No. 33908 (Amendment): Rule R162-102. Application Procedures

(Amendment)

DAR File No.: 33908
Filed: 08/10/2010 02:41:50 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment is proposed so that the division will have more accurate information about where appraisers are working. This information will help facilitate investigations when the division receives complaints.

Summary of the rule or change:

The amendments require appraisers to inform the division at the time of application if they are affiliated with another appraiser, an appraisal entity, or a government agency. In addition, individuals are required to submit a change form to the division whenever they change an affiliation.

State statutory or constitutional authorization for this rule:

• Subsection 61-2b-6(1)

Anticipated cost or savings to:

the state budget:

These amendments will require the state to process change forms. This task is already being performed in the real estate and mortgage industries, and the division has adequate staff to perform it in the appraisal industry, which is the smallest of the three. In addition, an individual who submits a change form will pay a nominal fee, which will offset any other costs to the state and, potentially, increase state revenues (minimally). In the aggregate, no meaningful impact to the state budget is anticipated.

local governments:

Local governments are not required to comply with or enforce this rule. No fiscal impact to local governments is anticipated.

small businesses:

Small businesses are not required to comply with this rule. No fiscal impact to small businesses is anticipated.

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

Appraisers who submit a change form will be required to pay a $15 change fee. This is the same fee currently being charged to real estate and mortgage licensees who submit a change form. It is the division's position that this cost to individuals is minimal and is justified by the benefit generated.

Compliance costs for affected persons:

There will be a cost of $15 per change form.

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

This rule filing adopts a requirement for an appraiser license applicant to disclose any affiliations with an appraisal entity or government agency, as well as the requirement to submit a status change form when a licensee has a change in affiliations. Any status change form required a $15 fee; it is expected that the benefits of this requirement will outweigh the minimal cost to individuals.

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
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, 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:

10/01/2010

This rule may become effective on:

10/08/2010

Authorized by:

Deanna Sabey, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-102. Application Procedures.

R162-102-1. Application.

102.1.1 Initial Review - An applicant for licensure or certification as an appraiser will be required to submit, on forms provided by the Division, documentation indicating successful completion of the education and experience required by the State of Utah. Until January 1, 2008, an applicant may submit education documentation and experience documentation to the Division for approval separately. Effective January 1, 2008, an applicant shall submit education documentation and experience documentation to the Division at the same time.

102.1.1.1 Education documentation may be reviewed by an Appraiser Education Review Committee appointed by the Real Estate Appraiser Licensing and Certification Board to determine if the education requirement has been met.

102.1.1.1.1 As a prerequisite to sitting for either the licensing examination or the certification examination, the applicant shall submit proof of successful completion of the 15-hour National USPAP Course or its equivalent from an instructor or instructors, at least one of whom is a State-Certified Residential or State-Certified General Appraiser and has been certified by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. Equivalency to the 15-hour National USPAP Course will be determined through the Course Approval Program of the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.

102.1.1.2 The applicant shall provide evidence of meeting the experience requirement by completing the form required by the Division. The Division and the Board shall not award experience credit toward qualification as a state-licensed appraiser for any work performed at a time when the applicant was not registered with the Division as a trainee.

102.1.1.3 The candidate shall submit the appropriate license or certification fee at the time of application.

102.1.1.4 If an applicant has submitted education or experience documentation to the Division prior to January 1, 2008 and has obtained approval of only the education component or only the experience component required for licensure or certification, the applicant must submit proper documentation of the remaining component to the Division prior to January 1, 2011 or any approval of a component shall lapse.

102.1.2 Exam Application

102.1.2.1 Upon determining the candidate has completed the education and experience requirements, the Division will issue to the candidate a form permitting the candidate to register to sit for the examination. The permission to register to sit for the examination shall be valid for twenty-four months after issuance.

102.1.2.2 The candidate shall make application to take the examination by returning the application form and the appropriate testing fee to the testing service designated by the Division. If the applicant fails to take the examination, the fee will be forfeited. 102.1.3 Final Application

102.1.3.1 Within 90 days after successful completion of the exam, the appraiser applicant shall return to the Division each of the following:

102.1.3.1.1 A report from the testing service indicating successful completion of the exam.

102.1.3.1.2 The application form required by the Division[. The application form] shall include :

(a) the applicant's business and home addresses[. A post office box without a street address is unacceptable as a business or home address. The applicant may designate either address to be used as a mailing address.];

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

[102.1.3.1.3 The](c) the fee for the federal registry if the applicant is applying for certification.

102.1.3.2 A post office box without a street address is unacceptable as a business or home address. The applicant may designate either address to be used as a mailing address.

 

R162-102-2. Status Change.

102.2.1

(a) A licensed appraiser, certified appraiser, or trainee shall notify the Division within ten [working]business days of any status change , including a change in affiliation. Status changes are effective on the date the properly executed forms and appropriate fees are received by the Division. Notice shall be made in writing on the forms required by the Division.

(b) A licensed appraiser, certified appraiser, or trainee is not required to report an affiliation that:

(i) is created to facilitate a single transaction; and

(ii) is not part of an ongoing business association.

(c) If a deadline for notification falls on a day when the Division is closed, the deadline shall be extended to the next business day.

102.2.1.1 Change of name requires submission of official documentation such as a marriage or divorce certificate, or driver's license.

102.2.1.2 Change of business, home address or mailing address requires written notification. A post office box without a street address is unacceptable as a business or home address. Any address may be designated as a mailing address.

102.2.2 State-licensed Appraisers, upon meeting the appropriate requirements for certification and upon filing a completed application within six months from their last renewal, will be allowed to transfer to the categories of either Certified Residential or Certified General by paying only a transfer fee.

102.2.2.1 Transfer to a certified category will not change the individual's expiration date.

 

R162-102-3. Renewal.

102.3.1 At least 30 days before expiration, a renewal notice shall be sent by the Division to the licensed appraiser, certified appraiser, or trainee at the mailing address shown on the Division records. The applicant for renewal shall return the completed renewal notice and the applicable renewal fee to the Division on or before the expiration shown on the notice.

102.3.1.1 The licensed appraiser, certified appraiser, or trainee shall return proof of completion of the following continuing education taken during the preceding two years:

(a) the 7-hour National USPAP Update Course; and

(b) 21 additional hours of Division-approved continuing education.

102.3.1.1.4 All appraisers and trainees must take the 7-hour National USPAP Update Course or its equivalent once for each renewal in order to maintain a license, certification, or registration. In order to qualify as continuing education for renewal, the course must have been taken from an instructor or instructors, at least one of whom is a State-Certified Residential or State-Certified General Appraiser and has been certified by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. Equivalency to the 7-hour National USPAP Update Course will be determined through the Course Approval Program of the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.

102.3.2 If the renewal fee and documentation are not received within the prescribed time period, the license, certification, or registration shall expire.

102.3.2.1 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 Section 102.3.1.

102.3.2.2 Reinstatement.

(a) After the 30-day period described in Subsection 102.3.2.1 and until six months after the expiration date, an individual may reinstate an expired license, certification, or registration by

(i) complying with Subsection 102.3.1;

(ii) paying a late fee; and

(iii) paying a reinstatement fee.

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

(i) complying with Subsection 102.3.1;

(ii) paying a late fee;

(iii) paying a reinstatement fee; and

(iv) completing 24 hours of additional continuing education.

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

(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 Subsection (i) shall receive credit for previously credited prelicensing education if:

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

(B) completed after January 1, 2008; or

(C) certified by the Division and the AQB prior to January 1, 2008, as approved, qualified prelicensing education.

102.3.3 If the Division has received 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.

102.3.4 Renewal while on active military service. An appraiser or trainee who is unable to renew a license or certification because active military service has prevented the completion of the appraiser's or trainee's required continuing education may submit a timely application for renewal that is complete, except for proof of continuing education, and may request that the application for renewal be held in suspense pending the completion of the continuing education requirement.

102.3.4.1 The appraiser or trainee shall have 120 days after completion of active military service to complete the continuing education required for the renewal and submit proof of the continuing education to the Division.

102.3.4.2 An appraiser may not act as an appraiser in Utah after the expiration of the appraiser's current license while the appraiser's application for renewal is held in suspense by the Division pending the completion of military service and the completion of the continuing education required for renewal. The appraiser may not act as an appraiser in Utah until the appraiser submits proof of completion of the required continuing education and the appraiser's application for renewal is processed by the Division.

 

R162-102-4. Six-Month Temporary Permits.

102.4.1 A non-resident of this state may obtain a six-month temporary permit to perform one or more specific appraisal assignments in Utah. In order to qualify for a temporary permit, the specific appraisal assignments must be covered by a contract to provide appraisals. In order to obtain a temporary permit, an applicant must:

102.4.1.1 Submit an application in writing requesting temporary licensure or certification. The application shall include the name of the client, the specific property address(es) to be appraised, the type of property being appraised, and the estimated time to complete the assignment;

102.4.1.2 Answer and submit a "Utah Appraiser Qualifying Questionnaire" in the form designated by the Division;

102.4.1.3 Sign an irrevocable consent to service authorizing the Division to receive service of any lawful process on his behalf in any noncriminal proceeding arising out of his practice as an appraiser in this state;

102.4.1.4 Pay an application fee in the amount established by the Division; and

102.4.1.5 Provide the starting date of the appraisal assignment for which the temporary permit is being obtained.

102.4.2 A non-resident is limited to two temporary permits per calendar year, each of which may be extended one time for an additional six month period if the assignments have not been completed within the original six-month term of the temporary permit. A temporary permit may be extended by submitting any forms required by the Division.

 

R162-102-5. Reciprocity.

102.5.1 An individual who is licensed or certified as an appraiser by another state may be licensed or certified in Utah by reciprocity on the following conditions:

102.5.1.1 The other state must have required the applicant to satisfactorily complete classroom hours of appraisal education approved by that state which are substantially equivalent in number to the hours required for the class of licensure or certification for which he is applying in Utah;

102.5.1.2 The education must have included a course in the Uniform Standards of Professional Appraisal Practice. The course must either be the 15-hour National USPAP Course or its equivalent. Equivalency to the 15-hour National USPAP Course will be determined through the Course Approval Program of the Appraiser Qualifications Board (AQB) of the Appraisal Foundation;

102.5.1.3 The applicant shall obtain and study the Utah Real Estate Appraiser Licensing and Certification Act and the rules promulgated thereunder and shall sign an attestation that he understands and will abide by them;

102.5.1.4 The applicant shall provide evidence of having passed an examination that has been approved by the AQB for the class of licensure or certification for which he is applying;

102.5.1.5 If the applicant resides outside of the state of Utah, the applicant shall sign an irrevocable consent to service authorizing the Division to receive service of any lawful process on his behalf in any noncriminal proceeding arising out of his practice as an appraiser in this state;

102.5.1.6 The applicant shall provide a complete licensing history sent directly to the Division by his home state and any other state in which he has been licensed, which shall include the applicant's full name, home and business addresses and telephone numbers, the date first licensed, the type or types of licenses or certifications held, the date the current license or certification expires, and a statement concerning whether disciplinary action has ever been taken, or is pending, against the individual;

102.5.1.7 The applicant shall not have been convicted of a criminal offense involving moral turpitude relating to his ability to provide services as an appraiser; and

102.5.1.8 The applicant shall agree, as a condition of licensure or certification, to furnish to the Division upon demand all records requested by the Division relating to the applicant's appraisal practice in Utah. Failure to do so will be considered grounds for revocation of license or certification.

 

KEY: real estate appraisals, licensing

Date of Enactment or Last Substantive Amendment: [January 27], 2010

Notice of Continuation: February 15, 2007

Authorizing, and Implemented or Interpreted Law: 61-2b-6(1)

 

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