UPDATE - Chapter 475 Rewrite

[Francois K. Gregoire]

Hi All,

Here's and update on the effort to amend Chapter 475, Part II of the Florida Statutes.

Over the past eighteen months a Chapter 475 Part II, Florida Statutes Rewrite Committee has been meeting in both traditional and electronic venues. This group, organized and chaired by Steven Marshall, MAI, Governmental Affairs Chairman for the East Florida Chapter of the Appraisal Institute, is composed of members of nearly all the Appraisal Sponsors of the Appraisal Foundation, represents all appraisal disciplines and each nook and cranny of the State of Florida. The committee has completed their work; making suggestions to amend the Florida Real Estate Appraiser Licensing and Certification Law.

Their proposal was considered by the Florida Real Estate Appraisal BBoard at their October 1, 2002 meeting.

During the October 1, 2002 meeting, the Florida Real Estate Appraisal Board asked me to forward the rewrite suggestions to the Appraisal Subcommittee for review and recommendations. As you know, the Appraisal Subcommittee of the Federal Financial Institutions Examination Council is the agency which provides oversight and monitoring of all state appraisal regulatory agencies and boards. Mr. Marc Weinberg, General Counsel for the Appraisal Subcommittee, is in the process of reviewing the proposal. His comments are expected to be delivered towards the end of November. In addition, the proposed language has been submitted to Mr. Hardy L. Roberts, III, General Counsel for the Department of Business and Professional Regulation.

The goal of the Chapter 475 Part II Rewrite Committee was to clean up and clarify language, eliminate the licensed appraiser category, tighten up control of the Registered Assistant Appraiser (trainee) category, and provide the Florida Real Estate Appraisal Board some much needed rule making authority in the area of Registered Assistant Appraisers and their Supervisory Appraisers. The reasoning was based on protection of the public and to implement recommendations made in the last Field Review by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.

The areas proposed for amendment are summarized below.

475.611 - Definitions

Licensed Appraiser Category eliminated throughout the document

Appraisal Assignment Definition altered

Appraisal Report Definition altered

Referral Assignment Definition added - Most Certified Appraisers in Florida have either a broker or salespersons license due to the requirements of Florida law prior to FIRREA. This would enable Certified Appraisers without such a license to refer buyers, sellers, etc. to real estate brokers.

Registered Assistant Appraiser License Category changed to Registered Trainee Appraiser throughout the document. Rule making authority added for Trainees and Supervisors

Work File Definition added

Valuation Services Definition added

475.612 Certification or registration required.

paragraph (3) has been changed to make specific the existing exemption provided for real estate brokers and salespersons

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(2) This section does not preclude a broker, salesperson, or broker-salesperson who is not a certified real estate appraiser or registered trainee real estate appraiser from providing valuation services for compensation. Such persons may provide valuation services for compensation so long as they do not represent themselves as certified or registered under this part.

(3) This section does not apply to a real estate broker or salesperson who, in the ordinary course of business, performs a comparative market analysis, gives a price opinion, or gives an opinion of the value of real estate for the purpose of advising a bona fide buyer or seller. However, in no event may this comparative market analysis, price opinion, or opinion of value of real estate be referred to or construed as an appraisal.
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475.613 Florida Real Estate Appraisal Board

Housekeeping changes to eliminate language setting up staggered terms.

475.6221 Employment of Registered Trainee Appraisers
Several changes made with the intent of clarifying the responsibilities of the Supervisor and make the Supervisor responsible for keeping the Division informed of the status of their Trainees. Clarification of allowable means of compensation.

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475.6221 Employment of registered trainee real estate appraisers.--

(1) A registered trainee real estate appraiser must only perform appraisal services under the direct supervision of a certified appraiser who is designated as the primary supervisor. The primary supervisor may also designate additional certified appraisers as secondary supervisors. A secondary supervisor must be affiliated with the same firm or business as the primary supervisor and the primary or secondary supervisor must have the same business address as the registered trainee real estate appraiser. The primary supervisory must notify the Division of Real Estate of the name and address of any primary and secondary supervisor for whom the registered trainee will perform appraisal services, and must also notify the division within 10 days after terminating such relationship. Termination of the relationship with a primary supervisor automatically terminates the relationship with the secondary supervisor.

(2) A registered trainee real estate appraiser may only receive
compensation through their primary supervisor.

(3) LIMITED LICENSE TERM - Registered trainee licenses may be renewed for 2 biennial terms only. After 6 years, the registered trainee appraiser is not eligible for renewal but must qualify as a new applicant.
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475.6222 Supervision of Registered Trainee Appraisers
This is a new section intended to specify the responsibilities of the Primary and Secondary Supervisor and provide statutory rule making authority to the Florida Real Estate Appraisal Board.
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475.6222 Supervision of Registered Trainee Appraisers

(1) A primary or secondary supervisor of a registered trainee appraiser must provide direct supervision to the registered trainee appraiser. The role and responsibility of the supervising appraiser shall be determined by rule of the Florida Real Estate Appraisal Board.
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There you have it. Thought you all might be interested. If and when there is further progress or news, I will let you know.

 

[Wally Jones]

Thank you very much, Frank.

Will direct supervision of trainees be interpreted as the supervisor physically being with the trainee during inspections? Or will there be a provision for allowing unsupervised inspections once the trainee attains a certain level of expertise? Or is it too soon to ask such questions in which case I'll go back to work on this quadruplex for which there exist no comparable sales within a hundred miles and a hundred years but since it's too windy to go fishing I guess I'll just do the best I can anyhow....... 8)

 

[Pamela Crowley (Florida)]

475.6222 Supervision of Registered Trainee Appraisers

(1) A primary or secondary supervisor of a registered trainee appraiser must provide direct supervision to the registered trainee appraiser. The role and responsibility of the supervising appraiser shall be determined by rule of the Florida Real Estate Appraisal Board.

Wally,

This is to leave some discretion to the Board to make the rules. What they are going after are the 'shops' that have newbie trainees all over the state that are never actually supervised. Plus, the ones that send trainees all over the state. I know some from the Jacksonville area that go all over the whole state. They don't have any competency here yet, how much could they have in a town they've never heard of before???

Just met one the other day up here in a court house. Her 'supervisor' is in Tampa. She had no clue about what she was doing!!!!

 

[Wally Jones]

Pam,

I hope it gives the board the teeth they need to deal with what you describe. My pet peeve is the "office-turned-shop" I started with along with a couple of others like it in this area that practice what you're talking about, but on a bit smaller scale. The trainees are given minimal training and set loose on their own to do high end, low end, multi family, condos, vacant land, FHA, etc. The reports are reviewed by their "supervisor", a trainee with more months on the job, and once the big errors are corrected, a state certified looks at them and signs them unless he spots something that needs fixing. To their credit, I think they at least make an effort not to buckle under for most lenders as far as making value is concerned. But with untrained, and, really, unsupervised, appraisers left to figure things out pretty much on their own, how good are the values they're coming up with? One certified and at last count, 14 trainees. Two of the trainees have been there about three years and act as "supervisors" for the newbies. They advertise they cover the whole state, but in reality only deal with about three counties. But that's a lot of territory for only one certified to cover with more than a dozen loose cannons. Glad I escaped and found a mentor who cares.

Okay. Rant over for now. Thanks for listening! 8)

HEY!! How was your Colorado trip? :?:

 

[Dale Smalley]

Am I reading this right that I can actually get a referal fee from a Broker?

Sounds too good to be true. Must be a trap of some kind.

 

[Pamela Crowley (Florida)]

HEY!! How was your Colorado trip?

It was wonderful!!! :multi:

I came back rested and in a much calmer frame of mind. Really enjoyed visiting with my brother, his girlfriend, my sister & brother-in-law.

Had lunch with Dee Dee, Mike Garrett, Ross (CO) and Patti CO. It's great meeting people from this forum!!!!

Spent a couple days up in the mountains with Dee Dee and her family. What a great lady!

Also makes me glad I live here in Florida.

 

[Francois K. Gregoire]

Am I reading this right that I can actually get a referal fee from a Broker?

Sounds too good to be true. Must be a trap of some kind.

Dale,

You read correctly. As long as real estate brokers and salemen in Florida can do real estate appraisals and provide other valuation services for a fee, the Chapter 475 Rewrite Committee thought real estate appraisers should be able to provide a real estate service for a fee.; namely a referral of a buyer or seller to a real estate broker.

Keep in mind, this is only a recommendation. The proposal is being reviewed by the Appraisal Subcommittee and the Department of Business and Professional Regulation General Counsel prior to being submitted to the Florida Legislature. There's plenty of opportunities for the recommendations to be derailed, amended and altered, not t mention the fact it would actually have to pass both houses of the Legislature and be signed by the Governor.

Keep you fingers crossed for the time being.........

 

[Pamela Crowley (Florida)]

I've given away many $$$,$$$ in referrals to Realtors. Sure would be nice to get a little back.

 

[Dale Smalley]

Well Jeb is a good real estate man. Hope it gets that far. But in theory if this will increase business for the Broker why should they object to paying referals.

I like any proposal that will get more revenue for appraisers.