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Working as an unlicensed appraiser

Discussion in 'General Appraisal Discussion' started by rijman, Jan 13, 2011.

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  1. rijman

    rijman Junior Member

    0
    Jan 20, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I recently did an appraisal for a husband in a divorce case and later on I found out the wife hired her own appraiser, who was experienced but unlicensed. Apparently some legal wranglings prevented him from getting his license or he had a license and was unable to renew. He does a lot of legal work.

    Is anyone out there aware of an industry for unlicensed appraisers who work as appraisers? Credibility would be an issue although the appraiser could be well trained and experienced. Just wondering if there is a submarket for unlicensed appraisers who can work outside of USPAP and state licensing boards regulations to provide their clients with services in the capacity of an advocate, with or without adequate documentation.
     
  2. chicago guy

    chicago guy Junior Member

    0
    Jan 29, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Possibly a Realtor, but his product would be considered a CMA.
     
  3. Don Clark

    Don Clark Elite Member

    15
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
  4. rijman

    rijman Junior Member

    0
    Jan 20, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Thanks Don, but my question is more about an industry for appraisers intentionally unlicenced so they can work outside of USPAP and state licensing laws, in the states where the licensing board only oversees licensed appraisers, such as California. Such appraisers could work as an advocate for their clients and/or could provide minimal reports with whatever level of documentation they want, because they would not be bound by any appraisal industry regulations.
     
  5. Mark K

    Mark K Senior Member

    29
    Jan 27, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    In Indiana a licensed real estate broker can appraise any property in the state, however, USPAP guidelines have to be followed. USPAP is included in the statute by reference.

    When the licensing laws were established this loophole was included supposedly so small town banks and attorneys with no licensed appraiser in the area could still use the good-ol-boy system and have the local broker continue business as usual.
     
  6. Don Clark

    Don Clark Elite Member

    15
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    In Virginia if you do not call yourself an appraiser, and do not call what you do an appraisal you do not have to be state licensed or certified. You can call it an "Evaluation".

    http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+54.1-2010
     
  7. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    In Wisconsin you have to be licensed to do mortgage work on federally related transactions, but not for anything else. On the other hand if you ARE licensed then, based on my reading of it, you are limited by the license on ALL appraisal work.

    Basically that would mean that my Mom, who has no appraisal experience, could legally appraise a farm or commercial property for any reason but mortgages, but I could not.

    It gets worse ... as I recall if your license in WI is taken away then you can not appraise real estate for ANY purpose (based on my interpretation and cases mentioned in the WI DRL Appraisal Board ruling records).

    Ain't WI great? woohoo m2:
     
  8. rijman

    rijman Junior Member

    0
    Jan 20, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    In CA the OREA has no authority over unlicensed appraisers. Anyone in CA can call themselves an appraiser and perform appraisals. If you are unlicensed here you can work as an advocate for your client and it seems to me there might be a market for this although I've never heard of it. As mentioned, unlicensed appraisers cannot perform appraisals for federally related transactions anywhere in the U.S., but they can perform appraisals for many other purposes. One area I thought being unlicensed could help is working with attorneys to refute appraisals in an appraisal related lawsuit. There is also tax assessment appeals or BPO and reconciliation type products where USPAP is restrictive.
     
  9. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    100
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    In California, any appraisal completed for a federally related transaction requires a licensed appraiser. However, work performed for attorneys, private individuals, etc., are generally not federally related transactions and can be performed by anyone. If the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours.

    www.orea.ca.gov/html/faqlic.shtml+can+unlicensed+appraiser+california&cd=2&hl=en&ct=clnk&gl=us
     
  10. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    444
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    To reiterate a statement I made in replying to Don in that other thread
    This guy is well respected in the courts and under Daubert rules he clearly qualifies for court testimony. The lack of license is normally not an issue in court proceedings in states that are non-mandatory or have exceptions. In Arkansas, anyone can apply and get a Registered Appraiser license. They do not have to comply with USPAP but they are supposed to be registered even if testifying on mineral rights or horticultural items. Even so, the courts normally accept their testimony and if no one complains they don't get a letter from the AALCB asking them to "cease and desist" from calling themselves appraisers. OTOH, a Realtor can testify and calling his "value" anything but "market value" [estmated price, probable price, listing price, etc.] without the App. board having any say so.

    There are MAIs who have no license..at least I have met a couple who didn't but they did tax consulting and certainly tax consulting is the very best place where your expertise could be put to work by valuing "fair value" or "true value" as a proxy for "market value" (but never using that term or the word "appraisal") and charging a fee based on the savings.
     
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