Monday, June 17, 2013

Florida Appraisers - Rule Amendment: Supervision and Training or Trainee Appraisers

For the past several meetings the Florida Real Estate Appraisal Board has been discussing amendments to rules, and language for new rules to implement the sections of Chapter 475, Part II relating to Appraisal Management Companies. The AMC rules are still in the works, but the FREAB has finalized their language for 61J1-4.010 Supervision and Training of Registered Trainee Appraisers. The new language has an effective date of June 3, 2013.

Some of the changes are significant, and Florida Appraisers involved in the supervision of Registered Trainee Appraisers should be aware of some new responsibilities.

  1. Licensed Appraisers are no longer permitted to supervise Registered Trainee Appraisers. Only Certified Residential Appraisers and Certified General Appraisers may supervise.
  2. Supervisory Appraisers must accept "full and complete" responsibility for "any research, data collection, development, analysis, or communication of any appraisal review or the appraisal report by signing and certifying the report is in compliance with USPAP."
  3. The Supervisory Appraiser must personally inspect each appraised property with the trainee "for a minimum of the first twelve months of the registered trainee's initial registration, and thereafter" until the trainee is competent in accordance with the Competency Rule of USPAP.
  4. A Registered Trainee Appraiser "may not sign an appraisal certification within the first twelve months of his or her registration as a trainee appraiser."
  5. A Supervisory Appraiser must included the following statement in any report in which the registered trainee appraiser contributed to the development of the appraisal or the writing of the appraisal report:
I, the supervisory appraiser of a registered appraiser trainee who contributed to the development or communication of this appraisal, hereby accepts full and complete responsibility for any work performed by the registered appraise trainee named in this report as if it were my own work.

Many Supervisory Appraisers must make some drastic changes to their practice to assure compliance with the requirements of the rule. At the very least, each and every appraisal completed with the assistance of a Registered Trainee Appraiser must have the paragraph above to acknowledge responsibility for the work of the trainee.

By all means, take the time necessary to read, understand, and implement the rule.

Full version at this LINK.