43-23.3 Real Estate Appraisers

Download pdf

Loading PDF...


CHAPTER 43-23.3REAL ESTATE APPRAISERS43-23.3-01. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Analysis&quot; means a study of real estate other than estimating value.2.&quot;Appraisal&quot; means an analysis, opinion, or conclusion relating to the nature, quality,<br>value, or utility of specified interests in, or aspects of, real estate. An appraisal may<br>be classified by subject matter into either a valuation or an analysis.3.&quot;Appraisal assignment&quot; means an engagement for which a person is employed or<br>retained to act, or would be perceived by the public as acting, as a disinterested<br>party in rendering an unbiased supportable appraisal.4.&quot;Appraisal foundation&quot; means the appraisal foundation incorporated as an Illinois<br>corporation on November 30, 1987.5.&quot;Appraisal report&quot; means any communication of an appraisal.6.&quot;Appraisal subcommittee&quot; means the appraisal subcommittee of the federal financial<br>institutions examination council.7.&quot;Appraiser&quot; means a person who engages in appraisal activity for valuable<br>consideration.8.&quot;Apprentice appraiser&quot; means a person who holds a valid permit as an apprentice<br>appraiser.9.&quot;Board&quot; means the North Dakota real estate appraiser qualifications and ethics<br>board.10.&quot;Certified appraiser&quot; means a person who holds a valid permit as a certified<br>residential or general appraiser.11.&quot;Certified general appraiser&quot; means a person who holds a valid permit as a certified<br>general appraiser.12.&quot;Certified residential appraiser&quot; means a person who holds a valid permit as a<br>certified residential appraiser.13.&quot;Licensed appraiser&quot; means a person who holds a valid permit as a licensed<br>appraiser.14.&quot;Permit&quot; means the document issued by the board, verifying that the person named<br>on the permit has fulfilled all prerequisites to practice either as an apprentice<br>appraiser, a licensed appraiser, or a certified appraiser.15.&quot;Real estate&quot; means an identified parcel or tract of land including improvements, and<br>interests, benefits, and rights inherent in the ownership of real estate.16.&quot;Uniform standards of professional appraisal practices&quot; means standards of<br>appraisal promulgated by the appraisal foundation as adopted and modified by the<br>board. The standards adopted and modified by the board must meet the minimum<br>standards adopted by the appraisal foundation.17.&quot;Valuation&quot; means an estimate of the value of real estate or real property.Page No. 143-23.3-02. North Dakota real estate appraiser qualifications and ethics board. Thegovernor shall appoint the board. The board must consist of five members. One member must<br>represent the public, one member must represent the financial industry, and three members<br>must be appraisers, one of which is experienced in the appraisal of agricultural property. The<br>appraiser members first appointed to the board must be members in good standing of an<br>organization belonging to the appraisal foundation or have the equivalent of five years of full-time<br>experience as an appraiser in this state. Thereafter, each appraiser member of the board must<br>be either a licensed or certified appraiser, but at least two of the appraiser members must be<br>certified appraisers. The governor shall appoint the financial industry representative from a list of<br>qualified individuals submitted by the North Dakota bankers associations, the North Dakota credit<br>union league, and the North Dakota league of savings institutions. Each of these entities may<br>submit two names of candidates to the governor. The public member of the board may not be<br>engaged in the practice of real estate appraising. The term of each member is five years, except<br>that of the members first appointed, one shall serve for five years, one shall serve for four years,<br>one shall serve for three years, one shall serve for two years, and one shall serve for one year. A<br>member of the board continues to hold office until the appointment and qualification of a<br>successor. The governor may remove a board member for cause. The members annually shall<br>elect a chairman from among the members. At least two of the members who are appraiser<br>members must be present in order for a quorum to exist. The members are entitled to receive<br>compensation for each day actually engaged in the service of the board and actual and<br>necessary traveling expenses at the rate allowed other state officials, paid from the fees collected<br>by the board.43-23.3-03. Powers and duties of the board.1.The board, or its designated representative, shall:a.Define apprentice appraiser, licensed appraiser, certified residential appraiser,<br>and certified general appraiser, determine the type of educational experience,<br>appraisal experience, and equivalent experience that meet the requirements of<br>this chapter, and establish application procedures.b.Establish examination specifications for each category of licensed and certified<br>appraiser and administer examinations.c.Approve or disapprove applications for permits, issue pocket cards and permits<br>to practice, and maintain a registry of the names and addresses of individuals<br>holding permits.d.Discipline permittees.e.Hold meetings, hearings, and examinations in places and at times as it<br>designates and maintain records of board activities.f.Adopt rules, pursuant to chapter 28-32, necessary to implement this chapter or<br>carry out the requirements imposed by federal law.2.The board, or its designated representative, may:a.Promote research and conduct studies relative to real estate appraising and<br>sponsor educational activities.b.Contract for services necessary to carry out this chapter.c.Enter into reciprocity agreements with other states.3.The board or its authorized representative may investigate and gather evidence<br>concerning alleged violations of the provisions of chapter 43-23.3 or the rules of the<br>board. Board investigative files are exempt records as defined in subsection 5 ofPage No. 2section 44-04-17.1, but a copy of the investigative file must be provided to a licensee<br>if a complaint is filed against the licensee by the board.43-23.3-03.1. Public records exception. Documents obtained by the board as part ofthe licensing, investigation, or disciplinary process which are deemed confidential under the<br>uniform standards of professional appraisal practices are exempt records as defined in<br>subsection 5 of section 44-04-17.1.43-23.3-04.Permit required - Exemptions.Except as provided in this section, aperson may not directly or indirectly engage in, advertise, conduct the business of, or act in any<br>capacity as an apprentice, licensed, or certified appraiser without first obtaining a permit as<br>provided in this chapter. An appraiser, apprenticed, licensed, or certified in another state may<br>not engage in, advertise, conduct the business of, or act in any capacity as an appraiser in this<br>state without first obtaining a temporary permit under section 43-23.3-11. This chapter does not<br>apply to a licensed real estate broker or salesperson who, in the ordinary course of business,<br>gives an opinion to a potential seller or third party as to the recommended listing price of real<br>estate or an opinion to a potential purchaser or third party as to the recommended purchase price<br>of real estate. However, the opinion as to the listing price or the purchase price may not be<br>referred to as an appraisal. This chapter does not apply to a person who, in the ordinary course<br>of business, gives an opinion of the value of real estate to that person's employer.43-23.3-04.1. Issuance of permits to applicants licensed or certified by anotherstate. The board may issue a permit to an applicant who is licensed or certified in good standing<br>by another state if the other state's requirements to be licensed or certified are at least<br>substantially equivalent to the requirements imposed by this state. If an applicant was licensed<br>or certified by another state by reciprocity or a similar process, the requirements of the state in<br>which the applicant was originally licensed or certified must be at least substantially equivalent to<br>the requirements imposed by this state.43-23.3-05. Permit process. An individual who desires to engage in the practice of realestate appraisal shall apply for a permit on forms prescribed by the board and submit the<br>required fee.43-23.3-06.Classes of permits.The board may issue apprentice, license, andcertification permits for appraisers.1.An apprentice appraiser must meet the minimum requirements established by the<br>board for a permit. An apprentice appraiser may only assist a licensed or a certified<br>appraiser in the performance of an appraisal assignment.2.A licensed appraiser must meet the minimum requirements established by the board<br>for a permit.3.A certified residential appraiser must meet the minimum requirements established<br>by the board for a permit. The board's requirements may not exceed the appraisal<br>foundation qualification criteria. The board shall review periodically the appraisal<br>foundation appraisal qualification criteria to ensure the board's rules do not exceed<br>the appraisal qualification criteria.4.A certified general appraiser must meet the minimum requirements established by<br>the board for a permit. The board's requirements may not exceed the appraisal<br>foundation qualification criteria. The board shall review periodically the appraisal<br>foundation appraisal qualification criteria to ensure the board's rules do not exceed<br>the appraisal qualification criteria.43-23.3-07. Examination requirement. The board shall issue a permit to practice as alicensed, certified residential, or certified general appraiser to an individual who has<br>demonstrated the following qualifications through a written examination process:Page No. 31.Knowledge of technical terms used in or related to real estate appraising, appraisal<br>report writing, and economic concepts relating to real estate.2.Understanding of the principles of land economics, appraisal processes, and of<br>problems likely to be encountered in gathering, interpreting, and processing of data<br>in carrying out appraisal disciplines.3.Understanding of the uniform standards of professional appraisal practices.4.Knowledge of theories of depreciation, cost estimating, methods of capitalization, the<br>mathematics of real estate appraisal, and other principles and procedures<br>determined by the board to be appropriate for the appreciable classification of<br>permit.5.Basic understanding of real estate law.6.Understanding of the types of misconduct for which disciplinary proceedings may be<br>initiated against an appraiser.43-23.3-08. Application prerequisites. An applicant for a permit as an apprentice,licensed, certified residential, or certified general appraiser must successfully complete the<br>education requirements established by the board.43-23.3-09. Appraisal experience. The board may issue a permit to practice as alicensed, certified residential, or certified general appraiser to an individual who possesses the<br>minimum experience requirements established by the board.The board may require anapplicant to furnish, under oath, a detailed listing of the appraisal reports or file memoranda for<br>which appraisal experience is claimed by the applicant. Upon request, the applicant shall provide<br>to the board copies of appraisal reports or other documents that the applicant has assisted in<br>preparing.43-23.3-10. Expiration of permit. Permits expire on December thirty-first of each year.The expiration date of the permit must appear on the permit and no other notice of its expiration<br>need be given to the permittee.43-23.3-11. Temporary permit.1.The board may issue a temporary permit to an applicant who is apprenticed,<br>licensed, or certified in good standing by another state. The board may deny a<br>temporary permit to an applicant whose permit, apprenticeship, license, or<br>certification was revoked, suspended, or otherwise subjected to discipline by any<br>state or jurisdiction.2.An applicant for a temporary permit shall file with the board a designation in writing<br>which appoints the chairman of the board to act as the applicant's licensed agent<br>upon whom all judicial and other process or legal notices directed to the applicant<br>may be served. Copies of the appointment, certified by the chairman of the board,<br>may be received in evidence in any proceeding and must be given the same effect<br>as the original. In the written designation, the applicant shall agree that any lawful<br>process against that individual which is served upon the agent is of the same legal<br>force as if served upon the applicant, and that the authority of the agent continues in<br>force as long as any liability of the applicant remains outstanding in this state. Upon<br>the receipt of any process or notice, the chairman shall mail a copy of the process or<br>notice by certified mail, return receipt requested, to the last-known business address<br>of the applicant.3.The board may issue a temporary permit to an applicant if the applicant agrees in<br>writing to abide by this chapter and to submit to the jurisdiction of the board.Page No. 44.The board shall issue a temporary permit to an applicant who has complied with this<br>section.The board may require the applicant to pay a fee.The board shalldetermine the amount of the fee and the duration of the temporary permit.43-23.3-12. Permit renewal. To renew a permit, the permittee shall apply to the boardand pay the required fee. With the application for renewal, the appraiser shall present evidence<br>of having completed the continuing education requirements for renewal. The board may adopt<br>rules to allow permits to be assigned to inactive status. Permits assigned to inactive status are<br>subject to disciplinary action and activation of an inactive permit may be subject to a denial by the<br>board.43-23.3-13.Principal place of business.A permittee shall notify the board of theaddress of the permittee's place of business. Within twenty days of a change in the address of<br>the place of business, the permittee shall give written notification of the change to the board and<br>pay the change of address fee.43-23.3-14. Permit number displayed with signature. A permittee shall place thepermittee's permit number adjacent to the permittee's signature on an appraisal report, contract,<br>or other writing used by the permittee in conducting appraisal activities.43-23.3-15.Use of designation.The terms &quot;apprentice appraiser&quot;, &quot;licensedappraiser&quot;, &quot;certified residential appraiser&quot;, &quot;certified general appraiser&quot;, and &quot;certified appraiser&quot;<br>may only be used to refer to an individual who holds a permit under this chapter and may not be<br>used following or immediately in connection with the name or signature of any other individual or<br>person or in a manner that might be interpreted as referring to any other individual or person<br>other than the individual who holds the permit. This section does not prohibit a licensed or<br>certified appraiser from signing an appraisal report on behalf of a corporation, limited liability<br>company, partnership, or firm.43-23.3-16. Action for fee. No claim for relief may be instituted in any court of this statefor compensation for an act done or service rendered as an apprentice, licensed, or certified<br>appraiser unless the appraiser held a permit to practice under this chapter at the time of offering<br>to perform the act or service or procuring a promise to contract for the payment of compensation<br>for a contemplated act or service as an apprentice, licensed, or certified appraiser.43-23.3-17. Retention of records. An apprentice, licensed, or certified appraiser shallretain, for at least five years, originals or copies of all written contracts engaging the permittee's<br>services for appraisal work and all reports and supporting data assembled and formulated by the<br>permittee in preparing the reports.The period for retention of records applies to eachengagement of the services of the permittee and commences upon the date of the submission of<br>the appraisal to the client unless, within that period, the permittee is notified that the appraisal<br>report is involved in litigation, in which event the period for the retention of records commences<br>on the date of the final disposition of the litigation.The permittee shall make available forinspection and copying by the board on reasonable notice all records required to be maintained.43-23.3-18. Standards of professional appraisal practice. An apprentice, licensed, orcertified appraiser shall comply with the standards of professional appraisal practice and ethical<br>rules specified by the uniform standards of professional appraisal practice and all other standards<br>and ethical requirements adopted by the appraisal foundation.43-23.3-19. Continuing education. The board shall adopt rules for the implementationof continuing education requirements to assure that permit renewal applicants have current<br>knowledge of appraisal theories, practices, and techniques that provide a high degree of service<br>and protection to the public. The rules must establish:1.Policies and procedures for obtaining board approval of courses of instruction.2.Standards, policies, and procedures to be applied by the board in evaluating an<br>applicant's claims of equivalency.Page No. 53.Standards, monitoring methods, and systems for recording attendance by course<br>sponsors.43-23.3-20. Fees. The board may charge apprentice, licensed, and certified permitteesand educational providers or promoters reasonable fees to help offset costs of operating the<br>board. The board shall establish the charges by rule.43-23.3-21.Disposition of fees.The board, or its designated representative, shalldeposit all fees collected by the board in a separate account. Disbursements from the account<br>may not exceed the moneys credited to it. The board's designated representative shall review<br>and pay appropriate charges against the account for services provided to the board.43-23.3-22. Disciplinary proceedings.1.The board may deny an application for, refuse to renew, suspend, or revoke a<br>permit, impose a monetary fine, or issue a letter of reprimand, when the applicant or<br>permittee has:a.Procured or attempted to procure a permit by knowingly making a false<br>statement,submittingfalseinformation,refusingtoprovidecompleteinformation in response to a question in an application for certification, or<br>through fraud or misrepresentation.b.Failed to meet the minimum qualifications established under this chapter.c.Paid money other than provided for by this chapter to any member or employee<br>of the board to procure a permit.d.Been convicted, including a conviction based upon a plea of guilty or<br>nolo contendere, of a felony or of a crime that is substantially related to the<br>qualifications, functions, and duties of a person developing and communicating<br>appraisals to others.e.Performed an act involving dishonesty, fraud, or misrepresentation with the<br>intent to benefit substantially that person or another person, or with the intent to<br>injure substantially another person.f.Violated any standard for the development or communication of appraisals as<br>provided in this chapter.g.Failed or refused without good cause to exercise reasonable diligence in<br>developing an appraisal, preparing an appraisal report, or communicating an<br>appraisal.h.Acted with gross negligence or incompetence in developing an appraisal, in<br>preparing an appraisal report, or in communicating an appraisal.i.Willfully violated this chapter or rules of the board.j.Accepted an appraisal assignment when the employment is contingent upon<br>the reporting of a predetermined estimate, analysis, or opinion, or if the fee is<br>contingent upon the opinion, conclusion, or valuation reached, or upon the<br>consequences resulting from the appraisal assignment.k.Violated the confidential nature of governmental records to which the person<br>gained access through employment or engagement as an appraiser by a<br>governmental agency.Page No. 6l.Had entry of a civil judgment against the person on grounds of fraud,<br>misrepresentation, or deceit in the making of an appraisal.2.In a disciplinary proceeding based upon a civil judgment, the permittee must be<br>afforded an opportunity to present matters in mitigation and extenuation, but may not<br>collaterally attack the civil judgment.43-23.3-23. Penalties. A person acting or purporting to act as an apprentice, licensed,or certified appraiser without holding a permit to practice is guilty of a class A misdemeanor. An<br>appraiser, apprenticed, licensed, or certified in another state, who engages in, advertises,<br>conducts the business of, or acts in any capacity as an appraiser without first obtaining a<br>temporary permit is guilty of a class A misdemeanor. In addition to any other penalty, a person<br>receiving any money or other compensation in violation of this chapter is subject to a penalty of<br>not less than the amount of the sum of money received and not more than three times the sum in<br>the discretion of the court.Page No. 7Document Outlinechapter 43-23.3 real estate appraisers