TITLE 876 INDIANA REAL ESTATE COMMISSION

Amends 876 IAC 3-2-3 to clarify the type of work that may be done by different types of licensees. Amends 876 IAC 3-3-2 to delete outdated language. Amends 876 IAC 3-3-3.1 to change the Indiana trainee appraiser education hours from 90 hours to 75 classroom hours of specific course content and remove outdated language. Amends 876 IAC 3-3-4.1 to state educational requirements for Indiana certified residential appraiser's applicants who hold another license. Amends 876 IAC 3-3-5.1 to state educational requirements for Indiana certified general appraiser's applicants who hold another license. Amends 876 IAC 3-3-6 and 876 IAC 3-3-7 to correct a cross reference. Amends 876 IAC 3-3-8 to change a cross reference. Amends 876 IAC 3-3-9 to clarify application requirements. Amends 876 IAC 3-3-10 to provide clarification and to bring it into compliance with federal requirements. Amends 876 IAC 3-3-11 to clarify terminology. Amends 876 IAC 3-3-12 to provide clarification and to eliminate redundancy. Amends 876 IAC 3-3-13.1 to provide a new table for clarification of residential appraisal experience requirements for applicants. Amends 876 IAC 3-3-13.2 to provide a new table for clarification of general appraisal experience requirements for applicants. Amends 876 IAC 3-3-14 to correct a cross reference. Amends 876 IAC 3-3-15, 876 IAC 3-3-16, and 876 IAC 3-3-17 to remove outdated language. Amends 876 IAC 3-3-21 to allow four rather than three temporary permits per calendar year and clarify what constitutes an appraisal assignment for a temporary permit. Amends 876 IAC 3-5-2 to provide clarification and to allow continuing education credit to an appraiser who attends a board meeting with a minimum of two hours in length but may not exceed seven hours. Amends 876 IAC 3-5-2.5 to allow approval of continuing education courses by the board to be sought by an appraiser taking the course as well as by the course provider. Effective 30 days after filing with the Publisher.

SECTION 1. 876 IAC 3-2-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 3. (a) As concerns appraisals of real estate not involved in transactions governed by the federal act, holders of any of the four (4) licenses may do any type of appraisal they are competent to conduct as provided by the competency provision of the Uniform Standards of Professional Appraisal Practice (as adopted in 876 IAC 3-6-2 and 876 IAC 3-6-3) subject to the limitations provided for in subsection (b).

(b) Subject to the limitations stated in subsection (a), the following apply:

(c) Indiana licensed trainee appraisers are also governed by 876 IAC 3-6-8 and 876 IAC 3-6-9.

(d) Nothing about this article shall be construed to limit the right of licensed real estate brokers to conduct appraisals of real estate except to the extent that federal law requires that they be conducted by individuals who hold Indiana licensed residential appraiser licenses, Indiana certified residential appraiser licenses, or Indiana certified general appraiser licenses issued by the board.

SECTION 2. 876 IAC 3-3-2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 2. (a) To be admitted to the examination for any of the licenses, an applicant must:

(b) Notwithstanding subsection (a), individuals who are admitted to the examination under the education and experience requirements in effect before January 1, 2015, must also pass the examination before January 1, 2015, to qualify for the license or certification for which the individual has applied.

SECTION 3. 876 IAC 3-3-3.1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 3.1. (a) This section establishes the educational requirements for the Indiana trainee appraiser license.

(b) The minimum prerequisite to sit for the Indiana trainee appraiser examination is ninety (90) seventy-five (75) classroom hours of specific course content stated in subsection (g) and completion of the supervisor/trainee appraiser course as outlined in 876 IAC 3-6-9.

(c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment.

(d) Credit toward the classroom hour requirement may only be granted where the:

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board.

(f) Qualifying education must be completed within the five (5) year period prior to the date the application was filed.

(g) The minimum classroom hours shall be as follows:

Basic appraisal principles	30
Basic appraisal procedures	30
The fifteen (15) hour National Uniform Standards of Professional Appraisal Practice course or its equivalent	15
Electives – in any other topic allowed under section 4.1(h) or 5.1(h) of this rule	15
TOTAL	90 75

(h) For a course to meet the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice requirement under subsection (g), after December 31, 2003, the instructor must be:

(i) Notwithstanding subsection (h), the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (g) if the course was taken before January 1, 2004.

SECTION 4. 876 IAC 3-3-4.1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 4.1. (a) This section establishes the educational requirements for an Indiana certified residential appraiser.

(b) The minimum prerequisite to sit for the Indiana certified residential appraiser examination is two hundred (200) classroom hours of specific course content stated in subsection (h) and meeting the requirements in subsection (g). However, where applicable, the number of classroom hours may be satisfied as specified in subsections [subsection] (k) or (l).

(c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment.

(d) Credit toward the classroom hour requirement may only be granted where the:

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board.

(f) Qualifying education credit will be accepted regardless of when the courses were taken as long as they were taken before the application was filed.

(g) Applicants for licensure as a certified residential appraiser must hold a bachelor's degree or higher from an accredited college or university.

(h) The minimum qualifying education classroom hours shall be as follows:

Basic appraisal principles	30
Basic appraisal procedures	30
The fifteen (15) hour National Uniform Standards of Professional Appraisal Practice course or its equivalent	15
Residential market analysis and highest and best use	15
Residential appraiser site valuation and cost approach	15
Residential sales comparison and income approaches	30
Residential report writing and case studies	15
Statistics, modeling, and finance	15
Advanced residential applications and case studies	15
Appraisal subject matter electives	20
TOTAL	200

(i) For a course to meet the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice requirement under subsection (h) after December 31, 2003, the instructor must be:

(j) Notwithstanding subsection (i), the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (h) if the course was taken prior to January 1, 2004.

(k) The minimum qualifying education classroom hours for individuals holding a valid licensed trainee appraiser license shall be as follows:

Residential market analysis and highest and best use	15
Residential appraiser site valuation and cost approach	15
Residential sales comparison and income approaches	30
Residential report writing and case studies	15
Statistics, modeling, and finance	15
Advanced residential applications and case studies	15
Appraisal subject matter electives	20
TOTAL	125

(l) The minimum qualifying education classroom hours for individuals holding a valid licensed residential appraiser license shall be as follows:

Statistics, modeling, and finance	15
Advanced residential applications and case studies	15
Appraisal subject matter electives	20
TOTAL	50

SECTION 5. 876 IAC 3-3-5.1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 5.1. (a) This section establishes the educational requirements for an Indiana certified general appraiser.

(b) The prerequisite to sit for the Indiana certified general appraiser examination is three hundred (300) classroom hours with specific course content stated in subsection (h) and meeting the requirements in subsection (g). However, where applicable, the number of classroom hours may be satisfied as specified in subsections [subsection] (k), (l), or (m).

(c) A classroom hour is defined as fifty (50) minutes of classroom lecture out of each sixty (60) minute segment.

(d) Credit toward the classroom hour requirement may only be granted where the:

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board. Credit towards qualifying education requirements may be obtained through the completion of a degree program in real estate from an accredited degree-granting college or university provided that the curriculum has been approved by the Appraisal Qualifications Board.

(f) Qualifying education credit will be accepted regardless of when the courses were taken as long as they were taken before the application was filed.

(g) Applicants for licensure as a certified general appraiser must hold a bachelor's degree or higher from an accredited college or university.

(h) The minimum qualifying education classroom hours shall be as follows:

Basic appraisal principles	30
Basic appraisal procedures	30
The fifteen (15) hour National Uniform Standards of Professional Appraisal Practice course or its equivalent	15
General appraiser market analysis and highest and best use	30
Statistics, modeling, and finance	15
General appraiser sales comparison approach	30
General appraiser site valuation and cost approach	30
General appraiser income approach	60
General appraiser report writing and case studies	30
Appraisal subject matter electives	30
TOTAL	300

(i) For a course to meet the fifteen (15) hours Uniform Standards of Professional Appraisal Practice requirement under subsection (h) after December 31, 2003, the instructor must be:

(j) Notwithstanding subsection (i), the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (h) if the course was taken before January 1, 2004.

(k) The minimum qualifying education classroom hours for individuals holding a valid licensed trainee appraiser license shall be as follows:

General appraiser market analysis and highest and best use	30
Statistics, modeling, and finance	15
General appraiser sales comparison approach	30
General appraiser site valuation and cost approach	30
General appraiser income approach	60
General appraiser report writing and case studies	30
Appraisal subject matter electives	30
TOTAL	225

(l) The minimum qualifying education classroom hours for individuals holding a valid licensed residential appraiser license shall be as follows:

General appraiser market analysis and highest and best use	15
Statistics, modeling, and finance	15
General appraiser sales comparison approach	15
General appraiser site valuation and cost approach	15
General appraiser income approach	45
General appraiser report writing and case studies	15
Appraisal subject matter electives	30
TOTAL	150

(m) The minimum qualifying education classroom hours for individuals holding a valid certified residential appraiser license shall be as follows:

General appraiser market analysis and highest and best use	15
General appraiser sales comparison approach	15
General appraiser site valuation and cost approach	15
General appraiser income approach	45
General appraiser report writing and case studies	30
Appraisal subject matter electives	10
TOTAL	100

SECTION 6. 876 IAC 3-3-6 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 6. To obtain credit under section 3 [sic] sections 3.1 through 5 5.1 of this rule for courses obtained after June 30, 1990, an applicant must have a certificate of course completion, which must:

SECTION 7. 876 IAC 3-3-7 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 7. (a) To obtain credit for education under sections 3 3.1 through 5 5.1 of this rule for courses completed prior to July 1, 1990, verification may comply with section 6 of this rule or may be in the form of a certificate transcript or letter issued by the course provider showing course title, date of successful course completion, and number of classroom hours of applicant.

(b) Notwithstanding subsection (a), the board may consider a sworn notarized affidavit attesting to the successful completion of the educational requirements.

SECTION 8. 876 IAC 3-3-8 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 8. (a) For an education course to qualify for credit under sections 3 3.1 through 5 5.1 of this rule, it must have been at least fifteen (15) classroom hours in length and meet the criteria for content and classroom hours provided for in this rule.

(b) Credit for duplicate or equivalent courses will not be recognized.

SECTION 9. 876 IAC 3-3-9 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 9. (a) This section and sections 10 through 13.2 of this rule establish the experience requirements for the licenses issued by the board except for the Indiana trainee appraiser license, which has no experience requirements.

(b) At least fifty percent (50%) of the appraisals claimed for experience credit must have been performed during the sixty (60) months preceding the filing of the application.

(c) Notwithstanding the five (5) year retention requirement of the Uniform Standards of Professional Appraisal Practice, in order for an appraisal to qualify for experience credit regardless of when the appraisal was done, the applicant must have the appraisal report and file available for board review under subsection (d) or (e). Submission of appraisals that are not in substantial compliance with the version of the Uniform Standards of Professional Appraisal Practice (as adopted in 876 IAC 3-6-2 and 876 IAC 3-6-3) in effect on the inspection date of the appraisal may result in the denial of the appraisal experience required for licensure as:

(d) An applicant for certified residential appraiser shall submit, on a form prescribed by the board, a list of prior appraisals completed totaling at least two thousand five hundred (2,500) hours of appraisal experience that the applicant has performed. The experience must be obtained over a period of at least twenty-four (24) months before the filing of the application. The board may request documentation in the form of reports or file memoranda for any appraisal in support of the claim for experience.

(e) An applicant for certified general appraiser shall submit, on a form prescribed by the board, a list of prior appraisals completed totaling at least three thousand (3,000) hours of appraisal experience that the applicant has performed over a period of not less than thirty (30) months. At least two thousand (2,000) hours must be in the general category. The board may request documentation in the form of reports or file memoranda for any appraisal in support of the claim for experience.

SECTION 10. 876 IAC 3-3-10 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 10. (a) The quantitative experience requirements must be satisfied by time spent on the appraisal process. The appraisal process consists of the following:

(b) An applicant may be given full credit for performance of at least seventy-five percent (75%) of the work associated with an appraisal, including preparation of the appraisal report. Full credit may be claimed for that appraisal, even if the work was reviewed by a supervising appraiser who signed the appraisal report, notwithstanding subsection (c). No credit may be claimed by persons given to an applicant performing less than seventy-five percent (75%) of the work on an appraisal. No credit may be given to an applicant for an appraisal unless the applicant either signed the report or was given credit for seventy-five percent (75%) of the work within the certification pages of the appraisal report.

(c) An applicant may be given credit for twenty-five percent (25%) of the hours allotted for the type of property appraised if the applicant prepared a review of reviewed an appraisal prepared by another person, including a person a a [sic] trainee under the applicant's supervision, but did not complete a field review and did not prepare a separate written review appraisal report but did sign and the applicant signed the report as the reviewer. supervisor.

(d) An applicant may be given credit for fifty percent (50%) of the hours allotted for the type of property appraised if the applicant prepared a USPAP Standard 3 review report of an appraisal prepared by another person did complete a field review, and prepared a separate written review appraisal report. or to claim the fifty percent (50%) credit, an applicant reviewing a report prepared by a person under the applicant's supervision must accept equal responsibility for the content of the report and the indicated value found in the report.

(e) An applicant may be given credit for an additional fifty percent (50%) of the hours allotted for the type of property appraised if the applicant performed an appraisal for condemnation purposes where there was a partial taking of the property and documented before and after value of the property was completed.

(f) An applicant may be given credit for fifty percent (50%) of the total experience requirement for practicum courses that are approved by the AQB Course Approval Program or board. A practicum course must include the generally applicable methods of appraisal practice for the credential category. Content includes, but is not limited to, the following:

(g) Any appraisal for which experience is claimed under this rule must:

(h) The total credit given for appraisal work consisting of restricted appraisal reports shall not exceed five hundred (500) hours.

SECTION 11. 876 IAC 3-3-11 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 11. (a) Types of property under the residential category are defined as follows:

(b) An applicant performing an appraisal must describe, with supporting documentation, the properties appraised in sufficient detail to enable the board to determine the proper amount of credit that may be awarded.

(c) No credit may [sic, be] be claimed given for the following:

(d) Acceptable appraisal experience includes, but is not limited to, the following:

(e) Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) through (d)(8).

(f) Not more than seven hundred fifty (750) cumulative hours of credit will be accepted for the total amount of experience under subsection (d)(4) through (d)(8).

SECTION 12. 876 IAC 3-3-12 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 12. (a) Types of property under the general (nonresidential) category are as follows:

(b) An applicant performing an appraisal must describe, with supporting documentation, the properties appraised in sufficient detail to enable the board to determine the proper amount of credit that may be awarded.

(c) No credit may be claimed given for the following:

(d) Acceptable appraisal experience includes, but is not limited to, the following:

(e) Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) through (d)(8).

(f) Not more than one thousand (1,000) cumulative hours of credit will be accepted for the total amount of experience under subsection (d)(4) through (d)(8).

SECTION 13. 876 IAC 3-3-13.1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 13.1. (a) This section establishes the maximum value of residential appraisal work that may qualify for experience credit. An applicant may receive credit for actual time spent on an appraisal up to the maximum hour value allowed for the type of appraisal performed. The following table states the maximum values:

(b) The hour value of other appraisal work, whether it be in the residential or the general category, shall be the actual number of hours, provided that this is a reasonable number of hours. Not more than one hundred (100) hours per appraisal assignment will be granted.

SECTION 14. 876 IAC 3-3-13.2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 13.2. (a) This section establishes the maximum value of general category appraisal work that may qualify for experience credit. An applicant may receive credit for actual time spent on an appraisal up to the maximum hour value allowed for the type of appraisal performed. The following table states the maximum values:

(b) The hour value of other appraisal work, whether it be in the residential or the general category, shall be the actual number of hours, provided that this is a reasonable number of hours. Not more than one hundred sixty (160) hours per appraisal assignment will be granted.

SECTION 15. 876 IAC 3-3-14 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 14. (a) This section and sections 15 through 19 18 of this rule govern the examination for the three (3) licenses issued by the board.

(b) To qualify for real estate appraiser licensure or certification, an examination shall be passed that is designed to measure the applicant's knowledge and understanding of subject matter essential to real estate appraiser practice.

(c) An applicant for licensure shall obtain a license within one (1) year of passing the examination. An applicant failing to obtain a license within one (1) year shall:

(d) Notwithstanding subsection (c), the board may grant a license to an applicant who has not obtained a license within one (1) year of passing the examination if the applicant demonstrates a good faith reason for not obtaining the license within one (1) year.

(e) If an applicant's examination results are voided under subsection (c), the applicant must:

SECTION 16. 876 IAC 3-3-15 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 15. (a) An application for examination shall be filed on a form prescribed by the board.

(b) The board shall require applicants to provide documentation in support of education, experience, and other relevant data.

(c) The applicant shall indicate on the application the location in which the applicant desires to be examined.

SECTION 17. 876 IAC 3-3-16 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 16. (a) A special administration of the examination can be arranged if the applicant is unable to sit for examination under normal test conditions because of visual or physical problems.

(b) The board will act upon all requests for a special examination and, if the request is approved, notify the applicant of the date, time, place, and arrangements for the examination.

SECTION 18. 876 IAC 3-3-17 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 17. (a) After an application has been processed and approved by the board, the board will send a letter of approval to the applicant. The instructions for scheduling examinations will be included with the approval letter.

(b) An applicant must pass the examination no later than one (1) year after the date of the approval letter described in subsection (a).

(c) The board may grant extensions to the time limit in subsection (b) due to physical incapacity, military service, and similar good cause.

(d) Notwithstanding subsection (b), an applicant whose approval letter predates July 1, 2001, shall have until July 1, 2002, to pass the examination.

SECTION 19. 876 IAC 3-3-21 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-34.1

Sec. 21. (a) The board will recognize, on a temporary basis, the license or certificate of an appraiser issued by another state, provided the following:

(b) An applicant must do the following:

(c) Each temporary license or certificate is limited to performing the appraisals or specialized services required by the contract for appraisal services.

(d) Temporary privileges expire:

(e) An applicant:

(f) An individual who has been denied either admission to an examination or a license by the board will not be eligible for a temporary permit for the level of licensure for which the individual was denied or greater level of license. However, regardless of this subsection, an individual who otherwise qualifies under this section shall be eligible for a permit for federally related transactions.

SECTION 20. 876 IAC 3-5-2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-1-4-0.5; IC 25-34.1

Sec. 2. (a) This section and sections 2.5 through 8 of this rule apply to continuing education courses subject to board approval and not to courses approved by the Appraiser Qualifications Board as provided for in IC 25-1-4-0.5(1)(B). Courses shall qualify if approved by the Appraiser Qualifications Board or by the board under this rule. The seven (7) hour Uniform Standards of Professional Appraisal Practice course required under section 1.5 of this rule only qualifies if approved by the Appraiser Qualifications Board.

(b) Notwithstanding subsection (a), the board may award continuing education credit to an appraiser who attends a meeting of the board subject to the following conditions:

SECTION 21. 876 IAC 3-5-2.5 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 25-1-4-0.5; IC 25-1-11; IC 25-34.1

Sec. 2.5. (a) Continuing education courses not approved by the Appraiser Qualifications Board, as provided for in IC 25-1-4-0.5(1)(B) and section 2 1 of this rule, must be approved by the board under this section. Applications for board approval may be submitted by the course provider or by an appraiser taking the course. The content of the course must comply with subsection (b)(3).

(b) In order to be an approved continuing education course, a course must satisfy the following criteria:

DIN: 20181017-IR-876180065FRA

Composed: May 04,2024 1:20:44PM EDT

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