Brief Description: Establishing a trainee real estate appraiser classification.

Sponsors: Representatives Kenney, Chandler, Conway and Condotta.

Hearing Date: 2/26/03

Staff: Matt Cooper (786-7106).

Background:

Real estate appraisers evaluate the value of real property. The Department of Licensing (Department) certifies and licenses real estate appraisers. There are three types of credentials issued to real estate appraisers: (1) state licensed real estate appraiser; (2) state certified residential real estate appraiser; and (3) state certified general real estate appraiser.

The minimum credential is the state licensed real estate appraiser. Candidates for this license must have completed 90 hours of education and 2,000 hours of experience within two years. Licensed real estate appraisers may appraise real property consisting of up to four single-family residences; non-complex properties valued at up to $1 million; complex (atypical) properties valued at up to $250,000; and non-residential properties valued up to $250,000.

The mid-level credential is the state certified residential real estate appraiser. Candidates for this certification must have completed 120 hours of education and 2,500 hours of experience within two years. Certified residential real estate appraisers may appraise real property consisting of up to four single-family residences (without limitation on value), and non-residential properties valued up to $250,000.

The highest level credential is the certified general real estate appraiser. Candidates for this certification must have completed 180 hours of education and 3,000 hours of experience within 30 months (1,500 hours must be in non-residential property). Certified general real estate appraisers may appraise any real property without limitation on value.

During the training period required for a credential, a trainee does not need to have met any educational requirement or be registered with the Department. Licensed or certified appraisers may employ trainees. In order for the trainee to receive credit toward the experience requirements for licensing, the trainee's name must appear on the appraisal.

Summary of Bill:

Real estate appraiser trainees must be registered with the Department of Licensing (Department).

The existing requirements for license and certification remain the same, but a new category for registered trainees is created.

To be eligible to be registered as a trainee, an individual must provide documentation satisfactory to the director of the Department that he or she has met the educational standards established in rule by the Department.

A trainee must work under the immediate and personal supervision of a licensed or certified appraiser. The trainee is limited in the scope of appraisals by the license of the supervising appraiser. Supervising appraisers must sign a trainee's appraisal and trainees must sign appraisals using the title "state registered appraiser trainee."

A supervising appraiser may employ more than one trainee but the Department may set limits on the maximum number of trainees working for a supervisor. Trainees may work for more than one supervising appraiser.

The trainee may be registered for up to five years. This time may be extended if the five-year period is interrupted by military service.

Rules Authority: The bill contains provisions addressing the rule-making powers of the Department.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.