WSR 15-22-023
PROPOSED RULES
DEPARTMENT OF LICENSING
[Filed October 26, 2015, 3:33 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-08-056.
Title of Rule and Other Identifying Information: Chapter 308-125 WAC.
Hearing Location(s): Department of Licensing, Business and Professions Division, Real Estate Programs, 2000 4th Avenue West, 2nd Floor Conference Room, Olympia, WA 98502, on December 9, 2015, at 10:30 a.m.
Date of Intended Adoption: December 10, 2015.
Submit Written Comments to: Dee A. Sharp, P.O. Box 9021, Olympia, WA 98507-9021, e-mail dsharp@dol.wa.gov, fax (360) 570-4981, by December 8, 2015.
Assistance for Persons with Disabilities: Contact Tambra McCowan by December 8, 2015, TTY (360) 664-8885 or (360) 664-6504.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 308-125-025 Application process to register as a real estate appraiser trainee, housekeeping change to remove [an] effective date [in] subsection (2)(d).
WAC 308-125-030 Examination prerequisite general classification, update education requirements as required by the appraiser qualifications board.
WAC 308-125-040 Examination prerequisite state-certified residential classification, update education requirements as required by the appraiser qualifications board.
WAC 308-125-045 Examination prerequisite state-licensed classification, update education requirements as required by the appraiser qualifications board.
WAC 308-125-070 Experience requirements, implement changes recommended by the real estate appraiser commission.
WAC 308-125-095 Responsibilities of the appraiser supervisor, housekeeping change to remove [an] effective date [in] subsection (1)(c).
All rule changes are approved and recommended to the director by the real estate appraiser commission. These changes will update education requirements for all classification levels; will implement housekeeping changes recommended by the real estate appraiser commission, and update experience requirements to be consistent with statute.
Reasons Supporting Proposal: Amendment to rule is needed to bring agency into compliance with Title XI as amended by the Dodd-Frank Act.
Statutory Authority for Adoption: RCW 18.140.030 (1) and (15).
Rule is necessary because of federal law, Title XI § 1122(b), 12 U.S.C.
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Dee A. Sharp, Olympia, (360) 664-6504.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposed rule amendment effects [affects] individual licensees and have [has] no impact on small businesses.
A cost-benefit analysis is not required under RCW 34.05.328. The department of licensing is not one of the named agencies under RCW 34.05.328 (5)(a)(i).
October 26, 2015
Damon Monroe
Rules Coordinator
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-025 Application process to register as a real estate appraiser trainee.
(1) Anyone who is not a licensed or certified appraiser or a registered appraiser trainee cannot provide assistance that includes analytical work and exercising discernment or discretion that leads to an appraisal conclusion.
(2) As a prerequisite to registration as a registered appraiser trainee, the applicant shall present evidence satisfactory to the director of successful completion within five years of the date of application of the following appraiser qualifications board modules of qualifying core curriculum of approved qualifying education:
(a) Basic appraisal principles, thirty hours.
(b) Basic appraisal procedures, thirty hours.
(c) The National USPAP course or equivalent fifteen hours.
(d) ((Effective January 1, 2015,)) A course that, at a minimum, complies with the specifications for course content established by the appraiser qualifications board that is oriented toward the expectations for the applicant.
(3) Application for registration as a trainee from persons who have had either a real estate license or real estate appraiser license suspended or revoked shall not be accepted by the department until after the time period of the suspension or revocation has expired.
(4) An applicant for registration as a trainee shall present a completed registration form together with the appropriate fee and copies of core curriculum course completion certificates to the director prior to issuance of the approved trainee registration certificate.
(5) Registration as a trainee may be denied for unprofessional conduct as provided in RCW 18.235.130.
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-030 Examination prerequisite general classification.
The general real estate appraiser classification applies to the appraisal of all types of real property.
(1) As a prerequisite to taking the examination for certification as a state-certified general real estate appraiser, an applicant shall present evidence satisfactory to the director that he/she has successfully completed not less than three hundred hours in the following core modules:
(a) Basic appraisal principles, thirty hours.
(b) Basic appraisal procedures, thirty hours.
(c) The National USPAP course or equivalent, fifteen hours.
(d) General appraiser market analysis and highest and best use, thirty hours.
(e) Statistics, modeling and finance, fifteen hours.
(f) General appraiser sales comparison approach, thirty hours.
(g) General appraiser site valuation and cost approach, thirty hours.
(h) General appraiser income approach, sixty hours.
(i) General appraiser report writing and case studies, thirty hours.
(j) Appraisal subject matter electives, thirty hours.
(2) Credit towards qualifying education requirements may be obtained via the completion of a degree program in real estate from an accredited degree-granting college or university provided the college or university has had its curriculum reviewed and approved by the appraiser qualifications board.
(3) An original certification as a state-certified general real estate appraiser shall not be issued to any person who does not possess three thousand hours of appraisal experience obtained continuously over a period of not less than thirty months in Washington or in another state having comparable certification requirements.
(4) To fulfill the experience requirement, an applicant must have at least one thousand five hundred hours of nonresidential appraisal experience.
(5) ((Effective January 1, 2015,)) Applicants for the certified general license must possess a bachelor's degree or higher in any field of study. ((Through December 31, 2014, applicants for the certified general license must possess a bachelor's degree or higher in any field of study or, in lieu of the required degree, thirty semester credit hours covering the following subject matter courses:
(a) English composition;
(b) Principles of economics (micro and macro);
(c) Finance;
(d) Algebra, geometry or, higher mathematics;
(e) Statistics;
(f) Introduction to computers: Word processing/spreadsheets;
(g) Business or real estate law; and
(h) Two elective courses in accounting, geography, agricultural economics, business management, or real estate;
as approved by the appraiser qualifications board and the director, in addition to the required qualifying core curriculum requirements.))
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-040 Examination prerequisite state-certified residential classification.
The state-certified residential real estate appraiser classification applies to appraisals of all types of residential property of one to four units without regard to transaction value or complexity and nonresidential property having a transaction value less than two hundred fifty thousand dollars.
(1) As a prerequisite to taking the examination for certification as a state-certified residential real estate appraiser, an applicant shall present evidence satisfactory to the director that he/she has successfully completed not less than two hundred hours in the following core modules:
(a) Basic appraisal principles, thirty hours.
(b) Basic appraisal procedures, thirty hours.
(c) The National USPAP course or equivalent, fifteen hours.
(d) Residential market analysis and highest and best use, fifteen hours.
(e) Residential appraiser site valuation and cost approach, fifteen hours.
(f) Residential sales comparison and income approaches, thirty hours.
(g) Residential appraiser report writing and case studies, fifteen hours.
(h) Statistics, modeling and finance, fifteen hours.
(i) Advanced residential applications and case studies, fifteen hours.
(j) Appraisal subject matter electives, twenty hours.
(2) Credit towards qualifying education requirements may be obtained via the completion of a degree program in real estate from an accredited degree-granting college or university provided the college or university has had its curriculum reviewed and approved by the appraiser qualifications board.
(3) An original certification as a state-certified residential real estate appraiser shall not be issued to any person who does not possess two thousand five hundred hours of appraisal experience obtained continuously over a period of not less than twenty-four months in Washington or in another state having comparable certification requirements.
(4) ((Effective January 1, 2015,)) Applicants for the certified residential appraiser license must possess a bachelor's degree or higher in any field of study. ((Through December 31, 2014, certified residential real estate appraiser applicants must possess an associate degree or higher in any field of study or, in lieu of the required degree, twenty-one semester credit hours covering the following subject matter courses:
(a) English composition;
(b) Principles of economics (micro or macro);
(c) Finance;
(d) Algebra, geometry or, higher mathematics;
(e) Statistics;
(f) Introduction to computers: Word processing/spreadsheets; and
(g) Business or real estate law;
as approved by the appraiser qualifications board and the director, in addition to the required core curriculum.))
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-045 Examination prerequisite state-licensed classification.
The state-licensed real estate appraiser classification applies to appraisal of noncomplex one to four residential units having a transaction value less than one million dollars and complex one to four residential units having a transaction value less than two hundred fifty thousand dollars and nonresidential property having a transaction value less than two hundred fifty thousand dollars.
(1) As a prerequisite to taking the examination for certification as a state-licensed real estate appraiser, an applicant shall present evidence satisfactory to the director that he/she has successfully completed not less than one hundred fifty hours in the following core modules:
(a) Basic appraisal principles, thirty hours.
(b) Basic appraisal procedures, thirty hours.
(c) The National USPAP course or equivalent, fifteen hours.
(d) Residential market analysis and highest and best use, fifteen hours.
(e) Residential appraiser site valuation and cost approach, fifteen hours.
(f) Residential sales comparison and income approaches, thirty hours.
(g) Residential appraiser report writing and case studies, fifteen hours.
(2) Credit toward qualifying education requirements may be obtained via the completion of a degree program in real estate from an accredited degree-granting college or university provided the college or university has had its curriculum reviewed and approved by the appraiser qualifications board.
(3) An original certification as a state-licensed real estate appraiser shall not be issued to any person who does not possess two thousand hours of appraisal experience obtained continuously over a period of not less than twenty-four months in Washington or in another state having comparable certification requirements.
(4) ((Effective January 1, 2015,)) Applicants for the state-licensed real estate appraiser license must possess an ((associate)) associate's degree or higher in any field of study, or in lieu of the required degree, thirty semester credit hours of college-level education from an accredited college, junior college, community college, or university.
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-070 Experience requirements.
(1) A minimum of two years (twenty-four months) full-time experience within five years of application is required for the state licensed and certified residential appraiser. Certified general applicants must accumulate three thousand hours within a minimum of thirty months and a maximum of seven years. However, no more than one thousand five hundred hours may be credited in any consecutive twelve months for any of the licensing categories.
(2) Any work product claimed for experience credit dated January 1, 1990, and later shall conform to the Uniform Standards of Professional Appraisal Practice in effect at the time the appraisal is completed.
(a) Reports shall be in writing.
(b) An appraisal work file must be available to the director to substantiate work performed.
(c) Appraisal experience must have been performed as a licensed or certified appraiser or a registered trainee to qualify.
(3) A registered trainee may gain experience under the supervision of no more than six supervisory appraisers during his/her trainee period.
(4) The department may request appraiser work files to verify, confirm, or compare entries made on the experience log. Failure to provide work files to the department upon its request may disqualify the reports as qualifying experience.
(5) An applicant for certification or license shall certify, under penalty of perjury, the completion of the required experience.
(6) Appraisal work qualifying for appraisal experience includes, but is not limited to, the following: Fee and staff appraisal, ad valorem tax appraisal, appraisal review, appraisal analysis, appraisal consulting, highest and best use analysis, feasibility analysis/study.
(7) The department may require a supervisory appraiser to certify, under penalty of perjury, the applicant's work experience.
(8) The department may request written reports or work files to verify an applicant's experience.
AMENDATORY SECTION (Amending WSR 13-17-002, filed 8/7/13, effective 9/7/13)
WAC 308-125-095 Responsibilities of the appraiser supervisor.
(1) A certified real estate appraiser licensed by the state of Washington may supervise trainees in accordance with the following provisions:
(a) The certified real estate appraiser is in good standing and not subject to any disciplinary action which affects their legal eligibility to engage in appraisal practice within the three years preceding registration to become a supervisory appraiser.
(b) ((Effective January 1, 2015,)) The certified real estate appraiser shall have been certified for a minimum of three years prior to becoming a supervisory appraiser.
(c) ((Effective January 1, 2015,)) The certified real estate appraiser shall have completed a course that, at a minimum, complies with the specification for course content established by the appraiser qualifications board. This course must be completed prior to supervising a registered appraiser trainee.
(d) Not more than three real estate appraiser trainees may be supervised in accordance with the appraiser qualifications board standards unless written authorization by the department is granted to exceed that number of trainees at any one time.
(e) Supervision of trainees in the process of appraising real property shall occur within the boundaries of the state of Washington and comply with jurisdictional and established agreements with other states. If a trainee is supervised by a certified appraiser who is licensed in both the state of Washington and with another state or has a temporary license in another state; and the trainee is registered as a trainee in that other state by either temporary permit, license, or registration, then the appraisal assignments shall qualify as work experience on the experience log.
(f) Authorization to exceed supervision of three trainees may be granted by the director upon approval of a written request and under the provisions of subsection (2) of this section.
(g) A registered real estate appraiser trainee may assist in the completion of an appraisal report, including determination of an opinion of value and may sign the appraisal report, provided that he/she is actively and personally supervised by a state-certified real estate appraiser, and provided that the appraisal report is reviewed and signed by the state-certified real estate appraiser; and provided the state-certified appraiser accepts total responsibility for the appraisal report.
(h) The certified appraiser shall:
(i) Personally inspect with the trainee, at a minimum, the interior of twenty-five subject properties, or until the supervisory appraiser considers the trainee competent.
(ii) Personally review and verify each appraisal report prepared by the trainee as entered on the trainee experience log as qualifying work experience prior to the log being submitted to the department by the supervised trainee. The trainee shall be entitled to obtain copies of the appraisal reports in which the trainee provided appraisal assistance.
(iii) Personally review and verify each appraisal report prepared by a state licensed or certified residential appraiser as entered on the qualifying work experience log prior to the log being submitted to the department by the licensee. The state licensed or certified residential appraiser shall be entitled to obtain copies of the appraisal reports in which the state licensed and certified residential appraiser provided appraisal assistance.
(iv) Comply with all USPAP requirements.
(v) Maintain a separate "properties inspected with trainee" log for each supervised trainee. This log must be made available to the department upon request and is to be submitted with trainee's application for license or certification.
(vi) Register with the department as a supervisory appraiser and include the names of the registered real estate appraiser trainees being supervised. Registration must be five business days prior to the start of supervision. The supervisory appraiser shall notify the department when they are no longer a supervisory appraiser of a trainee, with such notice including the name, address, and registration number of the registered trainee.
(2) Authorization may be granted by the director to a certified appraiser to exceed the number of trainees allowed to be supervised providing:
(a) The certified appraiser has more than five years certified experience.
(b) The certified appraiser shall make a written application to the department requesting to supervise not more than three trainees with less than one year experience; and three trainees with more than one year experience; and five trainees with greater than two years experience. The total number of supervised trainees shall not exceed eight for all experience levels at any one time.
(c) The certified appraiser shall prepare and maintain trainee progress reports and make them available to the department until such time as the trainee becomes certified or licensed or after two years has lapsed since supervising the trainee.
(d) The certified appraiser shall provide to the department a mentoring plan for consideration prior to the department authorizing supervision of more than three trainees.