PRIOR PRINTER'S NO. 820 PRINTER'S NO. 1529
No. 756 Session of 1989
INTRODUCED BY SHUMAKER, O'PAKE, LOEPER, PETERSON, REIBMAN,
ANDREZESKI AND BELL, MARCH 23, 1989
SENATOR BELL, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AS
AMENDED, SEPTEMBER 26, 1989
AN ACT
1 Providing for the certification of real estate appraisers;
2 creating the Real Estate Appraisers Subcommittee BOARD and <--
3 imposing powers and duties; providing additional powers and
4 duties for the Bureau of Professional and Occupational
5 Affairs; and fixing civil and criminal penalties for
6 violations.
7 TABLE OF CONTENTS
8 Chapter 1. General Provisions
9 Section 101. Short title.
10 Section 102. Definitions.
11 Chapter 3. Scope of Regulations
12 Section 301. Compliance.
13 Section 302. Exclusion and Limitation.
14 Chapter 5. Real Estate Appraisers Subcommittee BOARD <--
15 Section 501. Subcommittee CREATION. <--
16 Section 502. Terms.
17 Section 503. Qualifications.
18 Section 504. Meetings.
19 Section 505. Officers, quorum and removal.
1 Section 506. Expenses.
2 Section 507. Rules and regulations.
3 Section 508. Powers and duties of subcommittee BOARD. <--
4 Section 509. Registry.
5 Section 510. Annual reports.
6 Chapter 7. Revenue
7 Section 701. Initial funding.
8 Section 702. Fees.
9 Chapter 9. Certification Process
10 Section 901. Examinations.
11 Section 902. Classes of Certification.
12 Section 903. Written examination; contents.
13 Section 904. Prerequisites.
14 Section 905. False statements.
15 Section 906. Denial of certification.
16 Section 907. Duration of certification.
17 Section 908. Nonresidents.
18 Section 909. Recognition of other State certification.
19 Section 910. Renewals.
20 Section 911. Late renewals.
21 Section 912. No corporate certification.
22 Section 913. Address of principal office.
23 Section 914. Signatures of subcommittee BOARD members. <--
24 Section 915. Use of certification number.
25 Section 916. Limitation on use of term.
26 Section 917. Reinstatement options.
27 Chapter 11. Continuing Education
28 Section 1101. General rule.
29 Section 1102. Additional rules and regulations.
30 Section 1103. Mandatory requirement.
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1 Chapter 13. Disciplinary Proceedings
2 Section 1301. General rule.
3 Section 1302. Disciplinary action.
4 Section 1303. Effect of civil suit.
5 Section 1304. Conduct of proceedings.
6 Chapter 15. Appraisal Reports
7 Section 1501. Reports.
8 Chapter 17. Miscellaneous
9 Section 1701. Records.
10 Section 1702. Criminal penalty.
11 Section 1703. Action for damages.
12 Chapter 19. Effective Date
13 Section 1901. Effective date.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 CHAPTER 1
17 GENERAL PROVISIONS
18 Section 101. Short title.
19 This act shall be known and may be cited as the State-
20 Certified Real Estate Appraisers Law.
21 Section 102. Definitions.
22 The following words and phrases when used in this act shall
23 have the meanings given to them in this section unless the
24 context clearly indicates otherwise:
25 "Applicant." A person who holds a current, valid broker's
26 license issued to him under the provisions of the act of
27 February 19, 1980 (P.L.15, No.9), known as the Real Estate
28 Licensing and Registration Act.
29 "Appraisal assignment." An engagement for which an appraiser
30 is employed or retained to act, or would be perceived by third
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1 parties or the public as acting, as a disinterested third party
2 in rendering an unbiased analysis, opinion or conclusion
3 relating to the nature, quality, value or utility of specified
4 interests in, or aspects of, identified real estate.
5 "Appraisal Foundation." The Appraisal Foundation
6 incorporated as an Illinois Not for Profit Corporation on
7 November 30, 1987.
8 "Appraisal report." Any communication, written or oral, of
9 an analysis, opinion or conclusion relating to the nature,
10 quality, value or utility of specified interests in, or aspects
11 of, identified real estate, including, but not limited to,
12 valuation reports, real estate counseling reports, real estate
13 tax counseling reports, real estate offering memoranda, mortgage
14 banking offers, highest and best use studies, market demand and
15 economic feasibility studies, and all other reports
16 communicating an appraisal analysis, opinion or conclusion,
17 regardless of title, including reviews of any appraisal reports
18 as defined in this act.
19 "BOARD." THE REAL ESTATE APPRAISERS BOARD ESTABLISHED <--
20 PURSUANT TO THE PROVISIONS OF THIS ACT.
21 "Commission." The State Real Estate Commission.
22 "Commissioner." The Commissioner of Professional and
23 Occupational Affairs in the Department of State.
24 "Department." The Department of State of the Commonwealth.
25 "Real estate." An identified parcel or tract of land,
26 including improvements, if any.
27 "Real estate appraisal" or appraisal." An analysis, opinion
28 or conclusion relating to the nature, quality, value or utility
29 of specified interests in, or aspects of, identified real
30 estate, for or in expectation of compensation.
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1 "Real property." One or more defined interests in a parcel
2 of real estate, whether an unencumbered fee or a lesser estate.
3 "State-certified real estate appraiser." A person who holds
4 a current valid certificate issued to him under the provisions
5 of this act. A State-certified real estate appraiser may
6 designate or identify appraisals rendered by him as certified
7 appraisals.
8 "Subcommittee." The Real Estate Appraiser Subcommittee of <--
9 the State Real Estate Commission established pursuant to the
10 provisions of this act.
11 CHAPTER 3
12 SCOPE OF REGULATIONS
13 Section 301. Compliance.
14 A State-certified real estate appraiser must comply with the
15 standards provided in this act and applicable regulations for
16 the development and communication of real estate appraisals for
17 any appraisals of real estate located in this Commonwealth.
18 Section 302. Exclusion and limitation.
19 This act does not preclude a person who is not certified as a
20 State-certified real estate appraiser from appraising real
21 estate for compensation. No person, other than a State-certified
22 real estate appraiser, shall assume or use that title or any
23 title, designation or abbreviation likely to create the
24 impression of certification as a real estate appraiser by this
25 Commonwealth. A person who is not certified pursuant to this act
26 shall not describe or refer to any appraisal or other evaluation
27 of real estate located in this Commonwealth by the term
28 certified.
29 CHAPTER 5
30 REAL ESTATE APPRAISERS SUBCOMMITTEE BOARD <--
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1 Section 501. Subcommittee CREATION. <--
2 There is hereby created within the State Real Estate
3 Commission the Real Estate Appraisers Subcommittee BOARD which <--
4 shall consist of the commissioner and six members appointed by
5 the Governor, WITH THE ADVICE AND CONSENT OF A MAJORITY OF THE <--
6 MEMBERS ELECTED TO THE SENATE, two of whom shall be public
7 members and four of whom shall be real estate appraisers.
8 Section 502. Terms.
9 The term of each member shall be three years. Upon expiration
10 of their terms, members of the subcommittee BOARD shall continue <--
11 to hold office until the appointment and qualification of their
12 successors but not longer than six months beyond the three-year
13 period. No person shall serve as a member of the subcommittee <--
14 BOARD for more than two consecutive terms. Initially, two <--
15 members of the subcommittee BOARD shall be appointed for one <--
16 year terms, two members for two year terms and two members for
17 three year terms. Thereafter, all members shall be appointed for
18 three-year terms.
19 Section 503. Qualifications.
20 (a) Real estate appraisers.--The real estate appraiser
21 members of the subcommittee BOARD shall be members in good <--
22 standing of a nationally recognized appraisal organization that
23 requires appraisal experience, education and testing, as well as
24 adherence to standards of professional practice, to qualify for
25 and retain membership in good standing.
26 (b) Public members.--The public members of the subcommittee <--
27 BOARD shall be members of the State Real Estate Commission and <--
28 shall not be licensees of the department nor real estate
29 appraisers nor employees of any institution engaged in mortgage
30 lending.
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1 (c) Certification after 1991.--The real estate appraiser
2 members appointed after January 1, 1991, shall be State-
3 certified real estate appraisers actively engaged in the
4 practice of real estate appraising.
5 Section 504. Meetings.
6 The subcommittee BOARD shall meet at least once each calendar <--
7 quarter to conduct its business. Places of future meetings shall
8 be decided by the vote of members at meetings.
9 Section 505. Officers, quorum and removal.
10 The members of the subcommittee BOARD shall elect a secretary <--
11 from among its members. A quorum of the subcommittee BOARD shall <--
12 be four members. A member who fails to attend three consecutive
13 meetings shall forfeit his seat unless the commissioner excuses
14 the member because of illness or death of a family member.
15 Section 506. Expenses.
16 Each member of the subcommittee BOARD other than the <--
17 commissioner shall receive reimbursement for reasonable expenses
18 in accordance with Commonwealth regulations and per diem
19 compensation at the rate of $60 per day for the time actually
20 devoted to the business of the subcommittee BOARD. <--
21 Section 507. Rules and regulations.
22 The subcommittee BOARD shall promulgate rules and regulations <--
23 in aid or in furtherance of this act.
24 Section 508. Powers and duties of the subcommittee BOARD. <--
25 The subcommittee BOARD shall have the following powers and <--
26 duties:
27 (1) Establish educational programs and research projects
28 related to the appraisal of real estate.
29 (2) Establish the administrative procedures for
30 processing applications and issuing certificates for State-
19890S0756B1529 - 7 -
1 certified real estate appraisers and for disciplinary
2 proceedings pursuant to the provisions of this act.
3 (3) To contract with a professional testing organization
4 for the preparation and administration of the examination for
5 each category of State-certified real estate appraisers, in
6 accordance with section 812.1(a) of the act of April 9, 1929
7 (P.L.177, No.175), known as The Administrative Code of 1929,
8 and to establish prior to the administration of each
9 examination an appropriate minimum passing score, in keeping
10 with the purposes of this act. The examination shall be a
11 written examination in accordance with the provisions of
12 section 903.
13 (4) Further define by regulation and with respect to
14 each category of State-certified real estate appraisers the
15 type of educational experience, appraisal experience and
16 equivalent experience that will meet the statutory
17 requirements of this act.
18 (5) Further define by regulation and with respect to
19 each category of State-certified real estate appraisers the
20 continuing education requirements for the renewal of
21 certification that will meet the statutory requirements
22 provided in this act.
23 (6) Adopt standards for the development and
24 communication of real estate appraisals, and adopt
25 regulations explaining and interpreting the standards of the
26 Appraisal Foundation.
27 (7) Perform such other functions and duties as may be
28 necessary in carrying out this act including, but not limited
29 to, the review from time to time the standards for the
30 development and communication of real estate appraisals.
19890S0756B1529 - 8 -
1 Section 509. Registry.
2 The subcommittee BOARD shall maintain a registry of the names <--
3 and addresses of people certified under this act. The
4 subcommittee BOARD shall retain these records and all <--
5 application materials submitted to it.
6 Section 510. Annual reports.
7 The subcommittee BOARD shall file with the department an <--
8 annual report of its activities, including a complete statement
9 of the receipts and disbursements of the subcommittee BOARD. <--
10 CHAPTER 7
11 REVENUE
12 Section 701. Initial funding.
13 (a) Initial fees.--The subcommittee BOARD shall charge and <--
14 collect initial funding fees not in excess of the following:
15 (1) Application fee for certification............$200.00
16 (2) Examination fee...............................100.00
17 (3) Annual certificate renewal fee................100.00
18 (4) Delinquent renewal fee.........................25.00
19 (b) Fees paid into operating account.--All fees shall be
20 paid into the subcommittee BOARD's operating account. <--
21 (c) No Commonwealth funds.--The subcommittee BOARD shall <--
22 receive no Commonwealth funds through appropriation or otherwise
23 and shall not expend any such Commonwealth funds.
24 Section 702. Fees.
25 (a) Establishment.--All fees required under this act shall
26 be fixed by the subcommittee BOARD by regulation and shall be <--
27 subject to review in accordance with the act of June 25, 1982
28 (P.L.633, No.181), known as the Regulatory Review Act. If the
29 projected revenues to be generated by fees, fines and civil
30 penalties imposed in accordance with the provisions of this act
19890S0756B1529 - 9 -
1 are not sufficient to match expenditures over a two-year period,
2 the subcommittee BOARD shall increase those fees by regulation, <--
3 subject to review in accordance with the Regulatory Review Act,
4 so that the projected revenues will meet or exceed projected
5 expenditures.
6 (b) Power of bureau to increase fees.--If the Bureau of
7 Professional and Occupational Affairs determines that the fees
8 established by the subcommittee BOARD are inadequate to meet the <--
9 minimum enforcement efforts required, then the bureau, after
10 consultation with the subcommittee BOARD, shall increase the <--
11 fees by regulation, subject to review in accordance with the
12 Regulatory Review Act, so that adequate revenue is raised to
13 meet the required enforcement effort.
14 CHAPTER 9
15 CERTIFICATION PROCESS
16 Section 901. Examinations.
17 (a) Applications.--Applications for examinations, original
18 certification and renewal certification made pursuant to this
19 act shall be made in writing to the subcommittee BOARD on forms <--
20 provided by the subcommittee BOARD. <--
21 (b) Fee.--Appropriate fees, as fixed by the subcommittee <--
22 BOARD pursuant to section 702, shall accompany all applications <--
23 for examination, original certification and renewal
24 certification.
25 (c) Statement.--At the time of filing an application for
26 certification, each applicant shall sign a pledge to comply with
27 the standards set forth in this act and state that the applicant
28 understands the types of misconduct for which disciplinary
29 proceedings may be initiated against a State-certified real
30 estate appraiser, as set forth in this act.
19890S0756B1529 - 10 -
1 Section 902. Classes of certification.
2 There shall be two classes of certification for certified
3 real estate appraisers. One class shall consist of those persons
4 applying for certification relating solely to the appraisal of
5 residential real property of one to four units, and up to 12
6 units when a net income capitalization analysis is not required
7 by the terms of the assignment. The other class of certification
8 shall consist of those persons applying for a general
9 certification relating to the appraisal of real property. The
10 application for examination, original certification and renewal
11 certification shall specify the classification being applied
12 for.
13 Section 903. Written examination; contents.
14 An original certification as a State-certified real estate
15 appraiser shall not be issued to any person who has not
16 demonstrated through a written examination process that that
17 person possesses the following:
18 (1) Appropriate knowledge of technical terms commonly
19 used in or related to real estate appraising, appraisal
20 report writing and economic concepts applicable to real
21 estate.
22 (2) Basic understanding of real estate law.
23 (3) Adequate knowledge of theories of depreciation, cost
24 estimating, methods of capitalization and the mathematics of
25 real estate appraisal.
26 (4) Understanding of the principles of land economics,
27 real estate appraisal processes and of problems likely to be
28 encountered in the gathering, interpreting and processing of
29 data in carrying out appraisal disciplines.
30 (5) Understanding of the standards for the development
19890S0756B1529 - 11 -
1 and communication of real estate appraisals as provided in
2 this act.
3 (6) Understanding the types of misconduct for which
4 disciplinary proceedings may be initiated against a State-
5 certified real estate appraiser, as set forth in this act.
6 Section 904. Prerequisites.
7 (a) General certification.--As a prerequisite to taking the
8 examination for the general certification relating to the
9 appraisal of real property, an applicant shall present evidence
10 satisfactory to the subcommittee BOARD that the applicant <--
11 possesses the equivalent of three years of full-time experience
12 in real property appraisal, acquired within a period of five
13 years immediately preceding the filing of the application for
14 certification, or the equivalent thereof, and either:
15 (1) has a college degree; or
16 (2) has successfully completed not less than 150
17 classroom hours of academic experience in subjects related to
18 real estate appraisal plus 15 classroom hours related to
19 standards of professional practice and the provisions of this
20 act.
21 (b) Residential real estate appraisal.--As a prerequisite to
22 taking the examination for certification relating solely to the
23 appraisal of residential real property of one to four units, and
24 up to 12 units when a net income capitalization analysis is not
25 required by the terms of the assignment, an applicant shall
26 present evidence satisfactory to the subcommittee BOARD that the <--
27 applicant possesses the equivalent of two years of full-time
28 experience in real property appraisal, acquired within a period
29 of five years immediately preceding the filing of the
30 application for certification, or the equivalent thereof, and
19890S0756B1529 - 12 -
1 either:
2 (1) has a college degree; or
3 (2) has successfully completed not less than 60
4 classroom hours of academic experience in subjects related to
5 real estate appraisal plus 15 classroom hours related to
6 standards of professional practice and the provisions of this
7 act.
8 (c) Definition of subjects.--The subcommittee BOARD shall <--
9 prescribe and define the subjects related to real property
10 appraisal, and the full-time experience in real property
11 appraisal which will satisfy the requirements of subsections (a)
12 and (b).
13 (d) Statement of experience.--Each applicant for
14 certification shall furnish a detailed statement of the real
15 estate appraisal assignments for each year for which experience
16 is claimed by the applicant. Upon request, the applicant shall
17 furnish to the subcommittee BOARD, for examination, copies of <--
18 appraisal reports which the applicant has prepared in the course
19 of appraisal experience.
20 Section 905. False statements.
21 It is unlawful for any person to knowingly make any false
22 statements with respect to that person's identity in connection
23 with an application for examination or in the taking of an
24 examination for certification as a State-certified real estate
25 appraiser.
26 Section 906. Denial of certification.
27 The subcommittee BOARD may, in accordance with the provisions <--
28 of this act relating to hearings, deny the issuance of a
29 certificate as a State-certified real estate appraiser to an
30 applicant on any of the grounds enumerated in Chapter 13.
19890S0756B1529 - 13 -
1 Section 907. Duration of certification.
2 The term of a certificate issued under the authority of this
3 act shall be two years from the date of issuance. The expiration
4 date of the certificate shall appear on the certificate, and no
5 other notice of its expiration need be given to its holder.
6 Section 908. Nonresidents.
7 (a) Service of process.--Every applicant for certification
8 under this act who is not a resident of this Commonwealth shall
9 submit, with the application for certification, an irrevocable
10 consent that service of process upon the nonresident applicant
11 may be made by delivery of the process to the Secretary of the
12 Commonwealth if the plaintiff, in an action against the
13 applicant in a court of this Commonwealth arising out of the
14 applicant's activities as a State-certified real estate
15 appraiser, cannot, in the exercise of due diligence, effect
16 personal service upon the applicant.
17 (b) Certification of nonresident.--A nonresident of this
18 Commonwealth who has complied with the provisions of subsection
19 (a) may obtain a certificate as a State-certified real estate
20 appraiser by conforming to all the provisions of this act
21 relating to State-certified real estate appraisers.
22 Section 909. Recognition of other State certification.
23 The subcommittee BOARD shall issue a certificate as a State- <--
24 certified real estate appraiser to a holder of a certificate
25 issued by another state, upon a showing that both of the
26 following requirements are met:
27 (1) The applicant passed the examination required for
28 issuance of the applicant's certificate with passing grades
29 that would have been passing grades at the time in this
30 Commonwealth.
19890S0756B1529 - 14 -
1 (2) If the applicant is applying for:
2 (i) general certification, the applicant shall meet
3 the requirements of section 904(a); or
4 (ii) certification relating solely to the appraisal
5 of residential real property of one to four units and up
6 to 12 units when a net income capitalization analysis is
7 not required by the terms of the assignment, the
8 applicant shall meet the requirements of section 904(b).
9 Section 910. Renewals.
10 (a) General rule.--To obtain a renewal certificate as a
11 State-certified real estate appraiser, the holder of a current,
12 valid certificate shall make application and pay the prescribed
13 fee to the subcommittee BOARD not earlier than 120 days nor <--
14 later than 30 days prior to the expiration date of the
15 certificate held. With the application for renewal, the State-
16 certified real estate appraiser shall present evidence in the
17 form prescribed by the subcommittee BOARD of having completed <--
18 the continuing education requirements for renewal set forth in
19 Chapter 11.
20 (b) Extension of time.--If the subcommittee BOARD determines <--
21 that an applicant has failed to meet the requirements for
22 renewal of certification through mistake, misunderstanding or
23 circumstances beyond the control of the applicant, the
24 subcommittee BOARD may extend the term of the certificate for a <--
25 period not to exceed six months, upon payment by the applicant
26 of a prescribed fee for the extension. If the applicant
27 satisfies the requirement for renewal during the extended time
28 of certification, the beginning date of the new renewal
29 certificate shall be the day following the expiration of the
30 certificate previously held by the applicant.
19890S0756B1529 - 15 -
1 Section 911. Late renewals.
2 If the person fails to renew a certificate of a State-
3 certified real estate appraiser prior to its expiration or
4 within a period of extension granted by the subcommittee BOARD <--
5 pursuant to section 910, the person may obtain a renewal
6 certificate by satisfying all the requirements for renewal and
7 by the payment of a late renewal fee in an amount equal to one
8 and one-third times the renewal fee in effect at the time the
9 application is made for late renewal of the certificate.
10 Section 912. No corporate certification.
11 No certificate shall be issued under the provisions of this
12 act to a corporation, partnership, firm or group. Nothing herein
13 shall preclude a State-certified real estate appraiser from
14 rendering appraisals for or on behalf of a corporation,
15 partnership, firm or group practice, provided that the appraisal
16 report is prepared by, or under the immediate direction of, the
17 State-certified real estate appraiser and is signed by the
18 State-certified real estate appraiser.
19 Section 913. Address of principal office.
20 Each State-certified real estate appraiser shall advise the
21 subcommittee BOARD of the address of the appraiser's principal <--
22 place of business and all other addresses at which that
23 appraiser is currently engaged in the business of preparing real
24 property appraisal reports. Whenever a State-certified real
25 estate appraiser changes a place of business, the appraiser
26 shall amend the certificate issued by the subcommittee BOARD to <--
27 reflect the change and shall immediately give written
28 notification of the change to the subcommittee BOARD. <--
29 Section 914. Signatures of subcommittee BOARD members. <--
30 A certificate issued under the authority of this act shall
19890S0756B1529 - 16 -
1 bear the signatures or facsimile signatures of the members of
2 the subcommittee BOARD and a certificate number assigned by the <--
3 subcommittee BOARD. <--
4 Section 915. Use of certification number.
5 Each State-certified real estate appraiser shall place the
6 certificate number adjacent to or immediately below the
7 designation "State-Certified Real Estate Appraiser" when used in
8 an appraisal report or in a contract or other instrument used by
9 the certificate holder in conducting real property appraisal
10 activities.
11 Section 916. Limitation on the use of term.
12 The term "State-Certified Real Estate Appraiser" may only be
13 used to refer to individuals who hold the certificate and may
14 not be used following or immediately in connection with the name
15 or signature of a firm, partnership, corporation or group, or in
16 such manner that it might be interpreted as referring to a firm,
17 partnership, corporation, group or anyone other than an
18 individual holder of the certificate.
19 Section 917. Reinstatement options.
20 The subcommittee BOARD may require as a prerequisite to the <--
21 granting of an application for reinstatement of a revoked
22 certificate that the applicant successfully complete the written
23 examination process referred to in section 903.
24 CHAPTER 11
25 CONTINUING EDUCATION
26 Section 1101. General rule.
27 (a) Prerequisite.--As a prerequisite to renewal of
28 certification, a State-certified real estate appraiser shall
29 present evidence satisfactory to the subcommittee BOARD of <--
30 having met the continuing education requirements of this act.
19890S0756B1529 - 17 -
1 (b) Basic continuing education requirement.--The basic
2 continuing education requirement for renewal of certification
3 shall be the completion by the applicant, during the immediately
4 preceding term of certification, of not less than 30 classroom
5 hours of instruction in courses which have received the approval
6 of the subcommittee BOARD. <--
7 (c) Alternatives.--In lieu of meeting the requirements of
8 subsection (b), an applicant for recertification may satisfy all
9 or part of the requirements of the act by presenting evidence of
10 the following:
11 (1) Completion of courses of study determined by the
12 subcommittee BOARD to be equivalent, for continuing education <--
13 purposes, to courses approved by the subcommittee BOARD <--
14 pursuant to subsection (b).
15 (2) Participation other than as a student in educational
16 processes and programs in real property appraisal theory,
17 practices or techniques, including, but not necessarily
18 limited to, teaching, program development and preparation of
19 textbooks, monographs, articles and other instructional
20 materials.
21 Section 1102. Additional rules and regulations.
22 (a) Promulgation.--The subcommittee BOARD shall adopt <--
23 regulations for implementation of the provisions of this act to
24 the end of assuring that persons renewing their certifications
25 as State-certified real estate appraisers have current knowledge
26 of real property appraisal theories, practices and techniques
27 which will provide a high degree of service and protection to
28 those members of the public with whom they deal in a
29 professional relationship under authority of the certification.
30 The regulation shall prescribe the following:
19890S0756B1529 - 18 -
1 (1) Policies and procedures for obtaining subcommittee <--
2 BOARD approval of courses of instruction in accordance with <--
3 section 1101(b).
4 (2) Standards, policies and procedures to be applied by
5 the subcommittee BOARD in evaluating applicants' claims of <--
6 equivalency in accordance with section 1101(c).
7 (3) Standards, monitoring methods and systems for
8 recording attendance to be employed by course sponsors as a
9 prerequisite to subcommittee BOARD approval of courses for <--
10 credit.
11 (b) Materials available to subcommittee BOARD.--In adopting <--
12 regulations pursuant to subsection (a)(1), the subcommittee <--
13 BOARD may utilize courses of instruction, seminars and other <--
14 real property appraisal education courses or programs previously
15 or hereafter developed by or under the auspices of professional
16 appraisal organizations and utilized by those associations for
17 purposes of designation, certification or recertification of the
18 members of the association.
19 (c) Effect of repeal on renewal credit.--No amendment or
20 repeal of a regulation adopted by the subcommittee BOARD <--
21 pursuant to this section shall operate to deprive a State-
22 certified real estate appraiser of credit toward renewal of
23 certification for any course of instruction completed by the
24 applicant prior to the amendment or repeal of the regulation
25 which would have qualified for continuing education credit under
26 the regulation as it existed prior to the repeal or amendment.
27 Section 1103. Mandatory requirement.
28 On and after January 1, 1991, a certification as a State-
29 certified real estate appraiser that has been revoked as a
30 result of disciplinary action by the subcommittee BOARD shall <--
19890S0756B1529 - 19 -
1 not be reinstated unless the applicant presents evidence of
2 completion of the continuing education required by this act.
3 This requirement of evidence of continuing education shall not
4 be imposed upon an applicant for reinstatement who has been
5 required to successfully complete the examination for State-
6 certified real estate appraiser as a condition to reinstatement
7 of certification.
8 CHAPTER 13
9 DISCIPLINARY PROCEEDINGS
10 Section 1301. General rule.
11 The rights of any holder under a certificate as a State-
12 certified real estate appraiser may be revoked or suspended, or
13 the holder of the certificate may be otherwise disciplined in
14 accordance with the provisions of this act relating to hearings,
15 upon any of the grounds set forth in this act.
16 Section 1302. Disciplinary action.
17 (a) Investigation.--The subcommittee BOARD may investigate <--
18 the actions of a State-certified real estate appraiser, and may
19 revoke or suspend the rights of a certificate holder or
20 otherwise discipline a State-certified real estate appraiser for
21 any of the following acts:
22 (1) Procuring or attempting to procure a certificate
23 pursuant to this act by knowingly making a false statement,
24 submitting false information, refusing to provide complete
25 information in response to a question in an application for
26 certification or through any form of fraud or
27 misrepresentation.
28 (2) Failing to meet the minimum qualifications
29 established by this act.
30 (3) Paying, or offering to pay, any valuable
19890S0756B1529 - 20 -
1 consideration other than provided for by this act to any
2 member or employee of the subcommittee BOARD to procure a <--
3 certificate under this act.
4 (4) A conviction, including a conviction based upon a
5 plea of guilty or nolo contendre, of a crime which is
6 substantially related to the qualifications, functions and
7 duties of a person developing real estate appraisals and
8 communicating real estate appraisals to others.
9 (5) An act or omission involving dishonesty, fraud or
10 misrepresentation with intent to substantially benefit the
11 certificate holder in his profession or with the intent to
12 substantially injure another person.
13 (6) Violation of any of the standards for the
14 development or communication of real estate appraisals as
15 provided in this act and the Uniform Standards of
16 Professional Appraisal Practice promulgated by the Appraisal
17 Standards Board of the Appraisal Foundation.
18 (7) Failure or refusal, without good cause, to exercise
19 reasonable diligence in developing an appraisal, preparing an
20 appraisal report or communicating an appraisal.
21 (8) Negligence or incompetence in developing an
22 appraisal, in preparing an appraisal report or in
23 communicating an appraisal.
24 (9) Willfully disregarding or violating any of the
25 provisions of this act or the regulations of the subcommittee <--
26 BOARD for the administration and enforcement of the <--
27 provisions of this act.
28 (10) Accepting an appraisal assignment when the
29 employment itself is contingent upon the appraiser reporting
30 a predetermined analysis or opinion, or where the fee to be
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1 paid for the performance of the appraisal assignment is
2 contingent upon the opinion, conclusion or valuation reached,
3 or upon the consequence resulting from the appraisal
4 assignment.
5 (11) Violating the confidential nature of records to
6 which the appraiser gained access through employment or
7 engagement as an appraiser.
8 (b) Basis for action.--An act, omission or crime that is a
9 ground for disciplinary action under this section shall
10 constitute a basis for disciplinary action against another
11 license of the State-certified real estate appraiser if the act
12 or omission involved is substantially related to the
13 qualification, functions or duties required of a person acting
14 under authority of the other license.
15 Section 1303. Effect of civil suit.
16 The subcommittee BOARD may suspend or revoke the certificate <--
17 of a State-certified real estate appraiser based upon a final
18 civil judgment against the person on grounds of fraud,
19 misrepresentation or deceit in making of an appraisal of real
20 property. In a disciplinary proceeding based upon the judgment,
21 the State-certified real estate appraiser shall be afforded
22 notice and the opportunity to present matters in mitigation and
23 extenuation, but may not collaterally attack the civil judgment.
24 Section 1304. Conduct of proceedings.
25 Disciplinary proceedings before the subcommittee BOARD shall <--
26 be conducted in accordance with 2 Pa.C.S. (relating to
27 administrative law and procedure).
28 CHAPTER 15
29 APPRAISAL REPORTS
30 Section 1501. Reports.
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1 (a) Format.--Any certified appraisal report shall be
2 presented in clear and unequivocal terms with sufficient
3 information to enable the user of that report, or any person who
4 may be expected to rely on it, to understand it properly, and in
5 such a manner to avoid being misleading.
6 (b) Items covered.--Any written certified appraisal report
7 shall include, but not be limited to, all of the following:
8 (1) A discussion of any qualifications of the opinions
9 or conclusions contained in the report, or in contrast with
10 generally recognized appraisal practices, any limitations on
11 the scope of the report or omissions.
12 (2) A statement as to whether any person other than the
13 appraiser whose signature appears on the report prepared the
14 analysis, opinion or conclusions contained in the report, and
15 if so, the identity of that person.
16 (3) A statement as to whether the person signing the
17 report has a present or contemplated future interest in the
18 property which is the subject of the appraisal or has a
19 relationship with the owner of the property or with the
20 prospective user of the appraisal data which would constitute
21 a conflict of interest. If the report contains an affirmative
22 statement with respect to these factors, it shall also
23 include a conspicuous and accurate statement of the
24 relationship.
25 (4) A certification that the statements of fact
26 contained in the report are true and correct to the best
27 knowledge and belief of the appraiser.
28 (5) A certification that the analysis, opinion and
29 conclusions were developed and the report was prepared in
30 conformity with the requirements of this act or a statement
19890S0756B1529 - 23 -
1 of the particulars for which that certification is not made.
2 CHAPTER 17
3 MISCELLANEOUS
4 Section 1701. Records.
5 A State-certified real estate appraiser shall retain, for two
6 years, appraisal reports and supporting data assembled and
7 formulated by the appraiser in preparing appraisal reports. The
8 period of retention of the records applicable to each engagement
9 of the services of the appraiser shall run from the date of the
10 submittal of the appraisal report to the client unless, within
11 such two-year period, the appraiser is notified that the
12 appraisal or report is involved in litigation. These records
13 shall be made available by the State-certified real estate
14 appraiser for inspection and copying by the subcommittee BOARD <--
15 on reasonable notice to the appraiser.
16 Section 1702. Criminal penalty.
17 Any person who willfully violates or knowingly participates
18 in the violation of section 905 commits a misdemeanor in the
19 third degree.
20 Section 1703. Action for damages.
21 Any person who has been damaged, or can demonstrate that he
22 will potentially be irreparable damaged, may bring any action
23 for damages, equitable relief, or both, against any person who
24 violates this act. The court may award costs and reasonable
25 attorney fees to the prevailing party, as determined by the
26 court. The rights and remedies provided in this act are not
27 exclusive of other rights or remedies provided by law.
28 CHAPTER 19
29 EFFECTIVE DATE
30 Section 1901. Effective date.
19890S0756B1529 - 24 -
1 This act shall take effect July 1, 1990.
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