The purpose of the rule amendment is to update experience requirements.

 

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Florida Real Estate Appraisal Board

RULE NO.:RULE TITLE:

61J1-6.001Experience Requirement

PURPOSE AND EFFECT: The purpose of the rule amendment is to update experience requirements.

SUMMARY: Update experience requirements.

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 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, 475.615(2) FS.

LAW IMPLEMENTED: 455.213, 475.611(1)(q), 475.615(2), 475.617, 475.628, 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: Allison McDonald, Executive Director, Florida Real Estate Appraisal Board, 400 West Robinson Street, #N801, Orlando, FL 32801.

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

61J1-6.001 Experience Requirement.

(1) All applicants for certification must present evidence satisfactory to the Board that the applicant has the experience required in Section 475.617, F.S., in real property appraisal activity. Acceptable appraisal experience includes fee and staff appraisals, ad valorem tax appraisals, condemnation appraisals, and technical review appraisals, appraisal analysis, real estate counseling, highest and best use analysis, and feasibility analysis/study.

(2) Experience is described as follows:

(a)1. For the certified residential appraiser – one two thousand five hundred (12500) hours of real property appraisal experience obtained over a 1224-month period.

2. For the certified general appraiser – three thousand (3000) hours of real property appraisal experience obtained over an 1830-month period, of which one thousand five hundred (1500) hours must be in non-residential appraisal work.

(b) For the certified residential appraiser and the certified general appraiser, the experience claimed must have been accumulated in a time period of not less than 24 months and 30 months, respectively.

(b)(c) All experience claimed for all licensure classifications must be obtained after January 30, 1989, and must be Uniform Standards of Professional Appraisal Practice (USPAP) compliant as set forth in Rule 61J1-9.001, F.A.C.

(3) For the certified general appraiser, at least 50% (1500 hours) of the claimed experience must be in nonresidential appraisal work. Residential is defined as one to four residential units.

(3)(4) Each applicant shall verify the required experience by certifying in such a manner as provided by the Department. Any proportional combination of required reports or hours, as required below, will be acceptable as long as the experience for the certified general appraiser is at least 50% nonresidential appraisal work as stated in subsection (2)(3) above.

(4)(5) Experience as defined in subsection (2) above shall be accounted for on an appraisal experience log, which shall include the following minimum information: type of property, date of report, address of appraised property, description of work performed by the registered trainee/applicant and scope of the review and supervision of the supervising appraiser, number of work hours, and signature and license number of supervising appraiser. The log and supporting documents shall be retained for a minimum of 5 years after licensure or certification. All work submitted for experience shall comply with the USPAP Uniform Standards of Professional Appraisal Practice, as defined in Rule 61J1-9.001, F.A.C. Types of acceptable experience are, as follows:

(a) Fee appraisal assignments and staff appraisers:

1. Certified residential: Experience shall consist of a minimum of 150 supportable and documented appraisal reports presented in a format generally acceptable to the appraisal industry.

2. Certified general: Experience shall consist of a minimum of 23 Summary or Self-Contained Appraisal Reports in a narrative format which comply with the USPAP Uniform Standards of Professional Appraisal Practice; or 12 nonresidential Summary or Self-Contained Appraisal Reports in a narrative format which comply with the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(bb)(w), F.S., and 135 non-narrative supportable and documented appraisal reports presented in a format generally acceptable to the appraisal industry.

(b) Mass appraisals:

1. Mass appraisals must be as set forth in compliance with Standards 5 and 6 of the USPAP Uniform Standards of Professional Appraisal Practice set forth in Rule 61J1-9.001, F.A.C.

2. Mass appraisal experience claimed by the applicant should be given credit to the extent that it demonstrates proficiency in appraisal practices, techniques, or skills used by appraisers practicing under USPAP Standard 1 adopted in June 1997.

3. In developing a mass appraisal, an appraiser must be aware of, understand, and correctly employ those recognized methods and techniques necessary to produce and communicate credible mass appraisals.

4. Mass appraisal experience shall include:

a. Identifying properties to be appraised;

b. Defining market area of consistent behavior that applies to properties;

c. Identifying characteristics (supply and demand) that affect the creation of value in that market area;

d. Determining highest and best use;

Demonstrating proficiency with elements and concept of highest and best use through separate analysis if not contained in appraisals submitted for audit;

e. Developing a model structure to determine the contribution of the individual characteristics affecting value;

f. Calibrating the model structure to determine the contribution of the individual characteristics affecting value;

g. Applying the conclusions reflected in the model to the characteristics of the property or properties being appraised; and

h. Reviewing the mass appraisal results.

All other components of the mass appraisal process are not eligible for experience credit.

5. Experience will be granted for appraisals of individual parcels of real estate.

(c) Review Appraiser:

1. Certified residential: Experience shall consist of a minimum of 300 appraisal review reports.

2. Certified general: Experience shall consist of a minimum of 150 appraisal review reports of narrative appraisal reports. At least 50% (1500 hours) of the experience must be in nonresidential appraisal work as defined in subsection (2)(3) above.

a. Review appraisal experience shall be granted only when the applicant has performed review(s) of appraisals prepared either by employees, associates, or others, provided the appraisal report was not signed by the review appraiser.

b. Review appraisal experience may be claimed only when reviews are as set forth in Standards Rule 3 and 4 of the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(bb)(q), F.S.

(d) Appraisal analysis, real estate counseling and highest and best use analysis:

1. Experience shall consist of a minimum of 150 narrative reports.

2. Experience may be claimed only when performed as set forth in Standards 1 and 2 Rules 4 and 5 of the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(bb)(q), F.S., as applicable.

(e) Feasibility analysis/study:

1. Experience shall consist of a minimum of 150 narrative reports.

2. Experience may be claimed only when the analysis/study is prepared as set forth in Standards Rules 1 and 2 of the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(bb)(q), F.S., and the applicant can demonstrate that he or she utilized is using similar techniques as appraisers to value properties and effectively utilize the appraisal process.

(5)(6) The Board shall require an applicant to document experience by producing appraisal reports, file memoranda, or other documentation to support the experience claimed.

Rulemaking Authority 475.614, 475.615(2) FS. Law Implemented 455.213, 475.611(1)(q), 475.615(2), 475.617, 475.628 FS. History–New 10-15-91, Formerly 21VV-6.001, Amended 9-22-93, 9-6-94, 2-19-98, 9-6-98, 12-12-99, 10-1-00, 6-1-04, 3-1-06, 12-4-06, 4-18-07, 11-25-07, 11-12-09, 2-10-14, 7-30-14,               .

 

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 1, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: June 18, 2018