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Conditions After License Expires

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Michael McKinley

Freshman Member
Joined
Dec 16, 2017
Professional Status
Certified Residential Appraiser
State
California
; my license expires mid Feb; I do not expect to renew. If a client requests a condition or revision after expiration, can I still make a change? Am I obligated to respond? My belief is that I can not make an appraisal response if I'm not licensed, even if the OA was before expiration.
 
When your license expires, change your phone number, get a new email address. Don't worry about it, and enjoy your retirement because you will no longer be an appraiser, although you might be a "valuer" if you want to be, but, you can't sign an appraisal, or a revised appraisal as an appraiser, if you do not have an active license.

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Not sure. As a business professional, I would just inform the client and see what they want. You obviously have to keep your license expiration date what it is. If they need that date updated to 2018 (or whenever CA licenses expired), then they are SOL.

On a brighter note, you can now start doing non-USPAP complaint valuations for banks. It could be lucrative career. Especially with your background of a former professional appraiser. Everything I read seems to indicate that's where we are headed.

I'm only partially joking (n)
 
Contact BREA for guidance and make sure you have tails -end on your E & 0 policy - Remember prior acts are not waived just because you let your license expire and nothing could be worse then retiring and getting sued by some bank a year later.
 
; my license expires mid Feb; I do not expect to renew. If a client requests a condition or revision after expiration, can I still make a change? Am I obligated to respond? My belief is that I can not make an appraisal response if I'm not licensed, even if the OA was before expiration.

The answer is, it depends.
First, California is a non-mandatory state. That means anyone can do an appraisal.
For some assignments, a license or certification is required: those assignments are generally (a) mortgage finance related where an appraisal (as opposed to an evaluation) is required, or (b) scenarios where the client requires the appraisal to be completed by a licensed and/or certified appraiser (many private but legally binding agreements call for an appraisal in cases where real property rights need a valuation).
Non-licensed persons can also voluntarily follow the USPAP and sign the certification. So, a non-licensed valuer can do an appraisal and sign a USPAP certification for certain scenarios. I've seen many such appraisals done for bankruptcy purposes.

I agree with you that if this is for a mortgage finance appraisal, and a request comes in after your license expires, you cannot alter the appraisal and re-submit because the assignment requires it to be completed by a licensed/certified appraiser. Since an alteration would require a new report date, my opinion is that submitting a signed-report after the expiration date of one's license would be counter to the assignment's engagement requirements.

Other states have different rules, so the ability to perform an appraisal if one is non-licensed/certified may vary from state to state.

Depending on what the request was, I might consider providing a written response. But that response would not be part of the appraisal and I wouldn't change the appraisal document.

If you do call BREA (which is good advice from Glenn) let us know what they say.

Good luck!
 
maybe contact your E&O. they might have had past experiences with this. funny thing will be when they ask you to update the license in the after appraisal done correction. that might give them their own answer.
 
Agree with all said above, especially changing phone and email and checking with E&O. But really, what can happen, they take your license away?

If you had built up a business, there may be others who would be willing to pay you for your phone # and/or email. Let them take over stuff like this. Just a thought.
 
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