RELATES TO: KRS 324A.010, 324A.030, 324A.035(1), (3), 324A.040(2), 324A.052
STATUTORY AUTHORITY: KRS 324A.035(1), (3), 12 U.S.C. 3331 - 3351
NECESSITY, FUNCTION, AND CONFORMITY: 12 U.S.C. 3331 through 3351 requires the board to promulgate administrative regulations for certification and licensure of appraisers of real property in federally related transactions. This administrative regulation establishes the types of appraisers required in federally related transactions, scope of the practice, and general requirements for certification or licensure.
Section 1. Types of Appraisers. An appraiser for a federally related transaction shall be a:
(1) Certified general real property appraiser;
(2) Certified residential real property appraiser;
(3) Licensed real property appraiser; or
(4) Associate real property appraiser.
Section 2. Scope of Practice. (1) Certified general real property appraiser. A certified general real property appraiser may perform appraisals of all types of real property.
(2) Certified residential real property appraiser. A certified residential real property appraiser may perform residential appraisals of one (1) to four (4) units.
(3) Licensed real property appraiser. A licensed real property appraiser may perform appraisals of:
(a) Noncomplex, one (1) to four (4) residential units with a transaction value less than $1,000,000; and
(b) Complex, one (1) to four (4) residential units with a transaction value less than $250,000.
(4)(a) Associate. An associate real property appraiser may perform an appraisal of property that the supervising appraiser of the associate may appraise and shall be subject to the Uniform Standards of Professional Appraisal Practice, incorporated by reference in 201 KAR 30:040.
(b) A separate appraisal log shall be maintained for each supervising appraiser.
(c) The associate shall record in the log for each appraisal the following:
1. Type of property;
2. Client name and address;
3. Address of appraised property;
4. Description of work performed by the associate;
5. Scope of the review;
6. Scope of the supervision by the supervising appraiser;
7. Number of actual hours worked by the associate on the assignment; and
8. Signature and state certification number of the supervising appraiser.
(d) The associate shall be entitled to obtain copies of the appraisal reports he or she prepared. The supervising appraiser shall keep copies of appraisal reports for a period of at least five (5) years or at least two (2) years after final disposition of any judicial proceeding in which testimony was given, whichever period expires last.
(e) The supervising appraiser shall:
1. Have been certified by the board for a period of three (3) years;
2. Be in good standing with the board and shall not have received a suspension, a revocation, or other sanction that limited or prohibited that licensee’s practice of real property appraising within the three (3) year period immediately prior to applying to become a supervision appraiser; and
3. Be responsible for the training and supervision of the associate.
(f) Only a Certified General Real Property Appraiser who has been a Certified General Real Property Appraiser for three (3) years shall provide supervision for a person acquiring experience toward a Certified General Real Property Appraiser certificate.
(g) A certificate holder who has been a Certified General or a Certified Residential Real Property Appraiser for three (3) years shall provide supervision for a person acquiring experience toward a Certified Residential Real Property Appraiser certificate.
(h) The supervising appraiser shall:
1. Accept responsibility for an associate's appraisal report by signing and certifying that the report is in compliance with the Uniform Standards of Professional Appraisal Practice, incorporated by reference in 201 KAR 30:040;
2. Review reports by the associate;
3. Personally inspect each appraised property and the comparable sales with the associate on the associate's first fifty (50) real property appraisal assignments, to ensure that the associate is competent and is acting in accordance with the competency provision of the Uniform Standards of Professional Appraisal Practice, incorporated by reference in 201 KAR 30:040, for the property type;
4. Allow an associate who has completed the fifty (50) appraisal assignments required by subparagraph 3. of this paragraph to inspect properties located within fifty (50) miles of the supervisor's office without being accompanied by the supervisor, if the supervisor has determined pursuant to this administrative regulation that the associate is competent to perform an appraisal;
5. For the twelve (12) months following the date of issuance of an associate license, accompany the associate and inspect each appraised property and the comparable sales on each appraisal assignment located more than fifty (50) miles from the supervisor’s office;
6. Be limited to a maximum of three (3) real property associates at a time; and
7. Notify the board immediately if the supervision of a real property associate has terminated; and
8. Not be employed by an associate or by a company, firm, or partnership in which the associate has a controlling interest.
(i) A person otherwise qualified for supervising appraiser who has been disciplined by the board under KRS 324A.050 shall be subject to one (1) or more of the following, according to the severity of the prior violation:
1. Prohibited from supervising associates;
2. Limited to the number of associates to supervise; or
3. Be required to take additional courses approved by the board before being permitted to supervise an associate.
(j) An associate shall submit to the board two (2) complete summary appraisal reports.
1. The first report shall be submitted to the board six (6) months following the date of issuance of the associate license. The second report shall be submitted to the board twelve (12) months following the date of issuance of the associate license.
2. If necessary to determine the competency of the associate, the board shall request additional reports from the associate.
(5)(a) A first time supervisor and a new associate shall attend the board-approved course in supervision practices prior to beginning supervision or training.
(b)To be eligible to provide supervision, a supervisor shall attend the board-approved course in supervision practices every three (3) years.
Section 3. General Requirements for Certification or Licensure. Certification or licensure, as appropriate, of the types of appraisers specified in Section 1 of this administrative regulation, shall be granted if an applicant:
(1) Has met the examination, education, experience, and fee requirements established by 201 KAR 30:050 and 30:060; and
(2) Applies to the board on the notarized Appraiser License/Certification Application.
Section 4. Incorporation by Reference. (1) "Appraiser License/Certification Application”, KREAB Form APP100, 1/09, is incorporated by reference.
(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, (859) 623-1658, Monday through Friday, 8 a.m. to 4:30 p.m. (19 Ky.R. 2165; Am. 2461; eff. 7-9-93; 20 Ky.R. 2049; eff. 3-1-94; 21 Ky.R. 2156; eff. 4-21-95; 27 Ky.R. 1538; 2427; eff. 3-19-2001; 28 Ky.R. 1486; 1822; eff. 2-11-2002; 35 Ky.R. 618; 1732; eff. 2-6-09; 36 Ky.R. 150; 568; eff. 10-2-2009; TAm eff. 12-28-2009; 39 Ky.R. 83; 460; eff. 10-5-2012; 1486; 1873; eff. 4-5-013.)