DAR File No. 27128

Commerce, Real Estate

R162-107

Unprofessional Conduct

NOTICE OF PROPOSED RULE

DAR File No.: 27128
Filed: 04/29/2004, 05:10
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The current rule references "unclassified persons". The concept of "unclassified persons" is being eliminated and replaced by the single category of "trainees" in a proposed amendment to Rule R162-105. This rule is proposed to be amended to coincide with that change. (DAR NOTE: The proposed amendment to R162-105 is under DAR No. 27131 in this issue.)

Summary of the rule or change:

"Unclassified person" is changed to "unlicensed person" in the beginning of Subsection R162-107-1(107.1.6) and to "appraisal trainee" the second time the term is used in the paragraph. The effect of the changes are that an appraiser would be precluded from splitting appraisal fees with any unlicensed person, except that a trainee could be paid a reasonable hourly rate for services actually performed.

State statutory or constitutional authorization for this rule:

Subsection Section 61-2b-(6)(1)(l)

Anticipated cost or savings to:

the state budget:

None--There is no impact on State budget from changing the names of categories of unlicensed appraisers. It is unlikely that any appraisers hired by the State would split appraisal fees with unlicensed persons except as provided in this rule, so no impact on the State budget is expected from the prohibition on fee splitting.

local governments:

None--There is no impact on local government from changing the names of categories of unlicensed appraisers. It is unlikely that any appraisers hired by local governments would split appraisal fees with unlicensed persons except as provided in this rule, so no impact on the local government is expected from the prohibition on fee splitting.

other persons:

None--There is no impact on other persons from changing the names of categories of unlicensed appraisers.

Compliance costs for affected persons:

This rule precludes appraisers from splitting fees with unlicensed persons, except that bona fide trainees may be paid a reasonable hourly salary for their assistance with an appraisal as part of their training. This rule could affect an appraiser who might otherwise delegate the assignment to an unlicensed or unqualified person and give that person the majority of the fee, keeping only a "signing fee" for himself, which is the practice sought to be prohibited by this rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

The rule previously prevented fee splitting with "unclassified" persons. That is clarified now to those who are not state-licensed or state-certified appraisers. The rule further clarifies that trainees receive only payment of salary and hourly rate. There appears to be no fiscal impact to businesses as a result of these clarifications.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2004

Interested persons may attend a public hearing regarding this rule:

5/26/2004 at 10:00 AM, 160 East 300 South, Room 205, 2nd Floor, Salt Lake City, Utah

This rule may become effective on:

06/15/2004

Authorized by:

Klare Bachman, Executive Director

RULE TEXT

R162. Commerce, Real Estate.

R162-107. Unprofessional Conduct.

R162-107-1. Unprofessional Conduct.

107.1 Unprofessional conduct includes the following specific acts or omissions:

107.1.1 Violating or disregarding a disciplinary order of the Utah Appraiser Licensing and Certification Board or the division;

107.1.2 Signing an appraisal report containing a statement indicating that an appraiser has inspected a property if the appraiser has not inspected the property;

107.1.3 Signing an appraisal report as the supervising appraiser without having given adequate supervision to the registered appraiser or the unclassified assistant;

107.1.4 Allowing an appraiser in his employ, or an appraiser whom he is otherwise responsible to supervise, to:

(a) exceed the authority of the subordinate appraiser's classification;

(b) engage in conduct which is a violation of Title 61, Chapter 2b.

107.1.5 Allowing a non-appraiser to:

(a) exceed the authority granted to an unclassified person by these rules;

(b) engage in conduct which would be a violation of Title 61, Chapter 2b if done by an appraiser; or

107.1.6 Splitting appraisal fees with any [unclassified ]person who is not a State-Licensed Appraiser or a State-Certified Appraiser, except that an [unclassified person]appraisal trainee may be paid a reasonable salary or a reasonable hourly rate for lawful services actually performed in connection with appraisals.

107.2 The Board may appoint members of the appraisal industry to serve as a Technical Advisory Panel to provide advice to the Division concerning technical appraisal issues and conduct constituting unprofessional conduct.

KEY: real estate appraisals, conduct

[June 1, 2000]2004

Notice of Continuation January 21, 2003

61-2b-8

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For questions regarding the content or application of this rule, please contact Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.