Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - August 2011

Appraiser Certification Program Mission, Purpose and Intent

Appraiser Certification Program Advisory Council

Appraiser Certification Program Welcomes Two New Advisory Council Members

New Licensees - June/July 2011

Information Regarding Disciplinary Actions

Anonymous Complaints

Review of Cases - January 1, 2011 through July 27, 2011

Upgrades - May 5, 2011 through July 6, 2011

Appraisal Management Companies to be Registered and Supervised in South Dakota

Appraiser Qualifications Board Q&A

Appraisal Standards Board USPAP Q&A

Appraiser Certification Program Mission, Purpose and Intent

The Appraiser Certification Program was implemented July 1, 1990, pursuant to enactment of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by Congress. The mission of the Program is to certify, license and register appraisers to perform real estate appraisals in the state of South Dakota pursuant to Title XI (FIRREA). The purpose of the program is to examine candidates, issue certificates, investigate and administer disciplinary actions to persons in violation of the rules, statutes and uniform standards, and approve qualifying and continuing education courses. Title XI intends States supervise all of the activities and practices of persons who are certified or licensed to perform real estate appraisals through effective regulation, supervision and discipline to assure their professional competence.

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Appraiser Certification Program Advisory Council

Council members provide recommendations to the Secretary of the Department of Labor and Regulation in the areas of program administration in order to sustain a program that is consistent with Title XI. The Council meets quarterly in public forum. Visit our South Dakota Appraiser Advisory Council Web page for meeting information.

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Appraiser Certification Program Welcomes Two New Advisory Council Members

Melissa Miller has accepted the Executive Director position with the Real Estate Commission and Bret Afdahl has accepted the Director position with the Division of Banking. The Department staff and the Advisory Council members wish to welcome these individuals to the Appraiser Certification Program Advisory Council.

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New Licensees - June/July 2011

Keith N. White, State-Certified General - Neligh, NE
Melanie A. Radant, State-Registered - Winner, SD
Michael D. Hoffman, State-Registered - Sioux Falls, SD
Alexandra R. Bankers, State-Registered - Sioux Falls, SD
Timothy J. O'Brien, State-Certified Residential - Bloomington, MN
Rod L. Harklau, State-Registered - Humboldt, IA
Mitchell E. Simonson, State-Certified General - Minneapolis, MN
Dan P. Mueller, State-Certified General - Minneapolis, MN
Catherine A. Agnew, State-Certified General - Ft. Lauderdale, FL

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Information Regarding Disciplinary Actions

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.)

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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 July 27, 2011

For the period January 1, 2011 through July 27, 2011, the Department received three upgrade applications and initiated 13 complaint investigations.

Upgrades - Two upgrades were issued and one upgrade is pending.

Complaints - One complaint was dismissed and 12 complaints are pending.

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Upgrades - May 5, 2011 through July 6, 2011

Andrew Bang, State-licensed
Kritine Juelfs, State-licensed

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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.

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Appraiser Qualifications Board Questions and Answers

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state certification. The AQB Questions and Answers (Q&A) is a form of guidance issued by the AQB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria in specific situations and to offer advice from the AQB for the resolution of appraisal issues and problems. The AQB Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations. AQB Q&A does not establish new Criteria. AQB Q&A is not part of the Real Property Appraiser Qualification Criteria. AQB Q&A is approved by the AQB without public exposure and comment.

The information provided below was provided in Vol. 3, No. 1 - June 2011 of the AQB's Q&A. Answers to the questions below are posted on The Appraisal Foundation website.

General Requirements

Question: I am very interested in a career in real estate appraisal. However, I have one problem...I have a felony conviction on my criminal record. Can I still become a licensed appraiser?

Qualifying Education

Question 1: I understand the Certified General and Certified Residential Criteria require a college-level degree or specified college-level education in lieu thereof. I do not possess a degree, and I am pursuing the "in lieu" option. My local college requires certain prerequisites for several of the specific topic areas required by the AQB, meaning that I will have to take more than the required 21 semester hours for the Certified Residential classification, or the 30 semester hours for the Certified General classification to satisfy the education requirement. Are these prerequisite courses required by the AQB?

Question 2: I hold a Licensed Residential credential and I am pursuing an upgrade to Certified Residential. I do not have a college degree so I'm pursuing the "in-lieu" option. I have heard the AQB has exposed potential changes to the Real Property Appraiser Qualification Criteria that would eliminate this option in the future. What happens if I do not complete all of my 'in lieu' education prior to the changes being adopted by the AQB?

Question 3: I have an appraisal credential in my home state and I am now seeking to obtain a credential in a new state where I will be relocating. My appraisal coursework was approved in my home state, but I am having difficulty getting my qualifying education approved in my new state. If one state approved my courses doesn't that mean they are automatically accepted by other states?

Continuing Education

Question 1: The Real Property Appraiser Qualification Criteria require that I take the 7-Hour USPAP update course once every 24 months. If I do not take the course until 18 months after the new version of the USPAP goes into effect, does that mean I can continue to follow the prior version of USPAP until I take the update course?

Question 2: I am an AQB Certified USPAP Instructor and I recently taught the 7-Hour National USPAP Update Course. Can I be granted continuing education credit toward my credential renewal for successfully completing the 7-Hour USPAP course during my current renewal cycle?

Question 3: I am an instructor of courses approved for qualifying education and/or continuing education in the state in which I hold an appraiser credential. Can I obtain CE credit for time I spend preparing to teach courses?

Scope of Practice

Question 1: I am a Certified Residential appraiser and I have been asked to appraise a home on 40 acres, which includes a "hobby farm" that is not used for commercial purposes. The zoning requires a minimum lot size of 40 acres, so the lot cannot be subdivided and used for other purposes. Does my Certified Residential credential permit me to appraise this property?

Question 2: I am a Certified Residential appraiser and I have been asked to appraise a home on 40 acres. The zoning requires a minimum lot size of 5 acres, and I have confirmed with the local planning department that the lot could be subdivided into eight 5-acre parcels. In addition, my preliminary research confirms that the highest and best use of the property would be for an eight-lot subdivision. Does my Certified Residential credential permit me to appraise this property?

Question 3: I am a Licensed Residential appraiser and I have been asked to appraise a home on 40 acres in a marketplace where there are no other home sites larger than 5 acres. The appraisal is being requested by a federally-chartered bank in order to evaluate the subject property as collateral for a $1.5 million mortgage loan. Does my Licensed Residential credential permit me to appraise this property?

Answers to the above AQB Q&A are posted on The Appraisal Foundation website.

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Appraisal Standards Board USPAP Q&A

The Appraisal Standards Board (ASB) of The Appraisal Foundation develops, interprets and amends the Uniform Standards of Professional Appraisal Practice (USPAP) on behalf of appraisers and users of appraisal services. The USPAP Q&A is a form of guidance issued by the ASB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of USPAP in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems. The USPAP Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations. USPAP Q&A does not establish new standards or interpret existing standards. USPAP Q&A is not part of USPAP and is approved by the ASB without public exposure and comment.

The information provided below was provided in the 2011 USPAP Q&A issued June 10, 2011. Answers to the questions below are posted on USPAP website.

2011-01: Other Services

Advisory Opinion 13 (AO-13) Guidance

Question: I have heard that Advisory Opinion 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with USPAP, will not appear in the 2012-13 edition of USPAP. Does that mean that the ASB no longer intends to offer guidance on performing evaluation in conformance with USPAP for regulated institutions?

2011-02: Appraisal Development - Scope of Work Issues

Use of Distress Sales in Real Property Market Value Appraisals

Question: A client has asked me to disregard any foreclosure, real estate owned (REO), or short sales when performing market value appraisal assignments. Is this an acceptable assignment condition?

2011-03: Ethics Rule - Conduct

Does a request for a "final inspection" require disclosure of prior services?

Question: If I performed an appraisal that was "subject to" completion of repairs, and subsequently received a request to perform a "final inspection" confirming that the work had been completed, am I required to disclose that I previously appraised the property even if it is obvious to the client that I've done so?

2011-04: Ethics Rule - Conduct


Does utilizing a property as a comparable sale require disclosure of prior services?

Question: If I perform an appraisal and use a property as one of my comparable sales, and later receive a request to appraise the property that was used as a comparable sale, must I disclose I "performed a service" on that property because I used it as a comparable sale?

2011-05: Ethic Rule - Conduct

Adding a "Disclaimer" for Disclosure of Prior Services

Question: I am involved in many aspects of the real estate industry. As such, I "perform services" on a great number of properties in many different ways. It would be very difficult for me to recall each and every property I've performed services on in a three-year period. Is it permissible to comply with the disclosure requirements by saying something to the effect of, "To the best of my knowledge?"

2011-06: Appraisal Reporting - Certification and Signatures

Revising Pre-Printed Certification to Disclose Prior Services

Question: I perform residential real estate appraisals using "standard" pre-printed appraisal forms, such as those developed by Fannie Mae. I've heard that Fannie Mae does not allow any changes to their certifications, so how can I comply with the USPAP requirement to disclose, in the certification, any prior services I have or have not performed on the property within the prior three years?

2011-07: Ethics Rule - Management

Appraisal Fee Based on Outcome of Assignment

Question: I am aware of some appraisers who perform property tax assessment appeal assignments where their fee is based on a percentage of the tax savings to the property owner. Doesn't USPAP prohibit appraisers form accepting assignments where the fee is based on a specific outcome?

Answers to the above USPAP Q&A are posted on The Appraisal Foundation website.


 


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