Part 1 GENERAL INFORMATION
Section 1.1 The Board's Purpose
(a) The Board of Real Estate Appraisers ("the
Board") has been created and given powers by Vermont law. A federal law enacted
in 1989 required states to establish licensing and certification programs for
real estate appraisers who intended to perform appraisals in federally related
transactions. The Board was created in response to this federal law by a
Vermont statute, which directed the Board to meet federal criteria. The federal
law created the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council (ASC) as the federal agency responsible for monitoring the
establishment of state programs for compliance with federal law. The Appraiser
Qualifications Board of the Appraisal Foundation has identified the minimum
qualifications for licensure needed to meet the requirements of the federal
law, and the Board adopts those minimums as its requirements.
(b) Only individuals licensed by the Board
may perform appraisals in a federally related transaction for a fee or may
represent themselves as certified real estate appraisers in Vermont. No license
is required to perform real estate appraisals in other transactions. However, a
certified appraiser is subject to the Board's disciplinary authority when
performing all real estate appraisals, whether or not the appraisal could have
been performed by an unlicensed person.
Section 1.2 Business Address
The business location is the Office of the Secretary of State,
Office of Professional Regulation, 89 Main Street, 3 rd Floor, Montpelier,
Vermont ("the Office"). The mailing address is Board of Real Estate Appraisers,
Office of Professional Regulation, 89 Main Street, 3 rd Floor, Montpelier,
Vermont 05620-3402. Copies of these rules and more information about the Board
and its requirements and procedures are available by contacting the Office or
on the Board's web site at: http://vtprofessionals.org .
Section 1.3 Laws That Govern the Board
The Board is governed by the Vermont Real Estate Appraisers
Act. 26 Vermont Statutes Annotated (V.S.A.) Chapter 69. The Board also enforces
the Professional Regulation statutes found in 3 V.S.A. §§ 121-131. In
addition, the Board is obligated to comply with several other state laws such
as the Administrative Procedure Act (3 V.S.A. Chapter 25), the "Open Meeting
Law" ( 1 V.S.A. §§ 312-313 ) and the "Access to Public Records Law" (
1 V.S.A. §§ 315-320 ). These laws explain the rights of an applicant,
license holder or member of the public.
Section 1.4 Board Rules
The Board is authorized to make these administrative rules.
26 V.S.A. §
3315.
Section 1.5 Definitions
As used in these rules:
(a) "AQB" means the Appraiser Qualifications
Board or its successor institution.
(b) "Complex appraisal" means one in which
the property to be appraised, the form of ownership, or market conditions are
atypical.
(1) Characteristics similar to the
following may suggest that an appraisal is complex:
(i) Ownership rights that are atypical. This
may include life estates or situations in which a residence is constructed on
land leased for a term of years or where there are subterranean and air rights
involved.
(ii) Unusual deed
restrictions, easements, encroachments and other similar factors could
influence the complexity of the assignment.
(iii) Changes in neighborhood
characteristics, which suggest that a residence is no longer the highest and
best use for the site. This may include interim use-type situations.
(iv) Actual or suspected environmental
hazards.
(v) Architectural style
that is atypical for the neighborhood. Examples might include a dome or earth
home in a neighborhood of traditional residences. A residence, which is
exceptionally large or small for the neighborhood, might also pose a difficult
valuation challenge.
(vi) Unstable
market conditions including such things as out-of-balance supply and demand
relationships may lead to extraordinary complexity.
(2) This list is not intended to be all
inclusive but rather representative of situations that may lead to
extraordinary complexity of a transaction or an appraisal assignment.
(c) "FIRREA" means the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989,
Public Law
101-73, as amended.
(d) "License" means a license as a certified
general real estate appraiser, a license as a certified residential real estate
appraiser, a license by reciprocity, or a temporary license.
(e) "Office" means the Office of Professional
Regulation.
(f) "Residential" means
an appraisal of vacant or improved property whose highest and best use is
residential.
(g) "Transaction
value" means the principal amount of the loan application, which will include
any extension of credit under consideration.
(h) "USPAP" means the "Uniform Standards of
Professional Appraisal Practice" as published by the Appraisal Standards Board
of the Appraisal Foundation.
Section
1.6 Making and Resolving Unprofessional Conduct Complaints
The Board follows the complaint procedure used by the Office.
Copies of the procedure and more information about the complaint process can be
obtained from the Office or on the Board's web site at:
http://vtprofesionals.org .
Part 2 INFORMATION FOR APPLICANTS
Section 2.1 Appraiser Trainee Registration
A person who wishes to be registered as an appraiser trainee
may obtain an application from the Office. Appraiser trainees can be registered
in two categories: certified residential appraiser trainee; or certified
general appraiser trainee. Education, orientation and continuing education
requirements for each category of registration are all set by the
AQB.
Section 2.2 Certified
Residential Real Estate Appraiser License
Education, experience and continuing education requirements, as
well as examination specifications for each category of licensure are all set
by the AQB.
Section 2.3
Certified General Real Estate Appraiser License
Education, experience and continuing education requirements, as
well as examination specifications for each category of licensure are all set
by the AQB.
Section 2.4
Certified Appraisers Supervising Registered Trainee
Supervision requirements during training are set by the
AQB.
Section 2.5 Examination
Examination specifications for each category of licensure are
set by the AQB.
Section 2.6
Education
Education requirements for each category of licensure are set
by the AQB.
Section 2.7
Experience
Experience requirements for each category of licensure are set
by the AQB.
Section 2.8
Education Program Approval
(a) In order to be
approved by the Board, a program must satisfy the education guidelines set by
the AQB.
(b) A program may be
approved by the Board by filing an application form that indicates the name of
the program, the number of classroom hours requested and the sponsor and
instructors. An application may be filed by the sponsor or a participant. For
advance approval, applications must be filed at least 90 days before the
program commences.
(c) The Board
shall assign a maximum number of credit hours to each approved
program.
(d) The Board may deny
approval of any program which is otherwise eligible if it finds that the
program is led by an instructor without sufficient experience in teaching or in
the subject matter being taught; is sponsored by a group or individual lacking
the ability or intention to produce a program of sufficient quality to improve
or establish an appraiser's professional competence; or the program is not
sufficiently organized or adequate to fulfill the objectives of these rules.
The Board follows the Course Approval Program - Policies, Procedures and
Criteria - published by the AQB.
(e) A program sponsor may state that a
program has been approved by the Board and may also state the number of credits
approved by the Board.
(f) The
Board may audit any course it has approved for compliance with this rule and
the AQB requirements.
Part
3 INFORMATION FOR LICENSED APPRAISERS
Section
3.1 License Renewal
A license must be renewed before it expires. The expiration
date is printed on the license; expiration dates are occasionally adjusted by
the Office but are normally two years after the previous renewal
date.
Section 3.2 Continuing
Education Requirements
Continuing education requirements for each category of
licensure are set by the AQB.
Section
3.3 Continuing Education Program Approval
(a) A program must satisfy the continuing
education guidelines set by the AQB.
(b) A program may be approved by the Board
upon filing an application form, which indicates the name of the program, the
number of classroom hours requested and the sponsor and instructors. The
sponsor or a participant may file an application. For advance approval,
applications must be filed at least 90 days before the program commences. For
other programs, sponsors' applications must be filed within 30 days after the
educational activity has commenced. Individual applications must be filed by
the time of renewal.
(c) The Board
shall assign a maximum number of credit hours to each approved
program.
(d) The Board may deny
approval of any program which is otherwise eligible for accreditation if the
Board finds the program is led by an instructor without sufficient experience
in teaching or in the subject matter being taught; is sponsored by a group or
individual lacking the ability or intention to produce a program of sufficient
quality to improve or establish an appraiser's professional competence; or is
not sufficiently organized or adequate to fulfill the objectives of these
rules. The Board follows the Course Approval Program - Policies, Procedures and
Criteria published by the AQB.
(e)
A program sponsor may state that a program has Board approval and may also
state the number of credits approved by the Board.
Section 3.4 Change of Name or Address
The Office must be immediately notified of any change of name
or address.
Section 3.5
Standards of Practice
All licensees shall follow and adhere to the USPAP published by
the Appraisal Foundation, as amended, for all appraisals of real
property.
Section 3.6
Interpretations and Clarifications
The Board follows the interpretations and clarifications issued
by the AQB and the Appraisal Standards Board of the Appraisal Foundation for
guidance in administering these rules, in order to maintain uniformity and
consistency with FIRREA.
Section
3.7 Scope of Practice
(a) State
Licensed Appraiser: A state licensed appraiser may perform non-complex 1-4 unit
residential appraisals up to a transaction value of $ 1,000,000; and complex
1-4 unit residential appraisals up to a transaction value $ 250,000. If a state
licensee is performing appraisals of more than four units, or appraisals of
non-residential properties, the licensee must be in association with a
certified residential or certified general licensee who takes responsibility
for the licensee's work and that person must sign the report.
(b) Certified Residential Appraiser: A
certified residential appraiser may perform 1-4 unit residential appraisals
without regard to transaction value or complexity. A certified residential
appraiser may also perform non-residential appraisals up to a transaction value
of $ 250,000 without regard to complexity. If a certified residential licensee
is performing appraisals of non-residential properties over a transaction value
of $ 250,000 the licensee must be in association with a certified general
licensee who takes responsibility for the licensee's work and that person must
sign the report.
(c) Certified
General Appraiser: A certified general appraiser may perform appraisals of all
types of real property without regard to transaction value or
complexity.
(d) Appraiser Trainee:
An appraiser trainee may perform activities within the scope of practice of the
license sought provided that the supervising appraiser reviews and signs all
resulting appraisals, is present with the trainee during the inspection
process, is familiar with the market data used in the appraisal report and
takes full responsibility for the appraisal. The appraiser trainee may sign the
report but must be clearly identified as a "trainee" in all areas of the report
in which the trainee's name appears.
(e) Appraisers may employ and utilize the
assistance of those who are not registered trainees under these rules. These
assistants shall not be referred to or otherwise identified as "trainees"
unless registered as such. When assisted by such unlicensed or unregistered
employees, the appraiser shall be present during the inspection of the
property, be familiar with the market data used in the appraisal report and
take full responsibility for the appraisal.
Section 3.8 Inspecting Records
Copies of all records and any other pertinent memoranda
concerning an appraisal shall be available for inspection by the Board and its
duly authorized agents upon request during regular business
hours.
