Date: Feb 03,2014 8:34:00PM EST DIN: 20111214-IR-876110428PRA
SECTION 2. 876 IAC 3-6-8 IS AMENDED TO READ AS FOLLOWS:
876 IAC 3-6-8 Indiana licensed trainee appraisers; required use and prohibitions
Authority: IC 25-34.1-3-8
Affected: IC 25-34.1
Sec. 8. (a) Indiana licensed residential appraisers, Indiana certified residential appraisers, and Indiana certified
general appraisers may only employ:
(1) Indiana licensed residential appraisers;
(2) Indiana certified residential appraisers;
(3) Indiana certified general appraisers; and
(4) Indiana licensed trainee appraisers;
to assist in the performance of real estate appraisals. However, as provided for in section 9 of this rule,
Indiana licensed residential appraisers may not supervise Indiana licensed trainee appraisers.
(b) Subsection (a) does not prohibit the use of unlicensed individuals to perform clerical functions.
(c) Indiana licensed trainee appraisers shall be subject to the supervision of a supervising appraiser as
provided for in section 9 of this rule and may not:
(1) work independently; or
(2) hold themselves out to the general public as licensed or certified appraisers;
(3) have their own clients; or
(4) accept payment directly from clients for appraisal work.
(d) Indiana licensed trainee appraisers may not do the following:
(1) Review appraisals submitted by other appraisers. and may not
(2) Hold themselves out as a review appraiser.
(Indiana Real Estate Commission; 876 IAC 3-6-8; filed Dec 8, 1993, 4:00 p.m.: 17 IR 781; readopted filed May 29,
2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA)
SECTION 3. 876 IAC 3-6-9 IS AMENDED TO READ AS FOLLOWS:
876 IAC
876 IAC 3-6-9 Indiana licensed trainee appraisers; supervision
Authority: IC 25-34.1-3-8
Affected: IC 25-34.1
Sec. 9. (a) This section establishes requirements for the use and supervision of Indiana licensed trainee appraisers.
(b) Indiana licensed trainee appraisers shall be subject to direct supervision, including inspection of all properties except as allowed by subsection (i), by a supervising appraiser who:
(1) who (A) shall be a certified residential appraiser or certified general appraiser in Indiana; and
(B) (2) has had no disciplinary action taken within the last two (2) years and against an appraiser license or certification in Indiana or any other jurisdiction;
(2) whose (3) does not have an appraiser license or certificate, is not in Indiana or any other jurisdiction, currently on probation or suspended or has been revoked; and
(4) completes a board approved supervisor appraiser's course as required by section 10 of this rule.
(c) The supervisor supervising appraiser shall be responsible for the direct supervision of the Indiana licensed trainee appraiser by signing and certifying the report as in compliance with the Uniform Standards of Professional Appraisal Practice. Notwithstanding subsection (b)(1)(A), a licensed trainee appraiser who was
supervised by a licensed residential appraiser before January 1, 2008, may continue to be supervised by that licensed residential appraiser until December 31, 2009.
(d) The Indiana licensed trainee appraiser is permitted to have more than one (1) supervising appraiser in the office of the licensed or certified supervising appraiser holder of record with whom the Indiana licensed trainee
appraiser has associated under 876 IAC 3-3-22. Such an additional supervisor shall be acting in substitution for the supervising appraiser identified under 876 IAC 3-3-22 and is only responsible for the Indiana licensed trainee appraiser on appraisals where such responsibility is assumed by the additional supervisor, at the consent of the supervisor of record identified under 876 IAC 3-3-22. Overall responsibility for the trainee appraiser remains with the supervisor of record as long as the association
with the trainee appraiser is in effect under 876 IAC 3-3-22.
(e) An appraiser may not be the supervising appraiser for more than two (2) trainees.
(f) An appraisal log shall be maintained by the Indiana licensed trainee appraiser and supervising appraiser and shall, at a minimum, include the following for each appraisal:
(1) Client name.
(2) Address of appraised property.
(3) Description of work performed and scope of the review and supervision of the supervising appraiser.
(4) Number of work hours.
(5) Type of property.
(6) Date of report.
(g) The supervising appraiser shall:
(1) review and sign the appraisal log annually;
(2) provide the log to the trainee; and
(3) include his or her state certification number.
It is the responsibility of the trainee to retain the log for submission to the board with any future application for license certification. The trainee appraiser shall be entitled to copies of appraisals, including appraisal reports and any work files, that the trainee appraiser completes. However, the original records shall be maintained at
the office of the supervising appraiser.
(h) Separate appraisal logs shall be maintained by each supervising appraiser.
(i) The Indiana licensed trainee appraiser shall be subject to direct supervision until the Indiana licensed trainee appraiser is competent in accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice, as adopted in section 2 of this rule, to perform appraisals for the specific property type.
After the Indiana licensed trainee appraiser demonstrates competency, the supervising appraiser is not required to inspect the properties. However, the supervising appraiser must continue to sign and accept full responsibility for all appraisals performed by the Indiana licensed trainee appraiser.
(j) In addition to the requirements in subsection (i), the supervising appraiser shall accompany the Indiana licensed trainee appraiser and inspect the subject and comparable properties on the following appraisal assignments:
(1) The first fifty (50) assignments performed by the trainee where the scope of the work includes a physical inspection of the property.
(2) During the first year the trainee holds an active license, all assignments located more than fifty (50) miles from the supervising appraiser's office.
(k) The supervising appraiser and the licensed trainee appraiser shall meet with each other on a reasonable schedule to interact about the appraisal work of the trainee.
(k) (l) Subsections (e) and (j) do not apply when an Indiana licensed trainee appraiser is an employee of a governmental entity acting in the course of the governmental entity's activities.
(Indiana Real Estate Commission; 876 IAC 3-6-9; filed Dec 8, 1993, 4:00 p.m.: 17 IR 782; filed Apr 10, 1995, 10:00 a.m.: 18 IR 2124; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; filed Dec 3, 2002, 3:00 p.m.: 26 IR 1108; filed Dec 1, 2003, 9:45 a.m.: 27 IR 1182; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008; errata filed Jan 23, 2008, 10:22 a.m.: 20080206-IR-876060095ACA)
SECTION 4. 876 IAC 3-6-10 IS ADDED TO READ AS FOLLOWS:
876 IAC 3-6-10 Indiana licensed trainee appraisers; supervisor's course
Authority: IC 25-34.1-3-8
Affected: IC 25-34.1-8
Sec. 10. (a) A supervising appraiser under section 9 of this rule shall successfully complete a supervising appraiser course in order to be a supervising appraiser. The course must be completed:
(1) within six (6) months after the commencement of an association with an Indiana licensed trainee
appraiser under 876 IAC 3-3-22; and
(2) by the end of the third two (2) year renewal period after the initial, and each subsequent, completion of the course as long as the appraiser continues to function as a supervising appraiser.
Notwithstanding subdivision (1), supervising appraisers who are associated with an Indiana licensed trainee appraiser on the effective date of this section shall initially complete the course no later than June 30, 2013.
(b) If a supervising appraiser does not complete the mandatory supervisor appraiser's course by a required date, the supervising appraiser may no longer function as a supervising appraiser immediately upon not meeting the required date.
(c) The supervising appraiser's course shall qualify for continuing education credit for the supervising appraiser under 876 IAC 3-5.
(d) A supervising appraiser course shall meet the requirements applicable for board approved continuing education courses under 876 IAC 3-5 and the requirements of this section. Notwithstanding 876 IAC 3-5-2(a), this course shall be approved by the board and not the Appraisal Qualifications Board
(AQB).
(e) A supervising appraiser course shall include fourteen (14) hours of instruction on real estate appraising and related topics as required in this rule, and a one (1) hour examination, that presents the following topics and materials:
(1) The history of the appraisal profession leading to the creation of the Appraisal Foundation, the state appraiser boards, and the other regulatory changes.
(2) The function of the Appraisal Foundation.
(3) The function of the Appraisal Subcommittee (ASC).
(4) The Financial Institutions Reform and Recovery Act (FIRREA).
(5) The Indiana law concerning real estate appraising with specific discussion of IC 25-34.1-8, the board's rules, this article, and any significant changes within the last thirty-six (36) months.
(6) The 2010 Frank-Dodd Bill – subtitle F – Appraisal Activities.
(7) Statistics for appraisers and supervisors.
(8) Mortgage loan analysis and time value of money calculations.
(9) A supervisor's review of residential appraisal forms.
(10) Case studies focused on recent issues before the board and common problems.
(f) A supervising appraiser course must also meet the following requirements:
(1) The course must reflect the most current version of the board's rules including the Uniform Standards of Professional Appraisal Practice.
(2) The course materials or syllabus must include a course description, which clearly describes the content of the course.
(3) Compliance with 876 IAC 3-5-2.5(b)(2)(B) shall be specific to a supervising appraiser's course.
(4) Instructional materials for students must be provided to each student in compliance with 876 IAC 3-5-2.5(b)(3). The exception in that provision that allows materials not to be provided in some situations shall not apply to this section.
etc.
Posted: 12/14/2011 by Legislative Services Agency
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