpose of this rule amendment is to adopt the AQB requirements together with additional rule amendments related to trainees and supervisory appraisers.

Summary of the rule or change:

Appraiser education requirements which were formerly adopted by statute will be by this amendment adopted by administrative rule. Appraiser experience requirements are also being amended. These requirements are changing beginning 01/01/2015 and the new requirements are reflected in the proposed rule amendment. In Subsection R162-2g-102(5), the definition of "CAMA" is added as an acronym meaning Computer Assisted Mass Appraisal. In Section R162-2g-304a, applicants to become a licensed appraiser will have to successfully complete 30 semester hours of college-level education from an accredited college or university and experience requirements are amended from 12 months to 12 to 24 months depending on the type of experience. In Section R162-2g-304b, applicants to become a certified residential appraiser will be required to have a bachelor's degree from an accredited college or university (currently an associate's degree is required) and experience requirements are amended from 24 months to 24 to 36 months depending on the type of experience. In addition, outdated provisions are deleted. In Section R162-2g-304c, experience requirements are amended from 30 months to 30 to 42 months depending on the type of experience. In addition, outdated provisions are deleted. In Section R162-2g-304d, outdated provisions are deleted and experience from non-traditional clients is allowed up to 50% of total experience requirements. In addition, required experience hours are adjusted and limited with reference to Appendices 1-3. Section R162-2g-306a provides that continuing education (CE) credit may be obtained by attending one Appraiser Board meeting during the CE cycle. In the new Section R162-2g-307a, general education criteria is clarified and Subsections R162-2g-307(a) through (e) are renumbered. Section R162-2g-311 is amended to require that a trainee's supervisor be permitted and competent to perform supervision and allows trainees to have more than one supervisor. In Section R162-2g-502a, the rules relating to supervisory appraisers and trainees are updated requiring supervisory appraisers to be in good standing for three years prior to supervising a trainee. Supervisory appraisers must be competent in the geographic area and are jointly responsibility with the trainee for the trainee's experience log. In Section R162-2g-502b, continuing education providers are prohibited from misrepresenting CE courses along with other prohibited conduct. In Section R162-2g-601 Appendices one through three are amended to more accurately reflect the hours of appraisal work necessary to gain the required competency in various standards and minor errors from previous editions are corrected. In addition, Appendix four is added clarifying the appraiser education requirements including required core curriculum and continuing education topics.

State statutory or constitutional authorization for this rule:

• Section 61-2g-201
• Subsection 63G-3-601(3)
• Subsection 61-2g-202(1)
• Subsection 61-2g-205(5)(c)
• Subsection 61-2g-401(5)
• Subsection 61-2g-307(3)

Anticipated cost or savings to:

the state budget:

The proposed amendments modify existing requirements. The division has the budget and staff in place to administer and enforce these provisions. It is not anticipated that the proposed amendments will affect those resources or result in any additional cost or savings to the state budget.

local governments:

Local governments are not required to comply with or enforce the appraiser rules. No fiscal impact to local government is expected from the proposed amendments.

small businesses:

That portion of the proposed amendments which require additional education before an appraiser can qualify for licensure or certification will have a fiscal impact on certain individuals or small businesses. The cost of this additional education will be borne by licensed or certified appraisers who often operate as or are employed by small businesses. This impact is anticipated and is mandated nationally by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The benefits resulting from better educated appraisers is determined to offset the cost of compliance. Failing to comply with AQB requirements would result in a much greater fiscal impact to both the state budget and appraisers.

persons other than small businesses, businesses, or local governmental entities:

That portion of the proposed amendments which require additional education before an appraiser can qualify for licensure or certification will have a fiscal impact on certain individuals or small businesses. The cost of this additional education will be borne by licensed or certified appraisers who often operate as or are employed by small businesses. This impact is anticipated and is mandated nationally by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The benefits resulting from better educated appraisers is determined to offset the cost of compliance. Failing to comply with AQB requirements would result in a much greater fiscal impact to both the state budget and appraisers.

Compliance costs for affected persons:

The cost of compliance will vary and depend on whether an appraiser is seeking to qualify as a licensed appraiser (30 semester hours of college-level education) or as a certified residential appraiser (bachelor's degree rather than the current requirement of an associate's degree). The required education can be obtained at any accredited college or university. However, the cost of this education varies greatly between institutions.

Comments by the department head on the fiscal impact the rule may have on businesses:

I have reviewed the proposed filing for the above-referenced rule and considered the fiscal impact that the rule may have on businesses.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Justin Barney at the above address, by phone at 801-530-6603, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2014

This rule may become effective on:

12/31/2014

Authorized by:

Jonathan Stewart, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-2g. Real Estate Appraiser Licensing and Certification Administrative Rules.

R162-2g-102. Definitions.

(1) "Affiliation" means an ongoing business association:

(a) between:

(i) two individuals registered, licensed, or certified under Section 61-2g; or

(ii) an individual registered, licensed, or certified under Section 61-2g and:

(A) an appraisal entity; or

(B) a government agency;

(b) for the purpose of providing an appraisal service; and

(c) regardless of whether an employment relationship exists between the parties.

(2) The acronym "AQB" stands for the Appraiser Qualifications Board of the Appraisal Foundation.

(3) "Board" means the Utah Real Estate Appraiser Licensing and Certification Board.

(4) "Business day" means a day other than:

(a) a Saturday;

(b) a Sunday; or

(c) a federal or state holiday.

(5) The acronym "CAMA" stands for Computer Assisted Mass Appraisal.

[(5)](6) "Classification" means the type of license or certification held by an appraiser.

[(6)](7) "Day" means calendar day unless specified as "business day."

[(7)](8) "Deferral" means the postponement or delay for completion of a continuing education requirement due to active military duty or due to the impacts of a state- or federally-declared disaster as specified in R162-2g-306a.

[(8)](9) "Desk review" means review of an appraisal:

(a) including verification of the data; but

(b) not including a physical inspection of the property.

[(9)](10) "Distance education" means an education process based on the geographical separation of student and instructor, including:

(a) computer conferencing;

(b) satellite teleconferencing;

(c) interactive audio;

(d) interactive computer software;

(e) Internet-based instruction; and

(f) other interactive online courses.

[(10)](11) "Division" means the Division of Real Estate of the Department of Commerce.

[(11)](12) "Draft report" means an appraisal report that is distributed prior to being completed, as provided in Subsection R162-2g-502b(1).

[(12)](13) "Entity" means:

(a) a corporation;

(b) a partnership;

(c) a sole proprietorship;

(d) a limited liability company;

(e) another business entity; or

(f) a subsidiary or unit of an entity described in this Subsection [(12)](13).

[(13)](14) "Field review" means review of an appraisal, including:

(a) a physical inspection of the property; and

(b) verification of the data.

[(14)](15) "Non-certified education" means a continuing education course offered outside of Utah, but for which a licensee may apply for credit pursuant to [R162-2g-307c(4)]R162-2g-307d(4).

[(15)](16) "Person" means an individual or an entity.

[(16)](17) "Reinstatement" means renewing a license or certification for an additional period after its expiration date has passed, but prior to 12 months after the expiration date.

[(17)](18) The acronym "RELMS" stands for Real Estate Licensing and Management System, which is the online database through which individuals registered, licensed, or certified under these rules must submit certain information to the division.

[(18)](19) "Renewal" means reissuing a license or certification upon its expiration for an additional period.

[(19)](20) "School" means:

(a) an accredited college, university, junior college, or community college;

(b) any state or federal agency or commission;

(c) a nationally recognized real estate appraisal or real estate related organization, society, institute, or association; or

(d) any school or organization approved by the board.

[(20)](21) "School director" means an authorized individual in charge of the educational program at a school.

[(21)](22) "Supervisory Appraiser" means a state-certified residential appraiser or a state certified general appraiser that directly supervises a trainee.

[(22)](23) "Trainee" means a person who is working under the direct supervision of a state-certified residential appraiser or a state-certified general appraiser to earn experience hours for licensure, and who meets the requirements of Subsection R162-2g-302.

[(23)](24) "Transaction value" means:

(a) for loans or other extensions of credit, the amount of the loan or extension of credit;

(b) for sales, leases, purchases, and investments in, or exchanges of, real property, the market value of the real property interest involved; and

(c) for the pooling of loans or interests in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each such loan or interest in real property.

[(24)](25) The acronym "USPAP" stands for the current edition of the Uniform Standards of Professional Appraisal Practice published by the Appraisal Foundation.

 

R162-2g-302. Application for Trainee Registration.

(1) Registration required.

(a) An individual who intends to obtain a license to practice as a state-licensed appraiser shall first register with the division as a trainee.

(b) The division and the board shall not award or recognize experience hours toward licensure for any appraisal work that is performed by an individual during a period of time when the individual is not registered as a trainee.

(2) Character. An individual registering with the division as a trainee shall evidence honesty, integrity, and truthfulness.

(a) A trainee applicant shall be denied registration for:

(i) a felony that resulted in:

(A) a conviction occurring within five years of the date of application; or

(B) a jail or prison release date falling within five years of the date of application; or

(ii) a misdemeanor involving fraud, misrepresentation, theft, or dishonesty that resulted in:

(A) a conviction occurring within three years of the date of application; or

(B) a jail or prison release date falling within three years of the date of application.

(b) A trainee applicant may be denied registration upon consideration of the following:

(i) criminal convictions and pleas entered at any time prior to the date of application;

(ii) the circumstances that led to any criminal convictions or pleas under consideration;

(iii) past acts related to honesty or moral character, with particular consideration given to any such acts involving the appraisal business;

(iv) dishonest conduct that would be grounds under Utah law for sanctioning an existing licensee;

(v) civil judgments in lawsuits brought on grounds of fraud, misrepresentation, or deceit;

(vi) court findings of fraudulent or deceitful activity in civil lawsuits;

(vii) evidence of non-compliance with court orders or conditions of sentencing;

(viii) evidence of non-compliance with terms of a probation agreement, plea in abeyance, or diversion agreement; and

(ix) failure to pay taxes or child support obligations.

(3) Competency. An individual registering with the division as a trainee shall evidence competency. In evaluating an applicant for competency, the division and board may consider any evidence, including the following:

(a) civil judgments, with particular consideration given to any such judgments involving the appraisal business;

(b) failure to satisfy a civil judgment that has not been discharged in bankruptcy;

(c) the extent and quality of the applicant's training and education in appraisal;

(d) the extent of the applicant's knowledge of the Utah Real Estate Appraiser Licensing and Certification Act;

(e) evidence of disregard for licensing laws;

(f) evidence of drug or alcohol dependency; and

(g) the amount of time that has passed since any incident under consideration.

(4) Pre-licensing education.

(a) Within the five-year period preceding the date of application, an applicant shall successfully complete 75 classroom hours:

(i) approved by the AQB; and

(ii)(A) certified by the division pursuant to Subsection [R162-2g-307b(1)-(3)]R162-2g-307c(1)-(3); or

(B) not required to be certified by the division pursuant to Subsection [R162-2g-307b(6)]R162-2g-307c(6).

(b) The 75 hours of required education shall include:

(i) 30 hours of appraisal principles;

(ii) 30 hours of appraisal procedures; and

(iii) the 15-hour National USPAP course, or its equivalent.

(c) The15-hour National USPAP Course or its equivalent may not be accepted by the division as qualifying education unless it is:

(i) taught by an instructor who:

(A) is a state-certified residential or state-certified general appraiser; and

(B) has been certified by the AQB; or

(ii) approved as a distance education course by the AQB and International Distance Education Certification Center.

(d) A person who applies for trainee registration on or after January 1, 2015 shall successfully complete the division-approved Supervisory Appraiser and Appraiser Trainee Course:

(i) as taught by a division-approved instructor; and

(ii) within the two-year period preceding the date of application.

(e) Examination. An applicant shall evidence having passed the final examination in all pre-licensing courses.

(5) Application to the division. An applicant shall submit the following to the division:

(a) a completed application as provided by the division;

(b) course completion certificates for the 75 hours of pre-licensing education;

(c)(i) two fingerprint cards in a form acceptable to the division; or

(ii) evidence that the applicant's fingerprints have been successfully scanned at a testing center;

(d) all court documents related to any past criminal proceeding;

(e) complete documentation of any sanction taken against any license in any jurisdiction;

(f) a signed letter of waiver authorizing the division to:

(i) obtain the fingerprints of the applicant;

(ii) review past and present employment records;

(iii) review education records; and

(iv) conduct a criminal background check;

(g) the fee for the criminal background check;

(h) the name of the state-certified appraiser(s) with whom the trainee is affiliated;

(i) the name and business address of any appraisal entity or government agency with which the trainee is affiliated; and

(j) the nonrefundable application fee.

(6) Affiliation with certified appraiser(s). Applicants shall affiliate with at least one supervising certified appraiser and evidence that affiliation by:

(a) identifying each supervising certified appraiser on a form supplied by the division; and

(b) obtaining each supervising certified appraiser's signature on the application.

 

R162-2g-304a. Application to Sit for the State-Licensed Appraiser Exam.

(1) An applicant to sit for the state-licensed appraiser exam shall provide the following to the division:

(a) completed experience forms, as required by the division:

(i) documenting all experience hours completed by the applicant from the date of trainee registration to the date of application for licensure; and

(ii) evidencing at least 2,000 hours of appraisal experience:

(A) pursuant to Subsection R162-2g-304d;

(B) completed during the time when the applicant was registered with the division as a trainee; and

(C) accrued in no fewer than[ 12 months;]:

(i) 12 months for applicants submitting experience primarily from Appendices 1 and 2, or

(ii) 24 months for applicants submitting experience primarily from appendix 3;

(b) evidence of having successfully completed 30 semester hours of college-level education from an accredited:

(i) college;

(ii) junior college;

(iii) community college; or

(iv) university;

[(b)](c) evidence of having successfully completed a state-licensed appraiser pre-licensing required core curriculum as described in Appendix 4, Table 1 and that has been certified by the division pursuant to Subsection [R162-2g-307b]R162-2g-307c; and

[(c)](d) a nonrefundable application fee.

(2) Applicants holding an Associate degree, or higher, from an accredited college, junior college, community college, or university satisfy the 30-hour college-level requirement.

[(2)](3) The pre-licensing curriculum required by Subsection (1)(b) shall be conducted by:

(a) a college or university;

(b) a community or junior college;

(c) a real estate appraisal or real estate related organization;

(d) a state or federal agency or commission;

(e) a proprietary school;

(f) a provider approved by a state certification and licensing agency; or

(g) the Appraisal Foundation or its boards.

[(3)](4)(a) Upon determining that the applicant satisfies the education and experience requirements, the division shall issue to the applicant a form permitting the applicant to register for the examination.

(b) Upon being approved to register for the examination pursuant to this Subsection [(3)](4)(a), an applicant shall:

(i) return the examination application form to the testing service designated by the division; and

(ii) pay a nonrefundable examination fee to the testing service designated by the division.

(c) The permission to register to sit for the examination shall be valid for 24 months after issuance.

 

R162-2g-304b. Application to Sit for the State-Certified Residential Appraiser Exam.

(1) [Until December 31, 2014, an applicant to sit for the state-certified residential appraiser exam shall provide the following to the division:

(a) completed experience forms, as required by the division, evidencing at least 2,500 hours of total appraisal experience, at least 500 of which:

(i) meet the requirements of Subsection R162-2g-304d;

(ii) are completed during the time when the applicant is licensed as a state-licensed appraiser:

(A) with the division; or

(B) in another state, if licensure was required in that state at the time the appraisal was performed; and

(iii) are accrued in no fewer than 24 months;

(b) evidence of having successfully completed a state-certified residential appraiser pre-licensing curriculum that has been certified by the division pursuant to Subsection R162-2g-307b and

(c) a nonrefundable application fee.

(2) As of January 1, 2014, a]An applicant to sit for the state-certified residential appraiser exam shall provide the following to the division:

(a) completed experience forms, as required by the division, evidencing at least 2,500 hours of total appraisal experience, at least 500 of which:

(i) meet the requirements of Subsection R162-2g-304d;

(ii) are completed during the time when the applicant is licensed as a state-licensed appraiser:

(A) with the division; or

(B) in another state, if licensure was required in that state at the time the appraisal was performed; and

(iii) are accrued in no fewer than[ 24 months;]:

(A) 24 months from the date the applicant became an appraiser trainee for applicants submitting experience primarily from appendices 1 and 2; or

(B) 36 months from the date the applicant became an appraiser trainee for applicants submitting experience primarily from appendix 3;

(b) evidence of having received [an associate ]a Bachelor's degree or higher [degree ]from an accredited college or university:

[(i) college;

(ii) junior college;

(iii) community college; or

(iv) university;

] (c) evidence of having successfully completed a state-certified residential appraiser pre-licensing required core curriculum as described in Appendix 4, Table 1 and that has been certified by the division pursuant to Subsection [R162-2g-307b]R162-2g-307c; and

(d) a nonrefundable application fee.

[(3)](2) The pre-licensing curriculum required by Subsection[s] (1)[(b) and (2)](c) shall be provided by:

(a) a college or university;

(b) a community or junior college;

(c) a real estate appraisal or real estate related organization;

(d) a state or federal agency or commission;

(e) a proprietary school;

(f) a provider approved by a state certification and licensing agency; or

(g) the Appraisal Foundation or its boards.

[(4)](3)(a) Upon determining that the applicant satisfies the education and experience requirements, the division shall issue to the applicant a form permitting the applicant to register for the examination.

(b) Upon being approved to register for the examination pursuant to this Subsection [(4)](3)(a), an applicant shall:

(i) return the examination application form to the testing service designated by the division; and

(ii) pay a nonrefundable examination fee to the testing service designated by the division.

(c) The permission to register to sit for the examination shall be valid for 24 months after issuance.

 

R162-2g-304c. Application to Sit for the State-Certified General Appraiser Exam.

(1) [Until December 31, 2014, an applicant to sit for the state-certified general appraiser exam shall provide the following to the division:

(a) completed experience forms, as required by the division, evidencing at least 3,000 hours of total appraisal experience, 1,000 hours of which:

(i) meet the requirements of Subsection R162-2g-304d;

(ii) are completed during the time when the applicant is licensed as a state-licensed appraiser or state-certified residential appraiser:

(A) with the division; or

(B) in another state, if licensure was required in that state at the time the appraisal was performed; and

(iii) are accrued in no fewer than 30 months;

(b) evidence of having successfully completed a state-certified general appraiser pre-licensing curriculum that has been certified by the division pursuant to Subsection R162-2g-307b; and

(c) except as provided in this Subsection (5)(a), a nonrefundable application fee.

(2) As of January 1, 2015, a]An applicant to sit for the state-certified general appraiser exam shall provide the following to the division:

(a) completed experience forms, as required by the division, evidencing at least 3,000 hours of total appraisal experience, [1,000 hours]all of which:

(i) meet the requirements of Subsection R162-2g-304d;

(ii) are completed during the time when the applicant is licensed as a state-licensed appraiser or state-certified residential appraiser:

(A) with the division; or

(B) in another state, if licensure was required in that state at the time the appraisal was performed; and

(iii) are accrued in no fewer than[ 30 months;]:

(A) 30 months from the date the applicant became an appraiser trainee for applicants submitting experience primarily from appendices 1 and 2, or

(B) 42 months from the date the applicant became an appraiser trainee for applicants submitting experience primarily from appendix 3;

(b) evidence of having received a bachelor 's degree or higher degree from an accredited college or university;

(c) evidence of having successfully completed a state-certified general appraiser pre-licensing required core curriculum as described in Appendix 4, Table 1 and that has been certified by the division pursuant to Subsection [R162-2g-307b]R162-2g-307c; and

(d) except as provided in this Subsection (5)(a), a nonrefundable application fee.

[(3)](2) The pre-licensing curriculum required by Subsections (1)[(b) and (2)](c) shall be provided by:

(a) a college or university;

(b) a community or junior college;

(c) a real estate appraisal or real estate related organization;

(d) a state or federal agency or commission;

(e) a proprietary school;

(f) a provider approved by a state certification and licensing agency; or

(g) the Appraisal Foundation or its boards.

[(4)](3)(a) Upon determining that the applicant satisfies the education and experience requirements, the division shall issue to the applicant a form permitting the applicant to register for the examination.

(b) Upon being approved to register for the examination pursuant to this Subsection [(4)](3)(a), an applicant shall:

(i) return the examination application form to the testing service designated by the division; and

(ii) pay a nonrefundable examination fee to the testing service designated by the division.

(c) The permission to register to sit for the examination shall be valid for 24 months after issuance.

[(5)](4)(a) A state-licensed appraiser who, within six months of renewing the license, meets the requirements for certification and files a completed application shall pay a transfer fee rather than an application fee.

(b) A certification that is obtained under this Subsection [(5)](4)(a) shall expire on the same date that the license was due to expire prior to transfer.

 

R162-2g-304d. Experience Hours.

(1)(a) Except as provided in this Subsection (1)(b), appraisal experience shall be measured in hours according to the appraisal experience hours schedules found in Appendices 1 through 3.

(b)(i) An applicant who has experience in categories other than those shown on the appraisal experience hours schedules, or who believes the schedules do not adequately reflect the applicant's experience or the complexity or time spent on an appraisal, may petition the board on an individual basis for evaluation and approval of the experience as being substantially equivalent to that required for licensure or certification.

(ii) Upon a finding that an applicant's experience is substantially equivalent to that required for licensure or certification, the board may award the applicant an appropriate number of hours for the alternate experience.

(2) General restrictions.

(a) An applicant may not accrue more than 2,000 experience hours in any 12-month period.

(b) The board may not award credit for:

(i) appraisal experience earned more than five years prior to the date of application;

(ii) appraisals that were performed in violation of:

(A) Utah law;

(B) the law of another jurisdiction; or

(C) the administrative rules adopted by the division and the board;

(iii) appraisals that fail to comply with USPAP;

(iv) appraisals of the value of a business as distinguished from the appraisal of commercial real estate;

(v) personal property appraisals; or

(vi) an appraisal that fails to clearly and conspicuously disclose the contribution made by the applicant in completing the assignment.

(c) At least 50% of the appraisals submitted for experience credit shall be appraisals of properties located in Utah.

(d) With regard to experience hours claimed from the schedules found in Appendices 1 and 2:

(i) appraisals where only an exterior inspection of the subject property is performed shall be granted [25]90% of the credit awarded an appraisal that includes an interior inspection of the subject property; and

(ii) no more than 25% of the total experience required for licensure or certification may be earned from appraisals where the interior of the subject property is not inspected.

(e) A maximum of 250 experience hours may be earned from appraisal of vacant land.

(f) Appraisals on commercial or multi-unit form reports shall be awarded 75% of the credit normally awarded for the appraisal.

[(g)(i) If an applicant's education was approved prior to January 1, 2008 and his or her experience was approved prior to January 1, 2011 (under a system referred to by the division and industry as a segmented application), but the applicant did not pass the applicable examination required for licensure or certification by December 31, 2010, the applicant shall, by December 31, 2011:

(A) complete all additional education, as required under the AQB standards;

(B) pass the required examination applicable to the license or certification being sought by the individual; and

(C) submit a complete application to the division.

(ii) An applicant who fails to comply with the December 31, 2011 deadline established in this Subsection (2)(g)(i) shall:

(A) complete all additional education as required under the AQB standards;

(B) pass the required examination applicable to the license or certification sought by the individual;

(C) submit recent appraisals that meet the requirements of all applicable statutes and rules for review by the experience review committee; and

(D) submit a complete application to the division according to deadlines established in Subsection R162-2g-304f(1).

](g) Experience for appraisal work without a traditional client may qualify for experience as follows:

(i) a client hiring an appraiser for a business purpose; or

(ii) a practicum course so long as the course is approved by the AQB Course Approval Program or by the division.

(h) Experience gained for work without a traditional client may not exceed 50% of the total experience requirement.

(3) Specific restrictions applicable to trainees applying for licensure.

(a)(i) A registered trainee may not claim experience hours for any appraisal work performed after January 1, 2015 unless the trainee and the trainee's supervisor(s) have completed the division-approved Supervisory Appraiser and Appraiser Trainee Course prior to performing the work to be claimed.

(ii) A trainee and the trainee's supervisor who signs the experience log shall document on the log the specific duties that the trainee performs for each appraisal.

(b) For each duty performed, the trainee shall be awarded a percentage of the total experience hours that may be awarded for the property type being appraised:

(i) pursuant to the appraisal experience hour schedules found in Appendices 1 through 3; and

(ii) with the following limitations for Appendix 2:

(A) participation in highest and best use analysis: 10% of total hours;

(B) participation in neighborhood description and analysis: 10% of total hours;

(C) property inspection: 20% of total hours, pursuant to this Subsection (3)(c);

(D) participation in land value estimate: 20% of total hours;

(E) participation in sales comparison property selection and analysis: 30% of total hours;

(F) participation in cost analysis: 20% of total hours;

(G) participation in income analysis: 30% of total hours;

(H) participation in the final reconciliation of value: 10% of total hours; and

(I) participation in report preparation: 20% of total hours.

(J) The applicant may claim up to 100% of the total hours allowed for the tasks listed in this Subsection(A) through (I).

(c) In order for a trainee to claim credit for an inspection pursuant to this Subsection (3)(b)(ii)(C):

(i) as to the first 100 residential appraisals or first 20 non-residential appraisals completed, as applicable to the license or certification being sought, the inspection must include:

(A) measurement of the exterior of a property that is the subject of an appraisal; and

(B) inspection of the exterior of a property that is used as a comparable in an appraisal; and

(ii) as to appraisals after the first 100 residential appraisals or first 20 non-residential appraisals completed, as applicable to the license or certification being sought, the inspection must satisfy all scope of work requirements.

(d) No more than one-third of the experience hours submitted toward licensure may come from any one of the categories identified in this Subsection (3)(b)(ii).

(4) Specific restrictions applicable to applicants for certification.

(a) An individual who obtained a license from the division through reciprocity shall provide to the division all records necessary for the division to verify that the individual satisfies the experience requirements outlined in these rules.

(b) The board may not award credit:

(i) for any appraisal where the applicant cannot prove more than 50% participation in the:

(A) data collection;

(B) verification of data;

(C) reconciliation;

(D) analysis;

(E) identification of property and property interests;

(F) compliance with USPAP standards; and

(G) preparation and development of the appraisal report; or

(ii) to more than one licensed appraiser per completed appraisal, except as provided in this Subsection (5).

(c)(i) An individual applying for certification as a state-certified residential appraiser shall document at least 75% of the hours submitted from:

(A) the residential experience hours schedule found in Appendix 1; or

(B) the residential portion of the mass appraisal hours schedule found in Appendix 3.

(ii) No more than 25% of the total hours submitted may be from:

(A) the general experience hours schedule found in Appendix 2; or

(B) properties other than 1- to 4-unit residential properties identified in the mass appraisal hours schedule found in Appendix 3.

(d) An individual applying for certification as a state-certified general appraiser shall document at least 1,500 experience hours as having been earned from:

(i) the general experience hours schedule found in Appendix 2; or

(ii) properties other than 1- to 4-unit residential properties identified in the mass appraisal hours schedule found in Appendix 3.

(5) Specific restrictions applicable to mass appraisers.

(a) Single-property appraisals performed under USPAP Standards 1 and 2 by mass appraisers shall be awarded full credit pursuant to Appendices 1 and 2.

(b) Review and supervision of appraisals by mass appraisers shall be awarded credit pursuant to this Subsection (6)(b)-(c).

(c)(i) Mass appraisers and mass appraiser trainees who perform 60% or more of the appraisal work shall be awarded full credit pursuant to Appendix 3.

(ii) Mass appraisers and mass appraiser trainees who perform between 25% and 59% of the appraisal work shall be awarded 50% credit pursuant to Appendix 3.

(iii) Mass appraisers and mass appraisal trainees who perform less than 25% of the appraisal work shall be awarded no credit for the appraisal assignment.

(d) In addition to submitting proof of required experience and samples, randomly selected from the experience log, of work conforming to USPAP Standard 6:

(i) a state-licensed appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least five appraisals conforming to USPAP Standards 1 and 2;

(ii) a state-certified residential appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least eight residential appraisals:

(A) conforming to USPAP Standards 1 and 2; and

(B) including the following property types:

(I) vacant property;

(II) two- to four-unit dwelling;

(III) non-complex single-family unit; and

(IV) complex single-family unit; and

(iii) a state-certified general appraiser applicant whose experience is earned primarily through mass appraisal shall submit proof of having performed at least eight appraisals from Appendix 2 conforming to USPAP Standards 1 and 2.

(e) No more than 60% of the total hours submitted for licensure or certification may be earned from any combination of appraisal assignments related to:

(i) property improvement inspection;

(ii) land segregation (division);

(iii) CAMA data entry; and

(iv) sale ratio study.

[(e) No more than 60% of the total hours submitted for licensure or certification may be earned from any combination of appraisal assignments related to:

(i) property types identified in Appendix 3(a)(i) and (ii);

(ii) property types identified in Appendix 3 (b)(i) and (ii);

(iii) property types identified in Appendix 3 (c)(i) and (ii);

(iv) property types identified in Appendix 3 (d)(i) and (ii);

(v) property types identified in Appendix 3 (e)(i) and (ii), and

(vi) property types identified in Appendix 3 (f)(i).

(f) No more than 25% of the total hours submitted for licensure or certification may be earned from appraisal assignments related to property types identified in Appendix 3(f)(iii) and (iv) combined.

(g) No more than 20% of the total hours submitted for licensure or certification may have been earned from appraisal assignments related to property types identified in Appendix 3(g).

(h)](f)(i) Mass appraisal of property with a personal property component of less than 50% of value shall be awarded full credit pursuant to Appendix 3 for the type of property appraised.

(ii) Mass appraisal of property with a personal property component of 50% to [85]75% of value shall be awarded 50% credit pursuant to Appendix 3 for the type of property appraised.

(iii) Mass appraisal of property with a personal property component greater than [85]75% , but less than 100%, shall be awarded [no credit.]25% credit pursuant to Appendix 3 for the type of property appraised.

(iv) Mass appraisal of property with no real property component shall be awarded no credit.

[(i)](g) The appraisals submitted for review pursuant to this Subsection (5)(d) shall be selected from the applicant's most recent work.

(6) Special circumstances - condemnation appraisals, review appraisals, supervision of appraisers, other real estate experience, and government agency experience.

(a) Condemnation appraisals. A condemnation appraisal shall be awarded an additional 50% of the hours normally awarded for the appraisal if the condemnation appraisal includes a before-and-after appraisal because of a partial taking of the property.

(b) Review appraisals.

(i) Review appraisals shall be awarded experience credit when the appraiser performs technical reviews of appraisals prepared by employees, associates, or others, provided the appraiser complies with USPAP Standards Rule 3 when the appraiser is required to comply with the rule.

(ii) Except as provided in this Subsection (6)(e)(i), the following credit shall be awarded for review of appraisals:

(A) desk review: 30% of the hours that would be awarded if a separate written review appraisal report were prepared, up to a maximum of 500 hours; and

(B) field review: 50% of the hours that would be awarded if a separate written review appraisal report were prepared, up to a maximum of 500 hours.

(c) Supervision of appraisers. Except as provided in this Subsection (6)(e)(i), supervision of appraisers shall be awarded 20% of the hours that would be awarded to the appraisal, up to a maximum of 500 hours.

(d) Other real estate experience acceptable for certification.

(i) Provided that an applicant demonstrates to the satisfaction of the board that the applicant has the ability to arrive at a fair market value of property and to properly document value conclusions, the following activities may be used to satisfy up to 50% of the experience required for certification:

(A) preliminary valuation estimates;

(B) range of value estimates or similar studies;

(C) other real estate-related experience gained by:

(I) bankers;

(II) builders;

(III) city planners and managers; or

(IV) other individuals.

(ii) A comparative market analysis by an individual licensed under Section 61-2f et seq. may be granted up to 100% experience credit toward certification if:

(A) the analysis conforms with USPAP Standards Rules 1 and 2; and

(B) the individual demonstrates to the board that the individual uses similar techniques as appraisers to value properties and effectively utilize the appraisal process.

(iii) [The following activities, if performed in accordance with USPAP Standards Rules 4 and 5, may be used to satisfy up to 50% of the experience required for certification:

(A) appraisal analysis;

(B) real estate counseling or consulting services; and

(C) feasibility analysis/study.

(iv) ]Except as provided in this Subsection (6)(e)(i), no more than 50% of the total experience required for certification may be earned through any combination of experience described in this Subsection (6)(b)-(d).

(e) Government agency experience.

(i) An individual who obtains experience hours in conjunction with investigation by a government agency is not subject to the hour limitations of this Subsection (6).

(ii) In addition to submitting proof of required experience, an applicant whose experience is earned primarily in conjunction with investigations by government agencies and through review of appraisals, with no opinion of value developed, shall submit proof of having complied with USPAP Standards 1 and 2 in performing appraisals as follows:

(A) if applying for state-licensed appraiser with experience reviewing residential appraisals, five appraisals of one-unit dwellings;

(B) if applying for state-certified residential appraiser with experience reviewing residential appraisals, eight appraisals of one-unit dwellings; and

(C) if applying for state-certified general appraiser with experience reviewing appraisals of property types listed in Appendix 2, at least eight appraisals of property types identified in Appendix 2.

(7) The board, at its discretion, may request the division to verify the claimed experience by any of the following methods:

(a) verification with the clients;

(b) submission of selected reports to the board; and

(c) field inspection of reports identified by the applicant at the applicant's office during normal business hours.

 

R162-2g-306a. Renewal and Reinstatement of a Registration, License, or Certification.

(1)(a) A registration, license, or certification is valid for two years and expires unless it is renewed according to this Subsection R162-2g-306a before the expiration date printed on the registration, license, or certificate.

(b) It shall be grounds for disciplinary sanction if, after an individual's registration, license, or certification has expired, the individual continues to perform work for which the individual is required to be registered, licensed, or certified.

(2)(a) To timely renew a registration, license, or certification, an applicant shall, prior to the expiration date of the registration, license, or certification, submit to the division:

(i) a completed renewal application as provided by the division;

(ii)(A) evidence that the continuing education requirements listed in this Subsection (2)(b) have been completed; or

(B) evidence sufficient to enable the Division, in its sole discretion, to determine that a deferral of continuing education is appropriate due to the applicant's having been currently or recently:

(I) assigned to active military duty; or

(II) impacted by a state- or federally-declared natural disaster; and

(iii) the applicable non-refundable renewal fee.

(b) The continuing education required under this Subsection (2)(a)(ii)(A) shall be completed during the two-year period preceding the date of application and shall include:

(i)(A) the 7-hour National USPAP Update Course, taught by an instructor or instructors, at least one of whom is a state-certified [residential or state-certified general ]appraiser in good standing and [has been]is USPAP certified by the AQB; or

(B) equivalent education, as determined through the course approval program of the AQB; and

(ii)(A) 21 additional hours of continuing education:

(I) certified by the division for the appraisal industry at the time the courses are taught (see Appendix 4, Table 2 for a list of continuing education topics); or

(II) not required to be certified, pursuant to Subsection [R162-2g-307c(3)]R162-2g-307d(3); or

(B) if the renewal applicant is also working toward certification, 21 hours of pre-licensing education credit applicable to the certification being sought.

(iii) An appraiser may earn continuing education credit for attendance at one meeting of the Board in each continuing education two-year cycle provided:

(A) the meeting is open to the public;

(B) the meeting is a minimum of two hours in length;

(C) the total credit for attendance at the meeting is limited to a maximum of seven hours; and

(D) the division verifies attendance to ensure that the appraiser attends the meeting for the required period of time.

(c)(i) A trainee who registered with the division prior to January 1, 2015 shall complete the Supervisory Appraiser and Appraiser Trainee course by or before December 31, 2014.

(ii) A registered trainee may count the Supervisory Appraiser and Appraiser Trainee course toward the continuing education requirement of this Subsection (2)(b)(ii)(A) during any renewal cycle in which the trainee completes the course.

(d)(i) An appraiser who supervises a trainee identified in Subsection (2)(c)(i) shall complete the Supervisory Appraiser and Appraiser Trainee course by or before December 31, 2014.

(ii) A supervising appraiser may count the Supervisory Appraiser and Appraiser Trainee course toward the continuing education requirement of Subsection (2)(b)(ii)(A) during any renewal cycle in which the appraiser completes the course.

(3)(a) In order to renew on time, an applicant shall complete continuing education hours by the 15th day of the month in which the registration, license, or certification expires.

(b) An applicant who complies with this Subsection (3)(a), but whose credits are not banked by the education provider pursuant to Subsection R162-2g-502a(5)(c), may obtain credit for the course(s) taken by:

(i) submitting to the division the original course completion certificates; and

(ii) filing a complaint against the provider.

(4) A license, certification, or registration may be renewed for a period of 30 days after the expiration date upon payment of a late fee in addition to the requirements of this Subsection (2).

(5)(a) After the 30-day period described in this Subsection (4) and until six months after the expiration date, an individual may reinstate an expired license, certification, or registration by:

(i) complying with this Subsection (2);

(ii) paying a late fee; and

(iii) paying a reinstatement fee.

(b) After the six-month period described in this Subsection (5)(a) and until one year after the expiration date, an individual may reinstate an expired license, certification, or registration by:

(i) complying with this Subsection (2);

(ii) paying a late fee;

(iii) paying a reinstatement fee; and

(iv) completing 24 hours of additional continuing education as approved by the division.

(c)(i) An individual who does not reinstate an expired license, certification, or registration within 12 months of the expiration date shall:

(A) reapply with the division as a new applicant;

(B) retake and pass the 15-hour USPAP course; and

(C) retake and pass any applicable licensing or certification examination.

(ii) An individual reapplying under this Subsection (4)(c)(i) shall receive credit for previously credited pre-licensing education if:

(A) it was completed within the five-year period prior to the date of reapplication; and

(B) it was either:

(I) completed after January 1, 2008; or

(II) certified by the division and the AQB prior to January 1, 2008, as approved, qualified pre-licensing education.

(6) If the division receives renewal documents in a timely manner, but the information is incomplete, the appraiser or trainee may be extended a 15-day grace period to complete the application.

(7) Renewal after deferment of continuing education due to active military service or the impacts of a state- or federally-declared disaster.

(a) An appraiser or trainee who is unable to complete the continuing education requirements to renew a registration, license, or certification due to active military service or because the individual has been impacted by a state- or federally-declared disaster may:

(i) submit a timely application for renewal pursuant to Subsection (2)(a)(ii)(B); and

(ii) request that the application for renewal be conditionally approved, with the expiration date of the applicant's registration, license, or certification extended pursuant to this Subsection (7)(b), pending the completion of the continuing education requirement.

(b) Upon the division's approving a deferral of continuing education, the expiration date of the applicant's registration, license, or certification shall be extended 90 days, during which time the applicant shall:

(i) complete the continuing education required for the renewal; and

(ii) submit proof of the continuing education to the division.

 

R162-2g-307a. General Education Criteria Applicable to All Pre-Licensing Education and Continuing Education.

(1) A class hour is 60 minutes of which at least 50 minutes are instruction attended by the student.

(2) The prescribed number of class hours includes time for examinations.

(3) Experience may not be substituted for education, and education may not be substituted for experience.

 

R162-2g-307b. School Certification.

(1) Application. A school requesting certification shall:

(a) submit an application form as prescribed by the division, including:

(i) name, telephone number, email address, and address of:

(A) the school;

(B) the school director; and

(C) all owners of the school; and

(ii) as to each school director or owner, disclosure of criminal history and adverse regulatory actions;

(b) provide a description of:

(i) the type of school; and

(ii) the school's physical facilities;

(c) provide a statement outlining the:

(i) number of quizzes and examinations in each course offered;

(ii) grading system, including methods of testing and standards of grading;

(iii) requirements for attendance; and

(iv) school's refund policy.

(2) Standards for operation.

(a) All courses shall be taught in an appropriate classroom facility and not in a private residence, except for a course approved for distance education.

(b) A school shall teach the approved course of study as outlined in the state-approved outline.

(c) At the time of registration, a school shall provide to each student:

(i) the statement described in this Subsection (1)(c);

(ii) a copy of the qualifying questionnaire that the student will be required by the division to answer as part of the pre-licensing or precertification examination; and

(iii) a criminal history disclosure statement.

(d) A school shall require each student to attend 100% of the scheduled class time in order to earn credit for the course.

(e)(i) A school may not award credit to any student who fails the final examination.

(ii) A student who fails a school final examination must wait three days before retesting and may not retake the same final examination.

(iii) A student who fails a final examination a second time must wait two weeks before retesting and may not retake either exam that the student previously failed.

(iv) A student who fails a final exam a third time shall fail the course.

(f) A school may not allow a student to challenge a course or any part of a course by taking an exam in lieu of attendance.

(g) Credit hours.

(i) For a course that is taught outside of a college or university setting, one credit hour may be awarded for 50 minutes of instruction within a 60-minute period, allowing for a ten-minute break.

(ii) For a course that is taught in a college or university setting:

(A) one quarter hour is equivalent to 10 credit hours; and

(B) one semester hour is equivalent to 15 credit hours.

(iii) A school may not award more than eight credit hours per day per student.

(3) A school shall report to the division within 10 calendar days of:

(a) any change in the information provided pursuant to this Subsection (1)(a)(i); and

(b) a school director or owner being convicted, or entering a plea in abeyance or diversion agreement, as to a criminal offense, excluding class C misdemeanors.

(4)(a) A school certification is valid for two years from the date of issuance.

(b) To renew a school certification, an individual shall, prior to the date of expiration:

(i) submit a properly completed application as provided by the division; and

(ii) pay a nonrefundable applicable fee.

 

R162-2g-307[b]c . Pre-licensing Course Certification.

(1) To certify a pre-licensing course, an applicant shall, at least 30 days prior to the course being taught, submit a completed application as required by the division, including:

(a) a course outline, including:

(i) a description of the course;

(ii) the length of time to be spent on each subject area, broken into segments of no more than 30 minutes each; and

(iii) three to five learning objectives for every three hours;

(b) a description of any method of instruction that will be used other than lecture method, including:

(i) webinar;

(ii) satellite broadcast; or

(iii) other form of distance education;

(c) copies of at least three final examinations administered in the course and the answer keys that will be used to determine if a student passes the course;

(d) the school procedure for maintaining the security of the final exams and answer keys;

(e) the titles, authors, and publishers of all required textbooks;

(f)(i) the instructor(s) who will teach each class; and

(ii) evidence that each instructor is:

(A) certified by the division;

(B) qualified to serve as a guest lecturer; or

(C) a college or university faculty member who has academic training or appraisal experience satisfactory to the division and the board;

(g) a nonrefundable applicable fee; and

(h) a signed statement agreeing that the course provider will, within 10 business days of completing the class, upload to the division the following information:

(i) course name;

(ii) course certificate number assigned by the division;

(iii) date the course was taught;

(iv) number of credit hours; and

(v) name and license number of each student receiving education credit.

(2) Standards for approval of traditional classroom courses. Each course shall:

(a) meet the minimum standards set forth in the state-approved course outline governing the course, including minimum hourly requirements;

(b) be approved through the AQB course approval program;

(c) allow a maximum of 10% of the required class time for testing, including review test and final examination;

(d) use texts, workbooks, supplement pamphlets, and other materials that are appropriate and current in their application to the required course outline.

(3) Standards for approval of distance education

(a) A distance education course shall:

(i) comply with this Subsection (2);

(ii) provide interaction between the student and instructor;

(iii) include a written examination personally proctored by an official approved by the presenting entity;

(iv) meet the course delivery requirements established by the AQB and the International Distance Education Certification Center; and

(v) offer at least 15 credit hours.

(b) A distance education course offered by a college or university may be deemed acceptable to meet the credit hour requirement if the course content is approved by:

(i) the AQB;

(ii) a state licensing jurisdiction; or

(iii) a college or university that:

(A) offers distance education programs in other disciplines; and

(B) is approved or accredited by:

(I) the Commission on Colleges;

(II) a regional or national accreditation association; or

(III) an accrediting agency that is recognized by the United States Secretary of Education.

(4) Within 10 business days after the occurrence of any material change in a course that could affect approval, the school shall give the division written notice of the change.

(5) A course certification is valid for no more than 24 months.

(6) Credit for non-certified pre-licensing education.

(a) Division certification is not required for a pre-licensing course that is offered by a school, as defined in Subsection R162-2g-102(17) as long as:

(i) the course content:

(A) meets the minimum standards set forth in the Utah state-approved course outline; and

(B) is approved by the AQB course approval program;

(ii) the course provides at least 15 credit hours, including examination(s);

(iii) a closed-book, closed-note final examination is administered at the end of each course;

(iv) students are not allowed to earn credit from the course provider by challenge examination without first attending the course;

(v) credit is not awarded for duplicate or highly comparable classes;

(vi) where multiple classes are offered, they represent a progression in a student's knowledge; and

(vii) in order to receive credit, a student is required to:

(A) attend 100% of the scheduled class hours;

(B) complete all required exercises and assignments; and

(C) pass the course final examination.

(b) Hourly credit for a course taken from a professional appraisal organization shall be granted according to the division approved list.

(c) An applicant who wishes to be awarded credit for non-certified pre-licensing education shall:

(i) provide to the division a list of the cours(es) taken, including:

(A) course title(s);

(B) name(s) of the sponsoring organization(s);

(C) number of classroom hours completed;

(D) date(s) of course completion; and

(E) evidence that the cours(es) meet the requirements of:

(I) the AQB; and

(II) if distance education, the International Distance Education Certification Center;

(ii) request review of the course by the division and board;

(iii) establish that the criteria outlined in this Subsection (6)(a) are met;

(iv) attest on a notarized affidavit that the courses have been completed as documented; and

(v) if requested by the division, provide proof of completion of the courses in the form of certificates, transcripts, report cards, letters of verification, or similar proof.

(7) Supervisory Appraiser and Appraiser Trainee Course. In order to obtain certification of the supervisory appraiser and appraiser trainee course, a course provider shall:

(a) comply with this Subsection (1); and

(b) sign a written attestation agreeing to provide a paper copy of the course manual to each attendee.

 

R162-2g-307[c]d . Continuing Education Course Certification.

(1) The division and the board may not award continuing education credit for a course that is taught in Utah to registered, licensed, or certified appraisers unless the course is certified prior to its being taught.

(2) To certify a continuing education course, an applicant shall, at least 30 days prior to the course being taught, submit a completed application as required by the division, including:

(a) name and contact information of the course sponsor and the entity through which the course will be provided;

(b) description of the physical facility where the course will be taught;

(c) the proposed number of credit hours for the course;

(d) identification of whether the method of instruction will be traditional education or distance education;

(e) title of the course;

(f) statement defining how the course will meet the objectives of continuing education by increasing the licensee's knowledge, professionalism, and ability to protect and serve the public;

(g) course outline including:

(i) a description of the subject matter covered in each 15-minute segment; and

(ii) a minimum of one learning objective for every hour of class time;

(h) the name and certification number of each certified instructor who will teach the course;

(i) copies of all materials that will be distributed to the participants;

(j) the procedure for pre-registration;

(k) the tuition or registration fee and a copy of the cancellation and refund policy;

(l) except for courses approved for distance education, the procedure for taking and maintaining control of attendance during class time;

(m) sample of the completion certificate;

(n) signed statement agreeing that the course provider will, within 10 business days of completing the class, upload to the division the following information:

(i) course name;

(ii) course certificate number assigned by the division;

(iii) date the course was taught;

(iv) number of credit hours; and

(v) names and license numbers of all students receiving continuing education credit;

(o) signed statement agreeing not to market personal sales products; and

(p) other information the division might require.

(2) Standards for approval.

(a)(i) A distance education course shall:

(A) provide interaction between the student and instructor; and

(B) include a written examination that requires a student to demonstrate mastery and fluency.

(ii) The division may approve a distance education course offered by a college or university if the college or university:

(A) offers distance education programs in other disciplines; and

(B)(I) is accredited by the Commission on Colleges or a regional accreditation association; or

(II) is approved by the International Distance Education Certification Center.

(b) The course topic must be AQB-approved.

(c) The procedure for taking and maintaining control of attendance shall be more extensive than having the students sign a class roll.

(d) The completion certificate shall allow for entry of:

(i) licensee's name;

(ii) type of license;

(iii) license number;

(iv) date of course;

(v) name of the course provider;

(vi) course title;

(viii) course certification number and expiration date;

(ix) credit hours awarded; and

(x) signatures of the course sponsor and the licensee.

(e) A real estate appraisal-related field trip that is submitted for continuing education credit may not include transit time to or from the field trip location as part of the credit hours awarded.

(4) Non-certified continuing education credit. Except as provided in Subsection [R162-2f-307c(1)]R162-2f-307d(1), the board may award continuing education credit on a case-by-case basis for the following:

(a) participation, other than as a student, in an appraisal practicum course;

(b) teaching, program development, authorship of textbooks, or similar activities that are determined by the board to be equivalent to obtaining continuing education, up to one-half of an individual's continuing education credit requirement;

(c) service as a member of the experience review committee, or the technical advisory panel, if approved by the board and offered in accordance with AQB standards as a:

(i) practicum course under this Subsection (3)(a); or

(ii) course under this Subsection (3)(b); and

(d) completion of any course that:

(i) meets the continuing education objectives of increasing the licensee's knowledge, professionalism, and ability to protect and serve the public; and

(ii) is taught outside the state of Utah.

 

R162-2g-307[d]e . Instructor Certification for Pre-licensing Education.

(1) To certify as a pre-licensing education instructor, an individual shall:

(a) evidence that the applicant meets the character and competency requirements outlined in Subsection R162-2g-302(2)-(3);

(b) submit a completed application as provided by the division;

(c) demonstrate knowledge of the subject matter to be taught as evidenced by:

(i) current, active licensure or certification as applicable to the pre-licensing course proposed to be taught;

(ii) a minimum of five years active experience in appraising; and

(iii)(A) college or other appropriate courses specific to the topic proposed to be taught; or

(B) other experience acceptable to the board in the topic proposed to be taught;

(d) if the individual proposes to teach a course in USPAP, evidence that the individual is an AQB-certified USPAP instructor; and

(e) pay a nonrefundable application fee.

(2) A pre-licensing instructor certification is valid for 24 months from the date of issuance.

(3) To renew a pre-licensing instructor certification, an individual shall:

(a) submit a completed application, as provided by the division;

(b) evidence having taught at least 20 hours of in-class instruction in certified course(s) during the preceding term of certification;

(c) evidence having attended a real estate instructor development workshop sponsored or approved by the division during the preceding two years; and

(d) pay a nonrefundable application fee.

(4)(a) To reinstate an expired pre-licensing instructor certification within 30 days following the expiration date, an individual shall:

(i) comply with this Subsection (3); and

(ii) pay a nonrefundable late fee.

(b) To reinstate an expired pre-licensing instructor certification after 30 days and within six months following the expiration date, an individual shall:

(i) comply with this Subsection (3);

(ii) pay a nonrefundable reinstatement fee; and

(iii) submit proof of having completed six classroom hours of education related to real estate appraisal or teaching techniques.

(c) After a pre-licensing instructor certification has been expired for six months, an individual is required to apply as an original applicant and obtain a new certification.

(5) A certified instructor shall comply with the reporting requirements of Section 61-2g-306(3).

 

R162-2g-307[e]f . Instructor Certification for Continuing Education.

(1) A continuing education course that is required to be certified shall be taught by a certified instructor.

(2) To obtain a continuing education instructor certification, and individual shall, at least 30 days prior to the date on which instruction is proposed to begin:

(a) evidence that the applicant meets the character and competency requirements outlined in Subsection R162-2g-302(2)-(3);

(b) submit a completed application form, as provided by the division;

(c) evidence:

(i) at least three years of full-time experience in the course subject;

(ii) college-level education related to the course subject; or

(iii) a combination of experience and education acceptable to the division;

(d) evidence:

(i) at least 12 months of full-time teaching experience;

(ii) part-time teaching experience equivalent to 12 months of full-time teaching experience; or

(iii) attendance at the division's Instructor Development Workshop;

(e) provide a signed statement agreeing to allow the instructor's courses to be randomly audited on an unannounced basis by the division or its representative;

(f) provide a signed statement agreeing not to market personal sales products;

(g) provide any other information the division requires; and

(h) pay a nonrefundable application fee.

(3) A continuing education instructor certification is valid for two years.

(4) To renew a continuing education instructor certification, an individual shall, prior to the date of expiration:

(a) submit a completed renewal application, as provided by the division;

(b)(i) evidence having taught a minimum of 12 continuing education credit hours during the past term of certification; or

(ii) provide a written explanation outlining the reason for not meeting the requirement having taught 12 continuing education credit hours and provide evidence satisfactory to the division that the applicant maintains an appropriate level of expertise; and

(c) pay a nonrefundable renewal fee.

(5)(a) To reinstate an expired continuing instructor certification within 30 days following the expiration date, an individual shall:

(i) comply with Subsection (4); and

(ii) pay a nonrefundable late fee.

(b) To reinstate an expired continuing instructor certification after 30 days and within six months following the expiration date, an individual shall:

(i) comply with Subsection (4); and

(ii) pay a nonrefundable reinstatement fee;

(c) After a continuing instructor certification has been expired for six months, an individual is required to apply as an original applicant and obtain a new certification.

 

R162-2g-311. Scope of Authority.

(1) Trainees.

(a) An individual who has properly qualified as a trainee [as ]pursuant to Subsection R162-2g-302 may perform [the following ]appraisal-related duties within the competence and scope of authority of the state-certified supervisory appraiser as follows:

(i) participating in property inspections;

(ii) measuring or assisting in the measurement of properties;

(iii) performing appraisal-related calculations;

(iv) participating in the selection of comparables for an appraisal assignment;

(v) making adjustments to comparables; and

(vi) drafting or assisting in the drafting of an appraisal report.

(b) The trainee may have more than one supervisory appraiser.

[(b)](c) The supervising appraiser shall be responsible to determine the point at which a trainee is competent to participate in each of the activities identified in this Subsection (1)(a), within the following limitations:

(i) As to the trainee's first 100 inspections of residential properties:

(A) the trainee shall be accompanied and supervised by a state-certified appraiser;

(B) both the interior and the exterior of the properties shall be inspected; and

(C) the appraisal report shall comply with the requirements of Subsection R162-2g-502a(1)(g).

(ii) As to the trainee's first 20 inspections of non-residential properties:

(A) the trainee shall be accompanied and supervised by a state-certified general appraiser;

(B) both the interior and the exterior of the properties shall be inspected; and

(C) the appraisal report shall comply with the requirements of Subsection R162-2g-502a(1)(g).

[(c)](d) A trainee may not:

(i) solicit or accept an assignment on behalf of anyone other than:

(A) the trainee's supervisor; or

(B) the supervisor's appraisal firm;

(ii) sign an appraisal report or discuss an appraisal assignment with anyone other than:

(A) the appraiser responsible for the assignment;

(B) state enforcement agencies;

(C) third parties as may be authorized by due process of law; and

(D) a duly authorized professional peer review committee.

[(d)](e) The following are not subject to the scope of authority limitations of this Subsection (1):

(i) full-time elected county assessors; and

(ii) any person performing an appraisal for the purposes of establishing the fair market value of real estate for the assessment roll.

(2) State-licensed appraisers. In a federally-related transaction, state-licensed appraisers may appraise:

(a) non-complex one- to four-residential units having a transaction value of less than $1,000,000;

(b) complex one- to four- residential units having a transaction value of less than $250,000; and

(c) vacant or unimproved land that is utilized for one- to four-family purposes, or for which the highest and best use is one- to four-family purposes, so long as net income capitalization analysis is not required by the terms of the assignment.

(3) State-licensed appraisers and state-certified residential appraisers may not perform appraisals of the following:

(a) subdivisions for which:

(i) a development analysis/appraisal is necessary; or

(ii) a discounted cash flow analysis is required by the terms of the assignment; and

(b) vacant land if the highest and best use of the land is for five or more one- to four-family units.

 

R162-2g-502a. Standards of Conduct and Practice.

(1) Affirmative duties in general. A person registered, licensed, or certified by the division shall:

(a) if employing an unlicensed assistant who is not registered as a trainee pursuant to Subsection R162-2g-302:

(i) actively supervise the unlicensed assistant; and

(ii) ensure that the assistant performs only clerical duties, including:

(A) typing research notes or reports completed by a trainee or an appraiser;

(B) taking photographs of properties; and

(C) obtaining copies of public records;

(b)(i) except as provided in this Subsection (2)(a), comply with the current edition of USPAP; and

(ii) observe the advisory opinions of USPAP;

(c) in order to authorize another individual to sign an appraisal report on behalf of the individual who completes the report:

(i) grant authority to the signer in writing;

(ii) limit the signing authority to a specific property address;

(iii) explicitly disclose within the appraisal report that the signer is authorized by the appraiser to sign the report on the appraiser's behalf;

(iv) attach a copy of the written permission required pursuant to this Subsection (1)(c)(i) to the report; and

(v) ensure that the signer signs the appraiser's name, followed by the word "by," and then followed by the signer's own name;

(d) if using a digital signature in place of a handwritten signature, ensure that:

(i) the software program that generates the digital signature has a security feature; and

(ii) no one other than the appraiser has control of the signature;

(e) retain a photocopy or other exact copy of each report as it is provided to the client, including the appraiser's signature;

(f) analyze and report the sales and listing history of the subject property for the three years preceding the appraisal if such information is available to the appraiser from a multiple listing service, listing agent(s), property owner, or other verifiable source(s);

(g)(i) include in each appraisal report a statement indicating whether or not the subject property was inspected as part of the appraisal process; and

(ii) if any inspections were done, include the following information concerning each inspection:

(A) the names of all appraisers and trainees who participated in the inspection;

(B) whether the inspection was an exterior inspection only or both an exterior and an interior inspection; and

(C) the date that the inspection was performed; and

(h) unless Subsection (2)(b) applies, respond within ten business days to division notification:

(i) of a complaint against the individual; or

(ii) that information is needed from the individual.

(2) Exceptions.

(a) An individual is exempt from complying with all provisions of USPAP when acting in an official capacity as:

(i) a division staff member or employee;

(ii) a member of the experience review committee as appointed and approved by the board;

(iii) a member of the technical review panel as appointed and approved by the board;

(iv) a hearing officer;

(v) a member of a county board of equalization;

(vi) an administrative law judge;

(vii) a member of the Utah State Tax Commission; or

(viii) a member of the board.

(b) If a deadline for response under this Subsection (1)(h) falls on a day when the division is closed, the deadline shall be extended to the next business day.

(3) A trainee shall:

(a) using forms provided by the division, maintain a separate log of experience hours for each supervising appraiser with whom the trainee works; and

(b) include in each log the following information for each appraisal:

(i) file number;

(ii) report date;

(iii) subject address;

(iv) client name;

(v) type of property;

(vi) report form number or type;

(vii) number of work hours;

(viii) description of work performed by the trainee; and

(ix) scope of the review and supervision of the supervising appraiser.

(4) (a) A [supervising]supervisory appraiser shall[:

(a) ] delegate to a trainee only such duties as the trainee is authorized to perform under Subsection R162-2g-311(1)[;].

(b) A supervisory appraiser shall directly train and supervise the trainee in the performance of assigned duties by:

(i) critically observing and directing all aspects of the appraisal process;[ and]

(ii) accepting full responsibility for the appraisal and the contents of the appraisal report by signing and certifying the appraisal complies with USPAP; and

(iii) reviewing and signing the trainee appraisal reports.

(c) A supervisory appraiser shall personally inspect:

(i) each property that is appraised with a trainee until the supervisory appraiser determines the trainee is competent to inspect the property in accordance with the competency rule of USPAP for the property type, and the trainee has performed at least:

(A) 100 residential inspections as provided in Subsection R162-2g-311(1)(b)(i); and

(B) 20 non-residential inspections as provided in Subsection R162-2g-311(1)(b)(ii); and

(ii) any property for which the appraisal report scope of work or certification requires appraiser inspection.

(d) A supervisory appraiser shall be state-certified and in good standing with the division for a period of at least three years prior to being eligible to become a supervisory appraiser.

(e) An appraiser may not act as a supervisory appraiser if the appraiser has been subject to a disciplinary action in any jurisdiction:

(i) within the three year period preceding the date on which the appraiser proposes to act as a supervisor; and

(ii) where the supervisory appraiser's legal eligibility to engage in the appraisal practice was impacted or impaired.

(f) A supervisory appraiser subject to a disciplinary action will be considered to be in good standing three years after the successful completion or termination of the sanction imposed against the appraiser.

(g) A supervisory appraiser shall comply with the competency rule of USPAP for the property type and geographic location for which the trainee appraiser is being supervised.

(h) Although a trainee is permitted to have more than one supervisory appraiser, a supervisory appraiser may not supervise more than three trainees at one time, unless a division program provides for progress monitoring, supervisory certified appraiser qualifications, and supervision and oversight requirements for supervisory appraisers.

(i) An appraisal experience log shall be maintained jointly by the supervisory appraiser and the trainee. It is the responsibility of both the supervisory appraiser and the trainee to ensure the experience log is accurate, current, and complies with division requirements.

(5) A school shall:

(a) maintain a record of each student's attendance for a minimum of five years after the student enrolls;

(b) display the certification number of all continuing education courses in advertising and marketing;

(c) as to each student who provides the school with an accurate name or license number, bank course completion information:

(i) within 10 days after the end of a course offering; and

(ii) to the database specified by the division;

(d) upon request of the division, substantiate any claim made in advertising or marketing;

(e) within 15 calendar days of any material change in the information outlined in [R162-2g-307a(1)]R162-2g-307b(1), provide to the division written notice of the change;

(f) with regard to the criminal history disclosure required under [R162-2g-307a(2)(c)(iii)]R162-2g-307b(2)(c)(iii):

(i) obtain each student's signature before allowing the student to participate in course instruction;

(ii) retain each signed criminal history disclosure for a minimum of two years; and

(iii) make any signed criminal history disclosure available to the division upon request;

(g) maintain a high quality of instruction;

(h) adhere to all state laws and administrative rules regarding school and instructor certification;

(i) provide the instructor(s) for each course with the required course content outline;

(j) require instructors to adhere to the approved course content;

(k) comply with a division request for information within 10 business days of the date of the request; and

(l) verify that the material is current in any course taught on:

(i) Utah statutes;

(ii) Utah administrative rules;

(iii) Federal laws; and

(iv) Federal regulations.

(6) An instructor shall adhere to the approved outline for any course taught.

 

R162-2g-502b. Prohibited Conduct.

(1) An individual registered, licensed, or certified by the division may not:

(a) release to a client a draft report of a one- to four-unit residential real property;

(b) release to a client a draft report of a property other than a one- to four-unit residential real property unless:

(i) the first page of the report prominently identifies the report as a draft;

(ii) the draft report is signed by the appraiser; and

(iii) the appraiser complies with USPAP in the preparation of the draft report;

(c) affix a signature to an appraisal report by means of a signature stamp; or

(d) sign a blank or partially completed appraisal report that will be completed by anyone other than the appraiser who has signed the report;

(e) sign an appraisal report containing a statement indicating that an appraiser has inspected a property if the appraiser has not inspected the property; or

(f) split appraisal fees with any person who is not a state-licensed or state-certified appraiser, except that a supervising appraiser may pay a trainee reasonable compensation proportionate to the lawful services actually performed by the trainee in connection with appraisals.

(2) A trainee may not:

(a) solicit a client to address an engagement letter directly to the trainee; or

(b) accept payment for appraisal services from anyone other than:

(i) the trainee's supervisor; or

(ii) an appraisal or government entity with which the trainee is affiliated.

(3) A supervising appraiser may not:

(a) sign a report that is completed in response to an engagement letter that is addressed to a trainee;

(b) [supervise more than three trainees at one time; or

(c) ]sign an appraisal report as the supervising appraiser without having given adequate supervision to the trainee, appraiser, or assistant being supervised.

(4) A state-licensed appraiser may not place a seal on an appraisal report or use a seal in any other manner likely to create the impression that the appraiser is a state-certified appraiser.

(5) A school may not:

(a) in advertising and marketing:

(i) make a misrepresentation about any course of instruction;

(ii) make statements or implications that disparage the dignity and integrity of the appraisal profession;

(iii) disparage a competitor's services or methods of operation;

(iv) as to a continuing education course, use language that indicates division approval is pending or otherwise forthcoming;

(b) attempt by any means to obtain or use the questions on the state licensure or certification exam unless those questions have been dropped from the current exam bank;

(c) accept payment from a student without first providing to that student the information outlined in [R162-2g-307a(2)(c)]R162-2g-307b(2)(c);

(d) continue to operate after the expiration date of the school certification without renewing;

(e) continue to offer a course after its expiration date without renewing;

(f) allow an instructor whose instructor certification has expired to continue teaching;

(g) allow an individual student to earn more than eight credit hours of education in a single day;

(h) award credit to a student who has not complied with the minimum attendance requirements;

(i) allow a student to obtain credit for all or part of a course by taking an examination in lieu of attending the course;

(j) give valuable consideration to a person licensed with or certified by the division under Section 61-2g for referring students to the school;

(k) accept valuable consideration from a person licensed with or certified by the division under Section 61-2g for referring students to a licensed or certified appraiser; or

(l) require a student to attend any program organized for the purpose of solicitation.

(6) A continuing education provider may not:

(a) in advertising and marketing:

(i) make a misrepresentation about any course of instruction;

(ii) make statements or implications that disparage the dignity and integrity of the appraisal profession; or

(iii) as to a continuing education course, use language that indicates division approval is pending or otherwise forthcoming;

(b) continue to offer a course after its expiration date without renewing;

(c) allow an instructor whose instructor certification has expired to continue teaching;

(d) allow an individual student to earn more than eight credit hours of education in a single day;

(e) award credit to a student who has not complied with the minimum attendance requirements; or

(f) allow a student to obtain credit for all or part of a course by taking an examination in lieu of attending the course.

[(6)](7) An instructor may not:

(a) continue to teach any course after the course has expired and without renewing the course certification; or

(b) continue to teach any course after the individual's certification has expired and without renewing the instructor certification.

 

R162-2g-601. Appendices.

Appendix 1. Residential Experience Hours Schedule. The hours shown in the following schedule shall be awarded to form appraisals. Fifteen hours may be added to the hours shown if the appraisal is a narrative appraisal instead of a form appraisal.

 

TABLE[1

APPENDIX 1

] Property Type                                Hours that may be                                              earned (a) one-unit dwelling, above-grade:   (i) living area less than 4,000 square feet, including a site                       [5]Up to 10 hours                                               (Expected avg hrs 7.5)   Part 1  Task                                         Hours Highest and Best Use Analysis                0.25 Neighborhood Description                     0.5 Exterior Inspection                          0.5 Interior Inspection                          0.5 Market Conditions                            0.75 Land Value Estimate                          0.5 Improvement Cost Estimate                    0.5 Income Value Estimate                        2.5 Sales Comparison Value Estimate              2.5 Final Reconciliation                         0.25 Appraisal Report Preparation                 1.75 Restricted Appraisal Report Preparation      0.5        (ii) living area 4,000 square feet or more, including a site               [7.5]Up to 10 hours   Part 2  Task                                         Hours Highest and Best Use Analysis                0.25 Neighborhood Description                     0.5 Exterior Inspection                          0.75 Interior Inspection                          0.75 Market Conditions                            0.75 Land Value Estimate                          0.75 Improvement Cost Estimate                    0.75 Income Value Estimate                        3.0 Sales Comparison Value Estimate              3.0 Final Reconciliation                         0.25 Appraisal Report Preparation                 2.0 Restricted Appraisal Report Preparation      0.5      (b) multiple one-unit dwellings in the same subdivision or condominium project, which dwellings are substantially similar:   (i) 1-25 dwellings                         [5]7 hours per                                              dwelling, up                                              to a maximum of [30]42                                              hours   (ii) over 25 dwellings                     [50]70 hours maximum (c) two to four-unit dwelling                [20 hours]       Part 3  Task                                         Hours Highest and Best Use Analysis                0.25 Neighborhood Description                     0.5 Exterior Inspection                          0.5 Interior Inspection                          0.5 Market Conditions                            0.75 Land Value Estimate                          0.5 Improvement Cost Estimate                    0.5 Income Value Estimate                        3.0 Sales Comparison Value Estimate              3.0 Final Reconciliation                         0.25 Appraisal Report Preparation                 2.0 Restricted Appraisal Report Preparation      0.5      (d) employee relocation counsel reports completed on currently accepted Employee Relocation Counsel form                         Up to 10 hours (e) residential lot, 1-4 unit                [5]Up to 7 hours   Part 4  Task                                         Hours Highest and Best Use Analysis                0.25 Neighborhood Description                     0.5 Site Inspection                              0.25 Market Conditions                            0.75 Sales Comparison Value Estimate              1-3 Final Reconciliation                         0.25 Appraisal Report Preparation                 2.0 Restricted Appraisal Report Preparation      0.5  (f) multiple lots in the same subdivision, which lots are substantially similar   (i) 1-25 lots                              5 hours per lot,                                              up to a maximum of                                              30 hours   (ii) Over 25 lots                          50 hours maximum (g) small parcel [up to 5]of less than 20 acres  up to 6.5[5] hours   Part 5  Task                                         Hours Highest and Best Use Analysis                0.25 Neighborhood Description                     0.5 Site Inspection                              0.25 Market Conditions                            0.75 Sales Comparison Value Estimate              1-3 Final Reconciliation                         0.25 Appraisal Report Preparation                 2.0 Restricted Appraisal Report Preparation      0.5  (h) vacant land, 20-[500]640 acres           20-40 hours, per                                              board decision (i) recreational, farm, or timber acreage suitable for a house site:   (i) up to 10 acres                         10 hours   (ii) [over ]10 acres  or more                 15 hours (j) all other unusual structures or          5-35 hours, per acreage which are much larger or more        board decision complex than typical properties (k) review of residential appraisals with no opinion of value developed as part of the review performed in conjunction with investigations by government agencies        10-50 hours 

Appendix 2. General Experience Hours Schedule. All appraisal reports claimed for property types identified in sections (a) through (k) of the following schedule shall be narrative appraisal reports. Experience hours listed in this schedule may be increased by 50% for unique and complex properties if the applicant notes the number of extra hours claimed on the appraiser experience log submitted by the applicant, and if the applicant maintains in the workfile for the appraisal an explanation as to why the extra hours are claimed.

 

TABLE[2]
[APPENDIX 2

    ]Property Type                                 Hours that                                                may be earned (a) Apartment buildings:   (i) 5-100 units                              40 hours   (ii) over 100 units                          50 hours (b) hotel or motels:   (i) 50 units or fewer                        30 hours   (ii) 51-150 units                            40 hours   (iii) over 150 units                         50 hours (c) nursing home, rest home, care facilities:   (i) fewer than 80 beds                       40 hours   (ii) [over ]80 beds or more                  50 hours (d) industrial or warehouse building:   (i) smaller than 20,000 square feet          30 hours   (ii) [larger than ]20,000 square feet or more, single   tenant                                       40 hours   (iii) [larger than ]20,000 square feet or more, multiple   tenants                                      50 hours (e) office buildings:   (i) smaller than 10,000 square feet          30 hours   (ii) [larger than ]10,000 square feet or more, single   tenant                                       40 hours   (iii) [larger than ]10,000 square feet or more, multiple   tenants                                      50 hours (f) entire condominium projects, using income approach to value:   (i) 5- to 30-unit project                    30 hours   (ii) 31- or more-unit project                50 hours (g) retail buildings:   (i) smaller than 10,000 square feet          30 hours   (ii) [larger than ]10,000 square feet or more, single   tenant                                       40 hours   (iii) [larger than ]10,000 square feet or more, multiple   tenants                                      50 hours (h) commercial, multi-unit, industrial, or other nonresidential use acreage:   (i) 1 to [99]less than 100 acres             20-40 hours   (ii) 100 acres or more, income approach   to value                                     50-60 hours (i) all other unusual structures or assignments   that are much larger or more complex than    5 to 100 hours per   the properties described in (a) to (h)       board decision   herein. (j)entire subdivisions or planned unit developments (PUDs):   (i) 1- to 25-unit subdivision or PUD         30 hours   (ii) over 25-unit subdivision or PUD         50 hours (k) feasibility or market analysis             5 to 100 hours,                                                each per board                                                decision, up to a                                                maximum of 500                                                hours (l) farm and ranch appraisals:                 Form     Narrative   (i) [separate grazing privileges or permits  20 hrs   25 hrs   (ii)]  irrigated cropland, pasture other than rangeland:     (A)1 to [10]less than 11 acres             10 hrs    15 hrs     (B)11-[50]less than 40 acres               12.5 hrs  20 hrs     (C)[51]40-less than 160[200] acres         15 hrs    25 hrs     (D)[201]160-less than [1000]1280 acres           25 hrs    40 hrs     (E) 1280[more than 1000] acres or more     40 hrs    50 hrs   [(iii)](ii) dry farm:     (A) 1 to [1000]less than 1280 acres        15 hrs    25 hrs     (B) 1280 [more than 1000]acres or more     20 hrs    40 hrs (m) Improvements on properties other than a rural residence, maximum 10 hours:   (i) dwelling                                 5 hrs     5 hrs   (ii) shed                                    2.5 hrs   2.5 hrs (n)  cattle ranches   (i) 0-200 head                               15 hrs   20 hrs   (ii) 201-500 head                            25 hrs   30 hrs   (iii) 501-1000 head                          30 hrs   40 hrs   (iv) more than 1000 head                     40 hrs   50 hrs (o) sheep ranches   (i) 0-2000 head                              25 hrs   30 hrs   (ii) more than 2000 head                     35 hrs   45 hrs (p) dairy, including all improvements except a dwelling   (i) [1]0-100 head                            20 hrs   25 hrs   (ii) 101-300 head                            25 hrs   30 hrs   (iii) more than 300 head                     30 hrs   35 hrs (q) orchards   (i) [5-]up to 50 acres                       30 hrs   40 hrs   (ii) more than 50 acres                      40 hrs   50 hrs (r) rangeland/timber   (i) 0-640 acres                              20 hrs   25 hrs   (ii) more than 640 acres                     30 hrs   35 hrs (s) poultry   (i) 0-100,000 birds                          30 hrs   40 hrs   (ii) more than 100,000 birds                 40 hrs   50 hrs (t) mink   (i) 0-5000 cages                             30 hrs   35 hrs   (ii) more than 5000 cages                    40 hrs   50 hrs (u) fish farm                                  40 hrs   50 hrs (v) hog farm                                   40 hrs   50 hrs (w) review of appendix 2 appraisals with   no opinion of value developed as part   of the review, performed in conjunction   with investigations by government agencies   20-100 hours

 

Appendix 3. Mass Appraisal Experience Hours Schedule.

 

TABLE[3
APPENDIX 3]

  Property Type                                  Hours that                                                may be earned (a) one-unit dwelling, above-grade living   area less than 4,000 square feet:   [(i) exterior inspection, highest and best   use analysis, data collection only           0.5 hours   (ii) interior and exterior inspection,   highest and best use analysis, data   collection only                              1 hour   (iii) inspection, highest and best use   analysis, data collection, valuation analysis,   conclusion, report                           3.75 hours]   Part 1  Task                                           Hours Highest and Best Use Analysis                  0.25 Neighborhood Description                       0.5 Exterior Inspection                            0.5 Interior Inspection                            0.5 CAMA Data Input and Review                     0.5 Market Conditions                              0.75 Land Value Estimate                            0.5 Improvement Cost Estimate                      0.5 Income Value Estimate                          2.5 Sales Comparison Value Estimate                2.5 Final Reconciliation                           0.25 Appraisal Report Preparation                   1.75 Restricted Appraisal Report Preparation        0.5  (b) one-unit dwelling, above-grade living area   area 4,000 square feet or more:   [(i) exterior inspection, highest and best   use analysis, data collection only           0.75 hours   (ii) interior and exterior inspection,   highest and best use analysis, data   collection only                              1.5 hours   (iii) inspection, highest and best use   analysis, data collection, valuation analysis,   conclusion, report                           5 hours]   Part 2  Task                                           Hours Highest and Best Use Analysis                  0.25 Neighborhood Description                       0.5 Exterior Inspection                            0.75 Interior Inspection                            0.75 CAMA Data Input and Review                     0.5 Market Conditions                              0.75 Land Value Estimate                            0.75 Improvement Cost Estimate                      0.75 Income Value Estimate                          3.0 Sales Comparison Value Estimate                3.0 Final Reconciliation                           0.25 Appraisal Report Preparation                   2.0 Restricted Appraisal Report Preparation        0.5  (c) two to four unit dwelling:   [(i) exterior inspection, highest and best   use analysis, data collection only           1.5 hours   (ii) interior and exterior inspection,   highest and best use analysis, data   collection only                              3 hours   (iii) inspection, highest and best use   analysis, data collection, valuation analysis,   conclusion, report                           15 hours]   Part 3  Task                                           Hours Highest and Best Use Analysis                  0.25 Neighborhood Description                       0.5 Exterior Inspection                            0.5 Interior Inspection                            0.5 CAMA Data Input and Review                     0.5 Market Conditions                              0.75 Land Value Estimate                            0.5 Improvement Cost Estimate                      0.5 Income Value Estimate                          3.0 Sales Comparison Value Estimate                3.0 Final Reconciliation                           0.25 Appraisal Report Preparation                   2.0 Restricted Appraisal Report Preparation        0.5  (d) commercial and industrial buildings,   depending on complexity:   [(i) exterior inspection, highest and best use   analysis, data collection only               1-5 hours   (ii) interior and exterior inspection,   highest and best use analysis, data   collection only                              2-10 hours   (iii) inspection, highest and best use   analysis, data collection, valuation analysis,   conclusion, report                           3-37.5 hours]       Part 4  Task                                           Hours Highest and Best Use Analysis                  0.25 Neighborhood Description                       0.5 Exterior Inspection                            0.5-4.5 Interior Inspection                            0.5-9.5 CAMA Data Input and Review                     0.5 Market Conditions                              1.5 Land Value Estimate                            2.0 Improvement Cost Estimate                      2.0 Income Value Estimate                          2-15 Sales Comparison Value Estimate                2-15 Final Reconciliation                           0.5 Appraisal Report Preparation                   1-10 Restricted Appraisal Report Preparation        0.5      (e) agricultural and other improvements,   depending on complexity:   [(i) exterior inspection, highest and best   use analysis, data collection only           0.5-2.5 hours   (ii) interior and exterior inspection,   highest and best use analysis, data   collection only                              1-5 hours   (iii) inspection, highest and best use   analysis, data collection, valuation analysis,   conclusion, report                           3.75-20 hours]   Part 5  Task                                           Hours Highest and Best Use Analysis                  0.25-0.5 Neighborhood Description                       0.5 Exterior Inspection                            0.25-0.5 Interior Inspection                            0.5-1 CAMA Data Input and Review                     0.5 Market Conditions                              0.75 Land Value Estimate                            0.5-1 Improvement Cost Estimate                      0.5-1 Income Value Estimate                          1-3 Sales Comparison Value Estimate                1-3 Final Reconciliation                           0.25 Appraisal Report Preparation                   2.0 Restricted Appraisal Report Preparation        0.5  (f) vacant land, depending on complexity:   [(i) inspection, highest and best use   analysis, data collection only               0.5-2.5 hours   (ii) inspection, highest and best use   analysis, data collection, valuation   analysis, conclusion, report                 2.5-25 hours   (iii) land segregation (division) analysis   and processing, no field inspection          0.25 hours   (iv)land segregation (division) analysis   and processing, field inspection             0.5 hours]       Part 6  Task                                           Hours Highest and Best Use Analysis                  0.25-0.5 Neighborhood Description                       0.5 Site Inspection                                0.25 Land Segregation                               0.25 CAMA Data Input and Review                     0.5 Inspection                                     0.25-2.25 Market Conditions                              0.75 Income Value Estimate                          1-3 Sales Comparison Value Estimate                1-3 Final Reconciliation                           0.25 Appraisal Report Preparation                   2.0 Restricted Appraisal Report Preparation        0.5      (g)[ data input and review for experience   hours claimed under property types(a)   through (f)                                  0.25 hours (h)] land valuation guideline  (development):   (i) 25 or fewer parcels                      10 hours   (ii) 26 to 500 parcels                       30 hours   (iii) over 500 parcels                       25 additional                                                hours for each 500                                                parcels, up to a                                                maximum of 125                                                hours for each                                                guideline (h)land valuation guideline (update): (i) 25 or fewer parcels  1 hour (ii) 26 to 500 parcels  3 hours (iii) over 500 parcels                         2.5 additional                                                hours for each 500                                                parcels, up to a                                                maximum of 12.5 hours                                                for each guideline  (i) assessment/sales ratio study, data   collection, verification, sample inspection,   analysis, conclusion, and implementation:   (i) base study of 100 reviewed sales         125 hours   (ii) additional increments of 100 sales      25 additional                                                hours for each 100                                                additional sales,                                                up to a maximum                                                of 375 hours for each                                                study (j) multiple regression model,   development and implementation:   (i) fewer than 5,000 parcels                 100 hours   (ii) additional increments of 500 parcels    5 additional hours                                                for each                                                additional 500                                                parcels, up to a                                                maximum of 375                                                hours for each                                                regression model (k) industry depreciation study and analysis   [100 ]5 to 40 hours (l) reviews of "land value in use" in   accordance with U.C.A. Section 59-2-505:   (i)office review only                        0.25 hours   (ii) field review                            0.5 hours (m) natural resource properties,   depending on complexity:   (i) sand and gravel                          [7.5]1-20 hours per                                                site   (ii) mine                                    [7.5]1-110 hours   (iii) oil and gas                            [1.65]1-50 hours per                                                site (n) pipelines and gas distribution   properties, depending on complexity          10-40 hours (o) telephone and electrics properties,   depending on complexity                      5-80 hours (p) airline and railroad properties,   depending on complexity                      10-80 hours (q) appraisal review/audit, depending   on complexity                                2.5-125 hours (r) capitalization rate study                  [80]10 to 100 hours  (s) mineral pricing study                      10 to 100 hours (t) effective tax rate study                   10 to 100 hours (u) Ad valorem centrally assessed property tax appeal preparation                5 to 125 hours

 

Appendix 4. Appraiser Education.

 

TABLE 1
Required Core Curriculum

      Trainee Appraiser   Basic Appraisal Principles                     30 Hours   Basic Appraisal Procedures                     30 Hours   15-Hour national USPAP Course or its      Equivalent                                  15 Hours   Trainee Appraiser Education Requirements       75 Total Hours         Licensed Appraiser   Basic Appraisal Principles                     30 Hours   Basic Appraisal Procedures                     30 Hours   15-Hour national USPAP Course or its      Equivalent                                  15 Hours   Residential Market Analysis and Highest and      Best Use                                    15 Hours   Residential Appraiser Site Valuation and      Cost Approach                               15 Hours   Residential Sales Comparison and Income      Approaches                                  30 Hours   Residential Report Writing and Case Studies    15 Hours   Licensed Residential Education Requirements    150 Total                                                  Hours      Certified Residential   Basic Appraisal Principles                     30 Hours   Basic Appraisal Procedures                     30 Hours   15-Hour national USPAP Course or its      Equivalent                                  15 Hours   Residential Market Analysis and Highest and      Best Use                                    15 Hours   Residential Appraiser Site Valuation and Cost      Approach                                    15 Hours   Residential Sales Comparison and Income      Approaches                                  30 Hours   Residential Report Writing and Case Studies    15 Hours   Statistics, Modeling and Finance               15 Hours   Advanced Residential Applications and Case      Studies                                     15 Hours   Appraisal Subject Matter Electives             20 Hours   (May include hours over minimum shown above      in other modules)   Certified Residential Education Requirements   200 Total                                                  Hours      Certified General*   Basic Appraisal Principles                     30 Hours   Basic Appraisal Procedures                     30 Hours   15-Hour national USPAP Course or its      Equivalent                                  15 Hours   *General Appraiser Market Analysis and      Highest and Best Use                        30 Hours   Statistics, Modeling and Finance               15 Hours   *General Sales Comparison and Income      Approaches                                  30 Hours   *General Appraiser Site Valuation and Cost      Approach                                    30 Hours   General Appraiser Income Approach              60 Hours   *General Appraiser Report Writing and Case      Studies                                     30 Hours   Appraisal Subject Matter Electives             30 Hours   (May include hours over minimum shown above      in other modules)   Certified General Education Requirements       300 Total                                                  Hours   *The four Certified General courses identified with an   asterisk * may substitute for the equivalent four Licensed   Appraiser or Certified Residential courses when a candidate   provides proof of completion of these courses when applying   for a Licensed or Certified Residential appraisal credential.

 

TABLE 2
Continuing Education Topics (Division Certification
Required)

   (1) Ad valorem taxation   (2) Arbitration, dispute resolution   (3) Courses related to the practice of real estate appraisal or       consulting   (4) Development cost estimating   (5) Ethics and standards of professional practice, USPAP   (6) Land use planning, zoning   (7) Management, leasing, timesharing   (8) Property development, partial interests   (9) Real estate law, easements, and legal interests   (10) Real estate litigation, damages, condemnation   (11) Real estate financing and investment   (12) Real estate appraisal related computer applications   (13) Real estate securities and syndication   (14) Developing opinions of real property value in appraisals        that also include personal property and/or business value   (15) Seller concessions and impact on value   (16) Energy efficient items and "green building" appraisals

 

KEY: real estate appraisals, school certification, instructor certification

Date of Enactment or Last Substantive Amendment: [May 22, ]2014

Authorizing, and Implemented or Interpreted Law: 61-2g-201(2)(h); 61-2g-202(1); 61-2g-205(5)(c); 61-2g-307(3); 61-2g-401(5)

 

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