File No. 34945
This rule was published in the July 15, 2011, issue (Vol. 2011, No. 14) of the Utah State Bulletin.
Commerce, Real Estate
Rule R162-105
Scope of Authority
Notice of Proposed Rule
(Repeal)
DAR File No.: 34945
Filed: 06/16/2011 11:47:35 AM
RULE ANALYSIS
Purpose of the rule or reason for the change:
The substantive provisions are incorporated into a new rule, R162-2g. (DAR NOTE: The proposed new rule, R162-2g, was published in the July 1, 2011, issue of the Utah State Bulletin under DAR No. 34917.)
Summary of the rule or change:
The rule is repealed in its entirety.
State statutory or constitutional authorization for this rule:
- Subsection 61-2g-201(2)(h)
Anticipated cost or savings to:
the state budget:
The substantive provisions of this rule are incorporated into a new rule, R162-2g. No changes are proposed that are anticipated to have a fiscal impact to the state.
local governments:
Local government is not subject to the appraiser administrative rules. No fiscal impact to local government is anticipated.
small businesses:
The substantive provisions of this rule are incorporated into a new rule, R162-2g. No changes are proposed that are anticipated to have a fiscal impact on small businesses.
persons other than small businesses, businesses, or local governmental entities:
The substantive provisions of this rule are incorporated into a new rule, R162-2g. No changes are proposed that are anticipated to have a fiscal impact on affected persons.
Compliance costs for affected persons:
The rule is repealed. No compliance is required.
Comments by the department head on the fiscal impact the rule may have on businesses:
No fiscal impact to businesses is anticipated from this rule repeal as a substitute new rule containing the substance of these provisions is also proposed by the Division.
Francine A. Giani, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
CommerceReal Estate
160 E 300 S
SALT LAKE CITY, UT 84111-2316
Direct questions regarding this rule to:
- Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@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:
08/15/2011
This rule may become effective on:
08/22/2011
Authorized by:
Deanna Sabey, Director
RULE TEXT
R162. Commerce, Real Estate.
[
R162-105. Scope of Authority.
R162-105-1. Scope of Authority.
105.1 Transaction value. "Transaction value"
means:
105.1.1 For loans or other extensions of credit, the
amount of the loan or extension of credit;
105.1.2 For sales, leases, purchases, and investments in
or exchanges of real property, the market value of the real
property interest involved; and
105.1.3 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.
105.2 State-Licensed Appraisers. In federally-related
transactions, the Utah Real Estate Appraiser Licensing Act and
the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 and related federal regulations allow State-Licensed
Appraisers to perform the appraisal of non-complex one to four
residential units having a transaction value of less than
$1,000,000 and complex one to four residential units having a
transaction value of less than $250,000.
105.2.1 Subject to the transaction value limits in
Section 105.2, State-Licensed Appraisers may also perform
appraisals in federally-related transactions of vacant or
unimproved land that is utilized for one to four family purposes,
or for which the highest and best use is 1-4 family purposes, so
long as net income capitalization analysis is not required by the
terms of the assignment.
105.2.2 State-Licensed Appraisers may not perform
appraisals of subdivisions in federally-related transactions for
which a development analysis/appraisal is necessary or for which
discounted cash flow analysis is required by the terms of the
assignment.
105.3 Trainees.
105.3.1 For the purposes of these rules,
"trainee" means a person who is working under the
direct supervision of a State-Certified Appraiser to earn hours
for licensure.
105.3.2 Appraisal-related duties by unlicensed persons.
Unlicensed persons who have not qualified as trainees as provided
in Subsection 110 may perform only clerical duties in connection
with an appraisal. For the purposes of this rule,
appraisal-related clerical duties include typing an
appraiser's research notes or an appraiser's report,
taking photographs of properties, and obtaining copies of public
records. Only those persons who have properly qualified as
trainees as provided in Subsection 110 may perform the following
appraisal-related duties: participating in property inspections,
measuring or assisting in the measurement of properties,
performing appraisal-related calculations, participating in the
selection of comparables for an appraisal assignment, making
adjustments to comparables, and drafting or assisting in the
drafting of an appraisal report. The supervising appraiser shall
be responsible to determine the point at which a trainee is
competent to participate in each of these activities.
105.3.2.1 A trainee may not solicit an assignment or
accept an assignment on behalf of anyone other than the
trainee's supervisor or the supervisor's appraisal firm.
All engagement letters shall be addressed to the supervisor or
the supervisor's appraisal firm, not to the trainee. In all
appraisal assignments, the supervisor shall delegate only such
duties as are appropriate to the trainee and shall directly
supervise the trainee in the performance of those
duties.
105.3.4 Supervising Appraisers. A trainee may have more
than one state-certified supervising appraiser. A supervising
appraiser may supervise a maximum of three trainees at one
time.
105.3.5 Residential Property Inspections. A trainee,
including a trainee who was previously a state-registered
appraiser, shall be accompanied by a supervising State-Certified
Appraiser on all inspections of residential property until the
trainee has performed 100 inspections of residential properties
in which both the interior and the exterior of the properties are
inspected. All reports in appraisals in which a trainee
participated in the inspection of the subject property shall
comply with the requirements of Section 106.9.
105.3.6 Non-Residential Property Inspections. A trainee,
including a trainee who was previously a state-registered
appraiser, shall be accompanied by a supervising State-Certified
General Appraiser on all inspections of non-residential property
until the trainee has performed 20 inspections of non-residential
properties in which both the interior and the exterior of the
properties are inspected. All reports in appraisals in which a
trainee participated in the inspection of the subject property
shall comply with the requirements of Section 106.9.
105.3.7 Hours for Licensure. A trainee may accumulate
experience hours for each duty listed below with the respective
percentages, not to exceed the maximum number of hours awarded by
the Appraisal Experience Hour Schedule under Sections 104-15.1,
104-15.2, and 104.15.3. No more than one-third of the experience
hours submitted toward licensure may come from any one of the
following categories:
(a) participation in highest and best use analysis - 10%
of total hours;
(b) participation in neighborhood description and
analysis - 10% of total hours;
(c) as provided in Sections 105.3.5 and 105.3.6,
inspecting the interior and exterior, including measurement of
the exterior of a property that is the subject of an appraisal
and inspection of the exterior of a property that may be used as
a comparable in an appraisal. No hours will be granted for
inspections that do not include both an interior and exterior
inspection of the subject property - 20% of total hours;
(d) participation in land value estimate - 20% of total
hours;
(e) participation in sales comparison property selection
and analysis - 30% of total hours;
(f) participation in cost analysis - 20% of total
hours;
(g) participation in income analysis - 30% of total
hours;
(h) participation in the final reconciliation of value -
10% of total hours;
(i) participation in report preparation - 20% of total
hours.
105.3.8 Credit will be given for appraisal experience
earned only within five years immediately preceding the licensure
or certification application.
105.3.9 All trainees are prohibited from signing an
appraisal report or discussing an appraisal assignment with
anyone other than the appraiser responsible for the assignment,
state enforcement agencies and such third parties as may be
authorized by due process of law, or a duly authorized
professional peer review committee.
105.3.10 A state-certified appraiser who supervises a
trainee shall be responsible for the training and direct
supervision of the trainee.
105.3.10.1 Direct supervision shall consist of critical
observation and direction of all aspects of the appraisal process
and accepting full responsibility for the appraisal and the
contents of the appraisal report. The supervising appraiser shall
be responsible to personally inspect each residential property
that is appraised with a trainee until the trainee has performed
100 residential inspections as provided in Subsection 105.3.5 and
20 non-residential inspections as provided in Subsection 105.3.6.
The supervising appraiser shall actively supervise those
inspections and the resulting appraisals. In addition, the
supervising appraiser shall personally inspect all property when
the appraisal report scope of work or certification requires
appraiser inspection.
105.3.11 A supervising appraiser shall require the
trainee to maintain a log in a form satisfactory to the Board
which shall contain, at a minimum, the following information for
each appraisal.
(a) file number;
(b) report date;
(c) subject address;
(d) client name;
(e) type of property;
(f) report form number or type; and
(g) number of work hours.
105.3.12 The trainee shall maintain a separate appraisal
log for each supervising appraiser.
105.4. Trainee Status after Revocation, Surrender,
Denial, or Suspension of License or Certification.
105.4.1 Trainee Status after Revocation, Surrender, or
Denial of License or Certification. Unless otherwise ordered by
the Board, an appraiser whose appraiser certification or license
has been revoked by the Board, whose application for renewal of a
certification or license has been denied by the Board, or who has
surrendered a certification or license as a result of an
investigation by the Division, may not serve as a trainee for a
period of four years after the date of the revocation, denial, or
surrender, nor may a licensed or certified appraiser employ or
supervise the former appraiser in the performance of the
activities permitted trainees for that same period of
time.
105.4.2 Trainee Status while License or Certification is
Suspended. Unless otherwise ordered by the Board, any appraiser
whose appraiser license or certificate has been suspended by the
Board as a result of an investigation by the Division may not
serve as a trainee during the period of suspension. While an
appraiser is suspended, a licensed or certified appraiser may not
employ or supervise the suspended appraiser in the performance of
the activities permitted trainees.
KEY: real estate appraisals
Date of Enactment or Last Substantive Amendment: January 27,
2010
Notice of Continuation: November 10, 2008
Authorizing, and Implemented or Interpreted Law:
61-2b-6(1)(l)]
Additional Information
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2011/b20110715.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@utah.gov.