The Board proposes to promulgate and adopt the new rule to clarify procedures for the standards of professional practice for appraisal management companies.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Florida Real Estate Appraisal Board

RULE NO.:RULE TITLE:
61J1-9.002Standards of Professional Practice for Appraisal Management companies; Development and Communications of Real Estate Appraisals
PURPOSE AND EFFECT: The Board proposes to promulgate and adopt the new rule to clarify procedures for the standards of professional practice for appraisal management companies.
SUMMARY: The rule promulgation and adoption clarify procedures for the standards of professional practice for appraisal management companies.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During discussion of the economic impact of this rule at its Board meeting, the Board, based upon the expertise and experience of its members, determined that a Statement of Estimated Regulatory Costs (SERC) was not necessary and that the rule will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 475.614, 475.6235 FS.
LAW IMPLEMENTED: 475.614, 475.6235 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Juana Watkins, Director, Division of Real Estate, 400 West Robinson Street, Hurston Building, North Tower, Suite N801, Orlando, Florida 32801

THE FULL TEXT OF THE PROPOSED RULE IS:

61J1-9.002 Standards of Professional Practice for Appraisal Management Companies;

Development and Communications of Real Estate Appraisals.

(1) Upon issuance of a registration number by the Department, an appraisal management company shall disclose its issued registration number on each solicitation for engagement and each engagement letter utilized in assigning an appraisal request for real estate appraisal assignments in Florida.

(2) An appraisal management company shall verify that an appraiser being added to its appraiser panel to appraise properties in Florida holds a license in good standing in Florida. The appraisal management company shall verify the status of the appraiser by contacting the Department or utilizing the National Registry of the Appraisal Subcommittee.

(3) Before or at the time an appraiser accepts an assignment, the appraisal management company shall require the appraiser to declare in writing or via electronic means that the appraiser receiving the assignment is a competent appraiser for the performance of the appraisal being assigned.

(4) An appraisal management company must include instructions to appraisers in letters of engagement to decline the assignment in the event the appraiser is not geographically competent or the assignment falls outside the appraiser’s scope of practice restrictions.

(5) An appraisal management company cannot:

(a) Require that an appraiser prepare an appraisal if the appraiser, in the appraiser’s own independent professional judgment believes that she or he does not have the necessary expertise for the assignment or for the specific geographic area and has notified the appraisal management company and declined the assignment;

(b) Require that an appraiser prepare an appraisal within a time frame that the appraiser, in the appraiser’s own professional judgment believes does not afford he or she the ability to meet all the relevant legal and professional obligations, and the appraiser has notified the appraisal management company and declined the assignment; or

(c) Require that an appraiser provide the appraisal management company with the appraiser’s digital signature or seal.

(6) An appraisal management company that has a reasonable basis to believe an appraiser has failed to comply with the Uniform Standards of Professional Appraisal Practice or any applicable laws or rules in connection with an appraisal, shall refer the matter to the Board if the failure to comply is likely to significantly affect the opinion of value.

(7) In complying with Section 475.629, Florida Statutes, all appropriate records may be maintained in printed electronic form. Such records shall include:

(a) For appraisals ordered, the name of the appraiser who performs the appraisal, the physical address or legal identification of the subject property, the name of the appraisal management company’s client for the appraisal and the amount paid to the appraiser.

(b) Accounts, correspondence, memoranda, papers, books, and other records related to services provided by the appraisal management company.

(c) Records documenting any notices provided to appraisers removed from the appraisal management company’s panel.

(8) When removing an appraiser from an appraisal management company’s appraiser panel, the appraisal management company shall:

(a) Document the appraisal report or communication, appraisal review report or communication, or consulting assignment report or communication, supporting such action, if applicable;

(b) Document the provision of the appraiser with prior written notice as to the reasons for the appraiser’s removal, in compliance with Section 475.6245(1)(s)8., Florida Statutes; and

(c) Provide the appraiser the opportunity to respond to such notice prior to removal.

(9) Each solicitation for engagement by an appraisal management company for an appraiser’s services must include the following items:

(a) The name of the AMC;

(b) Appraisal management company’s registration number;

(c) if the assignment is retrospective the effective date must be provided;

(d) The specific intended use;

(e) Type of value;

(f) A description of the reporting level expected;

(g) The identification of the subject to include the property address, county, property type and property rights as requested by the client;

(h) Point of contact for discussion of conditions and scope of work;

(i) Other assignment conditions;

(j) The expected delivery date; and

(k) The terms of payment to the appraiser unless otherwise in a contract.

Rulemaking Authority 475.614, 475.6235 FS. Law Implemented 475.614, 475.6235 FS History-New__________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Florida Real Estate Appraisal Board.
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Real Estate Appraisal Board.
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 2, 2013
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 14, 2012