Arkansas Administrative Code › Agency 235 - DEPARTMENT OF LABOR AND LICENSING › Rule 235.00.23-001 - Practical Applications of Real Estate Appraisal

Current through Register Vol. 49, No. 6, June, 2024
Arkansas Appraiser Licensing and
			 Certification
Board Rules
Section
		  I
- General (A) Creation, Purpose, and Organization
Act 628 of 2023 created the State Board of Appraisers,
			 Abstracters, and Home Inspectors (the "Board") and abolished the separate
			 Arkansas Appraiser Licensing and Certification Board, Arkansas Abstracters'
			 Board, and Arkansas Home Inspector Registration Board. With respect to the
			 Arkansas Appraiser Licensing and Certification Board, Act 628 provided that the
			 statutory powers, duties, and functions of the former board would be
			 transferred to the State Board of Appraisers, Abstracters, and Home Inspectors,
			 including the administration of the the Arkansas Appraiser Licensing and
			 Certification Act, Arkansas Code §
								17-14-101
et
			 seq.,
§
								17-14-201
et
			 seq.,
and §
								17-14-301
et seq.
and the Appraisal Management Company Registration Act, Arkansas Code §
								17-14-401
et
			 seq.
The Board's purpose in promulgating these rules is to implement
			 the provisions of the Arkansas Appraiser Licensing and Certification Act in a
			 manner consistent with Title XI of the Financial Institutions Reform, Recovery,
			 and Enforcement Act of 1989 ("FIRREA"), Public Law No. 101-73. The Board is
			 authorized to promulgate such rules as may be necessary to ensure compliance
			 with FIRREA and other applicable federal law.
The Board shall perform all duties and functions necessary to
			 carry out its duties and shall hire a Director and permanent staff to conduct
			 the daily business of the Board.
The Board shall hold regular meetings to consider and act upon
			 applications for certification and licensure, complaints regarding licensees,
			 and to transact other business as may come properly before it.
Requests for general information, applications for examination
			 for certificates or licenses, complaint forms, or copies of rules may be
			 directed to the Board.
Section
		  I
- General (B) Definitions
The following words and terms, when used in these rules, unless a
			 different meaning is provided or is plainly required by the context, shall have
			 the following meanings:
1.
"Act"
		  -
The Arkansas Appraiser Licensing and Certification Act, as amended,
		  codified as Arkansas Code §
								17-14-101
et
		  seq.,
§
								17-14-201
et
		  seq.,
and Arkansas Code §
								17-14-101
et
		  seq.,
§
								17-14-201
et
		  seq.,
and §
								17-14-301
et seq.
2.
"Board"
- The
		  State Board of Appraisers, Abstracters, and Home Inspectors and does not
		  include the Appraiser Qualification Board of the Appraisal Foundation or any
		  other Appraisal Foundation Board.
3.
"Appraiser or Real Estate Fee
		  Appraiser" -
Any person who, for a fee or valuable consideration,
		  develops and communicates a real estate appraisal or otherwise gives an opinion
		  of the value of real estate or any interest therein.
4.
"Independent Appraisal Assignment"
		  -
Any engagement for which an appraiser is employed, or retained to act
		  or to be perceived by third parties or the public as acting as a disinterested
		  third party in rendering an unbiased analysis, opinion, or evaluation, or
		  conclusions relating to the nature, quality, value, or utility or identified as
		  real estate or real Property.
5.
"State Certified Appraiser"
- Any individual who has satisfied the
		  requirements for State Certification in the State of Arkansas and who is
		  qualified to perform appraisals of real property types of any monetary size and
		  complexity. Within this category are included two (2) sub-classifications of
		  certification;
a. "State Certified
		  Residential Appraiser" which applies to the appraisal of one-to-four
		  residential units without regard to transaction value or complexity. (Note:
		  This classification applies to the appraisal of one-to-four residential units
		  without regard to transaction value of complexity based on the consensus of the
		  Appraiser Qualifications Board of The Appraisal Foundation. The Federal
		  Financial Institutions Regulatory Agencies as well as other agencies and
		  regulatory bodies permit the Certified Residential classification to appraise
		  properties other than those specified by the Appraiser Qualifications Board.
		  All Certified Residential appraisers are bound by the Competency Rule of the
		  Uniform Standards of Professional Appraisal Practice.)
b. "State Certified General Appraiser" which
		  applies to the appraisal of all types of real property. All Certified General
		  real property appraisers are bound by the Competency Rule of the Uniform
		  Standards of Professional Appraisal Practice.
6.
"State Licensed Appraiser" -
Any individual who has satisfied the requirements for State Licensing in the
		  State of Arkansas and who is qualified to perform appraisals of real property
		  types up to a monetary size and complexity as prescribed by the Appraisal
		  Qualifications Board of The Appraisal Foundation. (Note: This classification
		  applies to the appraisal of non-complex one-to-four residential units having a
		  transaction value less than $1,000,000 and complex one-to-four residential
		  units having a transaction value less than $250,000 based on the consensus of
		  the Appraiser Qualifications Board of The Appraisal Foundation. The Federal
		  Financial Institutions Regulatory Agencies as well as other agencies and
		  regulatory bodies permit the licensed classification to appraise properties
		  other than those specified by the Appraiser Qualifications Board. All Licensed
		  appraisers are bound by the Competency Rule of the Uniform Standards of
		  Professional Appraisal Practice.)
7.
"State Registered Appraiser"
- Any person who has satisfied the requirements for registering as set forth in
		  Section 17-14-307 of the Arkansas
		  Appraiser Licensing and Certification Act or requirements as may have been
		  determined by the Board and who may perform appraisals on any type of property
		  except when the purpose of the appraisal is for use in federally related
		  transactions.
8.
"Complex
		  1-to-4 Family Residential Property Appraisal" -
One in which the
		  property to be appraised, the form of ownership, or market conditions are
		  atypical.
9.
"Open Public
		  Meetings"-
All meetings, formal or informal, special, or regular of the
		  Arkansas Appraiser Licensing and Certification Board except those classified as
		  Executive Sessions the Arkansas Appraiser Licensing and Certification Act, the
		  Freedom of Information Act of 1967, Arkansas Code §
								25-19-101
et
		  seq.,
or other applicable law.
10.
"Executive Sessions"
- Those
		  meetings of the Board conducted for the purpose of disciplinary hearings to
		  determine whether to levy civil penalties under the Act, for the purpose of
		  determining whether to revoke or suspend any license or certificate issued
		  pursuant to the Act, and those permitted under the Freedom of Information Act
		  for the purpose of considering employment, appointment, promotion,
		  disciplining, or resignation of any public officer or employee.
11.
"Transaction Value"
- For
		  the purposes of these rules this means:
(A)
		  For loans or other extensions of credit, the amount of the loan or extension of
		  credit;
(B) For sales, leases,
		  purchases, and investments in or exchanges of real property, the market value
		  of the real property interest involved;
(C) For the pooling of loans or interests in
		  real property for resale or purchase, the amount of the loan or market value of
		  the real property calculated with respect to each such loan or interest in real
		  property;
(D) For condemnation
		  appraisals the value is the total market value of the property before any
		  acquisition of property occurs;
12.
"Supervisory Appraiser"
- A
		  State Certified Appraiser who:
(1) formally
		  agrees to supervise the work of a specific Registered Apprentice
		  Appraiser;
(2) is recorded by the
		  Board as a Supervisory Appraiser; and
(3) has successfully completed the four-hour
		  Supervisor/Trainee course offered by the Board or other approved education
		  provider. Refer to Section XIII of these Rules for additional
		  qualifications.
13.
"Registered Apprentice Appraiser"
- An individual who has
		  satisfied the requirements for apprentice appraiser by the Appraiser
		  Qualifications Board and who is subject to direct control and supervision by a
		  qualified state-certified appraiser supervisor as a part of upgrading his/her
		  classification to state-licensed or state-certified. The scope of practice for
		  a registered apprentice appraiser is the appraisal of properties that the
		  state-certified appraiser supervisor is permitted by his or her current
		  credential and competent to appraise.