PRINTER'S NO. 820
No. 756 Session of 1989
INTRODUCED BY SHUMAKER, O'PAKE, LOEPER, PETERSON, REIBMAN AND
ANDREZESKI, MARCH 23, 1989
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 23, 1989
AN ACT
1 Providing for the certification of real estate appraisers;
2 creating the Real Estate Appraisers Subcommittee and imposing
3 powers and duties; providing additional powers and duties for
4 the Bureau of Professional and Occupational Affairs; and
5 fixing civil and criminal penalties for violations.
6 TABLE OF CONTENTS
7 Chapter 1. General Provisions
8 Section 101. Short title.
9 Section 102. Definitions.
10 Chapter 3. Scope of Regulations
11 Section 301. Compliance.
12 Section 302. Exclusion and Limitation.
13 Chapter 5. Real Estate Appraisers Subcommittee
14 Section 501. Subcommittee.
15 Section 502. Terms.
16 Section 503. Qualifications.
17 Section 504. Meetings.
18 Section 505. Officers, quorum and removal.
19 Section 506. Expenses.
1 Section 507. Rules and regulations.
2 Section 508. Powers and duties of subcommittee.
3 Section 509. Registry.
4 Section 510. Annual reports.
5 Chapter 7. Revenue
6 Section 701. Initial funding.
7 Section 702. Fees.
8 Chapter 9. Certification Process
9 Section 901. Examinations.
10 Section 902. Classes of Certification.
11 Section 903. Written examination; contents.
12 Section 904. Prerequisites.
13 Section 905. False statements.
14 Section 906. Denial of certification.
15 Section 907. Duration of certification.
16 Section 908. Nonresidents.
17 Section 909. Recognition of other State certification.
18 Section 910. Renewals.
19 Section 911. Late renewals.
20 Section 912. No corporate certification.
21 Section 913. Address of principal office.
22 Section 914. Signatures of subcommittee members.
23 Section 915. Use of certification number.
24 Section 916. Limitation on use of term.
25 Section 917. Reinstatement options.
26 Chapter 11. Continuing Education
27 Section 1101. General rule.
28 Section 1102. Additional rules and regulations.
29 Section 1103. Mandatory requirement.
30 Chapter 13. Disciplinary Proceedings
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1 Section 1301. General rule.
2 Section 1302. Disciplinary action.
3 Section 1303. Effect of civil suit.
4 Section 1304. Conduct of proceedings.
5 Chapter 15. Appraisal Reports
6 Section 1501. Reports.
7 Chapter 17. Miscellaneous
8 Section 1701. Records.
9 Section 1702. Criminal penalty.
10 Section 1703. Action for damages.
11 Chapter 19. Effective Date
12 Section 1901. Effective date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 CHAPTER 1
16 GENERAL PROVISIONS
17 Section 101. Short title.
18 This act shall be known and may be cited as the State-
19 Certified Real Estate Appraisers Law.
20 Section 102. Definitions.
21 The following words and phrases when used in this act shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
24 "Applicant." A person who holds a current, valid broker's
25 license issued to him under the provisions of the act of
26 February 19, 1980 (P.L.15, No.9), known as the Real Estate
27 Licensing and Registration Act.
28 "Appraisal assignment." An engagement for which an appraiser
29 is employed or retained to act, or would be perceived by third
30 parties or the public as acting, as a disinterested third party
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1 in rendering an unbiased analysis, opinion or conclusion
2 relating to the nature, quality, value or utility of specified
3 interests in, or aspects of, identified real estate.
4 "Appraisal Foundation." The Appraisal Foundation
5 incorporated as an Illinois Not for Profit Corporation on
6 November 30, 1987.
7 "Appraisal report." Any communication, written or oral, of
8 an analysis, opinion or conclusion relating to the nature,
9 quality, value or utility of specified interests in, or aspects
10 of, identified real estate, including, but not limited to,
11 valuation reports, real estate counseling reports, real estate
12 tax counseling reports, real estate offering memoranda, mortgage
13 banking offers, highest and best use studies, market demand and
14 economic feasibility studies, and all other reports
15 communicating an appraisal analysis, opinion or conclusion,
16 regardless of title, including reviews of any appraisal reports
17 as defined in this act.
18 "Commission." The State Real Estate Commission.
19 "Commissioner." The Commissioner of Professional and
20 Occupational Affairs in the Department of State.
21 "Department." The Department of State of the Commonwealth.
22 "Real estate." An identified parcel or tract of land,
23 including improvements, if any.
24 "Real estate appraisal" or appraisal." An analysis, opinion
25 or conclusion relating to the nature, quality, value or utility
26 of specified interests in, or aspects of, identified real
27 estate, for or in expectation of compensation.
28 "Real property." One or more defined interests in a parcel
29 of real estate, whether an unencumbered fee or a lesser estate.
30 "State-certified real estate appraiser." A person who holds
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1 a current valid certificate issued to him under the provisions
2 of this act. A State-certified real estate appraiser may
3 designate or identify appraisals rendered by him as certified
4 appraisals.
5 "Subcommittee." The Real Estate Appraiser Subcommittee of
6 the State Real Estate Commission established pursuant to the
7 provisions of this act.
8 CHAPTER 3
9 SCOPE OF REGULATIONS
10 Section 301. Compliance.
11 A State-certified real estate appraiser must comply with the
12 standards provided in this act and applicable regulations for
13 the development and communication of real estate appraisals for
14 any appraisals of real estate located in this Commonwealth.
15 Section 302. Exclusion and limitation.
16 This act does not preclude a person who is not certified as a
17 State-certified real estate appraiser from appraising real
18 estate for compensation. No person, other than a State-certified
19 real estate appraiser, shall assume or use that title or any
20 title, designation or abbreviation likely to create the
21 impression of certification as a real estate appraiser by this
22 Commonwealth. A person who is not certified pursuant to this act
23 shall not describe or refer to any appraisal or other evaluation
24 of real estate located in this Commonwealth by the term
25 certified.
26 CHAPTER 5
27 REAL ESTATE APPRAISERS SUBCOMMITTEE
28 Section 501. Subcommittee.
29 There is hereby created within the State Real Estate
30 Commission the Real Estate Appraisers Subcommittee which shall
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1 consist of the commissioner and six members appointed by the
2 Governor, two of whom shall be public members and four of whom
3 shall be real estate appraisers.
4 Section 502. Terms.
5 The term of each member shall be three years. Upon expiration
6 of their terms, members of the subcommittee shall continue to
7 hold office until the appointment and qualification of their
8 successors but not longer than six months beyond the three-year
9 period. No person shall serve as a member of the subcommittee
10 for more than two consecutive terms. Initially, two members of
11 the subcommittee shall be appointed for one year terms, two
12 members for two year terms and two members for three year terms.
13 Thereafter, all members shall be appointed for three-year terms.
14 Section 503. Qualifications.
15 (a) Real estate appraisers.--The real estate appraiser
16 members of the subcommittee shall be members in good standing of
17 a nationally recognized appraisal organization that requires
18 appraisal experience, education and testing, as well as
19 adherence to standards of professional practice, to qualify for
20 and retain membership in good standing.
21 (b) Public members.--The public members of the subcommittee
22 shall be members of the State Real Estate Commission and shall
23 not be licensees of the department nor real estate appraisers
24 nor employees of any institution engaged in mortgage lending.
25 (c) Certification after 1991.--The real estate appraiser
26 members appointed after January 1, 1991, shall be State-
27 certified real estate appraisers actively engaged in the
28 practice of real estate appraising.
29 Section 504. Meetings.
30 The subcommittee shall meet at least once each calendar
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1 quarter to conduct its business. Places of future meetings shall
2 be decided by the vote of members at meetings.
3 Section 505. Officers, quorum and removal.
4 The members of the subcommittee shall elect a secretary from
5 among its members. A quorum of the subcommittee shall be four
6 members. A member who fails to attend three consecutive meetings
7 shall forfeit his seat unless the commissioner excuses the
8 member because of illness or death of a family member.
9 Section 506. Expenses.
10 Each member of the subcommittee other than the commissioner
11 shall receive reimbursement for reasonable expenses in
12 accordance with Commonwealth regulations and per diem
13 compensation at the rate of $60 per day for the time actually
14 devoted to the business of the subcommittee.
15 Section 507. Rules and regulations.
16 The subcommittee shall promulgate rules and regulations in
17 aid or in furtherance of this act.
18 Section 508. Powers and duties of the subcommittee.
19 The subcommittee shall have the following powers and duties:
20 (1) Establish educational programs and research projects
21 related to the appraisal of real estate.
22 (2) Establish the administrative procedures for
23 processing applications and issuing certificates for State-
24 certified real estate appraisers and for disciplinary
25 proceedings pursuant to the provisions of this act.
26 (3) To contract with a professional testing organization
27 for the preparation and administration of the examination for
28 each category of State-certified real estate appraisers, in
29 accordance with section 812.1(a) of the act of April 9, 1929
30 (P.L.177, No.175), known as The Administrative Code of 1929,
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1 and to establish prior to the administration of each
2 examination an appropriate minimum passing score, in keeping
3 with the purposes of this act. The examination shall be a
4 written examination in accordance with the provisions of
5 section 903.
6 (4) Further define by regulation and with respect to
7 each category of State-certified real estate appraisers the
8 type of educational experience, appraisal experience and
9 equivalent experience that will meet the statutory
10 requirements of this act.
11 (5) Further define by regulation and with respect to
12 each category of State-certified real estate appraisers the
13 continuing education requirements for the renewal of
14 certification that will meet the statutory requirements
15 provided in this act.
16 (6) Adopt standards for the development and
17 communication of real estate appraisals, and adopt
18 regulations explaining and interpreting the standards of the
19 Appraisal Foundation.
20 (7) Perform such other functions and duties as may be
21 necessary in carrying out this act including, but not limited
22 to, the review from time to time the standards for the
23 development and communication of real estate appraisals.
24 Section 509. Registry.
25 The subcommittee shall maintain a registry of the names and
26 addresses of people certified under this act. The subcommittee
27 shall retain these records and all application materials
28 submitted to it.
29 Section 510. Annual reports.
30 The subcommittee shall file with the department an annual
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1 report of its activities, including a complete statement of the
2 receipts and disbursements of the subcommittee.
3 CHAPTER 7
4 REVENUE
5 Section 701. Initial funding.
6 (a) Initial fees.--The subcommittee shall charge and collect
7 initial funding fees not in excess of the following:
8 (1) Application fee for certification............$200.00
9 (2) Examination fee...............................100.00
10 (3) Annual certificate renewal fee................100.00
11 (4) Delinquent renewal fee.........................25.00
12 (b) Fees paid into operating account.--All fees shall be
13 paid into the subcommittee's operating account.
14 (c) No Commonwealth funds.--The subcommittee shall receive
15 no Commonwealth funds through appropriation or otherwise and
16 shall not expend any such Commonwealth funds.
17 Section 702. Fees.
18 (a) Establishment.--All fees required under this act shall
19 be fixed by the subcommittee by regulation and shall be subject
20 to review in accordance with the act of June 25, 1982 (P.L.633,
21 No.181), known as the Regulatory Review Act. If the projected
22 revenues to be generated by fees, fines and civil penalties
23 imposed in accordance with the provisions of this act are not
24 sufficient to match expenditures over a two-year period, the
25 subcommittee shall increase those fees by regulation, subject to
26 review in accordance with the Regulatory Review Act, so that the
27 projected revenues will meet or exceed projected expenditures.
28 (b) Power of bureau to increase fees.--If the Bureau of
29 Professional and Occupational Affairs determines that the fees
30 established by the subcommittee are inadequate to meet the
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1 minimum enforcement efforts required, then the bureau, after
2 consultation with the subcommittee, shall increase the fees by
3 regulation, subject to review in accordance with the Regulatory
4 Review Act, so that adequate revenue is raised to meet the
5 required enforcement effort.
6 CHAPTER 9
7 CERTIFICATION PROCESS
8 Section 901. Examinations.
9 (a) Applications.--Applications for examinations, original
10 certification and renewal certification made pursuant to this
11 act shall be made in writing to the subcommittee on forms
12 provided by the subcommittee.
13 (b) Fee.--Appropriate fees, as fixed by the subcommittee
14 pursuant to section 702, shall accompany all applications for
15 examination, original certification and renewal certification.
16 (c) Statement.--At the time of filing an application for
17 certification, each applicant shall sign a pledge to comply with
18 the standards set forth in this act and state that the applicant
19 understands the types of misconduct for which disciplinary
20 proceedings may be initiated against a State-certified real
21 estate appraiser, as set forth in this act.
22 Section 902. Classes of certification.
23 There shall be two classes of certification for certified
24 real estate appraisers. One class shall consist of those persons
25 applying for certification relating solely to the appraisal of
26 residential real property of one to four units, and up to 12
27 units when a net income capitalization analysis is not required
28 by the terms of the assignment. The other class of certification
29 shall consist of those persons applying for a general
30 certification relating to the appraisal of real property. The
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1 application for examination, original certification and renewal
2 certification shall specify the classification being applied
3 for.
4 Section 903. Written examination; contents.
5 An original certification as a State-certified real estate
6 appraiser shall not be issued to any person who has not
7 demonstrated through a written examination process that that
8 person possesses the following:
9 (1) Appropriate knowledge of technical terms commonly
10 used in or related to real estate appraising, appraisal
11 report writing and economic concepts applicable to real
12 estate.
13 (2) Basic understanding of real estate law.
14 (3) Adequate knowledge of theories of depreciation, cost
15 estimating, methods of capitalization and the mathematics of
16 real estate appraisal.
17 (4) Understanding of the principles of land economics,
18 real estate appraisal processes and of problems likely to be
19 encountered in the gathering, interpreting and processing of
20 data in carrying out appraisal disciplines.
21 (5) Understanding of the standards for the development
22 and communication of real estate appraisals as provided in
23 this act.
24 (6) Understanding the types of misconduct for which
25 disciplinary proceedings may be initiated against a State-
26 certified real estate appraiser, as set forth in this act.
27 Section 904. Prerequisites.
28 (a) General certification.--As a prerequisite to taking the
29 examination for the general certification relating to the
30 appraisal of real property, an applicant shall present evidence
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1 satisfactory to the subcommittee that the applicant possesses
2 the equivalent of three years of full-time experience in real
3 property appraisal, acquired within a period of five years
4 immediately preceding the filing of the application for
5 certification, or the equivalent thereof, and either:
6 (1) has a college degree; or
7 (2) has successfully completed not less than 150
8 classroom hours of academic experience in subjects related to
9 real estate appraisal plus 15 classroom hours related to
10 standards of professional practice and the provisions of this
11 act.
12 (b) Residential real estate appraisal.--As a prerequisite to
13 taking the examination for certification relating solely to the
14 appraisal of residential real property of one to four units, and
15 up to 12 units when a net income capitalization analysis is not
16 required by the terms of the assignment, an applicant shall
17 present evidence satisfactory to the subcommittee that the
18 applicant possesses the equivalent of two years of full-time
19 experience in real property appraisal, acquired within a period
20 of five years immediately preceding the filing of the
21 application for certification, or the equivalent thereof, and
22 either:
23 (1) has a college degree; or
24 (2) has successfully completed not less than 60
25 classroom hours of academic experience in subjects related to
26 real estate appraisal plus 15 classroom hours related to
27 standards of professional practice and the provisions of this
28 act.
29 (c) Definition of subjects.--The subcommittee shall
30 prescribe and define the subjects related to real property
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1 appraisal, and the full-time experience in real property
2 appraisal which will satisfy the requirements of subsections (a)
3 and (b).
4 (d) Statement of experience.--Each applicant for
5 certification shall furnish a detailed statement of the real
6 estate appraisal assignments for each year for which experience
7 is claimed by the applicant. Upon request, the applicant shall
8 furnish to the subcommittee, for examination, copies of
9 appraisal reports which the applicant has prepared in the course
10 of appraisal experience.
11 Section 905. False statements.
12 It is unlawful for any person to knowingly make any false
13 statements with respect to that person's identity in connection
14 with an application for examination or in the taking of an
15 examination for certification as a State-certified real estate
16 appraiser.
17 Section 906. Denial of certification.
18 The subcommittee may, in accordance with the provisions of
19 this act relating to hearings, deny the issuance of a
20 certificate as a State-certified real estate appraiser to an
21 applicant on any of the grounds enumerated in Chapter 13.
22 Section 907. Duration of certification.
23 The term of a certificate issued under the authority of this
24 act shall be two years from the date of issuance. The expiration
25 date of the certificate shall appear on the certificate, and no
26 other notice of its expiration need be given to its holder.
27 Section 908. Nonresidents.
28 (a) Service of process.--Every applicant for certification
29 under this act who is not a resident of this Commonwealth shall
30 submit, with the application for certification, an irrevocable
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1 consent that service of process upon the nonresident applicant
2 may be made by delivery of the process to the Secretary of the
3 Commonwealth if the plaintiff, in an action against the
4 applicant in a court of this Commonwealth arising out of the
5 applicant's activities as a State-certified real estate
6 appraiser, cannot, in the exercise of due diligence, effect
7 personal service upon the applicant.
8 (b) Certification of nonresident.--A nonresident of this
9 Commonwealth who has complied with the provisions of subsection
10 (a) may obtain a certificate as a State-certified real estate
11 appraiser by conforming to all the provisions of this act
12 relating to State-certified real estate appraisers.
13 Section 909. Recognition of other State certification.
14 The subcommittee shall issue a certificate as a State-
15 certified real estate appraiser to a holder of a certificate
16 issued by another state, upon a showing that both of the
17 following requirements are met:
18 (1) The applicant passed the examination required for
19 issuance of the applicant's certificate with passing grades
20 that would have been passing grades at the time in this
21 Commonwealth.
22 (2) If the applicant is applying for:
23 (i) general certification, the applicant shall meet
24 the requirements of section 904(a); or
25 (ii) certification relating solely to the appraisal
26 of residential real property of one to four units and up
27 to 12 units when a net income capitalization analysis is
28 not required by the terms of the assignment, the
29 applicant shall meet the requirements of section 904(b).
30 Section 910. Renewals.
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1 (a) General rule.--To obtain a renewal certificate as a
2 State-certified real estate appraiser, the holder of a current,
3 valid certificate shall make application and pay the prescribed
4 fee to the subcommittee not earlier than 120 days nor later than
5 30 days prior to the expiration date of the certificate held.
6 With the application for renewal, the State-certified real
7 estate appraiser shall present evidence in the form prescribed
8 by the subcommittee of having completed the continuing education
9 requirements for renewal set forth in Chapter 11.
10 (b) Extension of time.--If the subcommittee determines that
11 an applicant has failed to meet the requirements for renewal of
12 certification through mistake, misunderstanding or circumstances
13 beyond the control of the applicant, the subcommittee may extend
14 the term of the certificate for a period not to exceed six
15 months, upon payment by the applicant of a prescribed fee for
16 the extension. If the applicant satisfies the requirement for
17 renewal during the extended time of certification, the beginning
18 date of the new renewal certificate shall be the day following
19 the expiration of the certificate previously held by the
20 applicant.
21 Section 911. Late renewals.
22 If the person fails to renew a certificate of a State-
23 certified real estate appraiser prior to its expiration or
24 within a period of extension granted by the subcommittee
25 pursuant to section 910, the person may obtain a renewal
26 certificate by satisfying all the requirements for renewal and
27 by the payment of a late renewal fee in an amount equal to one
28 and one-third times the renewal fee in effect at the time the
29 application is made for late renewal of the certificate.
30 Section 912. No corporate certification.
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1 No certificate shall be issued under the provisions of this
2 act to a corporation, partnership, firm or group. Nothing herein
3 shall preclude a State-certified real estate appraiser from
4 rendering appraisals for or on behalf of a corporation,
5 partnership, firm or group practice, provided that the appraisal
6 report is prepared by, or under the immediate direction of, the
7 State-certified real estate appraiser and is signed by the
8 State-certified real estate appraiser.
9 Section 913. Address of principal office.
10 Each State-certified real estate appraiser shall advise the
11 subcommittee of the address of the appraiser's principal place
12 of business and all other addresses at which that appraiser is
13 currently engaged in the business of preparing real property
14 appraisal reports. Whenever a State-certified real estate
15 appraiser changes a place of business, the appraiser shall amend
16 the certificate issued by the subcommittee to reflect the change
17 and shall immediately give written notification of the change to
18 the subcommittee.
19 Section 914. Signatures of subcommittee members.
20 A certificate issued under the authority of this act shall
21 bear the signatures or facsimile signatures of the members of
22 the subcommittee and a certificate number assigned by the
23 subcommittee.
24 Section 915. Use of certification number.
25 Each State-certified real estate appraiser shall place the
26 certificate number adjacent to or immediately below the
27 designation "State-Certified Real Estate Appraiser" when used in
28 an appraisal report or in a contract or other instrument used by
29 the certificate holder in conducting real property appraisal
30 activities.
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1 Section 916. Limitation on the use of term.
2 The term "State-Certified Real Estate Appraiser" may only be
3 used to refer to individuals who hold the certificate and may
4 not be used following or immediately in connection with the name
5 or signature of a firm, partnership, corporation or group, or in
6 such manner that it might be interpreted as referring to a firm,
7 partnership, corporation, group or anyone other than an
8 individual holder of the certificate.
9 Section 917. Reinstatement options.
10 The subcommittee may require as a prerequisite to the
11 granting of an application for reinstatement of a revoked
12 certificate that the applicant successfully complete the written
13 examination process referred to in section 903.
14 CHAPTER 11
15 CONTINUING EDUCATION
16 Section 1101. General rule.
17 (a) Prerequisite.--As a prerequisite to renewal of
18 certification, a State-certified real estate appraiser shall
19 present evidence satisfactory to the subcommittee of having met
20 the continuing education requirements of this act.
21 (b) Basic continuing education requirement.--The basic
22 continuing education requirement for renewal of certification
23 shall be the completion by the applicant, during the immediately
24 preceding term of certification, of not less than 30 classroom
25 hours of instruction in courses which have received the approval
26 of the subcommittee.
27 (c) Alternatives.--In lieu of meeting the requirements of
28 subsection (b), an applicant for recertification may satisfy all
29 or part of the requirements of the act by presenting evidence of
30 the following:
19890S0756B0820 - 17 -
1 (1) Completion of courses of study determined by the
2 subcommittee to be equivalent, for continuing education
3 purposes, to courses approved by the subcommittee pursuant to
4 subsection (b).
5 (2) Participation other than as a student in educational
6 processes and programs in real property appraisal theory,
7 practices or techniques, including, but not necessarily
8 limited to, teaching, program development and preparation of
9 textbooks, monographs, articles and other instructional
10 materials.
11 Section 1102. Additional rules and regulations.
12 (a) Promulgation.--The subcommittee shall adopt regulations
13 for implementation of the provisions of this act to the end of
14 assuring that persons renewing their certifications as State-
15 certified real estate appraisers have current knowledge of real
16 property appraisal theories, practices and techniques which will
17 provide a high degree of service and protection to those members
18 of the public with whom they deal in a professional relationship
19 under authority of the certification. The regulation shall
20 prescribe the following:
21 (1) Policies and procedures for obtaining subcommittee
22 approval of courses of instruction in accordance with section
23 1101(b).
24 (2) Standards, policies and procedures to be applied by
25 the subcommittee in evaluating applicants' claims of
26 equivalency in accordance with section 1101(c).
27 (3) Standards, monitoring methods and systems for
28 recording attendance to be employed by course sponsors as a
29 prerequisite to subcommittee approval of courses for credit.
30 (b) Materials available to subcommittee.--In adopting
19890S0756B0820 - 18 -
1 regulations pursuant to subsection (a)(1), the subcommittee may
2 utilize courses of instruction, seminars and other real property
3 appraisal education courses or programs previously or hereafter
4 developed by or under the auspices of professional appraisal
5 organizations and utilized by those associations for purposes of
6 designation, certification or recertification of the members of
7 the association.
8 (c) Effect of repeal on renewal credit.--No amendment or
9 repeal of a regulation adopted by the subcommittee pursuant to
10 this section shall operate to deprive a State-certified real
11 estate appraiser of credit toward renewal of certification for
12 any course of instruction completed by the applicant prior to
13 the amendment or repeal of the regulation which would have
14 qualified for continuing education credit under the regulation
15 as it existed prior to the repeal or amendment.
16 Section 1103. Mandatory requirement.
17 On and after January 1, 1991, a certification as a State-
18 certified real estate appraiser that has been revoked as a
19 result of disciplinary action by the subcommittee shall not be
20 reinstated unless the applicant presents evidence of completion
21 of the continuing education required by this act. This
22 requirement of evidence of continuing education shall not be
23 imposed upon an applicant for reinstatement who has been
24 required to successfully complete the examination for State-
25 certified real estate appraiser as a condition to reinstatement
26 of certification.
27 CHAPTER 13
28 DISCIPLINARY PROCEEDINGS
29 Section 1301. General rule.
30 The rights of any holder under a certificate as a State-
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1 certified real estate appraiser may be revoked or suspended, or
2 the holder of the certificate may be otherwise disciplined in
3 accordance with the provisions of this act relating to hearings,
4 upon any of the grounds set forth in this act.
5 Section 1302. Disciplinary action.
6 (a) Investigation.--The subcommittee may investigate the
7 actions of a State-certified real estate appraiser, and may
8 revoke or suspend the rights of a certificate holder or
9 otherwise discipline a State-certified real estate appraiser for
10 any of the following acts:
11 (1) Procuring or attempting to procure a certificate
12 pursuant to this act by knowingly making a false statement,
13 submitting false information, refusing to provide complete
14 information in response to a question in an application for
15 certification or through any form of fraud or
16 misrepresentation.
17 (2) Failing to meet the minimum qualifications
18 established by this act.
19 (3) Paying, or offering to pay, any valuable
20 consideration other than provided for by this act to any
21 member or employee of the subcommittee to procure a
22 certificate under this act.
23 (4) A conviction, including a conviction based upon a
24 plea of guilty or nolo contendre, of a crime which is
25 substantially related to the qualifications, functions and
26 duties of a person developing real estate appraisals and
27 communicating real estate appraisals to others.
28 (5) An act or omission involving dishonesty, fraud or
29 misrepresentation with intent to substantially benefit the
30 certificate holder in his profession or with the intent to
19890S0756B0820 - 20 -
1 substantially injure another person.
2 (6) Violation of any of the standards for the
3 development or communication of real estate appraisals as
4 provided in this act and the Uniform Standards of
5 Professional Appraisal Practice promulgated by the Appraisal
6 Standards Board of the Appraisal Foundation.
7 (7) Failure or refusal, without good cause, to exercise
8 reasonable diligence in developing an appraisal, preparing an
9 appraisal report or communicating an appraisal.
10 (8) Negligence or incompetence in developing an
11 appraisal, in preparing an appraisal report or in
12 communicating an appraisal.
13 (9) Willfully disregarding or violating any of the
14 provisions of this act or the regulations of the subcommittee
15 for the administration and enforcement of the provisions of
16 this act.
17 (10) Accepting an appraisal assignment when the
18 employment itself is contingent upon the appraiser reporting
19 a predetermined analysis or opinion, or where the fee to be
20 paid for the performance of the appraisal assignment is
21 contingent upon the opinion, conclusion or valuation reached,
22 or upon the consequence resulting from the appraisal
23 assignment.
24 (11) Violating the confidential nature of records to
25 which the appraiser gained access through employment or
26 engagement as an appraiser.
27 (b) Basis for action.--An act, omission or crime that is a
28 ground for disciplinary action under this section shall
29 constitute a basis for disciplinary action against another
30 license of the State-certified real estate appraiser if the act
19890S0756B0820 - 21 -
1 or omission involved is substantially related to the
2 qualification, functions or duties required of a person acting
3 under authority of the other license.
4 Section 1303. Effect of civil suit.
5 The subcommittee may suspend or revoke the certificate of a
6 State-certified real estate appraiser based upon a final civil
7 judgment against the person on grounds of fraud,
8 misrepresentation or deceit in making of an appraisal of real
9 property. In a disciplinary proceeding based upon the judgment,
10 the State-certified real estate appraiser shall be afforded
11 notice and the opportunity to present matters in mitigation and
12 extenuation, but may not collaterally attack the civil judgment.
13 Section 1304. Conduct of proceedings.
14 Disciplinary proceedings before the subcommittee shall be
15 conducted in accordance with 2 Pa.C.S. (relating to
16 administrative law and procedure).
17 CHAPTER 15
18 APPRAISAL REPORTS
19 Section 1501. Reports.
20 (a) Format.--Any certified appraisal report shall be
21 presented in clear and unequivocal terms with sufficient
22 information to enable the user of that report, or any person who
23 may be expected to rely on it, to understand it properly, and in
24 such a manner to avoid being misleading.
25 (b) Items covered.--Any written certified appraisal report
26 shall include, but not be limited to, all of the following:
27 (1) A discussion of any qualifications of the opinions
28 or conclusions contained in the report, or in contrast with
29 generally recognized appraisal practices, any limitations on
30 the scope of the report or omissions.
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1 (2) A statement as to whether any person other than the
2 appraiser whose signature appears on the report prepared the
3 analysis, opinion or conclusions contained in the report, and
4 if so, the identity of that person.
5 (3) A statement as to whether the person signing the
6 report has a present or contemplated future interest in the
7 property which is the subject of the appraisal or has a
8 relationship with the owner of the property or with the
9 prospective user of the appraisal data which would constitute
10 a conflict of interest. If the report contains an affirmative
11 statement with respect to these factors, it shall also
12 include a conspicuous and accurate statement of the
13 relationship.
14 (4) A certification that the statements of fact
15 contained in the report are true and correct to the best
16 knowledge and belief of the appraiser.
17 (5) A certification that the analysis, opinion and
18 conclusions were developed and the report was prepared in
19 conformity with the requirements of this act or a statement
20 of the particulars for which that certification is not made.
21 CHAPTER 17
22 MISCELLANEOUS
23 Section 1701. Records.
24 A State-certified real estate appraiser shall retain, for two
25 years, appraisal reports and supporting data assembled and
26 formulated by the appraiser in preparing appraisal reports. The
27 period of retention of the records applicable to each engagement
28 of the services of the appraiser shall run from the date of the
29 submittal of the appraisal report to the client unless, within
30 such two-year period, the appraiser is notified that the
19890S0756B0820 - 23 -
1 appraisal or report is involved in litigation. These records
2 shall be made available by the State-certified real estate
3 appraiser for inspection and copying by the subcommittee on
4 reasonable notice to the appraiser.
5 Section 1702. Criminal penalty.
6 Any person who willfully violates or knowingly participates
7 in the violation of section 905 commits a misdemeanor in the
8 third degree.
9 Section 1703. Action for damages.
10 Any person who has been damaged, or can demonstrate that he
11 will potentially be irreparable damaged, may bring any action
12 for damages, equitable relief, or both, against any person who
13 violates this act. The court may award costs and reasonable
14 attorney fees to the prevailing party, as determined by the
15 court. The rights and remedies provided in this act are not
16 exclusive of other rights or remedies provided by law.
17 CHAPTER 19
18 EFFECTIVE DATE
19 Section 1901. Effective date.
20 This act shall take effect July 1, 1990.
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