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Appraiser ACLB Oregon Appraiser Certification and


Condemnation appraising
                             Appraiser                                                   Fall 2000 / Winter 2001

  By Roger Hansen, ACLB member                                                             In this issue
                              Condemnation or eminent domain appraisal occupies
                                                                                            Condemnation appraising .. 1
                           a special niche in the appraisal industry. An abundance
                           of statutory and case law affects the methodology and            DCBS announces changes
                           valuation techniques to be used by the appraiser. What           in the ACLB ........................ 2
                           may appear to be a simple appraisal problem can be               Questions and answers
                           much more complicated due to the special requirements            about ACLB changes .......... 3
                           for a condemnation appraisal. An appraisal resulting in          Meeting dates for 2000 ...... 3
                           a low value can be the result of a very complicated              Governor appoints new
                           appraisal process while a high-value determination may           board member ................... 4
                           be simple and straightforward. Sometimes, a taking of
                                                                                            A brief look at the Division
                           relatively low value involves complex appraisal prob-
                                                                                            of Finance and Corporate
lems such as estimating damages and special benefits, which can offset damages              Securities ............................ 6
to the remaining property under Oregon law. The value of the taking determined
by the appraiser shouldn’t be considered an indicator of the complexity of the              Message from the Chair ..... 7
appraisal assignment.                                                                       Questions & Answers ......... 8
   This brings us to first question the appraiser should ask himself or herself             Robert A. Keith appointed
before accepting a condemnation appraisal assignment: “Do I have the proper                 appraiser compliance pro-
license or certification to accept this appraisal assignment?” Under Oregon law             gram coordinator ............. 10
and administrative rules, “transaction value” is a determining factor. OAR 161-             Notice to appraisers,
002-000, Definitions, (33) to (35), defines limitations on the scope of practice of         lending institutions
the various licenses or certifications and the term “transaction value.”                    and real estate and
                                                                                            insurance agents,
   A state-certified general appraiser may appraise all types of real property. A           home and manufactured
state-certified residential appraiser may appraise all types of one- to four-family         housing builders ............... 10
residential real property without regard to complexity or transaction value and
                                                                                            Appraisers in Oregon ........ 11
all other types of real property having a transaction value of less than $250,000. A
state licensed appraiser may appraise non-complex, one- to four-family residen-             Appraisers urged to
tial units having a transaction value of less than $1,000,000 and complex one- to           police selves ..................... 11
four-family residential units having a transaction value of less than $250,000 and          Renewing your license ...... 12
all other types of real property having a transaction value of less than $250,000.          Condemnation appraising 13
   These restrictions on the scope of practice are echoed under OAR 161-025-                Enforcement actions ......... 14
0005(5) and (6) for the state-certified residential appraiser and under 161-025-
0010(5) and (6) for the state-licensed appraiser: “The state licensed (or state
certified residential) appraiser may appraise properties involving partial takings
or condemnation actions where the value of the larger parcel is within the scope
of practice for the state licensed (or state certified residential) appraiser. . . If,
during the course of a condemnation or partial taking appraisal assignment, the
appraiser could reasonably expect the before value of the larger parcel to exceed
the allowable transaction value for the state licensed (or state certified residential
appraiser), the appraiser shall inform the client for whom the appraisal is being
performed that the assignment exceeds the scope of their practice.”

                                                               Continued on Page 13        Appraiser Certification
                                                                                            and Licensure Board
                                                                                                 of Oregon
                                         DCBS announces changes
                                         in the ACLB
                                           In order to avoid raising annual        Riddell, and support staff, Roger
                                         appraiser fees and to ensure that         Hanthorn. Three positions will re-
                                         complaints are processed promptly,        main: appraiser compliance program
                                         changes are under way in ACLB             coordinator and investigator, to be
                                         administration and further changes        filled by Robert Keith; audit investiga-
                                         have been proposed to the legislature.    tor, to be filled by current employee
                                                                                   Cynthia Standley; and administrative
Appraiser Certification                  Our declining fund balance                case coordinator, to be filled by
 and Licensure Board                        ACLB is a division of the Depart-      current employee Karen Turnbow.
      of Oregon                          ment of Consumer and Business                 To achieve administrative efficien-
                                         Services. As such, it reports to the      cies and to make better use of DCBS
      350 Winter St. NE                  DCBS director. The program, which         attorney/investigator staff, the ap-
  Salem, Oregon 97301-3878               has five staff members, was begun in      praiser program will be placed within
    Phone: (503) 373-1505                the early ‘90s, funded solely by fees     the Division of Finance and Corporate
           E-mail                        assessed to appraisers. In 1993, the      Securities. James Krueger, who man-
     kruegehj@dfcs.dfcs                  legislature directed that the fund        ages a number of non-depository
                                         balance held by ACLB be reduced.          financial institution regulatory pro-
          ACLB staff                     That reduced fund balance left us with    grams in DFCS, will serve as interim
       H. James Krueger                  a choice of increasing fees by as much    administrator of ACLB.
       Interim Administrator             as 70% or reducing expenses. We
                                                                                       These administrative changes
                                         chose to reduce expenses.
        Robert A. Keith                                                            eliminate the need to increase the fees
Appraiser Compliance Program Mgr.        A backlog of pending                      paid by licensees; however, they do
                                                                                   not address the case-processing
       Colette Jakabosky                 enforcement cases                         problems that have resulted in a
  Application/Licensure Specialist          ACLB has about 200 enforcement         backlog of cases awaiting investiga-
        Karen Turnbow                    cases requiring investigation and         tion and enforcement action.
  Administrative Case Coordinator        action. As the 10-member ACLB meets
                                                                                       DCBS has proposed making the 10-
       Cyndie Standley                   only four times a year, cases not
                                                                                   member policy board a five-member
                                         resolved at one meeting must be
                                                                                   advisory board, which would transfer
                                         carried forward three months to the
                                                                                   the responsibility for enforcement
       Board members                     next meeting. The process is not
                                                                                   actions from the board to the ap-
                                         satisfactory to appraisers charged with
Roxanne Gillespie ........ Board Chair                                             praiser-program staff within DFCS.
                                         improprieties (who may not have done
 Certified Appraiser                                                               The ACLB, as an advisory board,
                                         anything wrong) or to consumers who
Gerald Curtis ..... Board Vice Chair                                               would continue to meet quarterly to
                                         may be harmed by the actions of
 Certified Appraiser                                                               help the department identify policy
                                         appraisers who have done something
                                                                                   issues and advise the department on
Autumn Rudisel ..... Bank Member         wrong, but whose cases don’t con-
 Mortgage Banker                                                                   the administration of the appraiser
                                         clude for months.
                                                                                   program. This change requires legisla-
Terry Morrison ........ Bank Member         To address the declining fund          tive approval.
  Banker                                 balance and the backlog of pending
                                                                                       Please read the questions and
Paul Zacha ......... Industry Member     enforcement cases, the department is
                                                                                   answers on the following pages for
 Certified Appraiser                     making administrative changes within
                                                                                   more information about changes to
Roger Hansen ....... Public Member       its existing statutory authority. Those
                                                                                   the appraiser program. If you have
 Right of Way Manager, ODOT              changes follow:
                                                                                   further questions, please call James
Ellen Bachman ...... Public Member          To reduce the ACLB staff from five     Krueger, interim administrator of
  Attorney at Law                        to three, two positions will be elimi-    ACLB, (503) 947-7362. s
Deborah Lincoln .. Ex Officio Member     nated: that of the administrator, Linda
 Deputy Director, DCBS
Terry Bernhardt .. Industry Member
  Certified Appraiser
Doug Nelson ..... Industry Member
 Licensed Appraiser

   2                                                                Appraiser Certification and Licensure Board
Questions and answers about
ACLB changes by H. James Krueger, interim administrator
                                            Karen Turnbow will review qualifica-
                                            tions by checking applications to
                                                                                        Meeting dates
                                            ensure that applicants have com-
                                            pleted required hours and that all
                                                                                        for 2000                  Sun       Mon
                                                                                                              1         2
                                            courses claimed for credit are within
                                            the program requirements as defined                               8         9
                                            in the rules. When Turnbow deter-           September 28
                                            mines that qualifications have been            Special board meeting
                                            met, she will turn the file over to Jim
                                            Krueger, the interim administrator,         October 16
                                            for final approval. This change to the         Quarterly board meeting
                                            review process will result in the initial
                                                                                        All meetings are open to the
H. James Krueger, program manager,          review being performed by a more
non-depository lenders, has been
                                                                                        public. Auxiliary aids for
                                            highly qualified staff member than
appointed by Mary Neidig, DCBS                                                          those with disabilities are
                                            has been the case in the past.
director, as interim administrator of the                                               available with advance re-
ACLB. His appointment will continue            Some data-entry duties will be           quests. Contact the ACLB
until the legislature acts on the           reassigned from Turnbow to DFCS             office for specific times and
department’s proposal to revise the         support staff.                              locations of meetings, (503)
structure of the ACLB.                                                                  373-1505, or visit our Web site,
                                            If all applicant decisions are made by
Appraiser licensing and                     the director of DCBS, what will be
certification                               the appeal process for the applicant
                                            if there is a disagreement?
Will the process of appraiser                  The appeal process for license
licensing and certification be              applicants for all licensing programs
altered? If so, how?                        in Oregon is determined by Chapter
   There are no plans to alter the          183 and the attorney general. It
processing of applications that will be     involves the contested-case hearing
apparent to members of the industry         process, in which an applicant re-
or the board. Some staff adjustments        quests a hearing to dispute a license
will be made and the person process-        denial. A hearing officer is appointed;
ing the applications may change. For        testimony is taken on the record and
example, the current licensing special-     with the advice of counsel, if the
ist position is a temporary position. It
will be eliminated and some duties
                                            respondent so chooses; and the
                                            hearing officer prepares recom-
                                                                                        Thank you!
will be assigned to a licensing special-    mended findings of fact and conclu-            The members of the
ist within the Division of Finance and      sions of law. The findings have been        Appraiser Certification &
Corporate Securities. Review of             submitted to the board for final            Licensure Board and the staff
qualifications, currently done by the       approval; under the proposed system,        thank the members of the
licensing specialist with final ap-         they would be submitted to the              Appraisal Review & Advisory
proval by the administrator, will           director. The director will do what the     Committee (ARAC) for
change. Reviews will be done by             board currently does, which is accept       volunteering their time to
Karen Turnbow, the current adminis-         the findings as prepared or change          review appraisals submitted
trative case coordinator, with final        them. The director’s decision becomes       with complaints or audits for
approval by Jim Krueger, the new            a final order, and respondents have 60      USPAP compliance.
interim administrator.                      days within which to appeal a final            If you are a licensed or
                                            order to the court of appeals. Appeals      certified appraiser in Oregon
What changes will there be in the           could eventually go to the U.S.             and not a member of ARAC,
decision-making process regarding           Supreme Court.                              and have an interest in serving
appraiser qualifications?                                                               on the committee, you may
   No changes in the decision-making                          Continued on Page 4       contact the ACLB office,
process will be made, although those                                                    (503) 373-1505, for further
reviewing the application will change.                                                  information. s

Appraiser Certification and Licensure Board                                                                             3
                               ... about ACLB changes Continued from Page 3
                               Costs                                        Advisory boards may be created by
                                                                         the governor, the legislature, state
Governor                       How does this change save money?
                                  This proposed change eliminates
                                                                         agencies, or existing boards. They serve
                                                                         as advisers on policy matters to their
appoints                       two full-time positions. Some func-
                               tions will be supported using existing
                                                                         appointing authority, who is respon-
                                                                         sible for the management and adminis-
new                            DFCS staff. In addition, we expect to
                               save substantial attorney general costs
                                                                         tration of the policy. These boards
                                                                         study existing policy and make recom-
board                          by two means: First, the AG will not
                               have to attend all meetings of the
                                                                         mendations for change or implementa-
                                                                         tion. Although they do not have final
member                         proposed advisory board; Second,
                               DFCS has six members of the Oregon
                                                                         authority to make or enforce rules,
   The ACLB is pleased to                                                their research and advice to decision-
announce that the governor     State Bar on staff and, while they        makers contribute to effective change
has appointed Doug Nelson,     cannot act as DFCS/ACLB attorneys,        in state government.
SRA, a state-licensed ap-      they can provide the benefit of their
                               education and experience to the           How will decisions be made by DFCS?
praiser from Walterville, to
                               administration of the appraiser              Decisions will be based on 10 years
the ACLB beginning July 1,
                               program.                                  of precedent, consideration of existing
2000. Nelson was confirmed
                                                                         rules, and the matrix prepared to
by the senate, and his term    What else will change in licensing        determine appropriate sanctions, with
began July 1.                  and certification?                        a great deal of consultation among the
   Nelson‘s practice is pri-      All licensing, certification, and      advisory board members, professional
marily residential apprais-    investigation functions currently         associations, Appraisal Review Com-
ing, appraisal review, and     being done will continue to be done       mittee members, and licensed and
related consulting services    under the proposed structure. As an       certified appraisers. The proposed
in central Lane County.        advisory board, ACLB’s board mem-         change to the law requires quarterly
He‘s been involved in vari-    bers will provide guidance and            meetings of the advisory board. DFCS
ous aspects of appraisal       direction to ensure that the purposes     frequently meets with the industries it
analysis, evaluation, and      and intent of the law and rules are       supervises.
management since graduat-      being fulfilled, instead of reviewing
ing from the University of     each enforcement action, a time-con-      Who appoints the DFCS director?
Colorado in 1969.              suming and burdensome process that          The director is appointed by the
   The ACLB is also pleased    prevents timely closure of enforce-       governor, with approval by the
to announce that Paul Zacha    ment actions and investigations.          Oregon Senate.
and Terry Morrison have        Board members will advise the
                                                                         Assuming there are cases in which
been reappointed to the        agency on general guidelines and
                                                                         the director and the advisory board
board for their second four-   ensure that the precedents of the past
                                                                         are in disagreement, how will
year terms. s                  10 years are followed unless changes
                               in the industry require a review of       compromise be reached?
                               those processes. If changes are neces-       Initially, through exchange of
                               sary, board members will help the         information and viewpoints at meet-
                               agency write new administrative           ings with the board, the director, and
                               rules.                                    other interested parties, which might
                                                                         include professional organizations. If
                               What are the differences between a        no resolution is possible, the board
                               policy-making and an advisory board?      and licensed or certified appraisers
                                  Policy-making boards are given         can take their cases to the governor or
                               statutory power by the legislature to     any legislator. Finally, the board and
                               make policy decisions and enforce         licensed or certified appraisers have
                               regulations. Policy is developed by       the right to petition the director for
                               interpreting legislative intent as        rule-making or, if the matter warrants,
                               outlined in the board’s governing         either can seek an injunction. Because
                               statutes or in officially adopted         regulation ensures a strong, viable
                               administrative rules, and by imple-       industry and provides consumer protec-
                               menting procedures to carry out those     tions, disagreements are rare in the area
                               laws or rules.                            of implementing established policy.

  4                                                       Appraiser Certification and Licensure Board
The advisory board selection process       board, which only meets quarterly. If a
puts the selection of the members in       proposed order is submitted the day          ACLB board
the hands of the director. What is to
prevent a “captive” advisory board?
                                           after a board meeting, the matter must
                                           wait three months before it is brought
                                           before the board. If it is not acted upon,
   DCBS is well aware that advisory
boards work only when all viewpoints       it waits an additional three months for         The governor’s office is
are represented. Every effort will be      another board meeting. The same is           currently accepting appli-
made to ensure that this is the case       true of the Board Review Panel, which        cations for a certified ap-
with the ACLB advisory board (pend-        currently makes final decisions on the
                                                                                        praiser position on the
ing legislative approval). As a practi-    contents of a formal notice. Under the
                                           proposed system, the staff will apply
                                                                                        board, to become available
cal matter, appointments are made on                                                    July 1, 2001. The member in
the recommendation of professional         the past 10 years‘ precedent and
                                           existing rules and will process notices      this position serves a four-
associations. If the industry or its
                                           and final orders without waiting for         year term. If you are inter-
members believe an unfair or biased
board has been appointed, they have        the next quarterly meeting. The in-          ested in being considered
the same recourse addressed above in       creased enforcement staff and stream-        for this appointment, con-
the question about disputes between        lined processes will reduce the backlog      tact H. James Krueger,
the board and the director.                of cases.                                    ACLB interim administra-
                                           What happens when final authority            tor, (503) 373-1505, or Lisa
Will the activities of appraiser                                                        Howard, (503) 378-8471, in
licensing, certification, and              for enforcement actions are moved
                                           from a policy-making board to the            the Office of the Governor. s
enforcement compete with other
DFCS activities for regulatory             director?
resources?                                    Licensed or certified appraisers
   We expect the appraiser licensing,      subject to enforcement actions will
certification, and enforcement activi-     have the same protections they have
ties to be enhanced with the econo-        now against abusive or unfair enforce-
mies of scale that result from moving      ment actions. Those protections
the ACLB program into a larger             include the right to a hearing, the right
department section. DFCS has 63 staff      to be represented by counsel, and the
members administering 13 programs.         right to appeal any final order. That
As discussed above, the expertise of       will not change.
the DFCS staff will be useful in           I’m concerned that there will be fewer
administration of the appraiser            qualified individuals in the overall
program. In addition, receptionist and     process of consumer protection and
support staff functions can be ab-         enforcement and fewer checks and
sorbed. Under the new structure, the       balances than in the current system.
appraiser program gains a needed
full-time staff member to work on             As discussed above, there are
enforcement matters, doubling the          actually more qualified individuals
enforcement staff we now have. We          providing consumer protection and
expect the appraiser program to            enforcement. The advisory board
function more efficiently and effec-       and professional associations will
tively under the new structure.            ensure that established policies are
Consumer protection                        Of the current state advisory boards,
and enforcement                            which will the restructured ACLB
Will enforcement or the costs of           be most like?
enforcement change?                          It will look most like the Real Estate
   Enforcement will be enhanced by         Agency, which is where appraisers
the addition of another full-time          were regulated prior to the early ‘90s. s
investigator and through the stream-
lining of processes. Currently, with the
board serving as a policy board, all
administrative actions and final
orders have to be approved by the

Appraiser Certification and Licensure Board                                                                      5
                                 A brief look at the Division of
                                 Finance and Corporate Securities
                                   By H. James Krueger, interim administrator
         ❑ Visa
                                    The Division of Finance and                 regulates. DFCS staff consult with
         ❑ MasterCard            Corporate Securities (DFCS) is the             constituent groups as often as neces-
                                 agency of state government respon-             sary to keep abreast of changes in the
ACLB takes                       sible for administration of laws
                                 regulating financial institutions,
                                                                                industry and to ensure that we are
                                                                                protecting consumers without unduly
credit cards                     (except insurance) in Oregon. The
                                 division has 63 full-time employees
                                                                                burdening the industries. In most of
                                                                                our programs, we consult at least
    The ACLB now accepts         who work in one of three broad                 three times a year. In some programs,
Visa and MasterCard credit       program areas. The depository                  such as the consumer finance and
card payments for fees. Credit   program is responsible for the over-           mortgage lender programs, we have
card payments may be made        sight of banks, trusts, credit unions,         many more meetings than that. Some
by walk-in, phone, or mail. To   and savings institutions. That section         of the areas we discuss with the
use your credit card, provide    charters the institutions and conducts         professional groups include changes
the name of the cardholder as    examinations to ensure safety and              to administrative rules, changes to
it appears on the credit card,   soundness of the institution.                  the law, licensing and enforcement
the credit card number, and                                                     issues, and changes within the
                                    The Securities Section administers
the expiration date. s                                                          industries resulting from new tech-
                                 Oregon securities law, which requires
                                 licensing of those who sell investment         nologies or products. We recognize
                                 securities, registration of the securities     that due to the variety of programs
                                 (unless they are otherwise exempt              and their individual complexities, it
                                 from registration), and licensing of           is not possible for us to operate
                                 those who offer investment advice.             effectively without relying on the
                                 Investigating violations is a major            advice and criticism of those who
                                 responsibility of the Securities Section       know the most about the industries:
                                 and its staff of 12 full-time employees,       those we license, register, or regulate.
                                 including four members of the Or-                 The Department of Consumer and
                                 egon bar who investigate complaints            Business Services has proposed
                                 and take administrative or civil action        legislation to
                                 or make criminal referrals.                    move the
                                    A third program area within                 ACLB program
                                 DFCS is the administration of non-             into the non-
                                 depository institution regulatory              depository
                                 programs. This is the section of DFCS          section of
                                 that will be responsible for adminis-          the
                                 tering the appraiser program.This              Division
                                 section administers laws regulating            of Finance and Corporate
                                 consumer finance companies, short-             Securities
                                 term personal loan lenders, collection         to cut costs and
                                 agencies, mortgage lenders, debt-              streamline
                                 consolidation agencies, and three              processes. s
                                 or four smaller licensing or registra-
                                 tion laws.
                                    DFCS has always worked closely
                                 with the professional organizations
                                 that represent the businesses it

  6                                                            Appraiser Certification and Licensure Board
 Message from the Chair                                                                    USPAP
    By Roxanne Gillespie, Board chair

                           We‘ve re-        a non-complex single-family residen-
                           ceived many      tial appraisal will be allowed eight         on line
                           favorable        points. The intent of the board is to
                           comments         make reporting appraisal experience
                           about The        more concise.
                           Oregon                                                          The 2000 Uniform Standards
                                               I’ll take this opportunity to briefly     of Professional Appraisal
                           Appraiser, and   discuss a very important issue that
                           we appreciate                                                 Practice can now be viewed on
                                            affects all licensed and certified ap-
                           those of you                                                  The Appraisal Foundation’s
                                            praisers in our state.
                           who’ve taken                                                  Web site under the ASB
                                               Our business is disclosing to our         heading. There is a link to the
                           the time to
                                            clients how we see the market and            table of contents on the
                           contact us.
                                            the subject property. The ACLB also          Appraiser Certification and
We hope you’ll continue to give us
                                            requires disclosure on our applications
feedback and tell us what you’d like                                                     Licensure Board’s Web page:
                                            for licensure. We ask potential and
to see in future issues.                                                        s
                                            renewing licensees to disclose any
   Nancy Gabert, SRA, has completed         felony misdemeanors or other criminal
serving a second four-year term with        offenses. Before licensing applicants,
our board. That‘s eight years of dedica-    the ACLB conducts criminal back-
tion to serving on the ACLB! She was        ground checks. If a background check
appointed to the board in 1992. Ms.         reveals something, an application can
Gabert has served as vice chair for the     be considered falsified information. If
past three years, has attended and          you have a criminal offense in your
reported on ARAC meetings, and was          background, please check the appro-
a stellar board member. I thank her for     priate box, disclose it on your applica-
the outstanding job she did as both a       tion, and submit a written explanation.
leader and board member. Ms. Gabert         Falsification of information submitted
will be missed.                             on an application, is grounds for denial
   This last quarter has been exception-    of renewal or subsequent disciplinary
ally active for the board. For the past     action during the term of the license or
several meetings we have been discuss-      certificate. I urge you all to be aware of
ing changes to our administrative rule,     these issues and to disclose.
161-010-0025. This rule outlines the           Finally, I would like to remind you
requirements for acceptable appraisal       that Uniform Standards of Professional
experience. The rule states that the        Appraisal Practice 2000 was effective
applicant shall present evidence satis-     January 1, 2000. According to adminis-
factory to the administrator of the         trative rules (161-025-0060), appraisals
completion of acceptable appraisal          completed by appraisers in Oregon
experience. An hour of experience is        must meet USPAP 2000 requirements.
defined as verifiable time spent per-       There have been several changes to
forming tasks in accordance with            USPAP during the past year; and more
acceptable appraisal experience.            changes are noted for the mid-year. If
   After much discussion, the board         you need a current USPAP 2000
voted and approved amending this            document, you can order it electroni-
rule and changing the reporting             cally at the foundation’s Web site:
requirement for acceptable appraisal        www.
experience to a point system in which
                                              ACLB chair
one hour of experience will equal a
point.                                        Roxanne R. Gillespie, MAI
   Next, the board voted on and
approved allowing property types a
certain number of points. For example,

Appraiser Certification and Licensure Board                                                                       7
  Questions & Answers
    From the Appraisal Standards Board     accomplish such a task does not             land, or some other configuration
    State Advisory Bulletin                relieve you, as the appraiser, of           within a parcel or tract of identified
                                           responsibility for compliance with          real estate
    This communication by the              USPAP.                                          Standards Rule 1-2(c) of USPAP
Appraisal Standards Board (ASB)
                                               In either case, a copy of the pages     states, in part, that the appraiser must
does not establish new standards or
                                           that were revised, together with any        identify the characteristics of the
interpret existing standards. It’s
                                           letter sent to the client regarding         property that are relevant to the
issued to state and territory appraisal
                                           those revisions, should be retained in      purpose and intended use of the
regulators to inform them of the ASB
                                           your assignment work file. This             appraisal, including its location and
responses to questions raised by
                                           avoids having a third party, such as        physical, legal, and economic at-
regulators and individuals, to illus-
                                           an enforcement body, conclude that          tributes; whether the subject property
trate the applicability of USPAP in
                                           there was an effort to conceal the fact     is a fractional interest, physical
specific situations, and to offer advice
                                           that an earlier version of the appraisal    segment, or partial holding.”
from the ASB for the resolution of
                                           report had been communicated to the             In addition, the comment to
appraisal issues and problems. It does
                                           client.                                     this rule also states, in part: “An
not constitute a legal opinion.
                                               In preparing any form of amend-         appraiser is not required to value
                                           ment, an appraiser must also keep in        the whole when the subject of the
Q   I completed an appraisal and
                                           mind the requirements in the Con-           appraisal is a fractional interest, a
delivered the report to my client, a
                                           duct Section of the Ethics Rule, which      physical segment, or a partial hold-
local bank, last week. The bank’s in-
                                           states, “an appraiser must not com-         ing.” It is important to note that these
house reviewer has asked that I send
                                           municate assignment results in a            are binding requirements.
her an amendment letter that will
                                           misleading or fraudulent manner”                Appraising the land component of
include revisions to information in
                                           and must not accommodate the                an improved property does not cause
the report I delivered and will add
                                           interests of the client. As such, in        the appraisal to be a limited appraisal.
some information. How do I comply
                                           amendment to, or revision of, a prior
with USPAP when making revisions
to an appraisal report?
                                           appraisal report, an appraiser must         Q   My client, a government agency,
                                           provide any new or corrected infor-         has obtained two appraisals of the
                                           mation in a clear, objective, and           same real property, and has asked me
A   USPAP does not specifically            impartial manner.                           to review both and reconcile them to
address the requirements for such an
amendment. However, as in any                                                          a single value. Can I perform this
communication of assignment results,
                                           Q   I have been asked by a local bank       assignment under USPAP?
                                           to appraise just the underlying land
an appraiser must be mindful of the
obligation to not mislead and not
                                           of an existing shopping center Can I        A   Yes, you can perform this assign-
                                           perform such an assignment under            ment under USPAP.
knowingly permit an employee or
                                           USPAP? If so, would this be a                   The situation you describe consti-
other person to communicate a
                                           limited appraisal?                          tutes a real property appraisal review
misleading or fraudulent report.
Therefore, accomplishing the amend-                                                    assignment. Standard 3 of USPAP
ment requires careful attention to         A   Yes, you can perform this type          addresses the development and
these obligations.                         of assignment in compliance with            reporting of a real property appraisal
                                           USPAP.                                      review assignment. In this case, you
    Given the circumstances you
describe, one solution would be to             The subject of a real property          would carefully apply the specific
obtain all the copies of your appraisal    appraisal is not limited to all of the      appraisal review requirements of SR
                                           physical parts of an identified parcel      3-1 and SR 3-2 to both appraisals
report from the client, make the
                                           or tract of real estate. The subject of a   being reviewed, and provide your
necessary revisions, and reissue the
                                           real property appraisal can be a full       own opinion of value in accordance
corrected report.
                                           or fractional ownership interest in all     with SR 3-1(c) and SR 3-2(d).
    Another solution would be to send
                                           or any part of an improved or unim-             In this situation, it would be
the corrected or revised pages to the
                                           proved parcel or tract of identified        appropriate to include the result of
client with a cover letter carefully
                                           real estate. For example, the subject of    your review of both appraisals and
instructing them to substitute these
                                           a real property appraisal could be a        your own appraisal opinion within
pages in every copy. This option
                                           half-interest in the land, part of the      the same appraisal review report,
should be used with discretion,
                                           land, the improvements on or to the         because these would all have to be
however, because asking a client to

    8                                                               Appraiser Certification and Licensure Board
addressed in the same report to be          part of the hypothetical condition
                                            disclosure in any written or oral real
                                                                                       Q   I recently completed an appraisal
understood properly and thus not be                                                    and forwarded the report to the
misleading. A single signed certifica-      property appraisal report. Your            client. After receiving the report the
tion would be provided, in accor-           appraisal report should ensure any         client called and stated that they have
dance with SR 3-2(f).                       user of the appraisal recognizes that      another appraisal that was recently
                                            the value of the leased fee interest in    completed and the values differ
Q   I am performing an appraisal of a       the property has not been reflected in     significantly. They asked if I would
single-family dwelling that is in use       the appraisal.                             look over the other report and point
as a rental property. The purpose of                                                   out the primary differences. Does
the appraisal is to develop an opin-        Q  It has come to my attention that a      this assignment constitute an ap-
ion of market value for the fee             local appraiser is paying a home           praisal review?
simple interest. The current lease on       inspection firm a $25 referral fee for
the property is significantly below         each appraisal assignment the home
                                            inspector refers to the appraiser. Is it
                                                                                       A   No, in this case the client is not
market and runs for another 24                                                         asking you to assess the quality of
months past the date of value in my         unethical to accept an assignment if       the other appraisal or your opinion
appraisal. Furthermore the lease            the appraiser paid a fee for the           of its conclusions. Because you are
would survive a transfer of owner-          assignment?                                only noting the differences in the two
ship. Does USPAP require that I                                                        appraisals, you are not performing
analyze and reflect the presence of         A   No, but accepting such a fee           an appraisal, appraisal review, or
the lease in the valuation?                 requires specific disclosures.             consulting assignment.
                                                The Management section of the
A    No, because the subject of your        Ethics Rule reads, “The payment of         Q   An attorney hired me to prepare
assignment is the fee simple interest,      undisclosed fees, commissions, or          an appraisal. He asked that I not
not the leased fee interest.                things of value in connection with the     prepare a report but rather discuss
     However, given the difference          procurement of appraisal, appraisal        my conclusions with him orally. I
between the ownership to be reflected       review, or consulting assignments is       have done that and he concluded that
in the appraisal and the actual             unethical. “                               my opinion will not be helpful to his
ownership, this assignment requires             The Comment to the Management          client and therefore does not want a
the use of a hypothetical condition,        section goes on to say,                    written report. What are my obliga-
i.e., the fee simple interest is contrary   “Disclosure of                             tions under USPAP in this situation?
to the known ownership condition.           fees, commis-
The use of the hypothetical must be in      sions, or                                  A   Under the record keeping section
compliance with Standards Rule 1-           things of                                  of the Ethics Rule, “An appraiser
2(h), and its use must be properly          value con-                                 must prepare a work file for each
disclosed in any written or oral real       nected to the                              assignment. The work file must
property appraisal report as required       procurement of an                          include the name of the client and the
by Standards Rules 2-1(c). The              assignment must                            identity, by name or type, of any other
disclosure requirement is stated in         appear in the certifi-                     intended users; true copies of any
Standards Rule 22(a), (b), or (c)(x) for    cation of a written                        written reports, documented on any
a written report and in Standards           report and in any                          type of media; summaries of any oral
Rule 2-4 for an oral report.                transmittal letter in which                reports or testimony, or a transcript of
     Not disclosing the lease and its       conclusions are stated. In groups or       testimony, including the appraiser’s
effect (if any) on the opinion of value     organizations engaged in appraisal         signed and dated certification; all
and marketability would be a viola-         practice, intra-company payments to        other data, information, and docu-
tion of Standards Rule 2-1(c) which         employees for business development         mentation necessary to support the
states: “Each written or oral real          are not considered to be unethical.        appraiser’s opinions and conclusions
property appraisal report must: ...         Competency, rather than financial          and to show compliance with this rule
clearly and accurately disclose any         incentives. should be the primary          and all other applicable Standards, or
extraordinary assumption, hypotheti-        basis for awarding an assignment.”         references to the location(s) of such
cal condition, or limiting condition            Therefore, payment of the referral     other documentation.”
that directly affects the appraisal and     fee to the home inspection company is
indicate its affect on value. “             acceptable as long as this relationship
                                                                                                        Continued on Page 15
     In this example, the length of the     is disclosed in the appraisal certifica-
lease, the below-market nature of the       tion and any transmittal letter where
lease, and its survivorship of transfer     conclusions are stated.
are factors that should be included as

Appraiser Certification and Licensure Board                                                                              9
   Continuing                     Robert A. Keith appointed appraiser
    education                     compliance program coordinator
                                                             Robert (Bob) A. Keith has joined the ACLB staff as the
        credit                                            new appraiser compliance program coordinator. Bob has
                                                          more than 20 years’ experience as a residential and
                                                          commercial fee appraiser. He has served as an expert
   Continuing education                                   witness for DCBS in appraiser-contested case hearings,
credits are awarded to ap-                                and he is a former member of the Oregon Appraisers
praisers who attend the                                   Certification and Licensure Board. He also served as the
Appraisal Review & Advi-                                  2000 president of the National Association of Master
sory Committee (ARAC)                                     Appraisers (NAMA), where he developed good working
meetings. All meetings are                                relationships with such federal organizations as the
open to the public. You need                              Appraisal Foundation, the Appraisal Standards Board,
not be a member of the com-                               the Appraisers Qualification Board, and the Appraisal
mittee to attend. The next        Subcommittee. He has also taught appraisal courses and Uniform Standards of
meeting will be September         Professional Appraisal Practice (USPAP) at Chemeketa Community College, the
28, 2000. The meeting offers      Lincoln Graduate Center, and the Real Estate School of Oregon. s
three hours of continuing
education credit. Please
contact the ACLB office
for times and locations of
ARAC meetings, (503) 373-
1505, or visit our Web site, s
                                  Notice to appraisers,
           ooo                    lending institutions and
The ACLB is offering a class,
“Organization of Complaint
Processing and Resolution
                                  real estate and insurance agents,
and Common USPAP Viola-
tions,” at various locations
                                  home and manufactured
around the state. There is
no cost to appraisers for the
                                  housing builders
class, and participants will                         As a public service,       can help people who need a mort-
earn four continuing educa-                          the Marion County          gage or loan for a property in the
tion credits. For directions to                      Planning Depart-           SFHA
any of these class sites, go to                      ment will provide       • FEMA elevation certificates for
the ACLB Web site: ooooo                             you with the               recent construction                            following flood         Please tell us the location of the
                                                     insurance rate map      property about which you‘re seeking
Please make class reservation
                                  zone information upon request:             information, including the street
with Colette or Roger at the
ACLB office, (503) 373-1505.      • Determination of whether a               address and, if available, the subdivi-
                                    property is in or out of the Special     sion, lot, and block number.
         Next class:                Flood Hazard Area (SFHA) as              We are open from 8 a.m. to 4:30 p.m.,
                                    shown on the current flood insur-        Monday through Friday. Call us, (503)
      October 13, 2000
                                    ance rate map (FIRM) of the              588-5038, or drop by the Planning
Labor and Industries Building
                                    county                                   Department at the Marion County
   Conference room 260
      350 Winter Street           • Additional flood insurance data          Annex, 3150 Lancaster Drive NE,
           Salem                    for a site, such as the FIRM zone        Suite B. Anyone in the office can
           8-noon                   and the base flood elevation or          provide the needed information.
                                    depth, if shown on the FIRM              There is no charge for this service. s
                                  • A handout about the flood insur-
                                    ance purchase requirement that

   10                                                         Appraiser Certification and Licensure Board
  Appraisers urged to police selves
  By Robert A. Keith, appraiser compliance program coordinator
   Recently, as I have traveled across                       modified annually by the ASB;
the country to teach appraisal courses                       therefore appraisers must keep
and attend seminars and Appraisal                            abreast of changes and modify their
Foundation-related meetings, a com-                          practices to maintain USPAP compli-
mon complaint has arisen: the failure                        ance and public trust.
of appraisers to police their own.                              Unfortunately, far too many
   Many of my USPAP students and
appraisal colleagues report they have
                                                             appraisers fail to maintain an ad-
                                                             equate level of USPAP understand-                       Visit our
stopped providing appraisal-review
services due to increased time require-
                                                             ing. This results in appraisal develop-
                                                             ment and reporting that violate the                     Web site!
ments to satisfy Standard 3 and clients’                     very standards that are in place to                        The Appraiser Certification
reluctance to pay fees high enough                           protect appraisers and their profes-                    and Licensure Board Web site
produce acceptable profits. The lack of                      sion. Most USPAP violations fall short                  contains valuable information
good quality appraisal-review services                       of appraiser fraud and are not re-                      concerning real estate appraiser
is a growing problem that could                              ported in the news media. However,                      licensing:
become serious in the future.                                the cumulative effect of these viola-                      • fees for services
   News accounts of appraisers in-                           tions has a far more negative impact                       • a search engine for a
dicted for fraud are growing at an                           on the appraisal profession than the                         listing of approved
alarming rate. Such negative publicity                       cases of fraud that do make their way                        education courses
damages the credibility of all ethical                       into the news.
                                                                                                                        • a search engine for a listing
professional appraisers. While ap-                              This is why every honest, ethical,                        of Oregon appraisers
praiser fraud is egregious and deserves                      hard-working appraiser must make it
full prosecution, it is not the most                         a top priority to understand and                           • link to The Appraisal
common example of appraisers failing                         adhere to USPAP. In addition, we                             Foundation
to police their own.                                         must continue providing thorough                           • links to other state ap-
   The Appraisal Standard Board’s                            USPAP-compliant appraisal-review                             praiser boards
(ASB) intent of USPAP is to promote                          services to clients, even if doing so                      • appraiser application and
and maintain a high level of public                          results in reduced profits. Finally,                         renewal forms
trust in professional appraisal practice.                    when non-USPAP-compliant ap-                               • a list of ACLB members
While USPAP benefits the public, it                          praisal reports                                              and staff
also greatly benefits appraisers by                          are discovered, they must be reported
                                                             to the ACLB for investigation. s                           • a list of states with Oregon
providing protection against unethical                                                                                    reciprocity, along with e-
appraisers. The Uniform Standards are                                                                                     mail and Web addresses
                                                                                                                        • Q & A‘s on USPAP by
                                                                                                                          the ASB
                                                                                                                        • newsletters from the
                                                                                                                          ACLB and other state
                                                                                                                        Our Web site address:

                      Appraisers in Oregon
                                      (as of September 1, 2000)
  Certified general appraisers ..........................................................................485
  Certified residential appraisers ...................................................................... 127
  Licensed appraisers ....................................................................................... 741
  Appraiser assistants ....................................................................................... 282

Appraiser Certification and Licensure Board                                                                                                    11
                                   Renewing your license By Paul Zacha
Criminal                                                        Every year
                                                             at least one
                                                                                    Here are some suggestions that
                                                                                may help you to avoid these renewal
background                                                   licensed or
                                                                                    Begin planning for your next cycle
checks                                                       appraiser
                                                             forgets or
                                                                                of continuing education soon after
                                                                                renewal. The sooner you get it out of
The ACLB conducts criminal                                   neglects to        the way, the better. Most of us have
background checks of all ap-                                 renew his or       computers with some type of scheduling
plicants for new and renewal                                 her license or     program. Put reminders in your com-
appraiser licenses and certifi-                              certificate in a   puter schedule or day planner several
cates and of appraiser assis-                                timely manner      months — or even a year — in advance.
tants. Applications require       and the ACLB must take action. Failure
that applicants disclose all                                                        For some, it‘s better to take a week-
                                  to renew licenses prior to expiration
convictions of misdemean-                                                       long course and get all the necessary
                                  is a violation of ORS 674-100 if apprais-
ors and felonies. Applicants                                                    hours at once rather than trying to pick
                                  ers continue to practice while their
not reporting all convictions                                                   up a seminar here and there. If you
                                  licenses are expired. Violations of ORS
of misdemeanors and felo-                                                       commit to a course far enough in ad-
                                  674-100 can result in civil penalties and
nies face a delayed applica-                                                    vance, it may be easier to schedule
                                  fines of up to $500 for each offense.
tion process and possible dis-                                                  your workload around the course.
                                     Licenses expire the last day of the
ciplinary action or denied                                                          Keep a folder or a computer file
                                  licensee’s birth month. The staff of the
application. s                    ACLB mails renewal notices three
                                                                                documenting the dates, the titles, and
                                                                                the hours of credit for the courses
                                  months before the expiration date on
                                                                                you’ve taken. Make photocopies of all
                                  the license or certificate. This provides
                                                                                certificates of continuing education
                                  ample time for renewal. However, late
                                                                                and keep them in your folder.
                                  renewal is permitted within one year
                                  after the expiration date. An additional          Most educational providers can tell
                                  $50 fee is charged for late renewal.          you if the courses they are offering
                                                                                have been approved for continuing-
                                     ORS 161-020-0150 requires 14 hours
                                                                                education credit. If the course brochure
                                  of continuing-education credit each
                                                                                does not say the course is approved for
                                  year. Because licenses are issued for
                                                                                continuing-education credit in Oregon,
                                  two-year periods, a total of 28 hours
                                                                                call ACLB to make sure it qualifies. A
                                  of continuing-education credits are
                                                                                simple phone call can save you a lot
                                  required for license renewal.
                                                                                of grief later.
                                     In theory that sounds easy enough;
                                                                                    Don’t completely trust anyone else
                                  in practice, however, many of us
                                                                                to remind you when it’s time to renew
                                  procrastinate about continuing educa-
                                                                                             your license. I renewed my
                                  tion. We always seem to have
                                                                                              license this year; however, I
                                  heavy workloads when courses
                                                                                               didn‘t receive the renewal
                                  we‘d like to take are offered. Or
                                                                                               notice from the ACLB. It
                                  the course is offered in a distant
                                                                                               was apparently lost in the
                                  location. Or the course conflicts
                                                                                               mail. Don’t trust anyone
                                  with family activities or obliga-
                                                                                               else to take care of your
                                  tions. The cost of the course, travel
                                                                                          license renewal. Do it yourself.
                                  expenses and the income lost while
                                                                                It is your license and your responsibility.
                                  attending the course are also important
                                                                                You can’t blame your secretary or
                                  considerations. Suddenly, it‘s time for
                                                                                your spouse if you are caught for
                                  license renewal and some licensees
                                                                                unlicensed activity.
                                  find them- selves short on continuing-
                                  education hours. Occasionally, a                  Finally, don’t hesitate to call the
                                  licensee may believe that he or she has       ACLB staff if you have questions or
                                  the required hours only to find that one      concerns about continuing education
                                  of the courses he or she attended was         or license renewal. s
                                  not approved for credit by the ACLB.

  12                                                           Appraiser Certification and Licensure Board
Condemnation appraising
  Continued from Page 1
   Transaction value is a key element      without the proper knowledge and
in determining the appropriateness of
accepting such an appraisal assign-
                                           experience could issue a misleading
                                           report to the client that could result in
                                                                                       The danger
ment. In condemnation or partial-          unnecessary expense and possible            of ex parte
taking actions, the transaction value is
deemed to be the value of the larger
                                           litigation for the property owner.
                                               In the last couple of legislative
parcel before the taking. Even though      sessions, the laws requiring the               Ex parte communications,
the value of the taking may be small,      sharing of appraisals between the           which include instances of
appraisers must look at the value of       condemnee and condemnor have                individual appraisers contact-
the larger parcel before the taking to     changed. Under sections of Senate
determine if the assignment is within                                                  ing members of the ACLB to
                                           Bill 1036, which is codified under
their scope of practice for the license    ORS 35.346 (2) and (4) and others, the      get information about a
or certification which they hold.          condemning agency and the party             pending or denied applica-
   A second consideration for the          being condemned must share their            tion; to discuss a pending
appraisers is the USPAP Competency         appraisals with each other. USPAP
                                                                                       complaint, supervisory audit
Rule. Generally speaking, this rule        Standards Rule 2-2 (under Comment)
would apply to an appraiser who has        it states: “When the intended users         or disciplinary action; or to
had little or no experience in condem-     include parties other than the client,      attempt to influence a board
nation appraisal. The Competency           either a Self-Contained Appraisal           decision, are improper and
Rule would require the appraiser to        Report or a Summary Appraisal
                                                                                       may be detrimental to the in-
properly identify the problem to be        Report must be provided.”
addressed and have the knowledge                                                       dividual appraiser.
                                               Because the exchange of appraisals
and experience to complete the             is required by law, the appraiser may          Ex parte communications
assignment competently; or alterna-        reasonably assume that the appraisal        are any oral or written com-
tively, disclose the lack of knowledge     will be used by persons other than his
and/or experience to the client before                                                 munications received by
                                           or her client and therefore, it is
accepting the assignment; and take all     prudent to prepare and issue a self-        ACLB members or the presid-
steps necessary or appropriate to          contained or summary appraisal              ing officer, whether a hear-
complete the assignment competently;       report instead of a restricted use          ings officer or an administra-
and describe the lack of knowledge         appraisal report. And finally, if the
and or experience and the steps taken                                                  tive law judge, when all par-
                                           appraiser is going to testify to the
to complete the assignment compe-          appraised value before an adminis-          ties are not present.
tently in the report.                      trative or judicial proceeding, “All           Such communications
   Examples of steps the appraiser         testimony… will be based upon
                                                                                       could cause a board member
could take to complete the appraisal       written reports prepared in conform-
assignment competently could               ance with USPAP” (OAR 161-025-              who may have voted in the
include, but are not limited to, per-      0060 (5).                                   individual appraiser’s favor to
sonal study by the appraiser; associa-         Properly prepared and written           abstain from voting on the
tion with an appraiser reasonably          appraisals can be valuable and useful       application or disciplinary
believed to have the necessary knowl-      to the acquiring agency as well as
edge or experience; or retention of                                                    action in question when it
                                           the property owner: They can ensure
others that possess the required           that the property owner is properly         comes before the ACLB.
knowledge or experience.                   compensated for the property and               Please address questions
   Because of the many statutory and       help prevent litigation. s
                                                                                       regarding applications, au-
case laws surrounding the practice of
condemnation appraisal, an appraiser                                                   dits, and disciplinary matters
                                                                                       to the ACLB staff. The staff
                                                                                       will provide information and
                                                                                       advice on procedures. s

Appraiser Certification and Licensure Board                                                                     13
  Enforcement actions
                  At the September        Smith, Natalie: Stipulated final        Stallings, Christopher: Stipulated
                  21, 1998, quarterly     order entered January 12, 2000,         final order entered February 8, 2000,
                  meeting, the Ap-        waiving assessment of a civil           assessing a civil penalty of $500 for
                  praiser Certification   penalty for violations of ORS           violation of ORS 674.100. Stallings
                  & Licensure Board       674.100 when she unlawfully             unlawfully conducted real estate
                  voted to publish        advertised or purported to conduct      appraisal activity in Oregon without
all enforcement actions regarding         real estate appraisal activity in       first being licensed or certified as an
complaints filed on or after January      Oregon when she was neither             appraiser with the ACLB or obtain-
1, 1998, in The Oregon Appraiser.         licensed nor certified with the         ing a temporary non-resident
                                          ACLB.                                   registration.
January 1, 2000 through                   Dodge, James E.: Stipulated final       Borda, Stephen J., L000421, state-
                                          order entered January 12, 2000,         licensed appraiser: Stipulated final
August 31, 2000                           waiving assessment of a civil           order entered February 8, 2000,
Dodge, Ritchie J., registered ap-         penalty for violations of ORS           assessing a $250 civil penalty for
praiser assistant: Stipulated             674.100 when he unlawfully adver-       providing false information on his
final order entered January 4, 2000,      tised or purported to conduct real      renewal application.
waiving assessment of a civil penalty     estate appraisal activity in Oregon     Seitzinger, Del, C000230, state-
for violations of ORS 674.100 when        when he was neither licensed nor        certified general appraiser: Stipu-
he unlawfully advertised or pur-          certified with the ACLB.                lated final order entered February 8,
ported to conduct real estate ap-         Kramer, Jay D., L000728, state-         2000, assessing a $250 civil penalty
praisal activity in Oregon when he        licensed appraiser: Default final       for providing false information on
was neither licensed nor certified        order issued January 12, 2000,          his renewal application.
with the ACLB.                            reprimanding Kramer and assessing       Thomas, Denise: Stipulated final
Peyran, Renee E., registered ap-          a civil penalty in the amount of        order entered April 7, 2000, waiving
praiser assistant: Stipulated             $1,000 for violations of ORS 674.130    assessment of a civil penalty for
final order entered January 4, 2000,      and 674.310 when he performed an        violations of ORS 674.100 when she
waiving assessment of a civil penalty     appraisal outside the scope of his      unlawfully advertised or purported
for violations of ORS 674.100 when        practice as a state-licensed ap-        to conduct real estate appraisal
she unlawfully advertised or pur-         praiser; failed to describe in his      activity in Oregon when she was
ported to conduct real estate ap-         appraisal report his lack of knowl-     neither licensed nor certified with
praisal activity in Oregon when she       edge and/or experience and the          the ACLB.
was neither licensed nor certified        steps taken to complete the assign-
                                                                                  Bryson, John W., C000047, state-
with the ACLB.                            ment competently as required by
                                                                                  certified general appraiser: Stipu-
Bold, Nina: Stipulated final order        the Competency Provision of
                                                                                  lated final order entered April 25,
entered January 4, 2000, waiving          USPAP and Standards Rule 2-1; and
                                                                                  2000, reprimanding Bryson and
assessment of a civil penalty for         demonstrated incompetence when
                                                                                  assessing a civil penalty in the
violations of ORS 674.100 when she        he failed to identify any hypotheti-
                                                                                  amount of $500 for violation of ORS
unlawfully advertised or purported        cal conditions necessary in the
                                                                                  674.310, 674.130 and 674.150 when
to conduct real estate appraisal          assignment as required by the
                                                                                  he prepared, completed and issued
activity in Oregon when she was           Conduct Section of the USPAP
                                                                                  a misleading appraisal report, and
neither licensed nor certified with       Ethics Provision and state in his
                                                                                  failed to maintain appraisal records.
the ACLB.                                 report all assumptions and/or
                                          limiting conditions that affected the   Schwartz, R. Pamila, AA00764,
Ives, Pete: Stipulated final order        analyses, opinions, and conclusions     registered appraiser assistant:
entered January 4, 2000, waiving          of his appraisal as required by         Stipulated final order entered May
assessment of a civil penalty for         USPAP Standards Rules 2-1(c) and        3, 2000, assessing a $500 civil
violations of ORS 674.100 when he         2-2(b)(vii).                            penalty for violation of ORS 674.100.
unlawfully advertised or purported                                                Schwartz unlawfully conducted real
to conduct real estate appraisal                                                  estate appraisal activity when she
activity in Oregon when he was                                                    signed and issued a letter opinion of
neither licensed nor certified with                                               value when she was neither licensed
the ACLB.                                                                         nor certified with the ACLB.

    14                                                           Appraiser Certification and Licensure Board
                                        ... Questions & Answers Continued from Page 9
Koch, Donald E., L000656, state-            Clearly your reporting of your         competent, qualified appraisers who
licensed appraiser: Stipulated final    appraisal conclusions to the attorney      have expertise in similar types of
order entered June 14, 2000, repri-     is an oral report and a summary of         assignments involving similar types
manding Koch and assessing a civil      such a report needs to be included in      of properties.
penalty in the amount of $1,200 for     the work file — also, “the appraiser’s
violation of ORS 674.310, 674.130,      signed and dated certification.”           Q Why are Provisions now Rules?
674.150 and OAR 161-020-0150(2)(f)
when he prepared, completed, and        Q  I was told that the ASB adopted a       A The “Provisions” of the 1998
issued an appraisal report in           change in part of the language in the      edition of USPAP were changed to
violation of OAR 161-025-0060, the      Comment to Standards Rule I-2(f),          “Rules” in the 1999 edition of USPAP
development requirements of             having to do with “third party” or         because the word “provision” was
                                        something like that. Can you tell me       problematic for the enforcement
USPAP Standard 1, the reporting
                                        what and why?                              community.
requirements of USPAP Standard 2,
and the Conduct Section of the                                                         Some individuals thought that the
USPAP Ethics Provision; failed to
                                        A   The change that was adopted is as      requirements in the Provisions were
                                        shown in the June 25, 1999 exposure        not enforceable because they were not
maintain appraisal records; and         draft Part E, Standards Rule 7-2(f).       labeled as Standards or Rules, and
failed to take a 15-hour USPAP
                                            Comment:                               were physically placed in front of
course every five years.
                                            An appraiser must have sound           USPAP’s Definitions and Standards
Biddle, George W., C000173, state-      reasons in support of the scope-of-        Rules.
certified general appraiser: Stipu-     work decision, and be prepared to              A “Rule” is more easily recognized
lated final order entered July 14,      support the decision to exclude any        as a requirement. It was necessary to
2000, accepting Biddle’s voluntary      information or procedure that would        re-label the Provisions as Rules to
surrender of his license to practice    appear to be relevant to the client, an    clarify their applicability and aid
real estate appraisal in exchange for   intended user of the appraiser’s peers     enforceability of the requirements
the ACLB agreeing not to pursue its     in the same or similar assignment.         they contain.
investigation of a complaint filed by       The text with dotted underline             This change clarified and rein-
the ACLB.                               was added in place of the text that        forced the intent that the requirements
Kovac, Gabor: Stipulated final          has been stricken out. The adopted         contained in the Rules (former
order entered August 1, 2000,           text will appear in the 2000 edition of    Provisions) are an enforceable part of
assessing a civil penalty of $250 for   USPAP.                                     USPAP.
violation of ORS 674.100. Kovac             This change was prompted by a
unlawfully conducted real estate        need to be explicit about who had          Q   Why was the word “criminal”
                                        reason to question the appraisers          substituted for “unlawful, unethical
appraisal activity in Oregon with-
                                        scope-of-work decision. The phrase         or improper” in the Conduct Section
out first being licensed or certified
                                        “third party” was being used in some       of the Ethics Rule?
as an appraiser with the ACLB or        cases to suggest anyone with a
obtaining a temporary non-resident
registration. s
                                        different point of view could chal-        A   This substitution was the result of
                                        lenge the appraiser’s scope-of-work        recommendations from the enforce-
                                        decision. The adopted language sets a      ment community. The terms unethical
                                        framework that includes the client, an     or improper lack an objective stan-
                                        intended user of the appraiser’s           dard of reference and the term
                                        assignment results, or the appraiser’s     “unlawful” included many actions
                                        peers, all in the context of the same or   that are not significant from a moral
                                        a similar assignment.                      perspective. The term criminal is
                                            An example of who might be             more definable and enforceable. It
                                        included as the appraiser’s peers is       focuses on clearly identifiable actions
                                        provided in Statement on Appraisal         that are significant. s
                                        Standards No. 7 (SMT-7), quoted here
                                        for convenience:
                                            “Appraiser’s peers” are other

Appraiser Certification and Licensure Board                                                                       15
                                        Appraiser reciprocal agreements
                                           Listed below are states with which the ACLB has reciprocity for real estate
                                        appraiser licensing and certification. You may contact the ACLB or any listed state
Change of                               for information and an application packet for reciprocal licensing or certification.
                                        State                            Phone                           E-mail
address?                                Alabama ............................. (334) 242-8747 .................................. N/A
   Don’t forget that all                Arizona ............................... (602) 542-1539 .................................. N/A
appraisers, appraiser assis-            Arkansas ............................. (501) 296-1843 ....................
tants, and applicants are               California............................ (916) 263-0880 ...................
required to notify the ACLB in
writing of changes of address           Illinois ................................. (217) 785-9634 .................................. N/A
within 10 days of the change.           Kentucky ............................ (606) 246-2011 .................................. N/A
You may send postal mail,               Louisiana ............................ (504) 925-4783 .................................. N/A
faxes, or e-mail to:                    Maine ................................. (207) 624-8520 ...............
Appraiser Certification and             Massachusetts .................... (617) 727-3055 .................................. N/A
Licensure Board                         Missouri ............................. (573) 751-0038 .................
350 Winter St. NE
                                        Montana ............................ (406) 444-3561 ....................
Salem, Oregon 97301-3878
                                        Nebraska ............................ (402) 471-9015 .............
Phone: (503) 373-1505
Fax: (503) 378-6576                     New Hampshire ................. (603) 271-6186 ......................
E-mail:   New York ........................... (212) 220-1682 .................................. N/A
                                        North Carolina ................... (919) 420-7920 ................... NCAB@NTWRKS.COM
                                        North Dakota ..................... (701) 222-8083 ..................
                                        Ohio ................................... (216) 787-3100 .................................. N/A
                                        Oklahoma .......................... (405) 521-6636 .................................. N/A
 This newsletter is published           South Dakota ..................... (605) 773-4608 ..................
 by the Oregon Appraiser                Tennessee ........................... (615) 741-1831 .................................. N/A
 Certification and Licensure            Texas .................................. (512) 465-3950 .............
 Board for professionals
                                        Washington ........................ (360) 753-1062 ...................
 licensed by the board.
                                        West Virginia ...................... (304) 558-3919 ..............
440-3221 (10/00/COM)                    Wyoming ........................... (307) 777-7141 ................

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