(1)
"Act" means the Federal Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, Pub. L. No. 101-73, as amended.
(2)
"Appraisal" means an analysis, opinion, or conclusion relating to the
value of specified interests in or aspects of identified real estate or
identified real property.
(3)
"Appraisal management company" means an entity that acts as a broker
in acquiring finished appraisals from real estate appraisers licensed under
this chapter and that supplies the appraisals to third parties.
(4)
"Appraiser" or "real estate appraiser" means a person
licensed under this chapter.
(5)
"AQB" means the Appraisal Qualifications Board of the Appraisal
Foundation as referenced in the Act. Under the provisions of the Act, the AQB
establishes the minimum education, experience, and examination requirements for
real property appraisers to obtain a state license or certification.
(6)
"ASC" means the Appraisal Subcommittee of the Federal Financial
Institutions Examination Council created pursuant to the Act. The ASC oversees
the real estate appraisal process as it relates to federally related
transactions as defined in the Act.
(7)
"Board" means the Board of Real Estate Appraisers established under
this chapter.
(8)
"Disciplinary action" means any action taken by the Board against a
licensed real estate appraiser or applicant premised on a finding that the
person has engaged in unprofessional conduct. The term includes all sanctions
of any kind, including obtaining injunctions, refusing to grant or renew a
license, suspending, revoking, or restricting a license, and issuing warnings.
(Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), §
1; 2009, No. 103 (Adj. Sess.), § 40; 2013, No. 27, § 37.)
§
3312. Prohibitions; penalty; exemption
(a) Unless
licensed in accordance with the provisions of this chapter, no person may:
(1) Perform an
appraisal in a federally related transaction when a licensed or certified
appraiser is required by the Act.
(2) Use in
connection with his or her name any letters, words, or insignia indicating that
he or she is a state certified or licensed real estate appraiser.
(b) An
individual who violates a provision of subsection (a) of this section shall be
subject to the penalties provided in 3 V.S.A. § 127(c).
(c) A
registered appraisal management company shall not be required to be licensed in
order to acquire and provide finished appraisals to third parties. (Added 1989,
No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 2; 2007, No.
29, § 48; 2009, No. 103 (Adj. Sess.), § 41.)
§
3313. Board of real estate appraisers
A board of
real estate appraisers is established. The board shall consist of six members
appointed by the governor pursuant to 3 V.S.A. §§ 129b and 2004. Three members
shall be real estate appraisers licensed under this chapter who have been
actively engaged in the full-time practice of real estate appraising for five
years preceding appointment and have been practicing in Vermont for the
two-year period immediately preceding appointment. Two members shall be public members
who shall have no direct financial interest personally or through a spouse,
parent, child, brother, or sister in real estate appraising. One member shall
be a public member actively engaged in the business of banking, including
lending for the purpose of buying real property, or shall be a person who is a
consumer of appraisal services in the regular course of his or her business.
(Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 2; 1993, No.
217 (Adj. Sess.), § 3; 1999, No. 133 (Adj. Sess.), § 30; 2005, No. 27, § 95;
2009, No. 103 (Adj. Sess.), § 42.)
§
3314. Board; powers and duties
(a) The Board
shall administer the provisions of this chapter in a manner that conforms in
all respects with the requirements of the Act.
(b) In
addition to its other powers and duties under this chapter, the Board shall:
(1) receive
and review applications;
(2) collect
the registry fee as required by the Act and transmit that fee to the ASC. The
registry fee shall be in addition to State licensing and registration fees;
(3) annually
publish a roster of all licensees and transmit the roster to the ASC as
required by the Act;
(4) register
appraisal management companies; and
(5) perform
other functions and duties as may be necessary to carry out the provisions of
this chapter. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 2009, No. 103
(Adj. Sess.), § 43; 2013, No. 27, § 38.)
§
3315. Rules
(a) The Board
may adopt rules necessary to implement the provisions of this chapter.
An individual
who desires to be licensed under this chapter shall apply to the board in
writing on a form furnished by the board. The application shall be accompanied
by payment of the required fee. (Added 1989, No. 264 (Adj. Sess.), § 1.)
§
3318. Examination
The Board
shall examine applicants for using an AQB-approved qualifying examination for
the credential sought by the applicant. (Added 1989, No. 264 (Adj. Sess.), § 1;
amended 1991, No. 92, § 5; 1993, No. 217 (Adj. Sess.), § 7; 2013, No. 27, §
40.)
§
3319. Temporary practice
The board
shall issue a temporary license to an individual, after filing of an
application and fee, who is a certified or licensed real estate appraiser in
another jurisdiction if all of the following apply:
(1) The
property to be appraised is part of a federally related transaction for which a
licensed or certified appraiser is required by the Act.
(2) The
applicant's business is of a temporary nature.
(3) The
applicant registers with the board. (Added 1989, No. 264 (Adj. Sess.), § 1;
amended 1991, No. 92, § 6; 1993, No. 217 (Adj. Sess.), § 8.)
§
3319a. Appraiser trainee registration
(a) A person
who has completed a course of instruction approved by the AQB may work as a
certified residential or certified general appraiser trainee provided the
person is registered with the Board. An appraiser trainee shall work under the
direct supervision of an appraiser who holds either a certified residential or
a certified general license in good standing and has held the certified
residential or certified general license for at least the minimum number of
years required by the AQB. An appraiser trainee may perform activities within
the scope of practice of the license sought provided that the supervising
appraiser reviews and signs all resulting appraisals. The supervising appraiser
shall be professionally responsible for such activities performed by the
trainee. As used in this section, "good standing" means that the
appraiser supervisor holds a current, unrestricted license.
(b) To be
credited toward the hourly experience requirement for licensure, the trainee
shall inspect each property appraised with the trainee's supervisor.
(c)
Notwithstanding subsection (b) of this section, the Board may, in its
discretion, give credit for training hours, not exceeding 10 percent of the
total hourly experience requirement, for hours worked or training given that
does not include or is unrelated to a site inspection. (Added 1993, No. 217
(Adj. Sess.), § 9; amended 2003, No. 60, § 18; 2005, No. 27, § 96; 2005, No.
148 (Adj. Sess.), § 37; 2013, No. 27, § 41.)
§
3320. Licensure by reciprocity
The Board
shall waive all licensing requirements for an appraiser applicant holding a
valid certification from another state if:
(1) the
appraiser licensing and certification program of the other state is in
compliance with the provisions of the Act; and
(2) the
appraiser applicant holds the valid certification from a state whose
requirements for certification or licensing meet or exceed the licensure
standards established by this chapter. (Added 1989, No. 264 (Adj. Sess.), § 1;
amended 1993, No. 217 (Adj. Sess.), § 10; 2013, No. 27, § 42.)
§
3320a. Appraisal management companies
(a) An
appraisal management company acts as a broker in acquiring finished appraisals
from real estate appraisers and supplying the appraisals to third parties, but
appraisal management companies are not licensed to perform real estate
appraisals under this chapter. Acting as an appraisal management company
includes:
(1)
administering or assigning work to licensed real estate appraisers;
(2) receiving
requests for real estate appraisals from clients;
(3) receiving
a fee paid by clients for acquiring real estate appraisals; or
(4) entering
into an agreement with one or more real estate appraisers to perform
appraisals.
(b) An
appraisal management company does not include:
(1) a
government agency;
(2) a bank,
credit union, licensed lender, or savings institution;
(3) a person
or entity that has as its primary business the performance of appraisals in
accordance with this chapter but who or which, in the normal course of
business, engages the services of a licensed appraiser to perform appraisals or
related services that the person or entity cannot perform because of the
location or type of property in question, work load, scope of practice required
by an assignment, or to otherwise maintain professional responsibility to
clients.
(c) An
appraisal management company shall register with the Board prior to conducting
business in this State. An application shall include a registration fee and
information required by the Board that is necessary to determine eligibility
for registration.
(d) When
contracting for the performance of real estate appraisal services, an appraisal
management company shall only engage the professional services of an appraiser
licensed and in good standing to practice pursuant to this chapter.
(e) A registrant's
employee reviewing finished appraisals shall be certified or licensed in good
standing in one or more states and shall be certified at a level that
corresponds with or is higher than the level of licensure required to perform
the appraisal. (Added 2009, No. 103 (Adj. Sess.), § 45; amended 2013, No. 27, §
43.)
§
3321. Renewals
(a) A license
issued under this chapter shall be renewed biennially upon payment of the
required fee and upon satisfactory completion of the minimum continuing
education requirements established by AQB during the immediately preceding two-year
period.
(b) If an
individual fails to renew in a timely manner, he or she may renew the license
within 30 days of the renewal date by satisfying all requirements of AQB for
reactivation and payment of an additional late renewal penalty.
(c) The Board
may reactivate the license of an individual whose license has lapsed for more
than 30 days upon payment of the renewal fee, the reactivation fee, and the
late renewal penalty, provided the individual has satisfied all requirements of
AQB for reactivation.
(d) The Board
may require, by rule, as a condition of reactivation, that an applicant undergo
review of one or more aspects of the applicant's professional work in the
practice of real estate appraising provided that the manner and performance
results of the review be specified by the Board. Such a review requirement
shall:
(1) be adopted
reasonably in advance of the time when it is first required to be met; and
(2) provide
for compliance if the applicant shows that within the two years preceding
renewal, the applicant underwent a satisfactory quality review for other
purposes and that review was substantially equivalent to a review required
under this section.
§
3322. Use of license number; consumer fee disclosure
(a) Each
licensee or registrant shall be assigned a license or registration number which
shall be used in a report, a contract, engagement letter, or other instrument
used by the licensee or registrant in connection with the licensee's or
registrant's activities under this chapter. The license number shall be placed
adjacent to or immediately below the title the licensee is entitled to use
under this chapter. The licensed appraiser shall ensure that the registration
number and the appraiser's fee for appraisal services shall appear adjacent to
or immediately below the appraisal management company's registered name on
documents supplied to clients or customers in this state.
(b) The
licensed appraiser shall include within the body of the appraisal report the
amount of the appraiser's fee for appraisal services. (Added 1989, No. 264
(Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 13; 2009, No. 103
(Adj. Sess.), § 47; 2011, No. 66, § 11, eff. June 1, 2011.)
§
3323. Unprofessional conduct
(a) The
following conduct by a licensee and the conduct set forth in 3 V.S.A. § 129a
constitute unprofessional conduct. When that conduct is by an applicant or a
person who later becomes an applicant, it may constitute grounds for denial of
a license:
(1) Procuring
or attempting to procure a license under this chapter by knowingly making a
false statement, submitting false information, refusing to provide complete
information in response to a question in an application for licensure, or
through any form of fraud or misrepresentation.
(2) An act or
omission involving dishonesty, fraud, or misrepresentation with the intent to
benefit the licensee or another person or with the intent to injure another
person.
(3) Violation
of any of the standards for the development or communication of real estate
appraisals established under the Act.
(4) Failure or
refusal to exercise reasonable diligence in developing an appraisal, preparing
a report, or communicating an appraisal.
(5) Negligence
or incompetence in developing an appraisal, in preparing a report, or in
communicating an appraisal.
(6) Accepting
an appraisal assignment when the employment itself is contingent upon the
appraiser reporting a predetermined analysis or opinion, or where the fee to be
paid for the performance of the appraisal assignment is contingent upon the
opinion, conclusion, or valuation reached, or upon the consequences resulting
from the appraisal assignment.
(7) Violating
the confidential nature of governmental records to which the licensee gained
access through employment or engagement as an appraiser by a governmental
agency.
(8) Violating
any term or condition of a license restricted by the board.
(9) Failing to
comply with practice standards adopted by the board.
(b) The
following conduct by an appraisal management company and the conduct set forth
in 3 V.S.A. § 129a constitute unprofessional conduct. An appraisal management
company includes agents acting on behalf of the registrant in the acquisition,
delivery, or use of a real estate appraisal produced by a licensed real estate
appraiser. When that conduct is by an applicant or an entity that later becomes
an applicant for registration, it may constitute grounds for denial of a
license:
(1)
Influencing or attempting to influence the development, reporting, result, or
review of a real estate appraisal through coercion, compensation, inducement,
intimidation, or other manner intended to affect the independent judgment of a
licensed real estate appraiser, including:
(A)
Withholding or threatening to withhold timely payment for a real estate
appraisal report.
(B)
Withholding or threatening to withhold future business or work opportunities
from a licensed real estate appraiser.
(C) Expressly
or implicitly promising future business or work-related compensation for a real
estate appraiser.
(D) Ordering
or paying for real estate appraisal services based on predetermined valuations
or other conclusions to be reached by a licensed real estate appraiser.
(E) Requesting
or suggesting that a licensed real estate appraiser provide an estimated,
predetermined, or desired valuation in a real estate appraisal report or
provide estimated values or comparable sales prior to completion of the
appraisal report.
(2) Altering
or otherwise changing a completed appraisal report submitted by a licensed
appraiser.
(3) Using an
appraisal report submitted by an appraiser for a transaction other than the one
for which it was developed.
(4) Requiring
an independent appraiser to enter into an agreement requiring the independent
appraiser to defend, to indemnify, or to hold harmless the registrant or other
third party for the development, use, or contents of a real estate appraisal.
This subdivision shall not affect a licensee's or a registrant's professional
liability to consumers or to other licensees or registrants.
(5) Using or
possessing an independent licensed real estate appraiser's digital signature,
seal, or other similar stamp of endorsement.
(c)
Registrants shall only transmit an exact copy of the completed appraisal to the
client or other intended user.
(d) After
hearing, and upon a finding of unprofessional conduct, the board may take
disciplinary action against a licensee, applicant, or registrant. Without
limitation, disciplinary action may include any of the following:
(1) suspending
or conditioning a license or registration;
(2) requiring
a licensee to submit to care or counseling;
(3) requiring
that a licensee practice only under supervision of a named person or a person
with specified credentials;
(4) requiring
a licensee to participate in continuing education in order to overcome
specified practical deficiencies;
(5) limiting
the scope of the licensee's practice.
(e) Appeals
from decisions of the board shall be governed by the provisions of 3 V.S.A. §
130a. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj.
Sess.), § 14; 1997, No. 145 (Adj. Sess.), § 55; 2007, No. 29, § 49; 2009, No.
103 (Adj. Sess.), § 48.)
§
3324. Record retention
(a) A licensee
or registrant shall retain all records related to an appraisal, review, or
consulting assignment for no less than five years after preparation.
(b) A licensee
or registrant shall retain records under this section that relate to a matter
in litigation for two years after the litigation concludes or in conformance
with the "Uniform Standards of Professional Appraisal Practice," as
promulgated by the Appraisal Standards Board of the Appraisal Foundation, whichever
period is longer.
(c) With
reasonable notice, a licensee or registrant shall produce any records governed
by this section for inspection and copying by the board or its authorized
agent. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.),
§ 15; 2009, No. 103 (Adj. Sess.), § 49.)
§
3325. Reporting
An appraiser
who reports to the board appraisal work being performed which does not comply
with the provisions of this chapter shall not be considered to have violated
the ethics provision of the uniform standards of professional practice. (Added
1993, No. 217 (Adj. Sess.), § 16.)