Appraiser Licensure Changes
Appraiser Licensure Changes
Summary of the 2008 Real Property Appraiser Qualification Criteria
The Real Property Appraiser Qualification Criteria was revised in February of 2004. However, the revisions will not be implemented until January 1, 2008. That is almost four years later. The reason for the delayed implementation is due to the possible impact it could have on regulators and education providers. In this article, we will discuss all the changes that will be implemented.
Education
The biggest change with the new 2008 Criteria is the amount of education. There are now college level course requirements to become a Certified Residential and Certified General Appraiser. The classroom hours for all three levels of appraiser licensure have increased significantly, and there are specific topic areas that have a minimum number of classroom hours that must be covered.
College Course Requirements
In the past, there were no requirements to have a college education to become an appraiser. For the first time, there are college level course requirements for certified classifications. Below you will find the college education required for each classification:
Certified Residential: You can meet the college requirements in one of two ways for this type of Appraiser:
1. Associate degree or higher in any field of study
OR
2. Twenty – One semester credit hours covering the following subjects: English Composition, Principles of economics(Micro or Macro), Finance, Algebra, Geometry or higher mathematics, statistics, Introduction to computers: word processing/spreadsheets, and business or Real Estate Law
Certified General: You can meet the college requirements in one of two ways for this type of Appraiser:
1. Bachelors degree of higher in any field of study
OR
2. Thirty semester credit hours in the following subject: English Composition, Principles of Economics (micro or macro), Finance, Algebra, Geometry or higher mathematics, statistics, introduction to computers: Word Processing/Spreadsheets, and Business or Real Estate Law.
Classroom Hours
The classroom hours for licensure have increased for all three classifications. The Trainee (Appraiser Apprentice) reamins unchanged at 75 hours. The State Licensed appraiser has increased from 90 hours to 150 hours. The State Certified Residential appraiser has increased from 120 hours to 200 hours. The State Certified General appraiser has increased from 180 hours to 300 hours.
Required Core Curriculum
At the present time, individuals seeking to become an appraiser may select courses covering material in topic areas approved by the SC Real Estate Appraisers Board in the licensing or certification categories designated as L-1, L-2, L-3, CR, C-1, C-2, or C-3 Level Courses. Because not all states subscribed to this “grid level” system of organizing suitable content topic areas there has been considerable inconsistencies in the education received by appraisers holding similar credentials in other jurisdictions. The emphasis in other states has been on the total number of classroom hours, rather than on the amount of coverage in specific topics.
The AQB has now created a Required Core Curriculum for each appraiser classification. Examples of Required Core Curriculum modules include Basic Appraisal Principles, Basic Appraisal Procedures, Residential Market Analysis and Highest and Best Use, and the National USPAP Course. Accompanying the listing of modules is the specific number of classroom hours for each module. It is important to note that these modules are subject matter areas and not necessarily the names of courses. The AQB has issued information in the form of a publication to assist in understanding the expected content coverage under each module. The publication is entitled, A Guide For Understanding The 2008 Real Property Appraiser Qualification Criteria, and can be obtained at The Appraisal Foundation website:
www.appraisalfoundation.org
Now, there is a certain amount of core curriculum that is required for each classification. These core curriculums are referred to as modules. Examples of these modules are Basic Appraisal Principles, Basic Appraisal Procedures, Residential Market Analysis and highest and best use, and the National USPAP Course.
Experience
The only change with the experience that a licensed Residential Real Property Appraiser must have is that instead of just having to complete 2000 hours, it must be completed within12 months.
The South Carolina Real Estate Appraisers Board has adopted the “Segmented Scenario” in implementing the Criteria Changes. Segmented Scenario The requirements are broken down into three segments (or components): Education, Experience, and Examination. An applicant would have to meet the Criteria in effect at the time he or she completes a particular component or segment. Any component completed prior to January 1, 2008, would satisfy the current Criteria, while any component not completed by January 1, 2008, would have to conform to the new Criteria. For example, an applicant for a Certified General designation completes all of the currently required 180 hours of qualifying education and passes the State Certified General examination in 2007, but does not possess the required 30 months and 3,000 hours of experience. Since the applicant completed the education and examination prior to January 1, 2008, he or she would be deemed to have satisfied those two components. Therefore, the only component which the applicant would have to satisfy under the new Criteria would be experience (which, in this case, is no different than the current Criteria).
Please Note: The question that has been raised on several occasions as to the affect the new Criteria will have on current licensed and certified appraisers in South Carolina . As long as licensed and certified appraisers maintain their current credential, the Criteria changes should not have any effect on these appraisers. Those impacted will be:
1. Individuals entering the profession;
2. Individuals seeking a different credential within South Carolina ;
3. Possibly those seeking a credential in another jurisdiction through reciprocity.