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									                        P         E         N        N      S        Y        L         V        A         N        I         A


                                                     State Board of
Certified Real Estate Appraisers
   Board Telephone: (717) 783-4866                                                                                      Winter 1998/99
   Board E-Mail Address: appraise@pados.dos.state.pa.us



What is AARO?                                                              Message from the
                                                                              Chairman
                                       2                                               David J. King
 Attention: Certified                                              The State Board of Certified Real Estate Appraisers
 Pennsylvania Evaluators                                           is once again pleased to present this newsletter to our
                                                                   certificate holders and the public.

                                       3                           This issue addresses many pertinent issues including
                                                                   the recertification of Certified Pennsylvania Evalua-
                                                                   tors; the supervisor's responsibility; and drive-by ap-
                                                                   praisals. There is also an interesting article concern-
Supervisor's                                                       ing the regulatory process.
Responsibility                                                     Please feel free to contact the board office with any
                                                                   questions or comments. As always, we welcome your

                                       7                           input.
                                                                   The board consists of dedicated individuals who con-
                                                                   tinually strive to protect Pennsylvanians from fraud
                                                                   and abuse.

 "Drive By" Appraisals

                                       8                        Thanks to John J. Lavelle Jr. for his service to the board over the
                                                                past four years. John's background and expertise provided
                                                                valuable insight to the board. It was a pleasure working with
                                                                John, and he will be missed by all.
        Commonwealth of Pennsylvania
                   Tom Ridge                                    And, welcome Raymond T. Book, who joined the board last sum-
                   Governor                                     mer. Mr. Book has worked in the real estate field for many years
               Kim Pizzingrilli
                                                                and has recently become certified as a broker/appraiser.
    Acting Secretary of the Commonwealth
               Dorothy Childress
                 Commissioner
             Bureau of Professional
            and Occupational Affairs                     Department of State Creates Board Web Pages                              Pg. 3
    For more information, visit us through the           How a Regulation is Adopted                                              Pg. 4
Pennsylvania homepage at www.state.pa.us or
visit the Department of State web site directly at       Disciplinary Actions                                                     Pg. 6
              www.dos.state.pa.us
  2
                                                          What is AARO?
                                                     by George D. Sinclair, Vice-Chairman
The Association of Appraiser Regulatory Of-          Communication. The association will facilitate    praisal Foundation. Other significant entities
ficials (AARO) was established to improve the        communication and cooperation between and         that contribute include: the Appraisal Subcom-
administration and enforcement of real estate        among appraiser regulatory officials and others   mittee, the Appraisal Foundation and the Na-
appraisal law in its member jurisdictions.           concerned with appraiser and appraisal issues.    tional Association of Realtors.

Membership in AARO is open to all 50 state           Research. The association will conduct re-        The Eastern Tri-Regional Group including Re-
certified real estate appraiser agencies and         search and obtain information relative to ap-     gion I (Pennsylvania), along with Regions II
those from American Samoa, Guam, Puerto              praisal matters.                                  and III, recently held an education meeting in
Rico, the District of Columbia and the North-                                                          Savannah, Georgia. The education program
ern Marianna Islands.                                Education. The association will participate in    included sessions conducted by the Appraisal
                                                     education programs on appraisals and will as-     Subcommittee, the Appraisal Foundation, Ap-
At the present time the non-member states are        sist with instruction, administration and regu-   praiser Qualifications Board, Appraisal Stan-
Alaska, Delaware, Oklahoma, Rhode Island and         lation of appraisal education for regulatory      dards Board, the Appraisal Institute and
Wisconsin. Other non-members include Ameri-          officials and others. In addition, the associa-   Freddie Mac.
can Samoa, Guam and Puerto Rico.                     tion will continually strive toward raising the
                                                     level of competence and professionalism of all    Each of these sessions covered topics that are
AARO is governed by a 27-member board of             appraiser regulatory officials.                   of paramount interest to each state regulator
directors. There is one director and one alter-                                                        and to the active appraiser. The question and
nate from each of the six regions that comprise      Cooperation. The association may also de-         answer period that followed each session was
AARO. In addition, there are five directors at       velop and encourage cooperation with all other    very active. The speakers all allowed input from
large, the past president and four officers.         organizations whose objective is similar in na-   the floor and discussion regarding many prob-
                                                     ture to the objectives and purposes of this       lems facing the appraisal profession today.
The purpose of AARO and what each of its             association.
members is dedicated to is summarized in the                                                           Pennsylvania is proud to be a member of
following mission statement:                         In addition to its regular members, AARO has      AARO, and your board will continue to work
                                                     17 associate members that include all the ap-     within the AARO framework on all matters that
                                                     praisal organizations that are part of the Ap-    affect appraisers and appraisal issues.



                                                          Appraisal Fees
                                                            by David J. King, Chairman
It has been brought to the board’s attention         retained by mortgage brokers, bankers and         would be unlawful for any person other than
that non-appraisers and management firms             management companies. Appraisal fees              a certified real estate appraiser; broker/ap-
are collecting and retaining appraisal fees. The     should only be paid to certified appraisers.      praiser; an appraisal firm whose majority
board believes that it is misleading to the pub-                                                       interest is owned by a certified real estate
lic when a closing statement shows appraisal         The board has submitted recommended lan-          appraiser or broker/appraiser; or an appraisal
fees that are not paid to appraisers but are         guage for legislation that would amend the        firm directly employing certified real estate
                                                     Real Estate Appraisers Certification Act. It      appraisers or broker/appraisers who are di-
                                                                                                       rectly responsible for the valuation and re-
                                                                                                       port preparation, to receive and retain a fee
                                                                                                       for appraisal services or a fee designated as
                                                                                                       an appraisal fee. Whenever a fee for ap-
              Use of the Board-Approved                                                                praisal services is included within a larger
               Checklist for Assistants                                                                fee (i.e., application fee, management fee),
                                                                                                       the appraisal fee portion of the larger fee
                                                                                                       would have to be disclosed when payment
   The board-approved checklist for assistants is intended solely for the use of the board in          is made. An assistant appraiser may be paid
   determining an applicant’s experience eligibility. The form is NOT TO BE USED IN LIEU OF            directly by a certified appraiser or broker/
   SIGNATURES OR ACKNOWLEDGMENT WITHIN THE APPRAISAL REPORT. It is the
                                                                                                       appraiser.
   supervising appraiser’s responsibility to ensure that the assistant has signed, or been ac-
   knowledged, in all appraisal reports. Supervising appraisers and assistants are referred to in 49
   Pa. Code §36.13(a)(3)(iii) of the regulations for specific language on signature requirements.
                                                                                                                                                  3

                    Attention: Certified                                                                        Board Members
                  Pennsylvania Evaluators
                                     by William P. Wentz Jr.                                                     David J. King, Chairman
                                                                                                              Cranberry Township, Butler County
All Certified Pennsylvania Evaluators (CPEs)         Act 28 of 1992 which established the CPE class
for the recertification period effective July 1,     as well as assessment laws.                             George D. Sinclair, Vice-Chairman
1999 are required to acquire 28 classroom hours                                                                        Philadelphia
of continuing education which shall include at       This new recertification requirement for CPEs is
least 4 classroom hours on the Uniform Stan-         consistent with the change in the certified gen-            Peter J. Krysik, Secretary
dards of Professional Appraisal Practice             eral and residential real estate appraiser recertifi-       Pittsburgh, Allegheny County
(USPAP) and 2 classroom hours on the State           cation requirement of 28 classroom hours, which
Board of Certified Real Estate Appraisers rules      shall include 4 classroom hours of the USPAP                     Raymond T. Book
and regulations as they pertain to CPEs and          and 2 classroom hours on Act 98 of 1990.                    Pittsburgh, Allegheny County

                                                                                                                    William P. Wentz Jr.
                                                                                                                 Lansdale, Montgomery County

                                                                                                                       Michael Frick
                                                                                                                Department of State, Harrisburg
        Department of State Creates
       Web Pages for Licensing Boards                                                                                   Board Staff:

             and Commissions                                                                                       Steven Wennberg, Esq.
                                                                                                                          Counsel
In November 1998 Acting Secretary of the             More than 800,000 professionals are licensed
Commonwealth Kim Pizzingrilli announced a            and regulated by the boards and commissions                       Cheryl B. Lyne
new online resource to make professional li-         under the department's jurisdiction. By improv-                    Administrator
censure information more accessible to the           ing access to licensure and board information,
public. "The Ridge Administration believes the       the department seeks to improve the level of
Internet is a valuable tool to make information      service offered to consumers and profession-
more accessible to Pennsylvanians," Pizzingrilli     als who use this information every day.
said. "Over the last three years, the Depart-
ment of State has undergone an extensive mod-        As part of the Ridge Administration's efforts
                                                     to improve customer service and provide
                                                                                                                 Remaining
ernization. Through the use of new technol-
ogy like the Internet, we are becoming more          greater access to public information, the De-               1999 Board
                                                     partment of State revised its Internet website
responsive and more effective in meeting the
needs of the public."                                to provide better service and to improve effi-             Meeting Dates
                                                     ciency 24 hours a day, seven days a week. The
The Department of State has expanded its             site allows for instant and convenient access                         March 11
website to include professional licensure infor-     to election information and voter registration                         April 8
mation for 27 boards and commissions under           statistics; tips on charitable giving; fees and                        May 13
its jurisdiction. The website is available through   filing requirements for incorporating in Penn-                         June 10
the Pennsylvania homepage at www.state.pa.us         sylvania; and basic information about the de-                           July 8
or directly through the Department of State's        partment. In 1997, Pennsylvania became one                            August 12
website at www.dos.state.pa.us.                      of the first states in the nation to tabulate and                    September 9
                                                     post election returns to the Internet on elec-                        October 14
Consumers and licensed professionals who             tion night; and in April 1998, the department                        November 9
visit the site now will be able to access licen-     began posting campaign-finance reports for                           December 9
sure laws, and application and exam informa-         statewide candidates on the Internet — fulfill-               Meetings which are held at
tion; to request copies of regulations; to re-       ing Gov. Ridge's pledge to provide greater ac-           116 or 124 Pine Street in Harrisburg,
view meeting dates; and to download com-             cess to campaign-finance information.                         normally begin at 9:00 a.m.
plaint forms. The new site also marks the first
step in the department's efforts to make pro-        The Pennsylvania Homepage, www.state.pa.us,
fessional licensure records and board infor-         recently was selected as the best state website
mation available to the public via the Internet.     in the country by Government Technology
                                                     magazine.
  4

                                     How a Regulation is Adopted
                                   by Joyce McKeever, Deputy Chief Counsel, Department of State
Each year, licensing boards and commissions        in the bureau and the Independent Regulatory        and IRRC that it intends to proceed with final
in the Bureau of Professional and Occupational     Review Commission (IRRC). The board pro-            rulemaking, notwithstanding the disapproval.
Affairs propose and adopt numerous regula-         posal is submitted to the regulatory reviewers      If a board or commission decides to resubmit
tions and amendments to current regulations.       at the time it is published in the Pennsylvania     final rulemaking, it may do so within 40 days of
Some regulations, such as fees for examina-        Bulletin. The public comments which the board       IRRC’s original disapproval.
tions and renewals, are required by statute. In    or commission receives are also sent to the
other instances, boards make changes to long-      committees and the IRRC. In turn, the commit-       The licensing board or commission, as with
standing policy or wish to enact new standards     tees or IRRC submit comments to the board or        any state agency, can submit the regulation
of professional conduct for licensees.             the commission.                                     without any changes or it can make revisions
                                                                                                       to its proposal and submit a revised regulation
Whether a new regulation is necessary, or          Licensing boards and commissions must con-          which is intended to address the concerns
changes to old regulations are made, all pro-      sider public, legislative and IRRC comments         raised in the disapproval. When no changes
posed rulemaking of the boards must be             when a final regulation is proposed. An agency      are made to final-form regulation, the commit-
adopted under the law and procedures spelled       has two years from the close of the public com-     tees have 14 days to report a concurrent
out in the Commonwealth Documents Law, the         ment period to submit a final-form regulation.      resolution. A resolution would bar publication
Commonwealth Attorneys Act and the Regu-           The final-form regulation is again submitted to     unless the Governor successfully (without
latory Review Act.                                 the state House and Senate standing commit-         override) vetoes the resolution.
                                                   tees and to IRRC. The committees and IRRC
The Commonwealth Documents Law requires            review the board’s final rulemaking. That re-       If a board or commission decides to revise the
the board or commission that wishes to enact       view results in an action to either approve or      final rulemaking, the revisions are considered
a new rule to publish a proposal in the Penn-      disapprove the regulation. The committees           again by the House and Senate committees and
sylvania Bulletin, the official publication of     have 20 days within which to act to disap-          IRRC. If both approve the changes, publication
important documents for all Commonwealth           prove a regulation. When they do so, IRRC is        of the final regulation is then authorized. If ei-
agencies. The proposal announces the inten-        notified. Thereafter, IRRC meets to consider        ther of the committees or IRRC disapprove the
tion of the agency and explains to the public      the final rulemaking. IRRC may disapprove or        revised regulation, either of the legislative com-
why the regulation is necessary or benefits        approve the regulation, irrespective of the ac-     mittees may within 14 days report a concurrent
the public. The public can comment or object       tion taken by the legislative committees. If IRRC   resolution barring publication. If the resolution
to the board’s proposal for a period of thirty     approves the regulation, publication of the fi-     is not reported, the House or Senate fails to
days after publication. Thereafter, the board      nal regulation is authorized.                       adopt, or the Governor successfully vetoes the
can propose a final rulemaking, which is also                                                          resolution, the regulation may be published in
published in the Pennsylvania Bulletin.            If IRRC disapproves a proposed final regula-        the Pennsylvania Bulletin as final.
                                                   tion, disapproval bars publication in the
The Regulatory Review Act requires the board       Pennsylvania Bulletin. The board or commis-         Under the Commonwealth Attorneys Act, the
or commission to submit the proposal to the        sion then has a seven-day period in which it        Attorney General must approve all regulations
state House and Senate standing committees         may notify the House and Senate committees          before they are final. Once a regulation is pub-
which have oversight over all licensing boards                                                         lished, it becomes law.




                                    Qualifications for Certification
                                                        Revised — Effective 1-1-98

      The Appraiser Qualifications Board (AQB) established new criteria for initial certification effective January 1, 1998.

      RESIDENTIAL CERTIFICATION
      Education: No Change to Existing Requirements
      Experience: 2500 hours of appraisal experience obtained during no fewer than 24 months.

      GENERAL CERTIFICATION
      Education: 180 classroom hours of courses in subjects related to real estate appraisal which shall include 15 classroom hours relative to
                  the Uniform Standards of Professional Appraisal Practice.
      Experience: 3000 hours of appraisal experience obtained during no fewer than 30 months.
                                                                                                                                                        5

   Reprint of Portions of Appraisal Standards Board (ASB)
                                                State Advisory Bulletin
                                          Volume VI, Number 1 — March 1998

This communication by the Appraisal Standards Board (ASB) does not establish new standards or interpret existing standards.
The ASB State Advisory Bulletin is issued to state and territory appraisal regulators to inform all states and territories of the ASB
responses to questions raised by regulators and individuals; to illustrate the applicability of the Uniform Standards of Profes-
sional Appraisal Practice (USPAP) in specific situations; and to offer advice from the ASB for the resolution of appraisal issues
and problems. The ASB State Advisory Bulletins do not constitute a legal opinion of the ASB.


QUESTION: If the appraiser is in compliance           By certifying conformity with USPAP for an           ticular, it is unethical for an appraiser to use or
with USPAP and federal banking regulations,           assignment in which an appraiser satisfied a         communicate any misleading or fraudulent re-
how can a state appraisal board say you are out       professional appraisal ethics or practice stan-      port or to knowingly permit an employee or
of compliance with state regulation?                  dard not in USPAP, the appraiser acknowledges        other person to communicate a misleading or
                                                      that this supplemental standard adds to but          fraudulent report.
RESPONSE: The Supplemental Standards                  does not diminish the purpose, intent or con-
section of USPAP states: These Uniform Stan-          tent of USPAP.                                       Appraiser A fulfills the first part of this re-
dards provide the common basis for all appraisal                                                           quirement by not using Appraiser B’s ap-
practice. Supplemental standards applicable to        QUESTION: A bank engages an appraiser                praisal in his own appraisal of the property.
appraisals prepared for specific purposes or          (Appraiser A) to appraise a property for the         He fulfills the second part of the requirement
property types may be issued by public agen-          intended use of mortgage financing. Appraiser        by pointing out to his client, the bank, the mis-
cies and certain client groups, e.g. regulatory       A is provided with a copy of an appraisal            leading or fraudulent aspects of Appraiser B’s
agencies, eminent domain authorities, asset           prepared by another appraiser (Appraiser B)          appraisal and advising the bank against rely-
managers, and financial institutions. Apprais-        retained by the property’ seller. Appraiser A        ing on that appraisal. Appraiser A’s responsi-
ers and clients must ascertain whether any            finds numerous errors in the Appraiser B’s           bilities beyond these actions are a matter of
supplemental standards in addition to these           appraisal. What should Appraiser A do?               law, not of USPAP.
Uniform Standards apply to the assignment
being considered.                                     RESPONSE: Please note that state laws vary           The responses in this State Advisory Bulletin
                                                      concerning appraisers’ duties in reporting           are based on presumed conditions without
Comment: The purpose of the SUPPLEMEN-                other appraisers’ potential violations of            investigation or verification of actual
TAL STANDARDS section is to provide a                 USPAP. Though USPAP does not specifically            circumstances. There is no assurance that
reasonable means to augment USPAP with ad-            legislate appraisers’ responsibilities when con-     these responses represent the only possible
ditional requirements set by clients, employers,      fronted by others’ USPAP violations, it does         solution to the problems discussed or apply
governmental entities and/or professional ap-         address the ethical aspects of using mislead-        equally to seemingly similar situations.
praisal organizations. Supplemental standards         ing or fraudulent reports. The Conduct Section
cannot diminish the purpose, intent or con-           of the ETHICS PROVISION states: An ap-               For further information, please contact: M. An-
tent of the requirements of USPAP.                    praiser is required to avoid any action that could   gela Baker, Director, Appraisal Standards Board,
                                                      be considered misleading or fraudulent. In par-      The Appraisal Foundation, 1029 Vermont Av-
                                                                                                           enue NW, Suite 900, Washington, DC 20005.



                                             Change of Name and/or
                                               Address Reminder
                          To ensure receipt of a renewal notice or important information from the board, certificate holders
                          must contact the board office with any changes in name or address. Name changes require a copy
                          of a court order, marriage certificate, divorce decree or other official document.
                                                                 Please send changes to:

                                                   State Board of Certified Real Estate Appraisers
                                                                   P.O. Box 2649
                                                            Harrisburg, PA 17105-2649
  6
                                                         Disciplinary Actions
The following is a chronological listing of formal disciplinary or corrective measures taken by the board from Jan. 15, 1998, through July 16,
1998. Each entry includes the name of the respondent; the respondent’s certificate number(s); the respondent’s last known business address; the
disciplinary or corrective measure imposed; a brief description of the basis for the disciplinary or corrective measure; the effective date of the
disciplinary or corrective measure; and whether the disciplinary or corrective measure was taken pursuant to an Adjudication and Order (A&O)
or Consent Agreement and Order (C&O).

Every effort has been made to ensure that the following information is correct. However, this information should not be relied upon without
verification from the board office. It should be noted that the names of persons listed below may be similar to the names of persons who have not
had disciplinary or corrective measures taken against them.

Please contact the board to verify these actions and their effective dates. Official confirmation of the current status of a license or registration can be
obtained by writing: State Board of Certified Real Estate Appraisers, P.O. Box 2649, Harrisburg, PA 17105-2649.


ROBERT L. GERMER, of Mount Holly, NJ, was                  RAYMOND J. KECZMER, certificate nos. RL-              DEBORAH S. HIMES, certificate nos. RL-001489-
assessed a $1,000 civil penalty for holding himself        000164-L and GA-000950-L, of Pittsburgh, Allegh-      L, and BA-000160-L, from Lewistown, Mifflin
out as a certified real estate appraiser in Pennsylva-     eny County, was assessed a $750 civil penalty for     County, was assessed a $1,000 civil penalty for
nia without possessing an appraiser certification from     committing technical violations of the USPAP.         permitting her assistant to be identified in appraisal
the board. (1-15-98) (A&O)                                 (2-17-98) (C&O)                                       reports as the appraiser rather than as the assistant
                                                                                                                 appraiser. (7-14-98) (A&O)
JASON D. KECZMER, of Aliquippa, Beaver                     STEPHEN B. GRIFFITH, certificate no. GA-
County, was assessed a $700 civil penalty for hold-        000808-L, of Philadelphia, was suspended for one      JAMI L. ZOOK, of Lewistown, Mifflin County,
ing himself out as an appraiser without possessing         year, stayed in favor of probation with terms and     was assessed a $500 civil penalty for identifying
an appraiser certification from the board. The board       conditions including completion of 15 hours of con-   herself in appraisal reports as the appraiser rather
also denied Keczmer’s pending application for cer-         tinuing education, for committing technical           than as the assistant appraiser. The board also di-
tification as a residential real estate appraiser and      violations of the USPAP. (2-18-98) (C&O)              rected that Zook may not count such appraisal re-
barred him from reapplying until he gains the requi-                                                             ports toward the experience requirement for certifi-
site experience. (2-17-98) (C&O)                           LOUIS SKALE, certificate no. RL-000736-L, of          cation as a residential appraiser. (7-14-98) (A&O)
                                                           Richboro, Montgomery County, was suspended
CHRISTOPHER R. KECZMER, certificate no.                    for one year, stayed in favor of probation with       HARLAND CARNEY, certificate no. GA-001107-
RL-001573-L, of Pittsburgh, Allegheny County,              terms and conditions including completion of 15       L, of Chambersburg, Franklin County, was ordered
was assessed a $750 civil penalty for committing           hours of continuing education, for committing tech-   to complete the twenty hours of make-up continu-
technical violations of the Uniform Standards of           nical violations of the USPAP. (2-18-98) (C&O)        ing education within 45 days or undergo the
Professional Appraisal Practice (USPAP).                                                                         suspension of his certificate until the continuing
(2-17-98) (C&O)                                            JOSEPH JOHN ROSEN, certificate nos. RL-               education is completed. (7-16-98) (C&O)
                                                           000078-L and GA-000241-L, of Kingston, Luzerne
                                                           County, was ordered to complete 15 hours of           BARBARA BOYER, certificate no. AV-000872-L,
                                                           continuing education for committing technical         of Media, Delaware County, was assessed a $500
                                                           violations of the USPAP. (5-14-98) (C&O)              civil penalty for failing to obtain certification as a
                                                                                                                 certified Pennsylvania evaluator within three years
                                                                                                                 of the date of her employment as an assessor and
                                                                                                                 for performing valuations of real property for ad
                                                                                                                 valorem tax purposes without being currently cer-
                           To File a Complaint                                                                   tified by the board as a Certified Pennsylvania
                                                                                                                 Evaluator. (7-16-98) (C&O)
    If you believe the practice or service provided by an appraiser or assessor to be unethical,
    below an acceptable standard of practice or outside the scope of the appraising or assessing                 JOHN A. ALBERICI of Glenmoore, Chester
    profession, you are urged to contact the Bureau of Professional and Occupational Affairs                     County, was barred from being certified as an
    to obtain a complaint form.                                                                                  appraiser for two years, based on findings that he
                                                                                                                 evidenced a lack of good moral character by
                                               in Pennsylvania:
                                                                                                                 attempting to cheat on the general appraiser
                                           1-800-822-2113                                                        certification examination. Alberici may reapply for
                                                                                                                 certification after two years at which time, in
                                                  out of state:                                                  addition to meeting the examination and other
                                                                                                                 certification requirements then in effect, he must
                                           1-717-783-4854                                                        appear before the board to present proof of his
                      A complaint form is available on the department's internet site.                           good moral character. (7-14-98) (A&O)
                                          The web address is:
                                        www.dos.state.pa.us
                                                                                                                                                       7

                                         Supervisor's Responsibility
                                                          by David J. King, Chairman
The real estate appraising profession is unique     to an assistant who has not signed the report        title may be used but it must be clear that the
when compared to other professions within           or who was not acknowledged in the report,           certified residential appraiser or broker/ap-
the Bureau of Professional and Occupational         the supervising certified appraiser would be in      praiser only assisted with the appraisal.
Affairs. Architects, engineers and health pro-      violation of Standards Rule 2-3 of the USPAP
fessionals undergo formal training through a        and subject to prosecution.                          The board has published a checklist for assis-
college or university culminating in an exami-                                                           tants. This checklist must be attached to every
nation leading to licensure. Often the field ex-    The supervising certified appraiser assumes          appraisal submitted for experience credit. The
perience is gained after being licensed to          professional responsibility for the data collec-     checklist will most probably remain in the files
practice.                                           tion, analysis, and conclusions of value set         along with the completed appraisal but does not
                                                    forth in the report. In most cases, the principal    have to be made part of the report submitted to a
Relatively few college or universities offer for-   supervising certified appraiser accepts an ap-       client. The checklist does not take the place of
mal programs leading to a degree in real estate     praisal assignment from a client and the             the signature or certification requirement.
appraising. Becoming an appraiser is more like      assistant will assist in the preparation of the
an apprenticeship, in which a trainee or assis-     assignment. It is inappropriate for a certified      It is the supervising certified appraiser’s respon-
tant gains the necessary experience under the       residential appraiser or broker/appraiser to ac-     sibility to make certain that the appraisal is in
tutelage and supervision of a more experienced      cept an assignment outside the scope of their        compliance with the board’s regulations and
certified appraiser. The supervising certified      certification and then solicit a supervising cer-    the USPAP. Assistants must be supervised as
appraisers must make certain that both they         tified appraiser to “sign off” on an assignment      all of their work is the responsibility of the cer-
and their apprentices are following the most        or report. It is the intent of the board that cer-   tified appraiser. Proper supervision will ensure
current rules and regulations of the board and      tified residential appraisers and broker/            that the certified appraiser is in compliance with
the Uniform Standards of Professional Ap-           appraisers become “assistants” when prepar-          the rules and regulations and that the assistant
praisal Practice (USPAP).                           ing commercial reports outside the scope of          will receive proper credit for experience.
                                                    their certification. The appraiser’s certificate
The options for the appraisal assistant to gain
experience are clear within §36.13 of the board’s
regulations. An assistant may gain experience
by assisting a certified appraiser in the prepa-
ration of an appraisal. The regulation clearly
                                                             Reprint of Notice Dated 2-18-98
states that the certified appraiser is respon-                Sent to All Licensees of the
sible for the assistant’s experience. The certi-
fied appraiser must:                                                  Pennsylvania
1. Directly supervise the work.                                Real Estate Commission
2. Complete the property inspection along                          Signed by David J. King, Chairman, State Board of
   with the assistant.                                                    Certified Real Estate Appraisers and
3. Sign the appraisal as “Certified Real
                                                                Harvey M. Levin, Chairman, State Real Estate Commission
   Estate Appraiser” and have the                    The State Board of Certified Real Estate Ap-        an individual must hold either a broker/ap-
   assistant sign as “Assistant to the               praisers (Board) has determined that a com-         praiser certificate or a certified residential or
   Certified Real Estate Appraiser.”                 parative market analysis (CMA) and a                certified general appraiser certificate.
                                                     Broker's Price Opinion (BPO) which is per-
Many applicants have been denied experience,                                                             On and after September 3, 1998, real estate
                                                     formed for a fee, commission or other valu-
and their supervising certified appraisers have                                                          brokers, associate brokers and salespeople
                                                     able consideration is an appraisal.
been subject to sanctions by not following                                                               may continue to perform CMA’s and BPO’s
the regulations. Applicants have claimed ex-         Currently, in order to receive a fee for either a   in the normal course of business for the sole
perience but have not signed the appraisal           CMA or a BPO, an individual must hold either        purpose of attempting to secure a listing. As
report as “Assistant to the Certified Appraiser”     a real estate broker’s license, a broker/ap-        long as no fee, commission or other valuable
or referenced in the report as required by the       praiser certificate or a certified residential or   consideration is charged for such analysis,
USPAP. If the board grants experience credit         certified general appraiser certificate. (Sales-    opinion or conclusion, the same will not be
                                                     people may only assist in the preparation of a      construed as an appraisal.
                                                     CMA or BPO in which a fee is charged if such
                                                     preparation is directly supervised by the em-       Real estate brokers and salespeople who per-
                                                     ploying broker).                                    form CMA’s or BPO’s for a fee in violation of
                                                                                                         the above will stand subject to prosecution
                                                     Effective September 3, 1998, in order to re-        by both the board and the State Real Estate
                                                     ceive a fee for an appraisal, a CMA or a BPO,       Commission.
                                  “Drive-By” Appraisal Regulation
                                                by John J. Lavelle Jr., Former Board Member

The board has proposed amendments to 49 Pa.         3. The appraiser had previously inspected          the USPAP. Form #1004URAR 6/93 is a good ex-
Code Section 336.51 of its regulations to re-          the interior and exterior of the property       ample of these minimum standards.
strict the circumstances under which certified         during a prior appraisal for the same
appraisers and broker/appraisers may perform           client within one year of the request           Appraisers, for many years, had been held to a
"drive-by" appraisals. Certified appraisers and        for a reappraisal, and the appraiser            higher set of standards by lenders. These stan-
broker/appraisers would be required to perform         reasonably believes from an exterior            dards appear to be disappearing, as we are now
a complete physical inspection of the interior         inspection that there has been no               asked to do drive-by appraisals, and complete
and the exterior of the subject property unless        material change to the interior of the          very simplistic forms which do not conform to
one of the following situations exists:                property since the prior appraisal.             the USPAP. Lenders and appraisal management
                                                                                                       companies have invented various forms with
1. Improvements to the property have                4. The appraiser reasonably believes that          authentic sounding titles such as “Evaluation
   been destroyed, removed, not yet built              performing an interior inspection of the        Broker Price Opinion” and “Opinion of Value”
   or not being valued.                                property will endanger the appraiser’s          (some that can allegedly be performed without
                                                       safety.                                         leaving your office). The use of these forms
2. The appraiser is denied access to the
   property by the property owner or oc-                                                               could be viewed as a violation resulting in pros-
                                                   The proposed amendments to 336.51 also              ecution and loss of certification. Certificate-hold-
   cupant in possession when the prop-             would require certified appraisers and broker/
   erty owner is an involuntary party to                                                               ers would be wise to educate their clients,
                                                   appraisers to conduct an interior inspection that   bankers, mortgage companies, appraisal man-
   the transaction requiring the appraisal.        is thorough enough to enable the appraiser to
   (e.g., foreclosure, sale of existing mort-                                                          agement companies what the certified appraiser
                                                   prepare a property description that complies with   can and cannot do.
   gages).                                         the summary report requirements of Standard 2 of




            P E N N S Y L V A N I A
                                                                                                                                 BULK RATE
                   State Board of
                                                                                                                                  U.S. POSTAGE
              Certified
       Real Estate Appraisers                                                                                                         PAID
                                                                                                                                  Permit No. 918
              Post Office Box 2649                                                                                                Harrisburg, PA
            Harrisburg, PA 17105-2649

								
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