Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

Important Announcements

Appraisal Management Companies to Maintain Surety Bond or Irrevocable Letter of Credit Effective July 1, 2014

The Department of Labor and Regulation, Appraiser Certification Program, pursuant to South Dakota Codified Law (SDCL) 36-21D, requires an applicant for issuance or renewal of an appraisal management company registration to file a surety bond with one or more corporate sureties authorized to do business in this state or an irrevocable letter of credit issued by an insured institution authorized to do business in this state in the amount of $25,000.

In accordance with SDCL 36-21D the following conditions apply for surety bond or irrevocable letter of credit:

  1. The appraisal management company shall pay all amounts owed to a person who performs a real estate appraisal service for the company and pay all amounts adjudged against the company by reason of a negligent or improper real estate appraisal, a negligent or improper appraisal management service, or breach of contract in performing a real estate appraisal or appraisal management service.
  2. The surety company or insured institution provides written notice to the department, by registered or certified mail, at least thirty days before the following occurs:
    1. cancels or revokes a surety bond or irrevocable letter of credit, or
    2. pays for a loss under the surety bond or irrevocable letter of credit.
  3. The appraisal management company shall continuously maintain the surety bond or irrevocable letter of credit on file with the department in the amount of $25,000.
  4. The appraisal management company shall file a replacement surety bond or irrevocable letter of credit within the specified time period or surrender the company’s registration to the department if the surety bond or irrevocable letter of credit is terminated, cancelled, or reduced to less than $25,000.

Renewal: In order to renew an appraisal management company registration, the appraisal management company is required to file a surety bond or irrevocable letter of credit with the renewal application. Renewal applications will be mailed on or before October 1, 2014 and are required to be completed and submitted along with the renewal fee and surety bond or irrevocable letter of credit to the department no later than November 17, 2014.

New Applicants: In order to obtain an appraisal management company registration, the appraisal management company is required to file a surety bond or irrevocable letter of credit in the amount of $25,000. Applications for appraisal management company registration must include the application fee, surety bond or irrevocable letter of credit, and the Secretary of State of South Dakota certification for authority to conduct business in this state.

Revisions to Law Regarding Real Estate Appraisers

Revisions to South Dakota Codified Law 36-21B Licensing Real Estate Appraisers will become effective July 1, 2014. Changes include:

  • New applicants for appraiser certification, licensure and registration must undergo a state and federal criminal background investigation and fingerprinting by the Division of Criminal Investigation and the Federal Bureau of Investigation.
  • Denial of any applicant for appraiser certification, licensure or registration if:
    • The applicant has had an appraiser certificate or license revoked in the previous five years by another jurisdiction;
    • The applicant has been convicted of a felony in the previous five years or at any time if the felony involved fraud, dishonesty, a breach of trust, or money laundering; and
    • The applicant fails to demonstrate character and general fitness which warrants the confidence of the community unless it is determined that the applicant will operate honestly, fairly and efficiently.

Notice of revisions in South Dakota Administrative Rules

Notice to appraisers about not getting paid from AMCs for services

Changes to Real Property Appraiser Qualification Criteria

Changes to the Real Property Appraiser Qualification Criteria effective January 1, 2015 were adopted by The Appraisal Foundation. See Summary of changes to the Real Property Appraiser Qualifications Criteria.

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Contact Us

Executive Director, Sherry Bren

South Dakota Appraiser Certification Program
308 South Pierre Street
Pierre, SD 57501
Phone: 605.773.4608
Fax: 605.773.5405
email: appraisercertification@state.sd.us

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184