DAR File No. 28030

Commerce, Real Estate

R162-106

Professional Conduct

NOTICE OF PROPOSED RULE

DAR File No.: 28030
Filed: 06/15/2005, 04:13
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

A new subsection is proposed to be added to the Professional Conduct rule to require that details concerning the property inspection be included in an appraisal report. Also, S.B. 172 (2005 General Session) eliminated the requirement that appraisers use seals on their appraisal reports. Therefore, the rules related to these seals are eliminated. (DAR NOTE: S.B. 172 is found at UT L 2005 Ch 199, and was effective 05/02/2005.)

Summary of the rule or change:

All appraisal reports will be required to include a statement concerning whether the subject property was inspected and by whom, the date of the inspection, and whether the inspection was an exterior inspection only or both an exterior and an interior inspection. Provisions related to the use of a seal on a certified appraiser's reports are deleted.

State statutory or constitutional authorization for this rule:

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

Anticipated cost or savings to:

the state budget:

None--Requiring a sentence or two of detail about property inspections in an appraisal report has no impact on the State budget. Whether or not appraisers use seals on their appraisal reports has no impact on the State budget.

local governments:

Requiring a sentence or two of detail about property inspections in an appraisal report will neither cost nor save local governments any money. Eliminating the requirement of seals on appraisal reports will not cost local governments any money, but those local government agencies who employ staff appraisers will save the cost of purchasing the seals for their employees.

other persons:

The only other persons who could be impacted by a requirement to write a sentence or two of detail about the property inspection in an appraisal report would be appraisers. Adding an additional sentence or two to an appraisal report will neither cost nor save appraisers any money. The only persons who are impacted by the requirement of a seal on an appraisal report are appraisers. Eliminating seals on appraisal reports will save appraisers the cost of purchasing the seals.

Compliance costs for affected persons:

None--Adding an additional sentence or two to an appraisal report will not cost appraisers any money. Eliminating seals on appraisal reports will not cost appraisers any money; it will actually save them the cost of purchasing seals.

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

Pursuant to S.B. 172 (2005 General Session), this rule deletes language regarding the requirement to use an appraisal seal. Therefore, no fiscal impact to businesses is foreseen beyond those anticipated in the passage of S.B. 172. In addition, this rule filing requires information about inspections to be provided in property appraisals. No fiscal impact to businesses is anticipated from this requirement. Russell C. Skousen, Executive Director

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:

08/01/2005

This rule may become effective on:

08/02/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-106. Professional Conduct.

R162-106-3. Signatures[, Size] and Use of Seal.

[106.3.1. State-Certified Appraiser's Seal.

106.3.1.1. When signing a certified appraisal report, State-Certified General Appraisers and State-Certified Residential Appraisers shall place on at least the certification page of the appraisal report, immediately below the appraiser's signature, the seal required by Section 61-2b-17(3)(e).

106.3.1.2. The seal to be affixed on reports prepared by state-certified appraisers shall contain the words "Utah State-Certified Residential Appraiser" or "Utah State-Certified General Appraiser" along with the appraiser's certificate number and expiration date. The zeros preceding the certificate number may be deleted.

106.3.1.3. The seal may be reproduced as a stamp with ink that can be copied, or may be inserted by computer in an appraisal report at the appropriate place.]

106.3.[2]1. State-Licensed Appraisers. State- Licensed appraisers may not place a seal on an appraisal report or use a seal in any other manner likely to create the impression that the appraiser is a state-certified appraiser.

106.3.[3]2. Signatures.

106.3.[3]2.1. Signature stamps. Appraisers may not affix their signatures to appraisal reports by means of a signature stamp.

106.3.[3]2.2. Appraisers may not affix their signatures to blank or partially completed appraisal reports which will be filled in later by anyone other than the appraiser who has signed the reports.

106.3.[3]2.3. If it is necessary for an appraiser to delegate authority to another individual to sign the appraiser's signature on an appraisal report, the other individual may sign the report for the appraiser only if: a) the report explicitly discloses that the other individual has been authorized to sign the report for the appraiser; b) the permission must have been granted in writing and limited to a specific property address; c) a copy of the written permission to sign must be attached to the report; and d) the appraiser who signs the other's signature must write the word "by" followed by his own name after the other's signature.

106.3.[3]2.4. Digital signatures. A digital signature may be used in place of a handwritten signature only if: a) the software program which generates the digital signature has a security feature; and b) the appraiser ensures that his signature is protected and that no one other than the appraiser has control of that signature.

R162-106-9. Inspections.

All appraisal reports shall include a statement indicating whether or not the subject property was inspected as part of the appraisal process, and if any inspections were done, the following information concerning the inspections shall also be included:

(a) the names of all appraisers and appraisal trainees who participated in each property inspection;

(b) whether each inspection was an exterior inspection only or both an exterior and an interior inspection; and

(c) the date that each inspection was performed.

KEY: real estate appraisals, conduct

[July 28, 2004]2005

Notice of Continuation March 27, 2002

61-2b-27

ADDITIONAL INFORMATION

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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.