4 CCR 725-2, ch. 17 - LICENSING REQUIREMENTS FOR APPRAISAL MANAGEMENT COMPANIES
17.1.
The Board has set forth in Rule 6.6 the fitness standards that an Applicant for
a license must demonstrate. To assist the Board in making the determination
whether the Applicant has satisfied the fitness requirements of Rule 6.6, an
Applicant for an AMC or a Controlling Appraiser's license who has past or
pending criminal action(s) or professional disciplinary action(s) must submit
their application for licensure in accordance with subsection A. and B. of this
Rule.
A. Applicants who have at any time in
the past been convicted of, entered a plea of guilty to, entered a plea of nolo
contendere, entered an Alford plea, or received a deferred judgment and
sentence to a misdemeanor (excluding misdemeanor traffic violations) or a
felony or any like municipal code violation, or has such charges pending must
submit with their application required documentation. The documentation
pursuant to this Rule, and the Board's consideration of same, must be handled
in accordance with the procedures and requirements set forth in Rule
6.7.
B. An Applicant who has any
past or pending administrative disciplinary actions or findings of an appraiser
registration, license, certificate or any other professional license from
Colorado or any other Jurisdiction must submit with their application
information and documentation that is relevant and available to the Applicant.
The information and documentation pursuant to this Rule, and the Board's
consideration of same, must be handled in accordance with the procedures and
requirements set forth in Rule 6.8.
17.2. Prior to application for licensure for
an AMC or as a Controlling Appraiser, a Person may request that the Board issue
a preliminary advisory opinion regarding the potential effect that previous
professional conduct, criminal conviction(s), plea(s) of guilt or nolo
contendere, deferred judgment(s) and sentence for criminal offense(s), or
violation(s) of the real estate appraiser license law may have on a future
formal application for licensure. All requests for a preliminary advisory
opinion pursuant to this Rule, and the Board's consideration of same, must be
handled in accordance with the procedures and requirements set forth in Rule
6.9.
17.3. Initial Licenses will
expire on December 31 of the year of issuance. All AMC and Controlling
Appraiser licenses expire annually on December 31.
17.4. An AMC must have a Controlling
Appraiser, with an Active Controlling Appraiser's license, to perform services
requiring a license. If the Controlling Appraiser leaves the employment of the
AMC, the Controlling Appraiser or an authorized representative of the AMC must
notify the Board within three (3) business days in a manner acceptable to the
Board. Upon such notification or discovery by the Board, the license of the AMC
will be placed on Inactive status unless or until a replacement Controlling
Appraiser has been identified by the AMC and approved by the Board or a
temporary Controlling Appraiser license is timely processed by the
Division.
17.5. The Controlling
Appraiser license will be placed on Inactive status upon notification to the
Board that the Controlling Appraiser has left the employ of the AMC. The
Controlling Appraiser license will remain on Inactive status until the license
expires or the Controlling Appraiser is designated to be the responsible party
for an AMC.
17.6. A Person's
license cannot be transferred for use of the licensed name or license for the
benefit of another person, partnership, limited liability company, or
corporation.
17.7. The Controlling
Appraiser, or an authorized representative, must notify the Board within ten
(10) business days of any change in ownership of the AMC including a change in
ownership that increases an existing individual's total ownership to more than
ten (10) percent.
17.8. The Board
may refuse to issue a license to a partnership, limited liability company, or
corporation if the name of said corporation, partnership, or limited liability
company is the same as that of any Person's whose license has been suspended or
revoked in any Jurisdiction or is so similar as to be easily confused with that
of the suspended or revoked person or entity by members of the general
public.
17.9. No license will be
issued to an AMC under a trade name, corporate name, partnership name, or
limited liability company name which is identical to another licensed AMC. A
license will not be issued to an individual proprietorship that adopts a trade
name which includes the following words: corporation, partnership, limited
liability company, limited, incorporated, or the abbreviations
thereof.
17.10. All applications
will contain a certification that the Controlling Appraiser is responsible for
the AMC. All applications will require the AMC to identify at least one
authorized representative responsible for contacting the Board when there has
been a change in the employment of the Controlling Appraiser or there is a
change in the ownership of the entity.
17.11. When an application for licensure as
an AMC is submitted, the Controlling Appraiser must certify the following:
A. If the AMC is a corporation, that the
corporation complies with section
12-10-607(8)(c),
C.R.S. and that the Controlling Appraiser has been authorized by the
corporation as the Controlling Appraiser for the corporation.
B. If the AMC is a partnership, that the
partnership complies with section
12-10-607(8)(a),
C.R.S. and that the Controlling Appraiser has been authorized by the
partnership as the Controlling Appraiser for the partnership.
C. If the AMC is a limited liability company,
that the company complies with section
12-10-607(8)(b),
C.R.S. and that the Controlling Appraiser has been authorized by the company as
the Controlling Appraiser for the limited liability
company.
17.12. An AMC is
not required to be domiciled in Colorado in order to obtain a license, if the
company maintains a definite place of business in another Jurisdiction and is
registered as a foreign entity with the Colorado Secretary of State.
17.13. If the AMC has no registered agent
registered in Colorado, such registered agent is not located under its
registered agent name at its registered agent address, or the registered agent
cannot with reasonable diligence be served, the Controlling Appraiser, on
behalf of the AMC, may be served by registered mail or by certified mail,
return receipt requested, addressed to the entity at its principal address and
to the Controlling Appraiser's address of record. Service is perfected at the
earliest of:
A. The date the Controlling
Appraiser receives the process, notice, or demand;
B. The date shown on the return receipt, if
signed by or on behalf of the Controlling Appraiser; or
C. Five (5) days after
mailing.
17.14.
Applicants for licensure, Activation, renewal, or reinstatement as an AMC must
certify compliance with section
12-10-609, C.R.S. in a manner
prescribed by the Board.
A. The AMC must
maintain at all times a surety bond subject to the following terms and
conditions:
1. Be for a minimum of $
25,000.00;
2. Be in conformance
with all relevant Colorado statutory requirements; and
3. Cover acts contemplated for AMCs under
part 6 of article 10 of title 12 during the period of licensure by the
AMC.
B. Any licensed AMC
that certifies compliance and fails to maintain a surety bond, or to provide
proof of continuous coverage, will be placed on Inactive status:
1. Immediately if a current surety bond is
not provided to the Board; or
2.
Immediately upon the expiration of any current surety bond when certification
of continued coverage is not provided.
17.15. An AMC or Controlling Appraiser whose
license has been placed on Inactive status must:
A. Cease any activities requiring a
license.
B. Cease all advertising
of licensed services.
C. If an AMC,
inform all clients of the company's license status and inability to provide any
services requiring a license.
D. If
an AMC, ensure that all appraisal fees collected from the client(s) have been
accounted for and disbursed pursuant to section
12-10-614(1)(h),
C.R.S.
E. If an AMC, fees for
services requiring a license can be collected for licensed services performed
prior to Inactivation of the license.
17.16 Repealed.
17.17 Repealed.
17.18 A temporary Controlling Appraiser's
license may be issued to a corporation, partnership, or limited liability
company to prevent hardship. No application for a temporary Controlling
Appraiser's license will be approved unless the designated individual is a
certified appraiser, in Good Standing. The temporary license is valid for
ninety (90) days. Upon application and showing of good cause, the Board may
extend a temporary license for one additional ninety (90) day period.
17.19 Applicants for licensure, renewal, or
reinstatement as an AMC must complete the following:
A. The Controlling Appraiser must report and
certify:
1. The number of licensed or
certified appraisers that provided an appraisal in connection with a Covered
Transaction on the AMC's Panel in Colorado during the Reporting
Period;
2. The total number of
licensed or certified appraisers on the Panel in Colorado, whether or not the
appraisers provided an appraisal in connection with a Covered Transaction,
during the Reporting Period; and
3.
The total number of licensed or certified appraisers on the Panel in all states
that the AMC is licensed during the Reporting Period.
B. Submit to the Division the AMC Registry
Fee for AMCs that meet the Panel Size Threshold and the AMC minimum
requirements pursuant to section
12-10-607(9),
C.R.S., along with the application for Initial Licensure, renewal, or
reinstatement.
17.20
Federally Regulated AMCs must report to the Division the information required
to be submitted by the Division to the ASC pursuant to the ASC's policies
regarding the determination of the AMC Registry Fee and annually submit the AMC
Registry Fee for AMCs that meet the Panel Size Threshold.
17.21 A licensed or certified appraiser who
is part of an AMC's Panel will remain on the Panel until the date on which the
Controlling Appraiser:
A. Sends written
notice to the appraiser removing the appraiser from the Panel, with an
explanation of its action; or
B.
Receives written notice from the appraiser asking to be removed from the Panel
or notice of the death or incapacity of the appraiser.
17.22 If a licensed or certified appraiser is
removed from a Panel as set forth in Rule 17.21., but the Controlling Appraiser
subsequently accepts the appraiser for consideration for future assignments or
engages the appraiser at any time during the twelve (12) months after the
appraiser's removal, the removal will be considered not to have occurred, and
the appraiser will be considered to have been part of the Panel without
interruption.
17.23 Invalid
Payment. If the Fees accompanying any application made to the Board are paid
for by check and the check is not immediately paid upon presentment to the bank
upon which the check was drawn, or if payment is submitted in any other manner
and payment is denied, rescinded, or returned as invalid, the application will
be canceled. The application or renewal must be re-submitted to the Board along
with full payment of any Fees and payment of the fee required by State Fiscal
Rules for the clerical services necessary for invalid payment.
17.24. Review of Application Completeness.
All applications will be reviewed by the Division for completeness of all
required supporting documents and the Fee. If the application is deemed
incomplete by the Division, the Applicant will be notified in writing of the
deficiencies identified within the application and will have thirty (30) days
to provide the documentation. Otherwise, the application will be canceled, and
the Fee will be forfeited.
17.25.
Once the application is Deemed Complete, the Board will timely process the
application. The Board reserves the right to require additional information and
documentation from an Applicant to determine compliance with applicable laws
and regulations, and to verify any information and documentation
submitted.
17.26. Submission of an
application does not guarantee issuance of a license, or issuance of a license
within a specific period of time. Applicants will not represent themselves as
being Licensees of the Board until the license has been issued by the
Board.
Notes
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