Just what is an FRT and when does your appraisal Fall under Designation ?

[KenRossman]

My question (and I think Ray's question) is: Can an appraiser work beyond the scope of practice for their license level when the assignment is not a federally related transaction?

In NY (a voluntary state) - No, regardless whether it is for an FRT, if he/she is licensed, certified or a trainee.

 

[KenRossman]

IF the appraiser is not licensed or certified. Once the appraised becomes licensed or certified, they are subject to USPAP and regulatory scrutiny regardless whether the "transaction/appraisal/whatever" is federally related.

That is the same question I have.



"I'd think that part would be true in WI, too. But I know states are different. It would be true any time you were required to comply with USPAP."

I can find nowhere, where the State of Wisconsin requires a non-licensed appraiser to comply with USPAP. As of my readings yet.

If someone knows where this can be found for Wisconsin, I would like some direction please.

 

[Ray Miller]

IF the appraiser is not licensed or certified. Once the appraised becomes licensed or certified, they are subject to USPAP and regulatory scrutiny regardless whether the "transaction/appraisal/whatever" is federally related.

What I am reading in Wisconsin Stats is that it only applies to FRT appraisals. They keep bring up FRT in the Regs.

 

[KenRossman]

My understanding is that NY, like WI is a voluntary state only requiring a license for FRTs. That said, once an appraiser obtains a license or certification they have voluntarily subjected themselves to USPAP and regulatory scrutiny regardless whether for FRT or otherwise.

 

[Couch Potato]

What's the point?

That is the same question I have.



"I'd think that part would be true in WI, too. But I know states are different. It would be true any time you were required to comply with USPAP."

I can find nowhere, where the State of Wisconsin requires a non-liscensed appraiser to comply with USPAP. As of my readings yet.

If someone knows where this can be found for Wisconsin, I would like some direction please.

Just why would it matter to you or anyone else with a license? Unless one asks to have their license revoked, the board would have the authority to enforce their rules on any appraisal.

 

[KenRossman]

He is a somewhat on point exchange with a NY regulator (Neal is a regional advisor who works with Matt Smith the NY Chair...) The initial question was whether a CG was required for appraisal of mixed use property when the % of commercial use is less than 50%

Ken,

If you think it would be helpful, be my guest.

Neal

The NYS website, I find, is very helpful.

-----Original Message-----
From: Kenrossman [mailto:kenr@optonline.net]
Sent: Friday, September 29, 2006 2:20 PM
To: Neal Peysner
Subject: RE: Mixed Use Properties

Hi Neal,

Would you mind if I posted your response to an email discussion group, where we have been debating this issue over the last few days?

Thanks!
Ken


From: Neal Peysner [mailto:npeysner@standardvaluation.com]
Sent: Friday, September 29, 2006 1:59 PM
To: kenr@optonline.net
Subject: RE: Mixed Use Properties

RULES AND REGULATIONS​

TITLE 19 NYCRR

BOARD OF REAL ESTATE APPRAISAL

PART 1101
SCOPE OF PRACTICE​

​

This information is not the official version of the Official Compilation of Codes, Rules and Regulations of the State of New York (NYCRR). No representation is made as to its accuracy, nor may it be read into evidence in New York State courts. To ensure accuracy and for evidentiary purposes, reference should be made to the official NYCRR. The official NYCRR is published by West, 610 Opperman Drive, Eagan, MN 55123, 1-800-344-5009.
§1101.1 Scope of practice for certified general real estate appraiser
A certified general real estate appraiser may appraise all types of real property.
§1101.2 Scope of practice for certified residential real estate appraiser
(a) The scope of practice for a certified residential real estate appraiser is limited to:
(1) the appraisal of 1-4 family residential units without regard to value or complexity; and
(2) the appraisal of vacant or unimproved land that is to be utilized for a 1-4 family residential unit without regard to value or complexity, or vacant or unimproved land for which the highest and best use is a 1-4 family residential unit without regard to value or complexity.
(b) A certified residential real estate appraiser shall not appraise a residential subdivision, except that a certified residential real estate appraiser may appraise individual properties within a subdivision.
§1101.3 Scope of practice for a licensed residential real estate appraiser
(a) The scope of practice for a licensed residential real estate appraiser is limited to the appraisal of noncomplex 1-4 family residential units having a transaction value of less than $1,000,000 and complex 1-4 family residential units having a transaction value of less than $250,000.
(b) The scope of practice for a licensed residential real estate appraiser includes the appraisal of vacant or unimproved land that is to be utilized for a 1-4 family residential unit or vacant or unimproved land for which the highest and best use is a 1-4 family residential unit. In either case, the scope of practice is limited to the appraisal of vacant or unimproved land having a transaction value of less than $1,000,000.


Ken,

The state law above, I think, gives you the answer, which I believe is NO. Percentage is not an issue. Mixed use is a commercial property.

I hope this helps.

Neal

-----Original Message-----
From: Matthew L. Smith MAI, SRA [mailto:svsvalue@sprynet.com]
Sent: Friday, September 29, 2006 1:32 PM
To: Neal Peysner
Subject: FW: Mixed Use Properties

 

[Michael Tipton]

CP,
If my memory holds correct, Frank G wrote a letter to the Greater Orlando Association of Realtors regarding this issue within the last 2 years. I believe he stated that USPAP compliance was required for valuation services provided by Realtors that were used for lending purposes.

 

[CANative]

Ken... the scope of practice descrptions are essentially the same as in California. But in the CA laws and regulations all of the definitions and requirements are predicated on Federal Regulated Transactions, Agencies, Insitutiions, etc.,etc.

 

[KenRossman]

Don't see nuthin about FRTs?

http://www.orea.ca.gov/html/lic_reqmts.shtml

 

[KenRossman]

same for WI see scope of practice

http://drl.wi.gov/prof/appr/pfaq.htm