Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - January/February 2014

New Licensees - November/December 2013

Upgrades Issued November/December 2013

Review of Cases - January 1, 2013 through December 31, 2013

2014-2015 Uniform Standards of Professional Appraisal Practice Revisions to USPAP and USPAP Advisory Opinions

Notice-South Dakota Revises Administrative Rules

Reminder - South Dakota Implements Changes to the Appraiser Criteria

New Licensees - November/December 2013

Christopher Roach, State-Certified General - Dallas, TX
Ronny K. Mumford, State-Certified Residential - North Richland Hill, TX
John M. Massanet, State-Certified General - Leavenworth, KS
Steven J. Cook, State-Certified Residential - Sioux City, IA
Lacey M. Hoefs, State-Certified Residential - Valentine, NE
Jennifer B. Healy, State-Registered - Minneapolis, MN

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Upgrades Issued - November/December 2013

Tara Noteboom, State-Certified Residential

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Review of Cases - January 1, 2013 through December 31, 2013

For the period January 1, 2013 through December 31, 2013, the Department has initiated fourteen complaint investigations and nine upgrade reviews.

Complaints - Eight closed and six pending.
Upgrades - Four closed and five pending.

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2014-2015 Uniform Standards of Professional Appraisal Practice

Revisions to USPAP and USPAP Advisory Opinions

After the publication of the 2012-13 edition of USPAP, a series of two requests for comment papers and three exposure drafts were released to obtain feedback on possible modifications for the 2014-15 edition. On February 1, 2013, the Appraisal Standards Board (ASB) adopted modifications for the 2014-15 edition of the Uniform Standards of Professional Appraisal Practice (USPAP). These modifications include:

1. Revisions to the DEFINITIONS of "Assignment Results" and "Scope of work" - Based on comments received, there was a need to clarify the definition of "Assignment Results." In an appraisal assignment, assignment results currently include more than just the appraiser's opinion of value, as the appraiser is responsible not only for the opinion of value, but for the other opinions formed as part of an appraisal or appraisal review assignment. The change to the definition was made to clarify this point. The change to the definition of Scope of Work makes it consistent with the application of the SCOPE OF WORK RULE.

2. Revisions to the PREAMBLE - When Do USPAP Rules and Standards Apply? - A section was added to clearly state when the Rules and Standards apply.

3. Certification Requirement Related to Current or Prospective Interest and Prior Services - The ETHICS RULE was edited to clarify that in assignments in which there is no appraisal or appraisal review report, only the initial disclosure to the client is required - a certification is required only for appraisal and appraisal review assignments.

4. Revisions to the COMPETENCY RULE - The COMPETENCY RULE has always required that an appraiser be competent to perform the assignment, or acquire the necessary competency to perform the assignment, or withdraw from the assignment. However, the COMPETENCY RULE previously did not expressly require the appraiser to act competently in the given assignment. The change to the COMPETENCY RULE now clearly states that the appraiser must perform competently when completing assignment.

5. Report Options in STANDARDS 2, 8, and 10 - USPAP previously had three written report options for real property and personal property appraisal assignments: Self-Contained Appraisal Report, Summary Appraisal Report, and Restricted Use Appraisal Report. USPAP now has two written report options, Appraisal Report and Restricted Appraisal Report, for real property and personal property appraisal assignments; this is similar to STANDARD 10 Business Appraisal Reporting. In STANDARDS 2, 8, and 10, the "restricted use" report option name was changed to Restricted Appraisal Report.

An Appraisal Report must summarize the appraiser's analysis and the rationale for the conclusions. A Restricted Appraisal Report might not include sufficient information for the client (no other intended users are allowed) to understand either the appraiser's analyses or rationale for the appraiser's conclusions.

Additional edits were made to the minimum report requirements. In Standards Rule 2-2(a)(i), clarifying changes were made regarding intended users. The order of the requirements in subsections (iii) and (iv) within Standards Rule 2-2(a) were rearranged. In Standards Rule 2-2(a)(vi), the date of report was defined. In Standards Rule 2-2(a)(vii) and 2-2(b)(vii) the statement, "The signing appraiser must also state the name(s) of those providing the significant real estate assistance” was edited. The new statement eliminates “the signing appraiser, and states “The name(s) of those providing the significant real property appraisal assistance must be stated in the certification." In Standards Rule 2-2(a)(viii), "agreements of sale” was added. In Standards Rule 2-2(a)(ix) and 2-2(b)(ix), the statement was divided with the last part of the statement becoming Standards Rule 2-2(a)(x) and 2-2(b)(x). The remaining items under these Standards Rules were renumbered. Similar changes were made to Standards Rules 8-2 and 10-2.

Lastly, to be consistent with items identified in the development requirements of Standards Rule 1-2(e)(i), an edit was made to Standards Rule 2-2(a)(iii) to include the summarization of legal characteristics relevant to the assignment. This edit is not viewed by the ASB as a new requirement; rather, it clarifies legal characteristics of the property that are relevant to the type and definition of value and intended use of the appraisal must be communicated.

6. Revisions to Standards Rule 3-5 - STANDARD 3 now requires a date of the appraisal review report which makes STANDARD 3 consistent with the other Standards which require the date of the report.

7. Retirement of STANDARDS 4 AND 5 - STANDARDS 4 and 5 addressed real property appraisal consulting development and reporting. STANDARDS 4 and 5 have been retired due to the confusion and misuse of these Standards. Revisions and additional Illustrations were made to Advisory Opinion 21 to demonstrate how an appraiser can complete assignments that include services other than appraisal or appraisal review. The use of the term “appraisal consulting” has been eliminated in USPAP.

8. Revisions to Advisory Opinion 11, Content of the Appraisal Report Options of Standards Rules 2-2 and 8-2 and Advisory Opinion 12, Use of the Appraisal Report Options of Standards Rules 2-2 and 8-2 - Due to the changes in the reporting format options, Advisory Opinions 11 and 12 were edited to demonstrate the impact of these changes. In addition, the scope of these two Advisory Opinions was expanded to include Standards Rule 10-2.

9. Revisions to Advisory Opinion 13, Performing Evaluations of Real Property Collateral to Conform with USPAP - Due to changes in the Interagency Appraisal and Evaluation Guidelines effective December 2010, Advisory Opinion 13 has been revised.

Administrative edits were also made to USPAP and all guidance material, including the USPAP Advisory Opinions and USPAP Frequently Asked Questions, for conformity and consistency. The details of the changes to the 2014-15 edition of USPAP can be read on The Appraisal Foundation's website, www.appraisalfoundation.org in a document entitled 2013 Summary of Actions Related to Proposed USPAP Changes.

Notice-South Dakota Revises Administrative Rules

Effective January 7, 2014 the Appraiser Certification Program adopted changes to the administrative rules regarding appraisers (ARSD 20-14). The changes are as follows:

  • Appraisers must give written notice of any change of email address, if
    available.
  • State-Registered and Supervisors must complete the Training Course for Supervisory/State-Registered Appraisers before supervision begins.
  • Clarification that nonclient appraisal experience involving case studies, practicum courses, and nonclient appraisal experience is acceptable but may not exceed 50 percent of the total experience requirement.
  • Adoption of the 2014-2015 Uniform Standards of Professional Appraisal Practice.
  • Continuing education is not required if a first-time applicant's appraiser certificate was issued in the previous 185 days before September 30 of the current odd-numbered year.
  • If a first-time applicant's appraiser certificate was issued on or after October 1 of the previous even-numbered year and prior to 185 days before September 30 of the current odd-numbered year the appraiser is only required to complete fourteen hours of continuing education.

Reminder - South Dakota Implements Changes to the Appraiser Criteria

Effective July 1, 2014 the administrative rules regarding appraisers (ARSD 20-14) require the following:

  • An applicant for State-Certified Residential and State-Certified General Appraiser must hold a bachelor's degree, or higher, from an accredited college or university.
  • An applicant for State-Licensed Appraiser shall have completed 30 semester hours of college-level education, from an accredited college, junior college, community college, or university. An applicant holding an Associate degree, or higher from an accredited institution satisfies the 30-hour college-level education requirement.


The deadline for submission of an application under the current criteria for a State-Licensed, State-Certified Residential and State-Certified General Appraiser certificate must be submitted and postmarked on or before June 30, 2014. Program staff recommends that you do not wait until the last minute to submit your application.

Please contact the Appraiser Certification Program office at 605.773.4608 to answer any questions that you may have regarding the current or future Appraiser Criteria.

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