Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - April 2011

Notice - Program Changes Departments


Disciplinary Action Information


Anonymous Complaints


Review of Cases - January 1, 2011 through April 12, 2011


New Licensees - February/March 2011

Upgrades - February 2011 through March 2011


Appraisal Management Companies To be Registered and Supervised in South Dakota

7 Mistakes and What It Takes

Appraiser Qualification Criteria

Notice - Program Changes Departments

Effective April 12, 2011 the Appraiser Certification Program's operation and administration moves from the Department of Revenue to the South Dakota Department of Labor and Regulation. Pam Roberts is the Secretary of the Department of Labor and Regulation.

The program location, telephone numbers and facsimile number remain the same. The email address is appraisercertification@state.sd.us.

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Disciplinary Action Information

Public information regarding disciplinary action taken against an appraiser is available upon written request to:

Appraiser Certification Program
SD Department of Labor and Regulation
445 East Capitol Avenue
Pierre, SD 57501

You may also request the information by email. Include in the request for information the name of the appraiser and the appraiser's city and state of residence. (Disciplinary action may include denial, suspension, censure, reprimand or revocation of a certificate by the Department, per Administrative Rule of South Dakota (ARSD) 20:14:11:03.)

The following disciplinary action has been taken by the Appraiser Certification Program:

Jody A. Landgrebe, Custer, SD - Complaint Case # 10-345. The Department of Labor and Regulation entered into an Agreed Settlement suspending the State-Certified Residential Appraiser Certificate of Jody A. Landgrebe for thirty (30) days commencing March 25, 2011, and ending April 23, 2011 and assessed a $600 penalty for violations of ARSD 20:14:06:01 (violation of Uniform Standards of Professional Appraisal Practice, Standard 1 and 2).

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Anonymous Complaints

ARSD 20:14:11:01.01. Anonymous complaints. Initiation of an investigation may be commenced upon receipt of an anonymous complaint if it meets the following criteria:

  1. The allegations of violations of any provision of this article are considered credible and based upon factual information which is independently verifiable; and
  2. The complaint is accompanied by a copy of the appraisal report or other documents which contain clearly identifiable errors or violations of the provisions of this article.

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Review of Cases - January 1, 2011 through April 12, 2011

For the period January 1, 2011 through April 12, 2011, the Department has received 1 upgrade application and initiated 6 complaint investigations.

Upgrades - 1 pending.

Complaints - 5 pending and 1 dismissed.

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New Licensees - February/March 2011

James M. LaLonde, State-Certified Residential - Bloomington, MN

Jason L. Cox, State-Certified Residential - Campbellsville, KY

John W. Hallmark, State-Certified Residential - Hopkinsville, KY

Charles W. Teel, Sr., State-Certified Residential - Gary, IN

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Upgrades - February 2011 through March 2011

Todd Meyer, State-Certified Residential

Larry Luchsinger, State-Certified Residential

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Appraisal Management Companies to be Registered and Supervised in South Dakota

Effective July 1, 2011 any person or entity acting as an appraisal management company or performing appraisal management services in this state, with limited exceptions, shall register with the Department of Labor and Regulation. The statutes regarding registration and supervision of Appraisal Management Companies may be found on our Appraisal Management Certification Program Web page.

The Appraiser Certification Program, with the assistance of a volunteer committee, is currently drafting administrative rules for the administration and operation of the Appraisal Management Company Program. Appraisal management companies, appraisers and any other interested parties will be noticed of the proposed rules and provided an opportunity to comment at a public hearing and/or in writing. Information will be posted as it becomes available on the Appraisal Management Certification Program Web page. Please feel free to contact the program with any questions by calling 605.773.4608 or emailing. If you would like to be included in the interested persons list, please provide contact information by email or by mailing your information to:

Appraiser Certification Program
SD Department of Labor and Regulation
445 East Capitol Avenue
Pierre, SD 57501

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7 Mistakes and What It Takes

The following information is provided by courtesy of the Illinois Department of Financial and Professional Regulation, State of Illinois. Article reprinted from the Illinois Appraiser newsletter, V.2, Issue 9, September 2010.

Let's face it. We all make mistakes. Still, some will end up losing you a client and maybe worse ... place you smack-dab in front of a board member and a department attorney at a settlement conference.

I screen hundreds of complaints per year and typically see the same mistakes over and over. Let's examine the top gripes and how you can avoid problems.

1. Cloning - This is where a previous report, ostensibly completed in the same market area, was used as a template for a different subject property. The result is report filled with statements and/or calculations that have little or nothing to do with the current subject.

Solution: Proof your report. Make sure that what was written makes sense. Real estate changes. So do markets. A report you completed six months ago in a subdivision may have a different story going on now.

2. Downloading - "The MLS image best represented the comparable at the time of sale." Enough already. First, the MLS photographer isn't you. Second, the MLS photographer most likely took the picture a few days after the LISTING; not the SALE. Third, if the MLS photographer made a mistake ... you're on the hook for it; not the MLS photographer. You and you alone are responsible for the contents of your report.

Solution: Take your own pictures. Our fines start at $500.

3. Measuring - Illinois doesn't require ANSI standards but you need to know how to measure an improvement and be able to translate this to an understandable sketch (if this is required in your SOW). This seems to be a lost art. We have residential appraisers who can't seem to do a competent job of measuring. We have commercial appraisers who simply refuse to do it. Let's be clear on both points: For the incompetent amongst you, USPAP requires competency. It's not a suggestion or a guideline. It's required. For those of you who insist that their clients didn't require a sketch or perhaps the survey or site plan or the local assessor was good enough ... fine. Just don't be wrong.

If the assessor states that a big box retail building is 120,000 square feet ... and you base your value on this info ... and we find out that it's really 100,000 square feet ... then you can explain that miss in a settlement conference. You and you alone are responsible for the contents of your report.

Solution: Taking physical measurements is one of the very few facts that can be uncovered by an appraiser. Square footage lawsuits continue against real estate agents and appraisers alike. Don't "eyeball" it. Don't guess. Learn how to do it right.

4. Zoning - The whole world isn't zoned "R1" or "Residential". Believe it or not there are counties in Illinois with NO zoning at all. Yet, I've seen appraisers place a big old "R-1" on the form anyway. That's just crazy. "R1" is NOT a default setting. Everyday there are more and more zoning maps appearing on-line.

Solution: Do your homework. You need to understand what's permitted or not permitted. Zoning is usually the very first thing I look at on a complaint.

5. Contract Analysis - Very few seem to understand what is meant by "analyze." It isn't writing that the contract:

  • Looks normal.
  • Appears to be a standard format.
  • Paper was pretty.
  • Font was Times Roman.


Solution: Your job is not taking dictation. Your task is to explain and reason through what has been presented. Tell the reader what you think. Decisions will be made based upon your opinion. You're a professional. If you were looking for guidance on a real estate contract you wouldn't want somebody simply telling you "that it looked like an arm's length transaction". If there were concessions then tell the reader what they mean. If no contract was provided then tell the reader what lengths you went through to obtain it. All of it. Riders, disclosures and all.

6. Mentoring - This is aimed at the supervisors amongst you. Managing appraisers is different from mentoring them. Managing is nothing more than tossing an appraiser an order and telling them when you need it back. That's what AMCs do. Mentoring is walking them through an appraisal problem with the intent of having them figure it out on their own the next time that same problem appears.

Solution: Managers create incompetent competitors who can only compete on price. Mentors create competent competitors and colleagues - who understand the value of their knowledge.

Training is more than filling in blanks on a form. Training is about understanding what the blanks mean once they're filled in. Lay out a program

with easily identifiable milestones for the appraisers you train. Let them see the progress along with you.

7. Boilerplate - While this may seem to be just another name for cloning, it isn't. Boilerplate is stating that "the Income Approach was excluded due to a lack of rental data" even when the subject condominium complex has 180 rented units. Reports have all sorts of baked-in phrases that sounded good three reports ago ... but suddenly have no meaning in the current assignment.

Solution: Treat each assignment like your decision to buy or sell it was riding on it. Cut back on the shortcuts. Set it aside and read the report before hitting "send".

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Appraiser Qualification Criteria

The Third Exposure Draft of Proposed Revisions to the Future Real Property Appraiser Qualification Criteria was released March 18, 2011. The document may be found on the Appraiser Certification Program Website at www.state.sd.us/appraisers. The Department encourages all appraisers and interested persons to review the exposure draft and provide comments to the Appraiser Qualifications Board by the deadline of April 22, 2011.

The various issues being addressed in the exposure draft are presented in the sections identified below:

Section 1. Proposed Revision to Require Education and Experience as Prerequisites for the Examination.

Section 2. Proposed Revision to College Degree Requirements and Removal of "In Lieu Of" Option for College-Level Education.

Section 3. Proposed Requirement for Background Checks.

Section 4. Proposed Revisions Pertaining to College Degrees in Real Estate.

Section 5. Proposed Revision to 7-Hour National USPAP Update Course Eligibility.

Section 6. Proposed Removal of Segmented Approach to Criteria Implementation.

Section 7. Proposed Restriction on Continuing Education Course Offerings.

Section 8. Proposed Revisions to Distance Education Requirements.

Section 9. Proposed Revisions to Trainee Appraiser Qualifications.

Section 10. Proposed Supervisory Appraiser Requirements.

Section 11. Proposed Revisions to Guide Note 1 (GN-1).

The effective date of any proposed revisions to the Criteria is not likely to occur any earlier than January 1, 2015. Note, these are proposed revisions and your comments are important.

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