Texas Register
(24 TexReg 4481). The review is in
accordance with the Appropriations Act of 1997, HB 1, Article IX, Section
167.
Renil C. Linér, Commissioner, Texas Appraiser Licensing and Certification
Board, has determined that for the first five-year period the sections are
in effect there will be no fiscal implications for state or local government.
Mr. Linér also has determined that for each year of the first five
years the sections are in effect the public benefit anticipated as a result
of enforcing the sections will be clarification of existing rules and the
elimination of unnecessary and dated language. There will be no effect on
small businesses. There is no anticipated economic cost to persons who are
required to comply with the sections as proposed.
Comments on the proposal may be submitted Renil C. Linér, Commissioner,
Texas Appraiser Licensing and Certification Board, P.O. Box 12188 Austin,
Texas 78711-2188.
The amendments are proposed under the Powers and Duties of the
Board, Texas Appraiser Licensing and Certification Act, §5, (a) (1),
(2), (3), and (7) (Texas Civil Statutes, Article 6573a.2), and §14(c),
Certificate and License Renewal.
Section 9, Licensing and Certification Requirements; §9A , Alternate
Methods of Licensing; §14, Certificate and Licence Renewal, and §17,
Appraiser Trainees are affected by the proposal.
§153.1.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1)
Act - The Texas Appraiser Licensing and Certification Act.
(2)
Analysis - The act or process of providing information,
recommendations or conclusions on diversified problems in real estate other
than estimating value.
(3)
Applicant - A person seeking to be certified or licensed
as an appraiser or approved as an appraiser trainee.
(4)
Appraisal - The act or process of estimating value
or an estimate of value.
(5)
Appraisal Standards Board - The Appraisal Standards
Board (ASB) of the Appraisal Foundation or its successor.
(6)
Appraisal Subcommittee - The Appraisal Subcommittee
of the Federal Financial Institutions Examination Council or its successor.
(7)
Appraiser Qualifications Board - The Appraiser Qualifications
Board (AQB) of the Appraisal Foundation or its successor.
(8)
Appraiser trainee - A person approved by the Texas
Appraiser Licensing and Certification Board to perform appraisals or appraiser
services under the direction of a sponsoring certified appraiser.
(9)
Board - The Texas Appraiser Licensing and Certification
Board.
(10)
Classroom hour - Fifty minutes of actual classroom
session time.
(11)
Client - Any party for whom an appraiser performs
a service.
(12)
College - A junior or community college, senior college,
university, or any other postsecondary educational institution established
by the Texas Legislature, which is accredited by the Commission on Colleges
of the Southern Association of Colleges and Schools or like commissions of
other regional accrediting associations, or is a candidate for such accreditation.
(13)
Commissioner - The commissioner of the Texas Appraiser
Licensing and Certification Board.
(14)
Complete appraisal - An appraisal performed without
invoking the departure
rule
[
provision
].
(15)
Core real estate courses - Courses which are specified
in the Real Estate Licensing Act, §7(a) (Texas Civil Statutes, Article
6573a) of which the Texas Appraiser Licensing and Certification Board (TALCB)
will accept principles of real estate, real estate appraisal, real estate
law, real estate finance, real estate math, property management, and real
estate investments for partially meeting the educational requirements for
appraiser certification or licensure.
(16)
Council - The Federal Financial Institutions Examination
Council (FFIEC) or its successor.
(17)
Departure
rule
[
provision
]
- A limited departure from a requirement of the Uniform Standards of Professional
Appraisal Practice that is: classified as a specific guideline rather than
a binding requirement, and permitted only if the result of the departure is
not confusing or misleading and the specific guideline from which the appraiser
departs is reported.
(18)
Distance education - Any educational process based
on the geographical separation of learner and instructor (e.g., CD-ROM, online
learning, correspondence courses, video conferencing, etc.), that provides
interaction between the learner and instructor and includes testing.
(19)
Evaluation - An estimate of value that is not more
than a limited appraisal, may be presented in a format that is less than a
self-contained report, is prepared by a certified or licensed real estate
appraiser or other lawfully authorized real estate professional, and includes
an estimate of a property's market value, a certification and limiting conditions,
and an analysis or the supporting information used in forming the estimate
of value.
(20)
Feasibility analysis - A study of the cost-benefit
relationship of an economic endeavor.
(21)
Federal financial institution regulatory agency -
The Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, the National Credit Union Administration, or
the successors of any of those agencies.
(22)
Federally related transaction - Any real estate-related
transaction engaged in, contracted for, or regulated by a federal financial
institution regulatory agency or the Resolution Trust Corporation that requires
the services of an appraiser.
(23)
Foundation - The Appraisal Foundation or its successor.
(24)
Fundamental real estate appraisal course - Basic
real estate appraisal courses which include the following topics, but are
not limited to, principles of real estate appraisal, real estate appraisal
practice, real estate appraisal procedures, highest and best use, report writing,
rural appraisal, appraisal review, residential appraisal/valuation, agricultural
property appraisal, sales comparison approach, cost approach, income capitalization,
discounted cash flow analysis. real estate appraisal case studies, commercial
appraisal, non-residential real estate appraisal, and other courses specifically
determined by the board.
(25)
Limited appraisal - An appraisal in which the departure
rule
[
provision
] is invoked.
(26)
Non-residential course - A course with emphasis on
the appraisal of non-residential real estate properties which include, but
are not limited to, income capitalization, income property, commercial appraisal,
rural appraisal, agricultural property appraisal, discounted cash flow analysis,
subdivision analysis and valuation, or other courses specifically determined
by the board.
(27)
Nonresidential property - A property which does not
conform to the definition of residential property.
(28)
Person - An individual.
(29)
Personal property - Identifiable portable and tangible
objects which are considered by the general public as being "personal," for
example, furnishings, artwork, antiques, gems and jewelry collectibles, machinery
and equipment.
(30)
Provisional license - A license issued under the
Texas Appraiser Licensing and Certification Act, §9A, and §153.16
of this title (relating to Provisional License), to individuals who have met
the educational and examination requirements for licensing but who have not
met the experience requirements.
(31)
Real estate - An identified parcel or tract of land,
including improvements, if any.
(32)
Real estate-related financial transaction - Any transaction
involving: the sale, lease, purchase, investment in, or exchange of real property,
including an interest in property or the financing of property; the financing
of real property or an interest in real property; or the use of real property
or an interest in real property as security for a loan or investment including
a mortgage-backed security.
(33)
Real property - The interests, benefits, and rights
inherent in the ownership of real estate.
(34)
Report - Any communication, written or oral, of an
appraisal, review, or analysis; the document that is transmitted to the client
upon completion of an assignment.
(35)
Residential property - Property that consists of
at least one but not more than four residential units.
(36)
Review - The act or process of critically studying
a report prepared by another.
(37)
Self-contained report - A report that includes sufficient
information to indicate that the appraiser has complied with the requirements
of Standards 1 and 2 of the Uniform Standards of Professional Appraisal Practice
and that describes all data necessary for the user of the appraisal to follow
the conclusions of the appraisal without referring to additional materials.
(38)
State certified real estate appraiser - A person
certified under the Texas Appraiser Licensing and Certification Act.
(39)
State licensed real estate appraiser - A person licensed
under the Texas Appraiser Licensing and Certification Act.
§153.9.Applications.
(a)
A person desiring to be certified or licensed as an appraiser
or approved as an appraiser trainee or registered as a temporary non-resident
appraiser shall file an application using forms prescribed by the board. The
commissioner shall review the application and make a recommendation for final
action to the board. The board may decline to accept for filing an application
which is materially incomplete or which is not accompanied by the appropriate
fee. Except as provided by the Act, the board may not grant a certification,
license or approval of trainee status to an applicant unless the applicant:
(1)
pays the fees requested by the board;
(2)
satisfies any experience and education requirements
established by the Act or by these sections;
(3)
successfully completes any qualifying examination
prescribed by the board; and
(4)
provides all supporting documentation or information
requested by the board in connection with the application.
(b)
The Texas Appraiser Licensing and Certification Board adopts
by reference the following forms approved by the board and published and available
from the board, P.O. Box 12188, Austin, Texas 78711-2188:
(1)
TALCB Form 1.5, Application for Appraiser Certification
or Licensing;
(2)
TALCB Form 2.2, Appraisal Experience Affidavit;
(3)
TALCB Form 3.2, Appraisal Experience Log;
(4)
TALCB Form 4.4, Application for Approval as an Appraiser
Trainee;
(5)
TALCB Form 5.0, Request for Course Approval and Renewal;
(6)
TALCB Form 6.3, Temporary Non-Resident Appraiser Registration;
(7)
TALCB Form 8.3, Change of Office Address;
(8)
TALCB Form 9.1, Addition or Termination of Appraiser
Trainee Sponsorship; and
(9)
TALCB Form 10.0, Supplement to Application for Appraiser
Certification or Licensing by Reciprocity.
(c)
An application may be considered void and subject to no
further evaluation or processing if an applicant fails to provide information
or documentation within 60 days after the board makes written request for
the information or documentation.
(d)
A certification, license, or appraiser trainee approval
is valid for the term for which it is issued by the board unless suspended
or revoked for cause and unless revoked, may be renewed in accordance with
the requirements of §153.17 of this title (relating to
Renewal of
Certification, License or Trainee Approval
[
Renewals and Continuing
Education
]).
(e)
The board may deny certification, licensing, or approval
as an appraiser trainee to an applicant who fails to satisfy the board as
to the applicant's honesty, trustworthiness, and integrity.
(f)
An application shall be considered void and subject to
no further evaluation or processing if the applicant fails to provide acceptable
documentation that all requirements for licensure, certification, or approval
as an appraiser trainee have been met within one year of the date the application
was received by the board, or within one year of the date of the applicant's
last examination, whichever occurs later.
§153.10.Date of Licensure.
(a)
Applicants are not certified
,
[
or
]
licensed
, or authorized, nor are their certifications, licenses or authorizations
renewed,
and may not hold themselves out as certified or licensed appraisers,
or as appraiser trainees or as registered temporary non-resident appraisers,
until the certificate, license, authorization or registration has been issued
by the board.
(b)
A certification, license, authorization or registration
is issued when all requirements have been met and it is entered into the board's
database and a certificate
,
[
or
] license
, or authorization
number has been assigned.
§153.13.Educational Requirements.
(a)
General Real Estate Appraiser Certification.
(1)
Applicants for General Real Estate Appraiser Certification
must have successfully completed 180 classroom hours in courses approved by
the board which meet the requirements as set out in subsections (d)-(n) of
this section.
(2)
Of these 180 classroom hours, at least 90 classroom
hours must be in fundamental real estate appraisal courses specifically approved
by the board, and at least 15 classroom hours must be in a class devoted to
the Uniform Standards of Professional Appraisal Practice completed within
two years prior to submission of the application. At least 30 classroom hours
of the fundamental real estate appraisal course requirements must be in courses
with emphasis on the appraisal of non-residential properties.
(b)
Residential Real Estate Appraiser Certification.
(1)
Applicants for Residential Real Estate Appraiser Certification
must have successfully completed 120 classroom hours in courses approved by
the board which meet the requirements as set out in subsections (d)-(n) of
this section.
(2)
Of these 120 classroom hours, at least 60 classroom
hours must be in fundamental real estate appraisal courses specifically approved
by the board, and at least 15 classroom hours must be in a class devoted to
the Uniform Standards of Professional Appraisal Practice completed within
two years prior to submission of the application.
(c)
Real Estate Appraiser License or Provisional License.
(1)
Applicants for a Real Estate Appraiser License or Provisional
License must have successfully completed 90 classroom hours in courses approved
by the board which meet the requirements as set out in subsections (d)-(n)
of this section.
(2)
Of these90 classroom hours, at least 40 classroom
hours must be in fundamental real estate appraisal courses specifically approved
by the board, and at least 15 classroom hours must be in a class devoted to
the Uniform Standards of Professional Appraisal Practice completed within
two years prior to submission of the application.
(d)
The board may accept a course of study to satisfy educational
requirements for certification or licensing established by the Act or by this
section if the board has approved the course and determined it to be a course
related to real estate appraisal.
(e)
The board may approve courses submitted or to be submitted
by applicants for appraiser certification upon a determination of the board
that:
(1)
the subject matter of the course was appraisal related;
provided that core real estate courses set forth in Texas Civil Statutes,
Article 6573a, §7(a)
(1) and (2)
[
(1)-(4), (6), (8) and
(9)
] shall be deemed appraisal-related;
(2)
the course was offered by an accredited college or
university, a school accredited by a real estate or appraiser certification
or licensing agency of this or another state, a professional trade association,
or a service-related school such as the United States Armed Forces Institute;
or the course was offered or approved by a federal agency or commission or
by an agency of this state;
(3)
the applicant [
either
] obtained credit
[
by challenge examination as permitted by the Act, §24(d), or
]
received in a classroom presentation the hours of instruction for which credit
was given and successfully completed a final examination for course credit
except as specified in subsection (k) of this section (relating to distance
education
; and
(4)
the course was at least 15 classroom hours in duration,
which includes time devoted to examinations which are considered to be part
of the course.
(f)
For the purposes of this section, a professional trade
association is a nonprofit, cooperative, and voluntarily joined association
of business or professional competitors that is designed to assist its members
and its industry or profession in dealing with mutual business or professional
problems and in promoting the common interest of its members.
(g)
The board may require an applicant to furnish materials
such as course outlines, syllabi, course descriptions or official transcripts
to verify course content or credit.
(h)
Course providers may obtain prior approval of a course
by filing form TALCB 5.0, or its successor, and submitting the following items
listed in paragraphs (1) - (3) of this subsection to the board:
(1)
a copy of any textbook, course outline, syllabus, or other
written material used in the course;
(2)
a copy of the question and answers to the written
final examination
, with an answer key or the correct answers indicated
; and
(3)
such prior approval of courses will remain in effect
for a period of two years after the date of approval.
(4)
sample course completion certificate
or other evidence of successful completion of the course.
(i)
The board shall accept classroom hour units of instruction
as shown on the transcript or other document evidencing course credit if the
transcript reflects the actual hours of instruction the student received.
Fifteen classroom hours of credit may be awarded for one semester hour of
credit from an acceptable provider. Ten classroom hours of credit may be awarded
for one quarter hour of credit from an acceptable provider. Ten classroom
hours of credit may be awarded for each continuing education credit from an
acceptable provider. The board may not accept courses repeated within three
years of the original offering unless the subject matter has changed significantly.
(j)
Teachers of appraisal courses may receive credit for meeting
the educational classroom hours requirement. Teaching of appraisal courses
is not acceptable for meeting the experience requirement. Applicants must
provide documentation as requested by the board to establish credit for teaching
appraisal courses. Education credit for teaching a particular course may be
claimed only once in each three year period.
(k)
Distance education courses may be acceptable to meet the
classroom hour requirement, or its equivalent, provided that the course is
approved by the board and meets one of the following conditions listed in
paragraphs (1) - (3) of this subsection.
(1)
the course must have been presented by an accredited college
or university that offers distance education programs in other disciplines,
and
(A)
the person has successfully completed a written examination
administered to the positively identified person at a location and by an official
approved by the college or university; and
(B)
the content and length of the course must meet the requirements
for real estate appraisal related courses established by this chapter and
by the Appraiser Qualifications Board of the Appraisal Foundation and is equivalent
to a minimum of 15 classroom hours.
(2)
The course has received the American Council
on Education's Program on Non-collegiate Sponsored Instructions (PONSI) approval
for college credit, or has been approved under the AQB Course Approval program;
and
(A)
the person successfully completes a written examination
proctored by an official approved by the presenting entity;
(B)
the course meets the requirements for qualifying education
established by the Appraiser Qualifications Board and is equivalent to the
minimum of 15 classroom hours.
(3)
A minimum time equal to the number of hours of
credit must elapse from the date of course enrollment until its completion.
(l)
"In-house" education and training is not acceptable for
meeting the educational requirements for certification or licensure.
(m)
To be acceptable for meeting the Uniform Standards of Professional
Appraisal Practice (USPAP) educational requirement, a course must:
(1)
Be devoted to the Uniform Standards of Professional Appraisal
Practice (USPAP) with a minimum of 15 classroom hours of instruction;
(2)
Use the current edition of the Uniform Standards of
Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards
Board of the Appraisal Foundation;
(3)
Provide each student with his or her own permanent
copy of the current Uniform Standards of Professional Appraisal Practice (USPAP)
promulgated by the Appraisal Standards Board of the Appraisal Foundation;
and
(4)
utilize the "National Uniform Standards of Professional
Appraisal Practice (USPAP) Course" promulgated by the Appraisal Foundation,
including the Student Manual and Instructor Manual.
[
At a minimum
be based on the topics covered by the Appraisal Standards Board (ASB) Instructor's
Manual. This section does not limit additional USPAP topics to be covered
in the course
].
(n)
Courses specifically approved by the Appraiser Qualifications
Board (AQB) of the Appraisal Foundation
, provided that the educational
provider has notified the board of the AQB approval
.
§153.15.Experience Required for Certification or Licensing.
(a)
An applicant for general real estate appraiser certification
must provide evidence satisfactory to the board that the applicant possesses
the equivalent of [
2,000 (
] 3,000 [
, effective January 1,
1998)
] hours of appraisal experience over a minimum of [
two calendar
years (
] 30 months [
, effective January 1, 1998)
]. At least
[
1,000 (
] 1,500 [
, effective January 1, 1998)
] hours
of experience must be in non-residential work. Hours may be treated as cumulative
in order to achieve the necessary hours of appraisal experience.
(b)
An applicant for residential real estate appraiser certification
must provide evidence satisfactory to the board that the applicant possesses
the equivalent of [
2,000 (
] 2,500 [
, effective January 1,
1998)
] hours of appraisal experience over a minimum of [
two calendar
years (
] 24 months [
, effective January 1, 1998)
]. Hours
may be treated as cumulative in order to achieve the necessary hours of appraisal
experience.
(c)
An applicant for a state real estate appraiser license
must provide evidence satisfactory to the board that the applicant possesses
at least 2,000 hours of appraisal experience.
(d)
Experience credit shall be awarded by the board in accordance
with current criteria established by the Appraiser Qualifications Board and
in accordance with the provisions of the Act specifically relating to experience
requirements. Experience as a real estate lending officer of a financial institution
or as a real estate broker is acceptable experience if the experience includes
the actual performance or professional review of real estate appraisals. An
hour of experience means 60 minutes expended in one or more of the acceptable
appraisal experience areas. Calculation of the hours of experience must be
based solely on actual hours of experience. Any one or any combination of
the following categories may be acceptable for the completion of 1,000 hours
of credit each year.
(1)
Experience credit may be awarded for a fee or staff appraisal
when it is performed in accordance with the provisions of the Uniform Standards
of Professional Practice (USPAP) in effect at the time of the appraisal.
(2)
Experience credit may be awarded for an ad valorem
tax appraisal which:
(A)
uses techniques to value properties similar to those used
by appraisers; and
(B)
effectively uses the appraisal process. The components
of the mass appraisal process which may be awarded experience credit are the
highest and best use analysis, model specification (developing the model),
and model calibration (developing adjustments to the model). Other components
of the mass appraisal process, by themselves, are not eligible for experience
credit. Mass appraisals must be performed in accordance with Standards Rule
6 of USPAP.
(3)
Experience credit may be awarded for a review
appraisal when the appraiser performs review(s) of appraisals prepared by
either employees, associates or others, provided the appraisal report was
not signed by the review appraiser. Review appraisal credit shall not be awarded
when the report is signed as a review appraiser as this should appropriately
be considered as appraisal experience. Review appraisals must be performed
in accordance with Standards Rule 3 of USPAP.
(4)
Experience credit may be awarded for appraisal analysis.
A market analysis typically performed by a real estate broker or salesman
may be awarded experience credit when the analysis is prepared in conformity
with Standards Rules 1 and 2 of USPAP, and the individual can demonstrate
that he or she is using similar techniques as appraisers to value properties
and is effectively utilizing the appraisal process.
(5)
Experience credit may be granted for real estate counseling
(consulting) when it is appraisal related and performed in accordance with
Standards Rules 4 and 5 of USPAP.
(6)
Experience credit may be granted for highest and best
use analysis.
(7)
Experience credit may be awarded for a feasibility
analysis or feasibility study when it is performed in accordance with Standards
Rules 4 and 5 of USPAP.
(8)
Experience credit may be awarded for teaching appraisal
courses provided that an applicant may not receive more than 500 hours for
teaching appraisal courses each year. Actual classroom time may be claimed,
e.g. a three semester credit course equates to 45 hours of appraisal teaching
experience; a 15 classroom hour course equates to 15 hours of teaching experience.
[
Teaching an appraisal course may be used either for experience credit
or for education credit. Both experience credit and education credit may be
granted for teaching multiple sections of the same course; that is, credit
for teaching a particular section of a course may be applied toward education
credit and teaching another section of the same course may be applied toward
experience credit.
] Documentation shall be required. [
(Teaching
appraisal courses will not be accepted for meeting the experience requirement
effective January 1, 1998.)
]
(e)
Experience claimed by an applicant must be submitted on
forms promulgated by the board.
(1)
Experience claimed by an applicant shall be submitted upon
an Appraisal Experience Affidavit, TALCB Form 2.2 or its successor.
(2)
In exceptional situations, the board, at its discretion,
may accept other evidence of experience claimed by the applicant.
(3)
If a consumer complaint or peer complaint is brought
against the applicant alleging fraud, incompetency, or malpractice and the
board finds the complaint is reasonable or if the board determines other just
cause exists for requiring further information, the board may obtain the additional
information or documentation requested by:
(A)
requiring the applicant to complete a form, prescribed
by the board, that includes detailed listings of appraisal experience showing,
for each appraisal claimed by the applicant, the city or county where the
appraisal was performed, the type and description of the building or property
appraised, the approaches to value utilized in the appraisal, the actual number
of hours expended on the appraisal,
name of client,
and other information
determined to be appropriate by the board; or
(B)
engaging in other investigative research determined to
be appropriate by the board.
(4)
The board shall require verification of acceptable
experience of no more than 5.0% of the applications selected by random sampling.
The sampling shall be applied when a minimum of twenty approved applications
are received. The verification may be obtained by:
(A)
requiring the applicant to complete a form, prescribed
by the board, that includes detailed listings of appraisal experience showing,
for each appraisal claimed by the applicant, the city or county where the
appraisal was performed, the type and description of the building or property
appraised, the approaches to value utilized in the appraisal, the actual number
of hours expended on the appraisal,
name of client,
and other information
determined to be appropriate by the board;
(B)
engaging in other investigative research determined to
be appropriate by the board; and
(C)
allowing a minimum of 60 days after the date of selection
for the applicant to prepare any records.
(5)
Failure to comply with a request for verification
of experience is a violation of these rules and may result in denial of certification
or licensure, and any disciplinary action up to and including revocation.
(f)
An applicant may be granted experience credit only for
appraisals which:
(1)
comply with the Uniform Standards of Professional Appraisal
Practice (USPAP) in effect at the time of the appraisal;
(2)
are verifiable and supported by written reports or
file memoranda; and
(3)
were performed by the applicant at a time when the
applicant had legal authority to perform real property appraisals.
§153.16.Provisional License.
(a)
An applicant for appraiser trainee classification who can
demonstrate to the board that the applicant has, after completing the appropriate
educational requirements for a state licensed real estate appraiser under
§153.13 of this title (relating to Educational Requirements), failed
to secure sponsorship from at least two certified appraisers to obtain the
2,000 hours of acceptable experience required for licensing, the applicant
may apply to the board to take the examination under the Act, §10.
(b)
An applicant under this section must file an application
for a provisional license using forms prescribed by the board and pay the
same fees as required for a state licensed real estate appraiser under §153.5
of this title (relating to Fees).
(c)
An applicant under this section must be
a citizen of the United States or a lawfully admitted alien; be at least 18
years of age; be a legal resident of the state for at least 60 days immediately
prior to filing an application; and satisfy the board as to the prospective
provisional licensee's honesty, trustworthiness and integrity.
(d)
[
(c)
] An applicant under this section
who passes the state licensed real estate appraiser examination required under
the Act, §10, and who meets all other requirements for licensing, except
for the actual real estate appraisal experience requirement, shall be provisionally
licensed by the board.
(e)
[
(d)
] An applicant receiving a provisional
license under subsection
(d)
[
(c)
] of this section must
complete the actual real estate appraisal experience requirement not later
than the 60th month after the date the license was issued. Failure to complete
the appropriate real estate appraisal experience requirement by that date
or failure to report completion of a portion of the person's real estate appraisal
experience requirement each renewal period constitutes grounds for the automatic
revocation of the provisional license.
(f)
Persons practicing under this section
must keep and maintain a current log of appraisal activities performed on
a form prescribed by the board.
§153.17.Renewal of Certification, License or Trainee Approval.
(a)
A license or certification issued by the board is valid
for two years after the date of issuance. A certified or licensed appraiser
or appraiser trainee may renew the certification, license, or trainee
authorization
[
approval
] by timely filing the prescribed
application for renewal, paying the appropriate fee to the board and satisfying
continuing education requirements as provided by §153.18 of this title
(relating to Appraiser Continuing Education).
(b)
The board shall mail the prescribed renewal application
form to the appraiser or trainee's last known business address at least 90
days prior to the expiration of the certification, license or approval. It
is the responsibility of the appraiser or trainee to apply for renewal in
accordance with these sections, and failure to receive a renewal application
from the board does not relieve the appraiser or trainee of the responsibility
of applying for renewal.
(c)
The board may not accept a renewal application filed after
the expiration of the certification, license or appraiser trainee approval.
An appraiser or trainee who does not timely file a renewal application must
reapply for certification, license or approval as an appraiser trainee in
accordance with the provisions of §153.9 of this title (relating to Applications).
If the application is filed within one year of the expiration of a previous
certification or license the applicant shall also provide satisfactory evidence
of completion of any continuing education, as provided by §153.18 of
this title
(relating to Appraiser Continuing Education)
, that would
have been required for a timely renewal of the previous certification or license.
If the application for certification or license is filed more than one year
after the expiration of the previous certification or license, the applicant
must successfully complete the examination required by §153.11 of this
title (relating to Examinations).
(d)
A renewal application
is acceptable for processing
when it is received by the board, postmarked on or before the expiration date
of the certification, license or authorization
[
is deemed filed
when placed in the mails properly addressed to the board with appropriate
postage paid
].
(e)
Provisional licensees and appraiser trainees
must provide a copy of an appraisal log, on a form prescribed by the board,
for the period of license or authorization being renewed.
(f)
[
(e)
] Renewal of Licenses or Certification
for Servicemen on Active Duty Outside the State.
(1)
A person previously licensed or certified by the board
under this Act who is on active duty in the United States armed forces and
serves in this capacity outside the State of Texas may renew an expired license
or certification without being subject to any increase in fee imposed in his
or her absence, or any additional education or experience requirements if
the person:
(A)
provides a copy of official orders or other documentation
acceptable to the board showing that the person was on active duty outside
the state during the person's last renewal period;
(B)
applies for the renewal within 90 days after the person's
active duty ends; and
(C)
pays the renewal application fee in effect when the previous
license or certification expired.
(2)
Appraiser continuing education requirements as
set out in §153.18 of this title, that would have been imposed for a
timely renewal shall be deferred under this section to the next renewal of
a license or certification.
(g)
[
(f)
] Denial of Licensing and Certification
of Persons who are in Default on Texas Guaranteed Student Loan Corporation
(TGSLC) Loans. Renewals of licenses and certifications issued by the board
are subject to the policies established by the Texas Education Code, §57.491.
Before the board declines to renew a license or certification due to default
on a loan guaranteed by the TGSLC, a default on a repayment agreement with
TGSLC, or a failure to enter a repayment agreement with TGSLC, the board shall
give notice and provide an opportunity for a hearing in accordance with the
provisions of the Texas Government Code, §2001.051 et seq. The board
shall advise those licensed or certified in renewal notices and shall advise
those who apply for licensure or certification in application forms that default
on a loan guaranteed by TGSLC may prevent subsequent renewal of a license
or certification or prevent the approval of an initial application for license
or certification.
§153.18.Appraiser Continuing Education.
(a)
Renewing a Certification or License. An appraiser must
successfully complete the equivalent of at least 28 classroom hours of appraiser
continuing education (ACE) courses approved by the board during the two year
period preceding the expiration of the certification or license. Renewals
[
due after January 1, 1999,
] shall include a minimum of seven classroom
hours devoted to the Uniform Standards of Professional Appraisal Practice
(USPAP). The courses must comply with the requirements set out in subsection
(d) of this section.
(b)
Renewing an Appraiser Trainee Authorization. As a condition
for renewing an appraiser trainee authorization, a trainee must successfully
complete educational courses during the one-year period preceding the expiration
of the appraiser trainee authorization being renewed. The courses must comply
with the fundamental education requirements for application for licensing
and certification set out in §153.13 (e)-(n) of this title (relating
to Educational Requirements):
(1)
For the first annual renewal, 15 classroom hours devoted
to the USPAP which shall include the successful completion of an examination;
(2)
for the subsequent annual renewals, 30 classroom hours
of fundamental real estate appraisal courses specifically approved by the
board;
(3)
Beginning with the third annual renewal, every other
annual renewal (third, fifth, seventh, etc.) must include a minimum of 15
classroom hours devoted to the USPAP
which shall include the successful
completion of an examination, in addition to
[
as part of the
]
30 classroom hours of fundamental real estate appraisal courses specifically
approved by the board.
This 15 hour classroom requirement in addition
to the 30 hours of fundamental real estate appraisal courses shall become
effective January 1, 2000.
(c)
The appraiser continuing education requirement as set forth
in section 153.17 of this title (relating to Renewal of Certification
,License or Trainee Approval
) for a person previously licensed or certified
by the board under this act who is on active duty in the United States armed
forces and serves in this capacity outside the State of Texas are deferred
until the next renewal of a license or certification provided the person furnishes
a copy of official orders or other official documentation acceptable to the
board showing that the person was on active duty outside the state during
the person's last renewal period.
(d)
In approving ACE courses, the board shall base its review
and approval of appraiser continuing education courses upon the then current
appraiser qualification criteria of the Appraiser Qualifications Board (AQB).
(1)
The purpose of ACE is to ensure that certified and licensed
appraisers participate in programs that maintain and increase their skill,
knowledge, and competency in real estate appraising.
(2)
The following types of educational offerings that
may be accepted for meeting the ACE requirements are listed in subparagraphs
(A)-(L) of this paragraph:
(A)
A course that meets the requirements for certification
or licensing also may be accepted for meeting ACE provided:
(i)
The course is devoted to one or more of the appraisal related
topics of the then current appraiser qualifications criteria of the Appraiser
Qualifications Board (AQB) for continuing education;
(ii)
the course was not repeated within a three year period;
and
(iii)
the educational offering is at least two hours in length.
(B)
The board shall accept as continuing education any continuing
education a licensed or certified appraiser was awarded by a national appraiser
organization approved by the board as a provider of qualifying education;
(C)
A course specifically approved by the board for meeting
ACE offered by a provider as specified in §153.13(e)(2) of this title
(relating to Educational Requirements), provided the course is devoted to
one or more of the appraisal related topics of the then current appraiser
qualifications criteria of the AQB for continuing education and the course
is at least two hours in duration;
(D)
A course that meets the Texas Real Estate Commission mandatory
continuing education (MCE) requirements, provided it is devoted to one or
more of the appraisal related topics of the then current appraiser qualifications
criteria of the AQB for continuing education, and which specifically has been
approved by the board.
(E)
A seminar or other educational offering that deals with
appraisal issues, offered by an appraiser trade association, a related association,
or by a federal or state governmental agency, provided the offering was at
least two hours in duration, and is devoted to one or more of the appraisal
related topics of the then current appraiser qualifications criteria of the
AQB for continuing education.
(F)
distance education courses, provided that the course is
approved by the board and meets one of the following conditions listed in
clauses (i)-(iv) of this subparagraph:
(i)
the course is presented to an organized group in an instructional
setting with a person qualified and available to answer questions, provide
information, and monitor student attendance, and is a minimum of two classroom
hours and meets the requirements for continuing education courses established
by the AQB; or
(ii)
the course either has been presented by an accredited
college or university that offers distance education programs in other disciplines
, or has received either the American Council on Education's Program on Non-collegiate
Sponsored Instruction (ACE/PONSI) approval for college credit or the AQB's
approval through the AQB Course Approval Program; and the course meets the
following requirements listed in subclauses (I)-(II) of this clause:
(I)
the course is equivalent to a minimum of two classroom
hours in length and meets the requirements for real estate appraisal-related
courses established by the Apprisal Qualifications Board; and
(II)
the student successfully completed a written examination
proctored by an official approved by the presenting college or university
or by the sponsoring organization consistent with the requirements of the
course accreditation; or if a written examination is not required for accreditation,
the student successfully completes the course mechanisms required for accredition
with demonstrated mastery and fluency (said mechanisms must be present in
a course without an exam in order to be acceptable).
(iii)
the content and length of the course must meet the requirements
for appraiser continuing education established by this chapter and must be
devoted to one or more of the appraisal related topics of the then current
appraiser qualifications criteria of the AQB for continuing education; and
(iv)
a minimum time equal to the number of hours of credit
must elapse from the date of course enrollment until its completion.
(G)
"In-house" education and training are not acceptable for
meeting the appraiser continuing education (ACE) requirements.
(H)
To be acceptable for meeting the Uniform Standards of Professional
Appraisal Practice (USPAP), appraiser continuing education (ACE) requirement,
a course must:
(i)
Be devoted to the Uniform Standards of Professional Appraisal
Practice (USPAP) with a minimum of seven classroom hours of instruction;
(ii)
Use the current edition of the Uniform Standards of Professional
Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of
the Appraisal Foundation;
(iii)
Provide each student with his or her own permanent copy
of the current Uniform Standards of Professional Appraisal Practice (USPAP)
promulgated by the Appraisal Standards Board of the Appraisal Foundation;
and
(iv)
At a minimum be based on topics covered by the Appraisal
Standards Board (ASB) Instructor's Manual. This section does not limit additional
USPAP related topics to be covered in the course.
(I)
Courses specifically approved by the Appraiser Qualifications
Board (AQB) of the Appraisal Foundation are acceptable for meeting ACE requirements.
(J)
As
[
Effective January 1, 1999, as
]
part of the 28 classroom hour ACE requirement, an appraiser must successfully
complete a minimum of seven classroom hours of instruction devoted to the
USPAP before each renewal.
(K)
Copies of transcripts or course completion certificates
from the course provider must accompany the Application for Renewal form.
(L)
Appraiser continuing education credit may also be granted
for participation, other than as a student, in real estate appraisal educational
processes and programs. Examples of activities for which credit may be granted
are teaching, educational program development, authorship of real estate appraisal
textbooks, or similar activities that are determined by the board to be equivalent
to obtaining appraiser continuing education. Appraisal experience may not
be substituted for ACE.
§153.20.Guidelines for Revocation, Suspension or Denial of Licensure or Certification.
(a)
The board may suspend or revoke a license, certification,
authorization or registration issued under provisions of this Act or deny
issuing a license, certification, authorization or registration to an applicant
at any time when it has been determined that the person applying for or holding
the license, certification, authorization, or registration:
(1)
has been convicted of a felony;
(2)
has disregarded or violated a provision of the Act
or of the Rules of the Texas Appraiser Licensing and Certification Board;
(3)
has acted or held himself or herself or any other
person out as a licensed or certified real estate appraiser under the Act
when not so licensed or certified;
(4)
has accepted payment for appraiser services and has
failed to deliver the agreed service in the agreed upon manner;
(5)
has refused to refund payment received for appraiser
services when he or she has failed to deliver the appraiser service in the
agreed upon manner;
(6)
has accepted payment for services contingent upon
a minimum, maximum, or pre-agreed value estimate except when such action would
not interfere with the appraiser's obligation to provide an independent and
impartial opinion of value and full disclosure of the contingency is made;
(7)
has offered to perform appraiser services or has agreed
to perform such services when employment to perform such services is contingent
upon a minimum, maximum, or pre-agreed value estimate except when such action
would not interfere with the appraiser's obligation to provide an independent
and impartial opinion of value and full disclosure of the contingency is made;
(8)
has made a
material
[
willful or grossly
negligent
] misrepresentation or [
any willful or grossly negligent
] omission of material fact;
(9)
has had a license or certification as an appraiser
revoked, suspended, or otherwise acted against by any other jurisdiction for
an act which is an offense under Texas law;
(10)
is confined in any county jail, post adjudication;
is confined in any state or federal prison or mental institution; or through
mental disease or deterioration, can no longer safely be entrusted to deal
with the public or in a confidential capacity;
(11)
has procured a license or certification pursuant
to the Act by making false or fraudulent representation;
(12)
has failed to actively, personally, and diligently
supervise an appraiser trainee under his or her sponsorship or any person
not licensed or certified under the Act who assists the licensee or certificate
holder in performing real estate appraiser services;
(13)
has had a final civil judgement entered against him
or her on grounds of fraud or willful or grossly negligent misrepresentation
in the making of real estate appraiser services;
(14)
has failed to make good
on
a check issued
to the board within thirty days after the board has mailed a request for payment
by certified mail to the licensee's last known business address as reflected
by the board's records;
(15)
has knowingly or
wilfully
[
intentionally
] engaged in false or misleading conduct or advertising with respect
to client solicitation;
(16)
has acted or held himself or any other person out
as a licensed or certified real estate appraiser under this or another state's
Act when not so licensed or certified;
(17)
has engaged in any other act relating to the business
or appraising that the board, in its discretion, believes warrants a suspension
or revocation.
(18)
has used any title, designation,
initial or other insignia or identification that would mislead the public
as to that person's credentials, qualifications, competency, or ability to
perform certified or licensed appraisal services.
(19)
has failed to comply with a final
order of the board.
(b)
The board has discretion in determining the appropriate
penalty for any violation under subsection (a) of this section [
with
the following restrictions
].
[
(1)
Penalty for an offense under
subsection (a)(1) shall be immediate revocation of a license or certification
pursuant to Vernon's Texas Civil Statutes, Article 6252-13c(4)(e).]
[
(2)
Penalty for an offense
under subsection (a)(3) shall be suspension or withholding of license or certification
for a period not to exceed two years.]
[
(3)
Penalty for a first violation
under subsection (a)(4) shall be suspension of license or certification for
a period not to exceed 60 days.]
[
(4)
Penalty for a second
violation under subsection (a)(4) shall be suspension of license or certification
for a period not to exceed one year.]
[
(5)
Penalty for a third violation
under subsection (a)(4) shall be suspension of license or certification for
a period not to exceed three years.]
[
(6)
Penalty for an offense
of either subsection (a)(6) or subsection (7) shall be suspension of license
or certification not to exceed a period of three years.]
(c)
The provisions of this section do not relieve a person
from civil liability or from criminal prosecution under the Act or under the
laws of this State.
(d)
The board may not investigate under this section a complaint
submitted more than two years after the date of discovery of the incident
involving the state licensed real estate appraiser, provisional licensed appraiser,
state certified real estate appraiser, or appraiser trainee who is the subject
of the complaint.
(e)
Notwithstanding any other provision of the Act, there shall
be no undercover or covert investigations conducted by authority of the Act.
(f)
All board members, officers, directors, and employees of
this agency shall be held harmless with respect to any disclosures made to
the board in connection with any complaints filed with the board.
(g)
A license, certification, authorization or registration
may be revoked or suspended by the Attorney General or other court of competent
jurisdiction for failure to pay child support under provisions of Chapter
232 of the Texas Family Code.
(h)
A certified or licensed appraiser who files a complaint
against another certified or licensed appraiser that the board determines
to be frivolous is liable for a civil penalty. At the request of the board,
the attorney general or a district or county attorney may institute a civil
action in district court to collect a penalty under this subsection. A civil
penalty under this subsection may not be less than $500 or more than $10,000.
A civil penalty recovered in a suit instituted under this subsection shall
be deposited in the state treasury to the credit of the general revenue fund.
§153.21.Appraiser Trainees.
(a)
A person desiring to be an appraiser-trainee under the
sponsorship of one or more state certified appraisers may apply to the board
on the application form prescribed by the board. A prospective trainee must
be a citizen of the United States or a lawfully admitted alien; be at least
18 years of age; be a legal resident of this state for at least 60 days immediately
before the filing of the application; and satisfy the board as to the prospective
trainee's honesty, trustworthiness, and integrity. Once a person is approved
as an appraiser trainee by the board, the person may perform appraisals or
appraiser services only under the direction and direct supervision of a sponsoring
certified appraiser unless one of the following events occurs:
(1)
the appraiser trainee approval expires due to nonpayment
of the annual renewal fee or the educational requirements for renewal have
not been met;
(2)
the sponsorship is terminated by either the sponsor
or the trainee, leaving the appraiser trainee without a sponsoring certified
appraiser; or
(3)
the trainee's authority to act has been suspended
or revoked by the board.
(b)
The sponsoring certified appraiser shall immediately notify
the board in writing of any termination of sponsorship of an appraiser trainee,
on a form prescribed by the board and pay a fee set by the board not later
than the 10th day after the date of such termination. The board will notify
the trainee that the sponsorship has been terminated.
(c)
If an appraiser trainee's approval has expired or been
revoked by the board or the trainee is no longer under the sponsorship of
a certified appraiser, the appraiser trainee may not perform the duties of
an appraiser trainee until an application to sponsor the trainee has been
filed together with the appropriate fee and approved by the board.
(d)
Certified appraisers who sponsor appraiser trainees and
who sign a report shall be responsible to the public and to the board for
the conduct of the appraiser trainee under the Act. After notice and hearing,
the board may reprimand a sponsoring appraiser or may suspend or revoke a
sponsoring appraiser's certification based on conduct by the appraiser trainee
constituting a violation of the Act or a rule of the board.
(e)
A certified appraiser may be added as a sponsor during
the term of an appraiser trainee's authorization, by completing a form prescribed
by the board and paying a fee set by the board, and shall assume all the duties,
responsibilities, and obligations of an appraiser trainee sponsor as specified
in these rules.
[
(f)
An appraiser trainee sponsored
by a state licensed appraiser on September 1, 1993, may continue to perform
the duties of an appraiser trainee under the sponsorship and supervision of
that state licensed appraiser until the first renewal after January 1, 1994,
after which time the appraiser trainee must become sponsored by a certified
appraiser.]
§153.25.Temporary Non-Resident Registration.
(a)
A person licensed or certified as an appraiser by another
state, commonwealth, or territory may register with the board so as to qualify
to appraise real property in this state without holding a license or certification
issued under the Act if:
(1)
the state, commonwealth or territory licensing and certification
program under which the person holds a license or certification has not been
disapproved by the Appraisal Subcommittee; and
(2)
the appraiser's business in this state is of a temporary
nature not to exceed 60 days.
(b)
A person wishing to be registered under this subsection
must submit a completed application form prescribed by the board.
(c)
A person registered under this subsection must submit an
irrevocable consent to service of process in this state
on a form prescribed
by the board
[
pursuant to §153.29 of this title (relating
to Irrevocable Consent of Service of Process)
].
(d)
An appraiser registered under this subsection may apply
for a 150 day extension to the original expiration date of the temporary non-resident
registration, provided the appraiser:
(1)
is performing an appraisal in a federally related transaction;
(2)
is continuing the same appraisal assignment listed
on the original Temporary Non-Resident Appraiser Registration application;
(3)
requests an extension on a form prescribed by the
board, postmarked prior to the expiration of the current temporary non-resident
registration; and
(4)
pays an additional fee equal to the amount prescribed
for non-resident appraiser registration in §153.5(a)(6) of this title
(relating to Fees).
§153.27.Certification and Licensure by Reciprocity.
(a)
A person who is licensed or certified as an appraiser under
the laws of a state having licensure or certification requirements that have
not been disapproved by the Appraisal Subcommittee may apply for a license
or certification under the Act by completing and submitting to the board the
application for licensure or certification and paying to the board the fee,
both of which are required by the state of the person's present certification.
An applicant for certification or licensure by reciprocity also must complete
and submit a Supplement to Application for Appraiser Certification or Licensing
by Reciprocity (TALCB Form 10.0) or its successor.
(b)
A person applying for a license or certification under
this subsection must submit an irrevocable consent to service of process in
this state
on a form prescribed by the board
[
pursuant to
§153.29 of this title (relating to Irrevocable Consent to Service of
Process)
].
(c)
An application may not be accepted from a person from a
state that refuses to offer reciprocal treatment to residents of this state
who are certified or licensed real estate appraisers.
(d)
The board shall seek verification from an applicant's home
state that the applicant's license or certification is valid and in good standing.
A reciprocal license or certificate may not be issued without the verification
required by this subsection.
(e)
A person holding a license or certification by reciprocity
must pay the federal registry fee and other fees imposed by the board. The
total application fees required for certification or licensure by reciprocity
shall be equal to the amount of the application, processing, and issuance
fees required for a Texas certified or licensed appraiser to become certified
or licensed in the applicant's home state of present licensure or certification,
prorated for one year, but not less than $100. In addition, a one-year federal
registry fees shall be required.
(f)
A reciprocal license or certification expires on the same
date that the license or certification held by the applicant in the applicant's
home state expires or on the first anniversary of the date the reciprocal
license or certification was issued, whichever comes first.
(g)
Renewal of a certification or license granted through reciprocity
shall be in the same manner, with the same requirements, term, and fees as
for the same classification of certified or licensed appraiser as provided
in §153.17 of this title (relating to Renewal of Certification, License,
or Trainee Approval [
; Appraiser Continuing Education
]).
(h)
A person whose legal residency is in the State of Texas
may not be licensed or certified through reciprocity.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August
16, 1999.
TRD-9905172
Renil C. Linér
Commissioner
Texas Appraiser Licensing and Certification Board
Earliest possible date of adoption: September 26, 1999
For further information, please call: (512) 465-3950