The Board of Real Estate Appraisers held a rulemaking hearing on March 3, 2022, and adopted a change to Board Rule 5.1 concerning the real estate appraisal experience requirements. The revised rule will be effective April 30, 2022.
The revised Board Rule 5.1 clarifies that a credentialed appraiser must be in good standing if they name an applicant in the certification that provided significant real property appraisal assistance for the purposes of gaining experience.
Therefore, an applicant must exercise due diligence when looking for and selecting an appraiser to gain experience from. Any experience will be void if gained under an appraiser not in good standing and will not count toward the applicant’s experience requirements.
Practice Guidance
Applicant
If you will be applying for a license or upgrading an appraiser credential and need to gain the requisite experience under another credentialed appraiser, what research and questions should you ask?
Research:
- Review Board Rule 1.36 concerning what is considered good standing.
- Review Section 12-10-621(1), C.R.S., for standards pertaining to appraisal-related services provided by unlicensed assistants, licensed, and certified appraisers.
- Before selecting a credentialed appraiser to gain experience, check the Division’s website to see their license status and if there is any disciplinary history.
- Verify the credentialed appraiser providing guidance to you is appropriately credentialed for the type of appraisal assignment performed.
- Confirm the credentialed appraiser providing guidance holds an equivalent license to the level of credential you are applying for (e.g., a Certified Residential applicant cannot gain experience earned from a Licensed Appraiser).
Questions:
- How long have they held their credential?
- How many appraisal assignments have they completed?
- Are they currently or have they previously provided guidance to other applicants?
- How much time are they able to dedicate to helping you gain the necessary experience?
- What is their process for training, guidance, and experience and how they will monitor your progress?
- Ask if they have any pending discipline or if they have recently signed any stipulations concerning any disciplinary matters.
- Are they willing to sign the required experience logs?
Performing your due diligence in selecting a credentialed appraiser to gain your experience can save you valuable time and energy and ensure your experience is counted.
Credentialed Appraiser Providing Guidance to Applicants
When providing guidance to an applicant, you must be cognizant of the regulations and USPAP to ensure the applicant’s experience will be valid and counted towards their experience requirements.
Ensure you are appropriately credentialled for the training and guidance to be provided. Inform the applicant of any state-initiated disciplinary actions against your license that may arise.
- Review Board Rule 1.36 concerning what is considered good standing.
- Review Section 12-10-621(1), C.R.S., for standards pertaining to appraisal-related services provided by unlicensed assistants, licensed, and certified appraisers.
- Check that you hold an equivalent license to the level of credential the applicant is applying for (e.g., a Certified Residential applicant cannot gain experience earned from a Licensed Appraiser).
- Discuss any pending investigations or signed disciplinary stipulations with the applicant.
- Properly document the applicant’s real property appraisal assistance in the manner specified in Board Rule 11.2 and Uniform Standards of Professional Appraisal Practice (USPAP) Standard 2.
- Sign the applicant’s experience log.
Commit to making yourself available for meaningful training, assistance with questions, and careful review of the applicant’s work. As the applicant grows in competency, they can be given more independence and latitude to exercise judgment.