Delaware Real Estate Appraiser Council Amends Regulations
by: Louis Danastorg
The Delaware Real Estate Appraiser Council has adopted the amended regulations that had been published last November. This present order becomes effective 10 days from the Council’s March 2014 publication in the Register of Regulations.
Background
On February 18, 2014 Delaware’s Council of Real Estate Appraisers ordered the adoption of the regulations it had proposed and published in the November 2013 edition of the Delaware Register or Regulations pertaining to the regulation of licensed or certified real estate appraisers. After notifying the public of the prosed change, the Council received no written comments during the two public comment periods, and heard no testimony against them at the public hearing. The amendments are mostly administrative in nature.
Application
The required form to apply for a real property appraiser license or certificate may be obtained upon request from the Council. The application asks individuals for information necessary to identify the applicant and review the applicant’s qualifications for licensure or certification.
Appraiser Licensing and Certification
The licensing and certification qualifications shall be determined by the Appraisal Qualifications Board (AQB) of the Appraisal Foundation. A summary of these criteria is available from the Division of Professional Regulation in the “Informational Supplement to the Regulations.”
License and Certification Renewal
Renewal notices shall be sent in September of each odd numbered year to all licensees and certificate holders. The licenses and certificates will expire on October 31st of each odd numbered year. Once a license or certificate expires, the individual shall not perform any appraisals, and must renew within 60 days from the expiration date. After the 60 days have lapsed, the individual may no longer renew, but must reapply as a new applicant. Those that desire to renew a license or certificate must satisfy his or her continuing education requirements.
Continuing Education
No continuing education is required for less than six months of licensure, 14 hours for six months of licensure but less than 12, and 28 hours for a year or more. All licensees and certificate holders must attest to the completion of the appropriate amount of continuing education. As of November 2009, at least 14 hours per licensure period must be earned in a traditional classroom setting; only 7 hours if licensed 6 to 12 months. The Council shall perform random audits to ensure compliance with continuing education requirements.
Administrative Responsibilities
a) The real estate appraiser license or certificate must be prominently displayed at the appraiser’s place of business.
b) When advertising or holding himself/herself out as a state licensed real property appraiser, the individual shall identify himself/herself as a “state licensed real property appraiser.” Similarly, a state certified general property appraiser shall refer to himself/herself as a “state certified general property appraiser.”
c) Licensure or certification is reserved for individuals and may not be granted to business entities.
d) Each written appraisal report must contain the licensee’s or certificate holder’s signature, the individual’s state issued professional identification number, the individual’s appropriate title, and whether the individual personally inspected the property. Where applicable the individual shall indicate any other person that assists in the appraisal process (beyond clerical support). The individual shall be fully responsible for all content within any report prepared under his or her direction.
e) State licensed or certified real property appraisers shall be individually responsible for the proper maintenance and retention of appraisal records.
Responsibilities of Supervisors of State Licensed Trainees
Under certain conditions a state certified real property appraiser may employ persons as state licensed appraiser trainees that may assist in the appraisal process. The state certified real property appraiser must:
a) Provide direct supervision as specifically defined in the Uniform Standards of Professional Appraisal Practice (USPAP);
b) Review all appraisal reports and supporting data produced by the trainee;
c) Review and approve trainee’s experience log;
d) Sign an affidavit affirming that he/she is a state certified real property appraiser and shall comply with all supervisory responsibilities;
e) Immediately notify Council when no longer supervising the trainee.
f) State certified real property appraiser may not supervise more than three trainees at one time, and may not supervise any if sanctioned by the Council within the preceding three years.
Responsibilities of State Licensed Trainees
All appraiser trainees must be licensed, and under certain conditions a state licensed trainee may assist in conducting real property appraisals:
a) Must be under the direct supervision of one or more state certified real property appraisers;
b) Must maintain an experience log;
c) Must inspect the property and participate in appraisal process with contributions noted in the written appraisal reports;
d) Must carry Council issued license when performing appraisal assignments.
Temporary Practice and Reciprocity
The Division of Professional Regulation may grant temporary licensing or certification to an individual licensed or certified in another state. The Council may grant reciprocal licenses to applicants certified or licensed in another state that has similar requirements and qualifications as under DE code.
Assessors
Assessors and revaluation company personnel that receive certification as an assessor may only perform appraisals in limited circumstances (tax assessments or governmental purposes). Applicants that hold a certified residential or certified general appraiser license from the AQB may practice assessing in DE without obtaining a certification as an assessor.
Continuing Education Requirement
Assessors are subject to the same continuing education requirements as state licensed/certified appraisers. No continuing education is required for less than 12 months of licensure.
Administrative Responsibilities of Assessors
a) The assessor license or certificate must be prominently displayed in the assessor’s place of business.
b) The assessor must carry his or her pocket card, issued by the Council, when performing all assessments.
c) Assessors shall identify as “state licensed assessors.”
d) Assessor licenses may not be granted to business entities.
e) Each assessment must be signed by the assessor with his or her identification number and appropriate title.
f) Each assessor is individually responsible for the maintenance and retention of assessment records.
Standards of Professional Conduct
Appraisers and Assessors must conduct all reports and perform all acts in compliance with USPAP and any of its subsequent amendments.
About the Author
Louis Danastorg, J.D., M.B.A. is Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Vanderbilt University and earned his Juris Doctor and Masters of Business Administration from Suffolk University. He can be reached at Louis@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
Comments are closed.