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					S        OUTH
        Real Estate VIEW
                                                                      DAKOT
                                                                         Published by the SDREC                      A
VOLUME 52                                   June / July 2007                                                           NUMBER 3


                                                           Multiple Offer Guidelines
   Inside This                                   Used with permission from the Maine Real Estate Commission

                                          Communicate early and often. When taking a listing or entering into a buyer
      Issue                         representation agreement, the agent should explain to the client how offers and counter offers
                                    are handled and the possibility of competing offers.
                                         The agent advises – the client decides. The decisions about how offers will be
 From the Director’s Desk           presented, negotiated and ultimately accepted or rejected are made by the client – not the
                                    agent. All offers must be communicated and agent must keep client informed of stated interest
 An update on the commission
                                    in property.
 and its activities from the
                                         Offers and counter offers in writing. Offers and counter offers should be in writing to
 director, Dee Jones
                                    ensure that the terms, time frames and legal obligations of the parties are understood. Written
 Noordermeer.
                                    counter offers should include a specific time period for acceptance. Withdrawal of a written
                                    offer or counter offer should be made in writing.
 Letter from the Chairman                Terms of offers and counter offers are confidential. The terms of offers and counter
 Brian Jackson writes on multiple   offers may not be disclosed by agent without the prior written consent of both the seller and
 offer situations                   buyer. Disclosing that a full price offer has been made is disclosing a term and is a violation.
                                         The seller decides whether the existence of an offer or competing offer is
                                    confidential. Disclosing that an offer has been made or that an offer may be received is not
 New Mortgage Lending               confidential information unless the seller asks the agent to keep such information confidential.
 Licensing Regulations                   Full-price offer does not obligate the seller to accept the offer. Listing property for
 from the SD Division of            sale is an invitation from the seller for buyers to make offers. The seller is not obligated to sell
                                    the property even if a buyer makes a full price, cash offer.
 Banking                                 No priority to offers. The first or highest offer made does not bind or otherwise limit the
                                    seller to act upon that offer before considering any other offers.
 New Licensees                           Agent communication. Agents should make reasonable efforts to keep cooperating
                                    brokers informed, consistent with client’s instructions.
                                         Agents are not attorneys. Agents should advise clients to seek legal counsel from
 Continuing Education               attorneys regarding any questions about the legal status of an offer or contract.
 Corner                                  The Seller Client – Competing Offers
                                         • Accept one offer, and inform no one of the other offers
                                         • Reject all offers and encourage higher offers.
 ARELLO News                             • Counter one offer (may withdraw counter, in writing, prior to acceptance) – do not
 The latest news from the                      inform other buyers.
 Association of Real Estate              • Delay acceptance – waiting for another offer.
 License Law Officials.
                                         • Alert one or more buyers that they are in a competing offer situation.
                                         • Alert all buyers that they are in a competing offer situation.
 FTC Offers Home Buyers                  The Buyer Client – Competing Offers
 Advice in New                           • There is no requirement that the buyer be informed by the seller or listing agent of
                                               the existence of other offers before another offer is accepted.
 Publication                             • Seller has the right to negotiate with only one buyer at a time and not reveal this to
                                               other buyers.
 Appraiser’s Update                      • Terms of buyer’s offer are confidential but the existence of the offer may be
                                               communicated to other buyers.
                                         • Seller may accept an offer on terms other than the price.

                                                                                            SOUTH DAKOTA Real Estate VIEW 1
                                                 may alleviate some of the confusion that       of methamphetamines to be disclosed.
                          A Letter               can occur given the scenario above. The        All these forms are available on the
                         from the                guide is also available in a PDF format        Commission’s            website          at
                                                 and        can      be        found       at   www.state.sd.us/sdrec.
                         Chairman                www.state.sd.us/sdrec/.                             I recently came across an open house
                                                      In this newsletter you will also find     tip that could help curtail the
                              Spring       has   some guidelines for multiple offer             manufacturing of methamphetamines.
                         brought     renewed     situations     that    you     may     find    Make sure your sellers keep any cold
                         vigor to the real       informational. Additionally, if offered in     medications containing pseudoephedrine
                         estate market, as it    your area, a homebuyer education class is      in a place not accessible to the public.
                         usually does. And,      also a great resource, especially for first    Because of states banning over-the-
for sellers at least, the situation may arise    time homebuyers or clients that you feel       counter sales of these types of medicines,
for multiple offers to be presented at one       may need some additional education             meth cookers are posing as potential
time. While the sellers can benefit from         about purchasing a home.                       buyers.
this situation, it can provide an                     Lastly, thank you for the feedback              At a recent meeting of the Appraiser
uncomfortable situation for the buyer’s          that I have been receiving. If there are       Certification Advisory Council, a concern
representative if their client’s offer is not    other items of interest that you would like    was raised about appraisals performed by
accepted.                                        covered in the newsletter, please contact      broker and broker associates. If you
     Recently, we have seen an increase in       the Commission office at (605) 773-3600.       engage in appraisal activity, you must
phone calls from buyers who have found                                                          adhere to the current version of The
themselves in this situation. In most cases                                                     Uniform Standards of Professional
the listing and selling agent did what was                   Sincerely,                         Appraisal Practice (USPAP).
required of them. However, it serves as a
reminder how important it is to explain to                     Brian                                  Even though we’re at the beginning
                                                                                                of summer, fall will be here before we
your buyers what can happen in the event                                                        know it. If your license renews at the end
their offer is not the only one being
presented to the seller.                                                 From the               of this year, be sure to start scheduling
                                                                                                courses. By completing the necessary
     Most scenarios are similar to this: an                              Director’s             education early, you won’t have to worry
offer has been made, a counter offer is
made by the seller, and before an                                          Desk                 about the availability of courses as the
                                                                                                renewal deadline draws near.
agreement has been made between these                                        Although some           I wish you all a safe and memorable
two parties, a second offer from another                                of our spring rains     Fourth of July. Franklin D. Roosevelt
buyer is presented and the seller accepts                               have             been   once said, “In the truest sense, freedom
it. The first buyer feels that they should                              devastating, many       cannot be bestowed; it must be achieved.
have “first rights” and that the home has                               parts of the state      On this day of celebration, let us be
been sold out from under them. We all            have benefited from them. The foliage is       reminded of the men and women serving
know that the seller can accept any offer        absolutely beautiful — so green and lush.      our country in the armed forces who make
and that an offer is not officially accepted,    You might say that Mother Nature has           our freedom possible.
or binding, until both parties have signed       provided her own “curb appeal”.
the purchase agreement and all counter
offers (if applicable). All agents involved
                                                      Michelle Metzinger and Angela
                                                 Madsen have been on the road conducting                         DjN
did what was required of them, but the           audits. One of the most common audit
perception from the first buyer to make an       exceptions being found is the use of
offer is that their agent did not do their job   obsolete Real Estate Relationships
since they did not get the home.                 Disclosure       Statements,        Agency                   In Memoriam
     Not that this is a cure all, but I would    Agreement Addendums and Sellers
like to remind everyone that the                 Property       Condition          Disclosure
Consumer Guide that is to be provided to                                                            The SD Real Estate Commission
                                                 Statements. Make sure that you are using
your clients is a great resource for them.                                                          extends its sincerest sympathy to the
                                                 the Real Estate Relationships Disclosure
They can refer to it if they want                                                                   families and friends of the following
                                                 Statement and Agency Agreement
clarification about terms or definitions,                                                           licensee who recently passed away:
                                                 Addendum that contain the appointed
what role you play in the relationship, and      agency option. Even though your office                   Lyle Wendell, Custer
the general process of purchasing and            policy may not practice appointed agency,             Licensed Broker for 38 years
selling a home.           While it is the        the consumer is to be made aware that this
consumer’s choice as to whether or not           option is permitted in this state. In regard         William “Billy” Richardson,
they read the material, please take a            to the Sellers Property Condition                             Mobridge
moment to explain to your client what the        Disclosure Statement, you must be using            Licensed Broker from 1956-2005
booklet is and its intended purpose. It          the one that requires prior manufacturing
                                                                                                  SOUTH DAKOTA Real Estate VIEW 2
 Real Estate News from                         employed      persons    absent     actual    publication notes that while some agents
                                               knowledge. In upholding the Commission        may be reluctant to deal with brokers
    Around the U.S.                            decision, the Court reasoned that it was      who are using non-traditional sales
   (used with permission from ARELLO)          Gibbons’ ignorance of the misconduct,         models, these new sales models can
                                               not the misconduct itself, that served as     reduce the cost of selling a home, which,
     Maryland To License Home Builder          the basis for the sanctions. Therefore,       in turn, can result in a lower purchase
Sales Agents                                   proof of actual knowledge was not             price.
     A new law passed in Maryland              required.                                          The      publication,    online    at
requires individuals who sell any real                                                       http://www.ftc.gov/bc/edu/pubs/consum
estate as sales agents for home builders to                                                  er/alerts/zalt001.shtm, also explains the
be licensed by the Maryland Real Estate                                                      difference between brokers and agents,
Commission. As originally introduced,                                                        their role in home sales, and information
Maryland’s H.B. 1288 would have                                                              about negotiating sales commissions.
required home builders to obtain real                                                             The FTC works for the consumer to
estate licenses, but that provision of the                                                   prevent fraudulent, deceptive, and unfair
bill was eliminated early in the legislative                                                 business practices in the marketplace and
process. Home builders in Maryland will                                                      to provide information to help consumers
remain exempt from real estate licensure                                                     spot, stop, and avoid them.
regarding the rental or initial sale of a
home constructed by the builder.
However, Maryland home builders are
required to register with the Home
                                               New Publication from                                    South Dakota
Builder Registration Unit in the Consumer
                                                                                                     Real Estate VIEW
Protection Division of the Maryland             the Federal Trade                                    Official Publication of the
Attorney General’s Office.
     Pennsylvania Case Tests Broker               Commission                                   South Dakota Real Estate Commission
Supervision Duties                                                                               221 West Capitol Ave., Suite 101
     A recent Pennsylvania appellate court          Buying a Home: It’s a Big Deal                  Pierre, South Dakota 57501
decision highlights the distinction                 Home buyers today have a wide                    Telephone: 605-773-3600
between statutory provisions that impose       variety of choices when it comes to real              Facsimile: 605-773-4356
real estate broker supervision duties and      estate services. The Federal Trade                 Website: www.state.sd.us/sdrec
statutes that absolve brokers from liability   Commission has tips for considering a             E-mail: drr.realestate@state.sd.us
for the misconduct of others, in the           real estate professional and using the
                                                                                                    Editor-in-Chief: Dee Jones
absence of actual knowledge. In Gibbons        Internet as a new source of information,
                                                                                                            Noordermeer
v.    Bureau      of     Professional    and   and explains why new sales models for
                                                                                                      Editor: Karen Callahan
Occupational Affairs, State Real Estate        buying and selling a home mean more
Commission,           the      Pennsylvania    choices for consumers.                          THE COMMISSION AND STAFF
Commonwealth Court held that the                    The new publication, “Buying a              Brian Jackson, Chairman.....Sioux Falls
Commission need not establish that a           Home: It’s a Big Deal,” lists questions to       Eileen Fischer, Vice-Chair............Pierre
broker have actual knowledge of a              ask when a consumer is considering a             Dennis Eisnach, Member .............Pierre
salesman’s misconduct in order to              real estate professional. It prompts home        Paula Lewis, Member...........Rapid City
discipline the broker for failure to           buyers to determine who the agent works          Charlie Larkin....................... Watertown
supervise. Gibbons functioned as the           for, and the type of business relationship       Dee Jones Noordermeer,
licensed “broker of record” of his sole        that they will have with the agent. It also         Executive Director ...................Pierre
proprietorship. An employed salesperson        says that consumers need to know                 Karen Callahan,
allegedly engaged in numerous license          whether their agent has made the                    Education Director. ..................Pierre
law violations in a commercial transaction     required disclosures and whether their           Norma Schilling, Licensing..........Pierre
that failed to close. The appellate decision   agent plans to show them homes listed            Michelle Metzinger, Auditor........Pierre
indicates that Gibbons was not advised or      by non-traditional brokers.                      Angela Madsen, Auditor .....Sioux Falls
notified of the transaction until after it          The publication also explains some
                                                                                                 Articles by outside experts express
failed. Following a hearing, the               of the new services available from real
                                                                                              the author's particular viewpoints. These
Commission         imposed      a     30-day   estate professionals. For example, some
                                                                                              opinions are not necessarily shared by
suspension of Gibbons’ license and a           brokers might offer to list a home on the
                                                                                              the Commission, nor should they be
$3,000 civil penalty for “failure to           local Multiple Listing Service (MSL) for
                                                                                              mistaken for official policy. The articles
adequately        supervise”.      Gibbons’    a fee, while they hand off other aspects
                                                                                              are included because they may be of
appealed, relying, in part, on a               of the sale to the seller. Other brokers
                                                                                              interest to the readers.
Pennsylvania statute that absolves brokers     might offer a menu of services from
of liability for the misconduct of             which the seller can choose. The
                                                                                               SOUTH DAKOTA Real Estate VIEW 3
                                            You can view the text of Senate Bill 165
    SD Division of                          at: http://legis.state.sd.us/sessions/2007/
                                                                                                 New Licensees
 Banking Tasked with                        bills/SB165enr.htm.
                                                                                           Broker
                                                 All applications for licensure or
  Implementing New                          registration filed after July 1, 2007, must    Berglee, Clifton M – Billings, MT
                                                                                           Maule, Theresa M – Winner
    Regulations for                         meet all of the new requirements
                                                                                           Newman, Blair – Torrington, WY
                                            contained in SB 165 at the time of
  Mortgage Lenders,                         application. Licenses granted prior to         Nohava, Stephen F – Clark
                                            July 1, 2007, will be valid until              Sandage, Duane W – Ames, IA
  Brokers, and Loan                         December 31, 2007, but will need to file       Stephenson, James L – Sioux City, IA
     Originators                            proof of their surety bonds no later than      Broker Associate
                                            August 31, 2007. In addition, as soon as       Barnes, Michael A – Rapid City
Bret Afdahl, Counsel to the Division of     fingerprint cards are available from the       Blauer, Erica J – Watertown
Banking, (605) 773-3421, 217 ½ W.           Division, all existing licensees and all       Brandsma, Adam J – Sioux Falls
Missouri Ave, Pierre, SD 57501.             applicants for licensure and registration      Braun, Warren L – Rapid City
                                            must submit their information to the           Chlebek, Andrew W – Rapid City
                                            Division to provide for a background           Christensen Bortnem, Marin – Sioux Falls
     The mortgage lending industry in       investigation.      The exemptions from
South Dakota will be subject to more                                                       Dimmick, Christopher W – Ellsworth AFB
                                            licensure contained in SDCL 54-14-4            Domek, Thomas – Custer
regulation as a result of the passage of    were carried forward into this new bill,
Senate Bill 165. On July 1, 2007, the                                                      Dubsky, Donna E – Harrisburg
                                            which include banks and bank                   Fiechtner, Mark R – Watertown
current statutes in chapter 54-14 will be   subsidiaries, trust companies, licensed
repealed and replaced by SB 165, a bill                                                    Gabbert, Kye D – Hermosa
                                            real estate brokers, and insurance             Gross, Janet M – Huron
brought to the South Dakota Legislature     companies.
by the South Dakota Mortgage Brokers                                                       Grosz, Perry D – Rapid City
                                                 The Division is in the process of         Groves, Sheralin M – Hill City
Association. The language of SB 165         finalizing several rules to implement the
will be codified as SDCL 54-14-12                                                          Gruis, Brian L – Sioux Falls
                                            provision of SB 165. These rules will:         Hacecky, Tanya L – Yankton
through 54-14-33 (The Act).                 set the license and renewal fees for all
     The Act will provide definitions of                                                   Hepper, Cassidy A – Rapid City
                                            licensees and registrants; will list the       Hetzel, Glenn E – Rapid City
mortgage lenders, mortgage brokers,         information to be included in the
mortgage brokering activities, mortgage                                                    Hoogestraat, Carol J – Rapid City
                                            application form and establish grounds         Houge, Brenda M – Huron
loan originators, and mortgage lending      for denial of an application; establish the
activities. Each mortgage lender and                                                       Jewett, Kristi – Spearfish
                                            process for submitting fingerprint cards       Johnson, Sarah – Sioux Falls
mortgage broker must apply for licensure    for      the       required     background
and each mortgage loan originator                                                          Kasten, Julie D – Clear Lake
                                            investigations; establish a deadline for       Kelly, Kelly S – Sioux Falls
working for a licensed lender or broker     submitting surety bonds; establish a list
must be registered with the Division.                                                      Kiner, Dennis R – Mitchell
                                            and timeframe for records to be kept by        Kirschenman, Amanda H – Rapid City
     The Act also requires each applicant   each licensee; detail the process and
for licensure and registration to undergo                                                  Mahlen, Jackie – Watertown
                                            frequency of examinations; establish           Malloy, Rachel T – Sioux Falls
a background investigation conducted by     acceptable proof of work experience; and
the South Dakota Division of Criminal                                                      Marcy, Sadie A – Rapid City
                                            to set the minimum number of                   McManigal, Riley R – Rapid City
Investigation and the Federal Bureau of     continuing education credits necessary
Investigation. Each person who applies                                                     Middleton, Jeania D – Rapid City
                                            for the renewal of licenses and                Morgan, Cliff – Rapid City
for a license must provide proof of at      registrations.       You can view the
least two years experience working for a                                                   Olson, Bradley A – Lennox
                                            Division’s               rules           at:   Olson, Suzanne – Sturgis
lender or broker licensed in South          http://legis.state.sd.us/rules/DisplayRule.
Dakota. Any applicant for licensure will                                                   Ortman, Somer J – Sioux Falls
                                            aspx?Rule=20:07:19&Type=All            after   Osborn, Ronald D – Rapid City
be required to submit proof of a surety     July 1, 2007, and we plan to add a link to
bond in favor of the state in the amount                                                   Pletan-Vaughn, Shonda M – Pierre
                                            these rules on our website as soon as          Rasmussen, Anne – Sioux Falls
of $25,000. The Act also provides           possible.
authority to implement continuing                                                          Reents, Sharon A – Arlington
                                                 If you have questions about Senate        Rickert, Ryan A – Sioux Falls
education requirements for all licensees    Bill 165, the Division’s rules, or would
and registrants.                                                                           Sabag, Judy – N. Sioux City
                                            like more information, please visit the        Schaub, Thomas L – Hill City
     The Act goes on to provide authority   Division’s             website           at:
for the Division to conduct exams on all                                                   Smit, David D – Sioux Falls
                                            http://www.state.sd.us/drr2/reg/bank/BA        Steen, Colin – Sioux Falls
licensees. The Division is also granted     NK-HOM.htm or contact us at (605)
the authority to suspend or revoke any                                                     Stewart, Debra L – Spearfish
                                            773-3421.                                      Thomsen, Dean A – Yankton
license based upon specific grounds.

                                                                                             SOUTH DAKOTA Real Estate VIEW 4
Trusov, Alex A – Sioux Falls                      Reg. Home Inspector                       pocket card issued with your license with
VanLierre, Sherry L – Wentworth                   Disanto, Christopher D – Sioux Falls      you when you attend a course. The
Vasknetz, Shanon E – Sturgis                      McKnight, Patrick N – Colman              SDREC office is beginning to see many
Weller, Rick A – Spearfish                        O Grady, Robert W – Tyndall               instances of same-name or similarly-
Wheeler, Colette A – Watertown                    Wiedmeier, Dennis R – Redfield            named licensees, sometimes making it
Wing, Jeanne M – Silt, CO                                                                   difficult to determine who should receive
Wombold, Randall J – Rapid City                                                             the education credits.
                                              Continuing Education                               When signing registration and
Res. Rental Agent                                    Corner                                 attendance sheets, be sure your name and
Baedke, Jami R – Vermillion                       By Karen Callahan, Education Director     license number is written clearly so that
Cazun, Sarah L – Sioux Falls                                                                education providers can read them and
DeGraaf, Sabrina – Spearfish                       Account numbers, pin numbers, phone      report the correct information to the
Hanzlik, Denise – Dell Rapids                 numbers, cell numbers, fax numbers,           SDREC office. If you have a nickname or
Lawver, Lita – Deadwood                       identification  numbers,       confirmation   have recently had a name change, use the
Lloyd Ernst, Christie – Sioux Falls           numbers - there’s just no escaping the        name that appears on your license on the
Morvay, Gayle L – Watertown                   numbers we deal with every day.               sign-in sheets.
Van Rooyen, Joshua J – Sioux Falls                 When it comes to continuing                   It is a good idea to check your
                                              education, however, there is one number       continuing education report regularly to
Salesperson                                   that is worth knowing – your LICENSE          ensure your continuing education hours
Aanenson, Gene – Luverne, MN                  number!                                       have been reported correctly. It may take
DeJaeghere-Winter, Karen – Luverne, MN             The best way to ensure credit for a      up to three weeks after the course date for
Hobart, Michael M – Sioux City, IA            continuing education course is to write       the information to show up on these
Petty-Lucht, Kathleen – Casper, WY            your license number in addition to your       reports. To view your education report,
                                              name on all registration and sign-in          log on to www.state.sd.us/sdrec and click
Timeshare Agent                               sheets. If you cannot remember your
Kellogg, Kathryn C – Rapid City                                                             on the “Licensees Only” section.
                                              license number, be sure to carry the


                                            APPRAISER UPDATE
  This section of the South Dakota Real Estate Review is the responsibility of the South Dakota Department of Revenue and
  Regulation Appraiser Certification Program. Articles are printed here to communicate pertinent information to those appraisers
  who receive this newsletter and are licensed under the Certification Program. Appraiser certification inquiries can be directed to
  Sherry Bren, Program Administrator, 445 East Capitol, Pierre, SD 57501, 605-773-4608.


                                              Institutions Reform, Recovery and              Appraiser Certification
                         Sherry Bren,         Enforcement       Act    (FIRREA)       by
                           Executive          Congress.                                        Program Advisory
                            Director               The mission of the Program is to
                                              certify, license and register appraisers to
                                                                                                    Council
                             (605)
                                              perform real estate appraisals in the             Council      members       provide
                           773-4608           State of South Dakota pursuant to Title       recommendations to the Secretary of the
                         445 E. Capitol       XI (FIRREA). The purpose of the               Department of Revenue and Regulation
                           Pierre, SD         Program is to examine candidates, issue       in the areas of program administration
                             57501            certificates, investigate and administer      in order to sustain a program that is
                                              disciplinary actions to persons in            consistent with Title XI. The Council
        Appraiser                             violation of the rules, statutes and
                                              uniform      standards,    and    approve
                                                                                            meets quarterly in public forum. See
                                                                                            the Website for meeting information.
 Certification Program                        qualifying and continuing education           www.state.sd.us/appraisers
                                              courses. Title XI intends that States
  Mission-Purpose-                            supervise all of the activities and
          Intent                              practices of persons who are certified or
                                              licensed to perform real estate
    The Appraiser Certification Program       appraisals through effective regulation,
was implemented July 1, 1990, pursuant        supervision and discipline to assure
to enactment of Title XI of the Financial     their professional competence.

                                                                                               SOUTH DAKOTA Real Estate VIEW 5
                                                          the state-registered appraiser is          Significant Appraisal Assistance
          Notice                                          competent in accordance with the           Question: In preparing an appraisal
     State-Registered                                     competency rule of the uniform        assignment, I talk with many different
                                                          standards and the administrative      people. I know the report certification must
        Appraisers                                        rules.                                identify      individuals    who       provide
                                                     Submit the completed Registration          “significant real property appraisal
     Effective December 27, 2005 state-         for each supervisor that you have. Note         assistance.” What is significant appraisal
registered appraisers must report the name      that you and the supervisor must sign and       assistance?
of each supervising appraiser and               date the Registration.                               Response: USPAP does not include a
maintain a separate Appraisal Experience             If you add a supervisor you must           definition of significant appraisal assistance.
Log for each supervising appraiser.             complete another Registration. If you           However, aspects of this phrase can be
     A state-registered appraiser is not        discontinue association with a supervisor       explored to clarify its meaning.
required by South Dakota law or                 you must notify the Department, in                   First, the term “significant” means that
administrative rule to be supervised by a       writing, immediately.                           the contribution must be of substance to the
licensed or certified appraiser unless the           Please review the Directives for           development of the assignment results. In
appraisal assignment is for federally           licensees regarding the supervisory             other words, the individual must contribute
related transaction purposes. However, it       appraiser and state-registered appraiser        to the valuation analysis in a noteworthy
is common in the market place for clients       association, duties and responsibilities.       way. An individual who merely collects or
and other users of appraisal services to             The Supervisor Registration form,          provides data for use in the analysis does not
require supervision and the signature of a      Appraisal Experience Log, and Supervisor        provide significant appraisal assistance.
licensed or certified appraiser regardless      and State-Registered Appraiser Directives            Secondly, the reference to “appraisal
of the nature of the transaction.               are available by contacting the                 assistance” means that the contribution is
     In the event that a state-registered       Department of Revenue and Regulation,           related to the appraisal process or requires
appraiser has a supervisor(s), the state-       Appraiser Certification Program, 445 E.         appraiser competency. One misconception
registered appraiser must register the          Capitol Ave., Pierre, SD 57501, telephone       is that non-appraisers who provide
supervisor(s) with the Department. If a         605.773.4608        or       Website      at    assistance should be identified in the
state-registered appraiser fails to             www.state.sd.us/appraisers.                     certification. This is incorrect because the
report and submit the Supervisor                     If you have any questions or need          certification requirements in USPAP apply
Registration, the appraiser is in               assistance, please feel free to contact         only to appraisers. Thus, only appraisers
violation of the administrative rules           Sherry Bren at 605.773.4608.                    sign the certification or are identified as
which may result in disciplinary action                                                         providing significant appraisal assistance.
and the appraiser will not receive credit                                                       For example, the use of an environmental
for       appraisal      experience       for
                                                        USPAP Q & A                             expert to determine wetland boundaries
assignments that require a supervisor.                                                          would not be considered significant real
     State-registered appraisers may have             Vol. 9, No. 5, May 2007                   property appraisal assistance.
more than one (1) supervisor. Each                    Confidentiality and Intended Users             Examples of contributions made by
supervisor must be reported. Supervisors              Question: I recently performed an         appraisers that constitute significant real
may not supervise more than three (3)           appraisal. Yesterday, an intended user who      property appraisal assistance include the
state-registered appraisers at one time. A      is not the client contacted me to discuss the   identification of comparable properties and
supervisor must be licensed or certified by     appraisal.      Do I need the client’s          data, inspection of the subject property and
the department and not subject to any           authorization to discuss the appraisal with     comparables,         estimating        accrued
disciplinary action that affects legal          this intended user?                             depreciation, or forecasting income
eligibility to engage in appraisal practice           Response: Yes. Although intended          expenses.
within the previous two (2) years.              users have an important role in the                  [For further information regarding
     A supervising appraiser is responsible     appraiser’s decisions about the appropriate     USPAP Q&As contact The Appraisal
for the training, guidance, and direct          scope of work and the content of the report,    Foundation at www.appraisalfoundation.org]
supervision of the state-registered             the appraiser cannot discuss the appraisal
appraiser. This responsibility includes the     with an intended user without the client’s
following actions:                              authorization. The Confidentiality section           New Licensees –
                                                of the ETHICS RULE states:
     • Accepting responsibility for the
                                                      An appraiser must not disclose                  April/May 2007
           appraisal report by reviewing,
                                                confidential information or assignment
           signing, and certifying the report                                                       Victor L. Peters, Jr., State-Licensed –
                                                results prepared for a client to anyone other
           complies with the uniform                                                            Agoura Hills, CA
                                                than the client and persons specifically
           standards; and                                                                           Janet E. Sallander, State-Certified
                                                authorized by the client…
     • Personally         inspecting    each                                                    General – Rosemont, IL
                                                      The appraiser-client relationship is
           appraised property with the state-                                                       Anthony D. Schnyders, State-
                                                distinct from the appraiser’s relationship to
           registered appraiser until the                                                       Registered – Sioux Falls, SD
                                                intended users.
           supervising appraiser determines
                                                                                                  SOUTH DAKOTA Real Estate VIEW 6
   Russell L. Hughes, State-Certified                                                              One of the many important items
General – Glen Carbon, IL
                                                    Maintaining an                            contained in the Student Appraiser
   Roger Durensky, State-Certified               Education Record File                        Guide is the “Checklists”.        The
General – Fargo, ND                                                                           Checklists provide an organized means
                                                      Please be advised that the              of tracking your progress as you work
                                                 Department of Revenue and Regulation,        toward an appraiser credential.
Information Regarding                            Appraiser Certification Program strongly
 Disciplinary Actions                            recommends       that    each    appraiser
                                                                                                     Example
                                                 registered, licensed or certified by the
     Public       information       regarding    Department maintain an “education               Trainee Checklist
disciplinary action taken against an             records” file for appraisal course                   (State-Registered Appraiser)
appraiser is available upon written request to   attendance verification. It is much easier
the Department of Revenue and Regulation,        to maintain the “education records” file
Appraiser Certification Program, 445 East        than to have to contact education                     Task or Requirement
Capitol Avenue, Pierre, SD 57501 or e-mail       providers for the documents.                     •    Contacted State Appraiser
– Sherry.Bren@state.sd.us. Include in the                                                              Regulator Agency to clarify if
request for information the name of the                                                                there    are     different    or
appraiser and the appraiser’s city and state             NOTICE                                        additional requirements and
                                                                                                       implementation scenario used
of residence. (Disciplinary action may             Retain a Copy of All                                in my state.
include denial, suspension, censure,
reprimand, or revocation of a certificate by       Important Records                              • Completed 75 creditable hours
the department. (ARSD 20:14:11:03).                                                                    of Qualifying Education as
                                                                                                       specified by Core Curriculum,
                                                     This is a notice to all licensees that
                                                                                                       including 15 hour National
  Review of Cases –                              the Department will systematically
                                                                                                       USPAP          Course       and
                                                 eliminate past continuing education
1/1/07 through 5/24/07                           records from licensee files in order to
                                                                                                       Examination
                                                                                                       Matrix).
                                                                                                                        (see    Course
                                                 reduce file storage space. Appraisers
     For the period January 1, 2007              are responsible for maintaining all              • Maintained appraisal log. (See
through May 24, 2007 the Department has          records important to appraiser licensure,             Sample Appraiser experience
received 10 upgrade applications, 1 new          so make copies for your files of all                  log). Does the state have its
application claiming experience and              records submitted to the Department.                  own format?
initiated 6 complaint investigations.                                                             • Completed additional state
     Upgrades – 5 pending, 1 agreed                                                                    requirements, if any.
disposition and 4 issued                            Student Appraiser                             • Received Trainee credential
     New Application Claiming                            Guide                                         from state appraiser regulatory
                                                                                                       agency (if applicable).
Experience – 1 pending
     Complaints – 3 pending, 1                        The Student Appraiser Guide has             The requirements listed on the
disciplinary action and 2 dismissed with         been developed by the Appraiser              Checklists for the Trainee (State-
no action                                        Qualifications Board of The Appraisal        Registered),     Licensed     Residential
                                                 Foundation for student appraisers            (State-Licensed), Certified Residential
                                                 (those individuals who are new to the        (State-Certified    Residential),    and
       2007 Renewal                              field) and for those who are changing        Certified    General     (State-Certified
                                                                                              General) classifications conform to the
                                                 from one real property appraiser
The 2007 renewal applications will be            credential to another. The guide will        January 1, 1008 AQB Appraiser
mailed the first week in July. In order to       help to:                                     Qualification Criteria.
renew your certificate for state-certified            1. Better        understand     the         These Checklists are generic and
general, state-certified residential, state-              requirements for becoming a         may not meet all the requirements of
licensed and state-registered appraiser                   credentialed appraiser;             an individual state. Make sure your
you must submit the completed                         2. Make you aware of how this           final list includes your state’s
application, applicable renewal fees and                  regulatory system works;            requirements.
verification of 28 hours of approved                  3. Make you aware of the                    Another very important item
continuing education which includes the                   changes to minimum criteria         contained in the Student Appraiser
7-hour National USPAP update course                       that are effective in 2008;         Guide is the “Qualifying Education
by August 17, 2007. (The 15-hour                      4. Give you some tools to keep          Course Matrix”. The matrix will help
national USPAP Course may not be                          good records of your progress       you record your progress in completing
submitted in lieu of the 7-hour National                  in meeting requirements; and        Qualifying Education requirements for
USPAP update course.)                                 5. Provide additional resources to      each credential level. The Required
                                                          help answer your questions.         Core Curriculum modules are shown in
                                                                                                SOUTH DAKOTA Real Estate VIEW 7
    gray shading. Subtopics listed in         The Revised Appraiser Qualification         The Student Appraiser Guide is
boxes without shading are not               Criteria    include   the    Qualifying   available at The Appraisal Foundation
mandatory for meeting the required          Education requirements and the            Website:
core curriculum. The listed subtopics       Required Core Curriculum for each         www.appraisalfoundation.org. If you
indicate the content coverage expected      classification. Complete details can be   have any questions, please feel free to
under each module.                          found at www.appraisalfoundation.org.     contact    Sherry   Bren,    Appraiser
    The first modules listed are the 75     (New candidates and candidates            Certification Program, 445 E. Capitol
class hours required for the Trainee        wishing to upgrade to a higher            Ave., Pierre, SD 57501; telephone:
classification. These modules are also      classification will be required to        605.773.4608;     or      by    e-mail:
required as students advance to the         maintain the Qualifying Education         sherry.bren@state.sd.us.)
Licensed       Residential,     Certified   Course Matrix and submit it as part of
Residential and Certified General           the process to meet the qualifications           4200 copies of this publication were printed by the SD
                                                                                      Real Estate Commission at a cost of .21 per copy
classifications. The total number of        required effective January 1, 2008.)
qualifying education hours required for
each classification is listed at the end
of each section.

				
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