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: firstname.lastname@example.org 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 email@example.com.) 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.