Residential appraiser doing mixed use property

[MBD]

In New York, is it legal for a certified residential appraiser to appraise a mixed use property (one family and one commercial unit)?

Me and another appraiser are arguing over this issue. I advised the appraiser to decline the assignment because I think that CRs can't appraise the property without CG supervision.

The appraisal would not be for mortgage purposes. If it is not legal, is there anything reference material that specifically says that a CR can't appraise such property without a CG supervisor in New York State, regardless of the purpose of the report.

Thanks,

Michael

 

[Kevin Mc]

if it isn't for a GSE, the appraiser can appraise anything he wants, although I don't know if that is the smart thing to do.

 

[The Warrior Monk]

I would interpret the scope of practice of a CR (or less) to not allow the appraiser to appraise such a property. The scope of practice is specific on what a CR may appraise, and it does not include the property type in question. From the ASB:


I. General

A. The Certified Residential Real Property Appraiser Classification qualifies the appraiser to appraise one to four residential units without regard to value or complexity.​

1. The classification includes the appraisal of vacant or unimproved land that is utilized for one to four family purposes or for which the
highest and best use is for one to four family purposes.

2. The classification does not include the appraisal of subdivisions for which a development analysis/appraisal is necessary. ​

B. All Certified Residential appraisers must comply with the COMPETENCY RULE of USPAP.


Many appraisers think it is okay, simply because lenders may allow such properties in their residential programs. However, that has nothing to do with state licensing requirements and scope of practice.​

 

[KenRossman]

I agree with Dave.

Additionally for a non-FRT, no license is required in NY.

That said, however, once an appraiser becomes licensed or certified they are subject to the limitations of their license/certification level.

 

[Claude From NY]

I though this dead horse had been beaten already.

A few years ago, there was a very good discussion in the NY forum regarding this subject. I think the response to Ken from a board member was no, a CR cannot do a mixed use. I'm poor at these searches but it's in here somewhere.

 

[KenRossman]

Here is the prior thread:

See post # 17

http://appraisersforum.com/showthread.php?t=111169&highlight=commercial

 

[KenRossman]

Also, directly on point (see case # 2003-0563)

http://www.dos.state.ny.us/lcns/pdfs/reanwsltr.pdf

2003-0563 - On March 1, 2004 a Certified Residential Appraiser was fined $750 for appraising a mixed use property which is outside the scope of practice for a residential certification. The appraiser also used an incorrect form.​

 

[Mike Kennedy]

TITLE 19 NYCRR
BOARD OF REAL ESTATE APPRAISAL
PART 1101
SCOPE OF PRACTICEThis 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.

http://www.dos.state.ny.us/lcns/lawbooks/re-appraisers.html

 

[Kevin Mc]

Here is the prior thread:

See post # 17

http://appraisersforum.com/showthread.php?t=111169&highlight=commercial

I never found that answer to be definitive. "I believe" doesn't cut it with me. The city of NY classifies and s2-s4 as "primarily residential". That is as definitive as " I believe".

 

[KenRossman]

The finding and fine in post #7 below is about as definitive as it gets...