Q&A
with the State Board of Certified Real Estate Appraisers
Q: Please update the status of the proposed regulations change that will permit appraisal trainees to inspect properties without their supervisory appraiser.
A: There is a pending change to the Board’s Rules and Regulations that would allow appraisal trainees to inspect properties without supervision after the trainee accumulates 300 hours of experience, or when the supervisory appraiser deems them competent to complete an inspection on their own, whichever is longer. For applicants upgrading from residential to general certification, there will be no minimum number of hours; the residential appraiser will be able to inspect properties unsupervised after the supervisory appraiser deems them competent to do so. These changes are currently working their way through the Commonwealth’s regulatory rulemaking process. Barring any unforeseen circumstances, the new rule should be finalized within the next year.
Q: Why was there no new edition of USPAP released at the beginning of 2006?
A: The Appraisal Standards Board (ASB) of the Appraisal Foundation has announced the 2005 USPAP will remain in effect until June 30, 2006. On July 1, 2006 the 2006 edition of USPAP will take effect, and it will remain effective until December 31, 2007. Starting in 2008, it is anticipated the ASB will adopt a two-year cycle for USPAP updates.
Q: Must appraisal certifications be available for public inspection at appraisal companies?
A: At the top of each appraisal certificate, it states, “Display this certificate prominently.” There is no additional requirement in the Real Estate Appraisers Certification Act or the Board’s Rules and Regulations regarding the display or public availability of appraisal certificates.
Q: A real estate licensee may receive a phone call from an appraiser requesting information on sales that they have already closed, specifically asking about seller concessions. Why is this?
A: In many cases, appraisers need more information than is typically available in the MLS or property data sheet, especially regarding seller concessions and personal property inclusions. Many appraisal clients require appraisers to personally confirm details of comparable sales with a party to the transaction.
Q: Has the Board approved online education for appraisers in Pennsylvania?
A: Yes. In late 2005, the Board approved the concept of online education for appraisers. Education providers are required to obtain Board approval for individual courses. The Board office is currently in the process of reviewing a large number of course approval applications; this review should be completed within the next 30 days. Before taking any course, certificate holders should confirm the approval status of the course with the education provider. Unapproved courses will not be accepted and claiming an unapproved course for continuing education credit could result in disciplinary action being taken against a certificate holder.
Q: May a Certified Appraiser charge a contingency fee when acting as a consultant?
A: If an opinion of value is developed as part of the assignment, USPAP prohibits an appraiser from charging a fee that is contingent upon the amount of value, a direction in value, the attainment of a stipulated result, or the occurrence of a subsequent event. However, if the assignment is purely a consulting assignment, and no opinion of value is developed or reported, then this activity is outside the scope of appraisal practice, and is not subject to the requirements of USPAP. When performing assignments outside of appraisal practice, an individual may accept a contingent fee. However, if the individual develops a value opinion as part of the assignment, then USPAP applies, and contingent compensation is prohibited.
Q: Who is responsible for writing the examination for certification? It seems as though material is included on the exams that is not covered in the classroom.
A: The certification examinations are written by the Appraiser Qualifications Board (AQB), which is part of The Appraisal Foundation, a non-profit educational foundation headquartered in Washington, DC. The AQB maintains total and exclusive control over examination content.
Q: Does the Board have an opinion on making it mandatory that every lender have a certified appraiser on staff that must sign off on every appraisal and take responsibility for approving a bad appraisal?
A: The Board does not have the authority to make or enforce such a requirement.