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News Articles - February 2012

Appraiser Certification Program Mission, Purpose and Intent

Appraiser Certification Program Advisory Council

New Licensees - December 2011/January 2012

Information Regarding Disciplinary Actions

Anonymous Complaints

Review of Cases - January 1, 2011 through December 31, 2011

Upgrades - September 27, 2011 through February 6, 2012

Reminder - Seven-Hour National USPAP Update Course
Completion Requirements

Appraisal Management Companies to be Registered - Registration Number to be Disclosed

Appraiser Qualifications Board Adopts Changes to the Real Property Appraiser Qualification Criteria

Appraiser Qualifications Board Questions and Answers

What tasks can an unlicensed assistant perform in North Carolina?

Appraiser Certification Program Mission, Purpose and Intent

Program was implemented July 1, 1990, pursuant to enactment of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by Congress. The mission of the Program is to certify, license and register appraisers to perform real estate appraisals in the state of South Dakota pursuant to Title XI (FIRREA). The purpose of the Program is to examine candidates, issue certificates, investigate and administer disciplinary actions to persons in violation of the rules, statutes and uniform standards, and approve qualifying and continuing education courses. Title XI intends that states supervise all of the activities and practices of persons who are certified or licensed to perform real estate appraisals through effective regulation, supervision and discipline to assure their professional competence.

Effective July 1, 2011, pursuant to the Dodd-Frank Wall Street Reform Act, the Program was granted legislative authority to register and supervise the activities of Appraisal Management Companies doing business in South Dakota.

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Appraiser Certification Program Advisory Council

Council members provide recommendations to the Secretary of the Department of Labor and Regulation in the areas of program administration in order to sustain a program that is consistent with Title XI. The Council meets quarterly in public forum. See our Advisory Council Web page for meeting information.

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New Licensees - December 2011/January 2012

Cynthia S. Jacobs, State-Certified General - Jacksonville, FL
Jesse J. Ball, State-Registered - Sioux Falls, SD
Kayla Aubrey Hewitt Suther, State-Registered - Langford, SD
Richard M. McKee, State-Certified General - Cheyenne, WY
Anthony A. Heymans, State-Certified General - Mendota Heights, MN

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Information Regarding Disciplinary Actions

Public information regarding disciplinary action taken against an appraiser is available upon written request to:

Department of Labor and Regulation

Appraiser Certification Program

445 East Capitol Avenue

Pierre, SD 57501

or email Sherry.Bren@state.sd.us.

Include in the request for information the name of the appraiser and the appraiser's city and state of residence. (Disciplinary action may include denial, suspension, censure, reprimand, or revocation of a certificate by the department.) (Administrative Rule of South Dakota (ARSD) 20:14:11:03)

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Anonymous Complaints

ARSD 20:14:11:01.01. Anonymous complaints. Initiation of an investigation may be commenced upon receipt of an anonymous complaint if it meets the following criteria:

1. The allegations of violations of any provision of this article are considered credible and based upon factual information which is independently verifiable.
2. The complaint is accompanied by a copy of the appraisal report or other documents which contain clearly identifiable errors or violations of the provisions of this article.

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Review of Cases - January 1, 2011 through December 31, 2011

For the period January 1, 2011 through December 31, 2011, the Department has received six upgrade applications and initiated 21 complaint investigations.

Upgrades - Four upgrades issued and two upgrades pending.

Complaints - Three complaints dismissed, one consent agreement, one temporary permit application withdrawn, two temporary permit applications denied, and 14 complaints pending.

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Upgrades - September 27, 2011 through February 6, 2012

Lindsey Willis, State-Certified General
Russell Grohs, State-Certified Residential

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Reminder - Seven-Hour National USPAP Update Course
Completion Requirements

Pursuant to Administrative Rule of South Dakota (ARSD) 20:14:13:01 an applicant for renewal of a certificate or license must successfully complete the most current edition seven-hour National Uniform Standards of Professional Appraisal Practice Update course prior to June 30 of each even-numbered year.

South Dakota state-registered, state-licensed, state-certified residential and state-certified general appraisers must complete the 2012-2013 Edition of the seven-hour National USPAP Update Course prior to June 30, 2012. (Certified or licensed appraisers by reciprocity should review the administrative rules regarding continuing education requirements for reciprocal appraisers found in Administrative Rule of South Dakota (ARSD) 20:14:13:01.01(3).)

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Appraisal Management Companies to be Registered - Registration Number to be Disclosed

Pursuant to South Dakota Codified Law (SDCL) 36-21D Appraisal Management Companies are to be registered in the State of South Dakota. The roster of registered AMCs is now available online in Adobe .pdf format*.

An AMC is required by Administrative Rule of South Dakota (ARSD) 20:77 to disclose its certificate of registration number within its engagement document with each utilized appraiser. Effective in January, an appraiser is required, pursuant to ARSD 20:14 to assure that the AMC is properly registered before accepting an appraisal assignment and include the company's registration number in the appraisal report.

If an appraiser is unable to verify an AMC requesting appraisal services on the AMC Roster available on the website, the appraiser is advised to report the company to the Appraiser Certification Program.

Department of Labor and Regulation

Appraiser Certification Program

445 East Capitol Avenue

Pierre, SD 57501

or email Sherry.Bren@state.sd.us.

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Appraiser Qualifications Board Adopts Changes to the Real Property Appraiser Qualification Criteria

The Appraisal Foundation announced January 24, 2012 that Proposed Revisions to the Real Property Appraiser Qualification Criteria (Criteria) have been adopted by the Appraiser Qualifications Board effective January 1, 2015.

A summary of the changes to the Criteria include:

• Education and experience will have to be completed prior to taking the National Uniform Licensing and Certification Examinations;
• Applicants for the Certified Residential and Certified General classifications will have to possess a bachelor's degree or higher from an accredited college or university;
• Applicants for the Licensed Residential classification will have to have successfully completed 30 semester hours of college-level education from an accredited college, junior college, community college or university, or have an associate degree or higher from an accredited college, junior college, community college or university;
• All candidates will be required to undergo a background check;
• Recognition of approved university degree programs as counting toward the education requirement in the Real Property Appraiser Qualification Criteria;
• Removal of the "Segmented" Approach to the Real Property Appraiser Qualification Criteria implementation;
• Prohibition of repetitive continuing education in the same continuing education cycle;
• Clarification of the term "written examination;"
• Revisions to the Trainee Appraiser classification that will include a requirement to take a course oriented to the requirements and responsibilities of Trainee Appraisers and Supervisory Appraisers;
• New supervisory Appraiser requirements;
• Revisions to Guide Note 1;
• Additions to the illustrative list of educational topics acceptable for continuing education.

Visit the Appraisal Foundation's website for a more detailed summary (in Adobe .pdf format*) of the changes to the Criteria.

The South Dakota Appraiser Certification Program will propose rule revisions in the near future to adopt the changes to the Real Property Appraiser Qualification Criteria. Please contact Sherry Bren at 605.773.4608 or by email at appraisercertification@state.sd.us if you have questions.

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Appraiser Qualifications Board Questions and Answers

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state certification. The AQB Q&A is a form of guidance issued by the AQB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria in specific situations and to offer advice from the AQB for the resolution of appraisal issues and problems. The AQB Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations. AQB Q&A does not establish new Criteria. AQB Q&A is not part of the Real Property Appraiser Qualification Criteria. AQB Q&A is approved by the AQB without public exposure and comment.

Vol. 3, No. 2 - December 2011

General Requirements

Question: I would like to get a Certified General appraiser credential. I am from another country and have a student visa, but don't have a Social Security card or Taxpayer ID Number. If I fulfill the education and experience requirements, can I get a Certified General appraiser credential without possessing a Social Security card or similar document?

Experience

Question: I am an Appraiser Trainee working toward my license. If I do not sign an appraisal report due to my company's policies or a client's assignment conditions, what verbiage is required in the report in order for the time I spent on the appraisal to count toward the experience requirements in the Real Property Appraiser Qualification Criteria?

Qualifying Education

Question 1: I am a state regulator responsible for evaluating courses submitted for qualifying education for state appraiser licensure and certification. I recently received a submission of a course entitled "Advanced Residential Applications and Case Studies." I reviewed guide note 1 of the Real Property Appraiser Qualification Criteria and understand one of the subtopics for this course is "Advanced Case Studies." What qualifies a case study as "advanced?"

Question 2: I am an Appraiser Trainee preparing to get my Certified Residential credential. For my initial qualifying education to become a Trainee, I completed 80 hours of Basic Appraisal Principles and Procedures in 2003 from a proprietary school that no longer exists. My state appraiser regulatory agency said any courses taken before January 1, 2008 were no longer considered value according to the AQB. Why can't these original hours count toward the qualifying education requirement for my Certified Residential credential?

Question 3: I have been a commercial real estate professional for over 21 years, have my broker's license and am a Certified Commercial Investment Member (CCIM). I am interested in pursuing a Certified General real property appraiser credential. I would prefer to do my education on my own time with an online educator. I have my bachelor's degree in business from a state university. With my licensing, education, and experience, is there are way to "fast track" the required coursework?

Continuing Education

Question: I am a certified appraiser in a state with a 2-year licensure cycle. As such, I am required to complete 28 hours of approved continuing education (CE) in order to be eligible to renew my certification. If I complete more than the required 28 hours, can I carryover the extra hours to my next certification renewal?

Answers to the above AQB questions are posted on The Appraisal Foundation website.

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What tasks can an unlicensed assistant perform in North Carolina?

(Article provided by the North Carolina Appraiser Board)

North Carolina law requires that anyone who assists in the preparation of an appraisal be registered as a trainee. Questions have arisen as to exactly what an unlicensed assistant can lawfully do in this state without violating the Appraiser Act.

An unlicensed assistant may be a secretary or other clerical worker, a college student working a summer job at a parent's appraisal firm or another person looking to gain knowledge of the appraisal business. Some examples of what these people do include obtaining copies of tax cards, deeds and maps. They may also assist in measuring the property by holding the "dumb" end of a tape, check MLS listings for data and type the report.

Unlicensed assistants may not select comps, measure a property on their own, inspect a property, make adjustments to comps or draft an appraisal report. The distinction is that only a licensed or certified appraiser should make the professional decision required when performing an appraisal. Unlicensed assistants can only do work of a clerical nature and cannot exercise any judgment when performing those tasks.

Under some limited circumstances unlicensed assistants may take photographs at the direction of the appraiser. For example, if the appraiser has already taken photographs of the comparison sales and discovers that one photo did not come out, the appraiser could ask an unlicensed assistant to retake that one photograph. An unlicensed assistant should not be allowed to take photographs at his or her discretion.

The appraisal report need not state that the unlicensed assistant performed clerical tasks. USPAP and state law require only that anyone providing significant professional assistance be mentioned in the appraisal report. The licensed or certified appraiser signing the report takes full responsibility for the report. If any work performed by an unlicensed assistant is incompetent or misleading, it is the appraiser who will bear the consequences. For example, if a secretary types up a report which contains erroneous information, such as incorrect sales dates or prices for comps, and the appraiser signs the report, it is the appraiser who takes responsibility for issuing a misleading report; the appraiser cannot rely on the defense that the secretary made a typographical error which the appraiser did not notice.

An unlicensed assistant who wishes to perform more than clerical tasks should be encouraged to become a registered trainee. Trainees can perform a wide variety of tasks based on their competence.

The Appraiser Certification Program provides the information from North Carolina to demonstrate what tasks would not be considered significant professional appraisal assistance by a South Dakota State-Registered Appraiser and should not be included in the Appraisal Experience Log. Paragraph three demonstrates some of the tasks that would be considered significant professional appraisal assistance by a State-Registered Appraiser. If you have any questions, please feel free to contact Sherry Bren at 605.773.4608 or by email at appraisercertification@state.sd.us if you have questions.

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