-IR- Database Guide
-IR- Database: Indiana Register
IAC Titles     Current IR
TITLE 876 INDIANA REAL ESTATE COMMISSION

Final Rule
LSA Document #06-95(F)

DIGEST

Amends 876 IAC 3-2-1, 876 IAC 3-3-3.1, 876 IAC 3-3-9, 876 IAC 3-3-10, 876 IAC 3-3-11, 876 IAC 3-3-12, 876 IAC 3-3-14, 876 IAC 3-3-22, and 876 IAC 3-6-9 and adds 876 IAC 3-3-4.1, 876 IAC 3-3-5.1, 876 IAC 3-3-5.2, 876 IAC 3-3-13.1, and 876 IAC 3-3-13.2 to increase and otherwise revise the educational, examination, and experience requirements for licensure and certification as an appraiser in Indiana, to eliminate the licensed residential appraiser license, and to make other corresponding changes. Repeals 876 IAC 3-3-3, 876 IAC 3-3-4, 876 IAC 3-3-5, and 876 IAC 3-3-13. Partially effective 30 days after filing with the Publisher and partially effective January 1, 2008.



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

876 IAC 3-2-1 Licenses issued by the board

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 1. (a) There shall be four (4) three (3) licenses issued by the board, specifically, the following:
(1) Indiana licensed trainee appraiser.
(2) Indiana licensed residential appraiser.
(3) (2) Indiana certified residential appraiser.
(4) (3) Indiana certified general appraiser.

(b) Indiana licensed residential appraiser licenses issued before January 1, 2008, continue to remain in effect after December 31, 2007, as long as renewed as required by law and subject to the disciplinary process.
(Indiana Real Estate Commission; 876 IAC 3-2-1; filed Sep 24, 1992, 9:00 a.m.: 16 IR 736; filed Dec 8, 1993, 4:00 p.m.: 17 IR 771; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 2. 876 IAC 3-3-3.1 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-3.1 Educational requirements for Indiana licensed trainee appraiser

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 3.1. (a) This section establishes the educational requirements for the Indiana trainee appraiser license. are the same as the Indiana licensed residential appraiser license as stated in section 3 of this rule.

(b) The minimum prerequisite to sit for the Indiana trainee appraiser examination is ninety (90) classroom hours of specific course content stated in subsection (i).

(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:
(1) length of the educational offering is at least fifteen (15) hours; and
(2) individual successfully completes an examination pertinent to that educational offering.

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board.

(f) For applications filed before January 1, 2010, subsection (e) shall not apply to a course taken before January 1, 2008, as long as the course meets all the requirements of this section except for subsection (e).

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

(h) 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(l) or 5.1(l) of this rule  15 
TOTAL  90 

(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:
(1) an Appraiser Qualification Board certified Uniform Standards of Professional Appraisal Practice instructor; and
(2) a state certified residential or certified general real estate appraiser.
However, if the course is taught by two (2) or more instructors, only one (1) is required to have been a state certified residential or certified general real estate appraiser.

(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.
(Indiana Real Estate Commission; 876 IAC 3-3-3.1; filed Dec 8, 1993, 4:00 p.m.: 17 IR 773; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


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

876 IAC 3-3-4.1 Educational requirements for Indiana certified residential appraiser

Authority: IC 25-34.1-3-8
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 (l) and meeting the requirements in subsection (j) or (k).

(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:
(1) length of the educational offering is at least fifteen (15) hours; and
(2) individual successfully completes an examination pertinent to that educational offering.

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board.

(f) For applications filed before January 1, 2010, subsection (e) shall not apply to a course taken before January 1, 2008, as long as the course meets all the requirements of this section except for subsection (e).

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

(h) The board may grant credit for courses where the applicant obtained credit from the course provider by challenge examination without attending the courses, provided that the:
(1) credit was granted by the course provider before July 1, 1990; and
(2) course meets the requirements of this rule.

(i) Applicants for licensure as a certified residential appraiser must hold an associate degree or higher from an accredited college or university or community or junior college.

(j) Notwithstanding subsection (i), in lieu of an associate degree, an applicant for licensure as a certified residential appraiser must successfully complete twenty-one (21) semester credit hours in the following subject matter courses from an accredited college or university, or junior or community college:
(1) English composition.
(2) Principles of microeconomics or macroeconomics.
(3) Finance.
(4) Algebra, geometry, or higher mathematics.
(5) Statistics.
(6) Introduction to computers, including word processing and spreadsheets.
(7) Business or real estate law.

(k) 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
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

(l) For a course to meet the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice requirement under subsection (k) after December 31, 2003, the instructor must be:
(1) an Appraiser Qualification Board certified Uniform Standards of Professional Appraisal Practice instructor; and
(2) a state certified residential or certified general real estate appraiser.
However, if the course is taught by two (2) or more instructors, only one (1) is required to have been a state certified residential or certified general real estate appraiser.

(m) Notwithstanding subsection (l), the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (k) if the course was taken prior to January 1, 2004.
(Indiana Real Estate Commission; 876 IAC 3-3-4.1; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 4. 876 IAC 3-3-5.1 IS ADDED TO READ AS FOLLOWS:

876 IAC 3-3-5.1 Educational requirements for Indiana certified general appraiser

Authority: IC 25-34.1-3-8
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 (l) and meeting the requirements in subsection (j) or (k).

(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:
(1) length of the educational offering is at least fifteen (15) hours; and
(2) individual successfully completes an examination pertinent to that educational offering.

(e) Credit for the classroom hour requirement must be from a course, including a distance learning course, approved by the Appraisal Qualifications Board.

(f) For applications filed before January 1, 2010, subsection (e) shall not apply to a course taken before January 1, 2008, as long as the course meets all the requirements of this section except for subsection (e).

(g) Credit toward the classroom hour requirement may be awarded to teachers of appraisal courses meeting the requirements of this rule.

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

(i) The board may grant credit for courses where the applicant obtained credit from the course provider by challenge examination without attending the courses, provided that the:
(1) credit was granted by the course provider before July 1, 1990; and
(2) course meets the requirements of this rule.

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

(k) Notwithstanding subsection (j), in lieu of a bachelor's degree, an applicant for licensure as a certified general appraiser must successfully complete thirty (30) semester credit hours in the following subject matter courses from an accredited college, university, or junior or community college:
(1) English composition.
(2) Microeconomics.
(3) Macroeconomics.
(4) Finance.
(5) Algebra, geometry, or higher mathematics.
(6) Statistics.
(7) Introduction to computers, including word processing and spreadsheets.
(8) Business or real estate law.
(9) Two (2) elective courses in any of the following:
(A) Accounting.
(B) Geography.
(C) Ag-economics.
(D) Business management.
(E) Real estate.

(l) 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 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 

(m) For a course to meet the fifteen (15) hours Uniform Standards of Professional Appraisal Practice requirement under subsection (k) after December 31, 2003, the instructor must be:
(1) an Appraiser Qualification Board certified Uniform Standards of Professional Appraisal Practice instructor; and
(2) a state certified residential or certified general real estate appraiser.
However, if the course is taught by two (2) or more instructors, only one (1) is required to have been a state certified residential or certified general real estate appraiser.

(n) Notwithstanding subsection (m), the fifteen (15) hours of Uniform Standards of Professional Appraisal Practice course will meet the requirements under subsection (l) if the course was taken before January 1, 2004.
(Indiana Real Estate Commission; 876 IAC 3-3-5.1; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 5. 876 IAC 3-3-5.2 IS ADDED TO READ AS FOLLOWS:

876 IAC 3-3-5.2 Conversion of quarter hours to semester hours

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 5.2. Any provision in this article that requires a specific number of semester credit hours shall be converted to the equivalent if a different grading period is used at the college or university. Unless it is established that a different equivalency applies, it shall be presumed that the correct equivalency is two (2) semester hours for every three (3) quarter hours.
(Indiana Real Estate Commission; 876 IAC 3-3-5.2; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA)


SECTION 6. 876 IAC 3-3-9 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-9 Experience requirements for three licenses issued by the board

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 9. (a) This section and sections 10 through 13 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) To qualify for experience credit, an appraisal must have been performed during the sixty (60) months preceding the filing of the application. 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:
(1) a licensed residential appraiser;
(2) (1) a certified residential appraiser; and
(3) (2) a certified general appraiser.

(c) An applicant for licensed residential appraiser shall submit, on a form prescribed by the board, two thousand (2,000) hours of appraisal experience that the applicant has performed. The experience must be obtained over a period of at least twenty-four (24) months prior to the filing of the application. The board may request documentation in the form of reports or filed memoranda or any appraisal in support of the claim for experience.

(d) (c) An applicant for certified residential appraiser shall submit, on a form prescribed by the board, 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 prior to before the filing of the application. The board may request documentation in the form of reports or filed memoranda or any appraisal in support of the claim for experience.

(e) (d) An applicant for certified general appraiser shall submit, on a form prescribed by the board, 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, file memoranda, or any appraisal in support of the claim for experience.
(Indiana Real Estate Commission; 876 IAC 3-3-9; filed Sep 24, 1992, 9:00 a.m.: 16 IR 741; filed Dec 8, 1993, 4:00 p.m.: 17 IR 775; filed Dec 24, 1997, 11:00 a.m.: 21 IR 1761, eff Jan 1, 1998 [IC 4-22-2-36 suspends the effectiveness of a rule document for thirty (30) days after filing with the secretary of state. LSA Document #97-65 was filed Dec 24, 1997.]; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 7. 876 IAC 3-3-10 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-10 Credit for appraisal performance

Authority: IC 25-34.1-3-8
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:
(1) Analyzing factors that affect value.
(2) Defining the problem.
(3) Gathering and analyzing data.
(4) Applying the appropriate analysis and methodology.
(5) Arriving at an opinion in compliance with Uniform Standards of Professional Appraisal Practice.

(a) (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 (b). (c). No credit may be claimed by persons performing less than seventy-five percent (75%) of the work on an appraisal.

(b) (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 an appraisal prepared by another person, including a person 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 the report as the reviewer. See column (C) in the table in section 13 of this rule.

(c) (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 review 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. See column (B) in the table in section 13 of this rule.

(d) (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. See column (D) in the table in section 13 of this rule.

(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:
(1) Requiring the student to produce credible appraisals that utilize an actual subject property.
(2) Performing market research containing actual sales analysis.
(3) Applying and reporting the applicable appraisal approaches in conformity with the Uniform Standards of Professional Appraisal Practice.
Assignments must require problem solving skills for a variety of property types for the credential category. Experience credit shall be granted for the actual classroom hours of instruction and hours of documented research and analysis as awarded from the practicum course approval process.

(e) (g) Any appraisal for which experience is claimed under this rule must:
(1) be either:
(1) (A) a self-contained appraisal report;
(2) (B) a summary appraisal report; or
(3) (C) a restricted report; and must be either a complete appraisal or a limited appraisal as these terms are defined in the definitions section
(2) comply with the Scope of Work Rule of the Uniform Standards of Professional Appraisal Practice (as adopted in 876 IAC 3-6-2).

(f) (h) The total credit given for appraisal work consisting of restricted appraisal reports shall not exceed five hundred (500) hours.
(Indiana Real Estate Commission; 876 IAC 3-3-10; filed Sep 24, 1992, 9:00 a.m.: 16 IR 741; filed Apr 10, 1995, 10:00 a.m.: 18 IR 2115; filed Apr 12, 2001, 12:30 p.m.: 24 IR 2698; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA)


SECTION 8. 876 IAC 3-3-11 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-11 Property defined under residential category

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 11. (a) Types of property under the residential category are defined as follows:
(1) Single family.
(2) Multiple family, no not more than four (4) units (duplex, triplex, and quadplex).
(3) Vacant lots, one (1) to four (4) units (except subdivisions).
(4) Rural, ten (10) acres to one hundred (100) acres with homestead.
(5) Other activities described in section 12(d)(4) through 12(d)(9) 12(d)(8) of this rule.

(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 which that may be awarded.

(c) No credit may be claimed for the following:
(1) Market value estimates performed by real estate licensees in connection with the listing and/or or sale, or both, of real property.
(2) Business appraisals.
(3) Feasibility or market analysis, except to the extent that the market value of a proposed real estate project is being estimated.

(d) Acceptable appraisal experience includes, but is not limited to, the following:
(1) Fee appraisal.
(2) Staff appraisal.
(3) Review appraisal.
(4) Ad valorem tax appraisal.
(5) Appraisal analysis.
(6) Real estate counseling.
(7) Highest and best use analysis.
(8) Feasibility analysis or study.
(9) Teaching of appraisal courses.

(e) No Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) through subsection (d)(9). (d)(8).

(f) No 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)(9). (d)(8).
(Indiana Real Estate Commission; 876 IAC 3-3-11; filed Sep 24, 1992, 9:00 a.m.: 16 IR 742; filed Dec 8, 1993, 4:00 p.m.: 17 IR 776; filed Apr 10, 1995, 10:00 a.m.: 18 IR 2116; filed Dec 24, 1997, 11:00 a.m.: 21 IR 1762, eff Jan 1, 1998 [IC 4-22-2-36 suspends the effectiveness of a rule document for thirty (30) days after filing with the secretary of state. LSA Document #97-65 was filed Dec 24, 1997.]; filed Apr 12, 2001, 12:30 p.m.: 24 IR 2699; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 9. 876 IAC 3-3-12 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-12 Property defined under general (nonresidential) category

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 12. (a) Types of property under the general (nonresidential) category are as follows:
(1) Land, one hundred (100) acres or more, including the following:
(A) Farms of one hundred (100) acres or more in size.
(B) Undeveloped tracts.
(C) Residential multiple family sites.
(D) Commercial sites.
(E) Industrial sites.
(F) Land in transition.
(G) Similar projects.
(2) Land, under one hundred (100) acres, including the following:
(A) Farms of one hundred (100) acres or less in size.
(B) Undeveloped tracts.
(C) Residential multiple family sites.
(D) Commercial sites.
(E) Industrial sites.
(F) Land in transition.
(G) Similar projects.
(3) Residential multiple family (five (5) to twelve (12) units), including the following:
(A) Apartments.
(B) Condominiums.
(C) Townhouses.
(D) Mobile home parks.
(4) Residential multiple family (thirteen (13) or more units), including the following:
(A) Apartments.
(B) Condominiums.
(C) Townhouses.
(D) Mobile home parks.
(5) Commercial single tenant, including the following:
(A) Office building.
(B) Retail store.
(C) Restaurant.
(D) Service station.
(E) Bank.
(F) Daycare center.
(G) Similar projects.
(6) Commercial multiple tenant, including the following:
(A) Office building.
(B) Shopping center.
(C) Hotel or motel.
(D) Similar projects.
(7) Industrial, including the following:
(A) Warehouse.
(B) Manufacturing plant.
(C) Similar projects.
(8) Special purpose, including the following:
(A) Rest home.
(B) Nursing home.
(C) Hospital.
(D) School.
(E) Church.
(F) Government building.
(G) Other special purpose properties, including intensive agricultural and business uses.
(9) Other activities described in subsection (d)(4) through (d)(9). (d)(8).

(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 which that may be awarded.

(c) No credit may be claimed for the following:
(1) Market value estimates performed by real estate licensees in connection with the listing and/or or sale, or both, of real property.
(2) Business appraisals.
(3) Personal property appraisals.
(4) Feasibility or market analysis, except to the extent that the market value of a proposed real estate project is being estimated.

(d) Acceptable appraisal experience includes, but is not limited to, the following:
(1) Fee appraisal.
(2) Staff appraisal.
(3) Review appraisal.
(4) Ad valorem tax appraisal.
(5) Appraisal analysis.
(6) Real estate counseling.
(7) Highest and best use analysis.
(8) Feasibility analysis or study.
(9) Teaching of appraisal courses.

(e) No Not more than five hundred (500) hours of credit will be accepted in any single category in subsection (d)(4) through (d)(9). (d)(8).

(f) No 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)(9). (d)(8).
(Indiana Real Estate Commission; 876 IAC 3-3-12; filed Sep 24, 1992, 9:00 a.m.: 16 IR 742; filed Dec 8, 1993, 4:00 p.m.: 17 IR 776; filed Apr 10, 1995, 10:00 a.m.: 18 IR 2116; filed Dec 24, 1997, 11:00 a.m.: 21 IR 1762; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 10. 876 IAC 3-3-13.1 IS ADDED TO READ AS FOLLOWS:

876 IAC 3-3-13.1 Hour value of residential appraisal work established

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 13.1. (a) The following table establishes the hour value of residential appraisal work that may qualify for experience credit:   
RESIDENTIAL/FARM FORM APPRAISALS 
               
Form Name    Form #    APPRAISAL  DOCUMENTARY REVIEW 
WORK PERFORMED    (NAME)    PERFORMED BY APPLICANT  WITH FIELD REVIEW AND SEPARATE REPORT  WITHOUT FIELD REVIEW AND SEPARATE REPORT 
        I  II  III 
        Hours  Hours  Hours 
        Value  Value  Value 
Uniform Residential Appraisal Report URAR    URAR    4.5  2.5  2 
 
Individual Condominium Unit Appraisal Report             
  – Interior & Exterior Inspection    465/1073    4.5  2.5  2 
  – Exterior only Inspection    1075    3  2.5  2 
 
Individual Cooperative Interest Appraisal Report             
  – Interior & Exterior Inspection    2090    4.5  2.5  2 
  – Exterior only Inspection    2095    3  2.5  2 
 
Quantitative Analysis Appraisal Report    2055         
  – Interior & Exterior Inspection        4.5  2.5  2 
  – Exterior only Inspection        3  2.5  2 
 
Qualitative Analysis Appraisal Report    2065         
  – Interior & Exterior Inspection        3  2.5  2 
  – Exterior only Inspection        2.5  2.5  2 
 
Land Appraisal (Narrative)    N/A    4  2.5  2 
 
Employee Relocation Council Summary    ERC    7  2.5  2 
 
Small Residential Income Property Report    1025    5.5  2.5  2 
 
Manufactured Home Appraisal Report    72/1004C    4.5  2.5  2 
 
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
Noncategorized Residential Appraisal             
 
Appraisal Report - Farm Tract    1922-1         
(1) SELF-CONTAINED             
  a. 3 approaches        15  7.5  3.75 
  b. 2 approaches        12  6  3 
  c. 1 approach        9  4.5  2.25 
(2) SUMMARY             
  a. 3 approaches        12  6  3 
  b. 2 approaches        9  4.5  2.25 
  c. 1 approach        6  3  1.5 
(3) RESTRICTED             
  a. 3 approaches        9  4.5  2.25 
  b. 2 approaches        6  3  1.5 
  c. 1 approach        3  1.5  0.75 
 
RESIDENTIAL - RIGHT OF WAY APPRAISALS 
  APPRAISAL  DOCUMENTARY REVIEW 
  PERFORMED BY APPLICANT  WITH FIELD REVIEW AND SEPARATE REPORT  WITHOUT FIELD REVIEW AND SEPARATE REPORT 
WORK PERFORMED  I  II  III 
  Hours  Hours  Hours 
  Value  Value  Value 
(A) PROPERTY TYPE-Residential Land       
(1) Long Form       
a. 3 approaches  NA  NA  NA 
b. 2 approaches  NA  NA  NA 
c. 1 approach  20  10  5 
(2) Short Form       
a. 3 approaches  NA  NA  NA 
b. 2 approaches  NA  NA  NA 
c. 1 approach  10  5  2.5 
(3) Value Finding       
a. 3 approaches  NA  NA  NA 
b. 2 approaches  NA  NA  NA 
c. 1 approach  8  4  2 
(3) Waiver Valuation       
a. 3 approaches  N/A  N/A  N/A 
b. 2 approaches  N/A  N/A  N/A 
c. 1 approach  4  N/A  N/A 
(B) PROPERTY TYPE-Residential       
Improved Single Family       
(1) Long Form       
a. 3 approaches  30  15  7.5 
b. 2 approaches  25  12.5  6.25 
c. 1 approach  20  10  5 
(2) Short Form       
a. 3 approaches  25  12.5  6.25 
b. 2 approaches  20  10  5 
c. 1 approach  15  7.5  3.75 
(3) Value Finding       
a. 3 approaches  NA  NA  NA 
b. 2 approaches  NA  NA  NA 
c. 1 approach  8  4  2 
(3) Waiver Valuation       
a. 3 approaches  N/A  N/A  N/A 
b. 2 approaches  N/A  N/A  N/A 
c. 1 approach  4  N/A  N/A 
(C) PROPERTY TYPE-Residential       
2- 4 Family       
(1) Long Form       
a. 3 approaches  35  17.5  8.75 
b. 2 approaches  30  15  7.5 
c. 1 approach  25  12.5  6.25 
(2) Short Form       
a. 3 approaches  30  15  7.5 
b. 2 approaches  25  12.5  6.25 
c. 1 approach  20  10  5 
(3) Value Finding       
a. 3 approaches  NA  NA  NA 
b. 2 approaches  NA  NA  NA 
c. 1 approach  8  4  2 
(3) Waiver Valuation       
a. 3 approaches  N/A  N/A  N/A 
b. 2 approaches  N/A  N/A  N/A 
c. 1 approach  4  N/A  N/A 

(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.
(Indiana Real Estate Commission; 876 IAC 3-3-13.1; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA)


SECTION 11. 876 IAC 3-3-13.2 IS ADDED TO READ AS FOLLOWS:

876 IAC 3-3-13.2 Hour value of general category appraisal work established

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 13.2. (a) The following table establishes the hour value of general category appraisal work that may qualify for experience credit:
GENERAL CATEGORY 
  APPRAISAL  DOCUMENTARY REVIEW 
  PERFORMED BY APPLICANT  WITH FIELD REVIEW AND SEPARATE REPORT  WITHOUT FIELD REVIEW AND SEPARATE REPORT 
WORK PERFORMED  I  II  III 
  Hours  Hours  Hours 
  Value  Value  Value 
(A) PROPERTY TYPE-LAND       
(1) SELF-CONTAINED       
a. Subdivision  40  20  10 
b. = OR > 10 Acres  18  9  4.5 
c. < 10 Acres  10  5  2.5 
(2) SUMMARY       
a. Subdivision  35  17.5  8.75 
b. = OR > 10 Acres  14  7  3.5 
c. < 10 Acres  8  4  2 
(3) RESTRICTED       
a. Subdivision  30  15  7.5 
b. = OR > 10 Acres  10  5  2.5 
c. < 10 Acres  5  2.5  1.25 
(B) PROPERTY TYPE-Multi-Family       
Existing 5-12 Units       
(1) SELF-CONTAINED       
a. 3 approaches  25  12.5  6.25 
b. 2 approaches  20  10  5 
c. 1 approach  15  7.5  3.75 
(2) SUMMARY       
a. 3 approaches  20  10  5 
b. 2 approaches  15  7.5  3.75 
c. 1 approach  10  5  2.5 
(3) RESTRICTED       
a. 3 approaches  15  7.5  3.75 
b. 2 approaches  10  5  2.5 
c. 1 approach  5  2.5  1.25 
(C) PROPERTY TYPE-Multi-Family       
Existing 13+ Units       
(1) SELF-CONTAINED       
a. 3 approaches  40  20  10 
b. 2 approaches  35  17.5  8.75 
c. 1 approach  30  15  7.5 
(2) SUMMARY       
a. 3 approaches  35  17.5  8.75 
b. 2 approaches  30  15  7.5 
c. 1 approach  25  12.5  6.25 
(3) RESTRICTED       
a. 3 approaches  30  15  7.5 
b. 2 approaches  25  12.5  6.25 
c. 1 approach  20  10  5 
(D) PROPERTY TYPE-Multi-Family       
Proposed 5-12 Units       
(1) SELF-CONTAINED       
a. 3 approaches  35  17.5  8.75 
b. 2 approaches  30  15  7.5 
c. 1 approach  25  12.5  6.25 
(2) SUMMARY       
a. 3 approaches  30  15  7.5 
b. 2 approaches  25  12.5  6.25 
c. 1 approach  20  10  5 
(3) RESTRICTED       
a. 3 approaches  25  12.5  6.25 
b. 2 approaches  20  10  5 
c. 1 approach  15  7.5  3.75 
  APPRAISAL  DOCUMENTARY REVIEW 
  PERFORMED BY APPLICANT  WITH FIELD REVIEW AND SEPARATE REPORT  WITHOUT FIELD REVIEW AND SEPARATE REPORT 
WORK PERFORMED  I  II  III 
  Hours  Hours  Hours 
  Value  Value  Value 
(E) PROPERTY TYPE-Multi-Family       
Proposed 13+ Units       
(1) SELF-CONTAINED       
a. 3 approaches  50  25  12.5 
b. 2 approaches  45  22.5  11.25 
c. 1 approach  40  20  10 
(2) SUMMARY       
a. 3 approaches  45  22.5  11.25 
b. 2 approaches  40  20  10 
c. 1 approach  35  17.5  8.75 
(3) RESTRICTED       
a. 3 approaches  40  20  10 
b. 2 approaches  35  17.5  8.75 
c. 1 approach  30  15  7.5 
(F) PROPERTY TYPE-Commercial/Industrial       
Existing or Proposed Single User       
(1) SELF-CONTAINED       
a. 3 approaches  30  15  7.5 
b. 2 approaches  25  12.5  6.25 
c. 1 approach  20  10  5 
(2) SUMMARY       
a. 3 approaches  25  12.5  6.25 
b. 2 approaches  20  10  5 
c. 1 approach  15  7.5  3.75 
(3) RESTRICTED       
a. 3 approaches  20  10  5 
b. 2 approaches  15  7.5  3.75 
c. 1 approach  10  5  2.5 
(G) PROPERTY TYPE-Commercial/Industrial       
Existing Multi-Tenant       
(1) SELF-CONTAINED       
a. 3 approaches  50  25  12.5 
b. 2 approaches  40  20  10 
c. 1 approach  30  15  7.5 
(2) SUMMARY       
a. 3 approaches  40  20  10 
b. 2 approaches  30  15  7.5 
c. 1 approach  20  10  5 
(3) RESTRICTED       
a. 3 approaches  30  15  7.5 
b. 2 approaches  20  10  5 
c. 1 approach  10  5  2.5 
(H) PROPERTY TYPE-Commercial/Industrial       
Proposed Multi-Tenant       
(1) SELF-CONTAINED       
a. 3 approaches  60  30  15 
b. 2 approaches  50  25  12.5 
c. 1 approach  40  20  10 
(2) SUMMARY       
a. 3 approaches  50  25  12.5 
b. 2 approaches  40  20  10 
c. 1 approach  30  15  7.5 
(3) RESTRICTED       
a. 3 approaches  40  20  10 
b. 2 approaches  30  15  7.5 
c. 1 approach  20  10  5 
 
GENERAL - RIGHT OF WAY APPRAISALS 
  
    APPRAISAL  DOCUMENTARY REVIEW 
    PERFORMED BY APPLICANT  WITH FIELD REVIEW AND SEPARATE REPORT  WITHOUT FIELD REVIEW AND SEPARATE REPORT 
WORK PERFORMED    I  II  III 
    Hours  Hours  Hours 
    Value  Value  Value 
(A) PROPERTY TYPE-Multi-Family R/W         
5-12 Units         
(1) Long Form         
a. 3 approaches    45  22.5  11.25 
b. 2 approaches    40  20  10 
c. 1 approach    35  17.5  8.75 
(2) Short Form         
a. 3 approaches    40  20  10 
b. 2 approaches    35  17.5  8.75 
c. 1 approach    20  10  5 
(3) Value Finding         
a. 3 approaches    NA  NA  NA 
b. 2 approaches    NA  NA  NA 
c. 1 approach    8  4  2 
(3) Waiver Valuation         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    4  N/A  N/A 
(M) PROPERTY TYPE-Multi-Family R/W         
13+ Units         
(J) Long Form         
a. 3 approaches    50  25  12.5 
b. 2 approaches    45  22.5  11.25 
c. 1 approach    40  20  10 
(2) Short Form         
a. 3 approaches    45  22.5  11.25 
b. 2 approaches    40  20  10 
c. 1 approach    35  17.5  8.75 
(3) Value Finding         
a. 3 approaches    NA  NA  NA 
b. 2 approaches    NA  NA  NA 
c. 1 approach    8  4  2 
(3) Waiver Valuation         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    4  N/A  N/A 
(N) PROPERTY TYPE-Commercial/Industrial R/W         
Single Tenant         
(1) Long Form         
a. 3 approaches    60  30  15 
b. 2 approaches    50  25  12.5 
c. 1 approach    40  20  10 
(2) Short Form         
a. 3 approaches    50  25  12.5 
b. 2 approaches    40  20  10 
c. 1 approach    30  15  7.5 
(3) Value Finding         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    8  4  2 
(3) Waiver Valuation         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    4  N/A  N/A 
(O) PROPERTY TYPE-Commercial/Industrial R/W         
Multi-Tenant Tenant         
(1) Long Form         
a. 3 approaches    80  40  20 
b. 2 approaches    70  35  17.5 
c. 1 approach    60  30  15 
(2) Short Form         
a. 3 approaches    70  35  17.5 
b. 2 approaches    60  30  15 
c. 1 approach    50  25  12.5 
(3) Value Finding         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    8  4  2 
(3) Waiver Valuation         
a. 3 approaches    N/A  N/A  N/A 
b. 2 approaches    N/A  N/A  N/A 
c. 1 approach    4  N/A  N/A 

(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.
(Indiana Real Estate Commission; 876 IAC 3-3-13.2; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA)


SECTION 12. 876 IAC 3-3-14 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-14 Examination for three licenses issued by the board

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 14. (a) This section and sections 15 through 19 of this rule govern the examination for the four (4) three (3) licenses issued by the board.

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

(c) Notwithstanding subsection (b), an individual who holds an Indiana licensed trainee appraiser license and applies for an Indiana licensed residential appraiser license shall not be required to pass an examination to receive that license.

(d) (c) An applicant for licensure shall obtain a license within one hundred twenty (120) days (1) year of passing the examination. An applicant failing to obtain a license within one hundred twenty (120) days (1) year shall:
(1) have the applicant's examination results voided; and shall
(2) not be eligible for licensure.

(e) (d) Notwithstanding subsection (d), (c), the board may grant a license to an applicant who has not obtained a license within one hundred twenty (120) days (1) year of passing the examination if the applicant demonstrates a good faith reason for not obtaining the license within one hundred twenty (120) days. (1) year.

(f) (e) If an applicant's examination results are voided under subsection (d), (c), the applicant must:
(1) file a new application for examination; and
(2) pay the appropriate fees.
(Indiana Real Estate Commission; 876 IAC 3-3-14; filed Sep 24, 1992, 9:00 a.m.: 16 IR 745; filed Dec 8, 1993, 4:00 p.m.: 17 IR 777; filed Jun 14, 1995, 11:00 a.m.: 18 IR 2791; filed Dec 24, 1997, 11:00 a.m.: 21 IR 1763; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 13. 876 IAC 3-3-22 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-3-22 Indiana licensed trainee appraiser; examination; licensure procedures

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 22. (a) An applicant for an Indiana licensed trainee appraiser license or certificate shall be required to pass the Indiana licensed residential appraiser examination under sections 14(b) and 18 of this rule.

(b) After an applicant passes the examination and pays the fee required by 876 IAC 3-2-7(b)(2) or 876 IAC 3-2-7(b)(3), the board shall do the following:
(1) Issue a wall certificate in the name of the Indiana licensed trainee appraiser to a licensed or certified appraiser who certifies the Indiana licensed trainee appraiser's association with the licensed or certified appraiser.
(2) Issue to the Indiana licensed trainee appraiser an identification card which: that:
(A) certifies that the Indiana licensed trainee appraiser is licensed; and
(B) indicates the:
(i) expiration date of the license; and the
(ii) name of the licensed or certified appraiser with whom the licensed trainee appraiser is associated.

(c) If the Indiana licensed trainee appraiser has not associated with a licensed or certified appraiser, the trainee may be issued an inactive license, either upon:
(1) initial issuance of the license; or upon
(2) the ending of a previous association with a licensed or certified appraiser.
However, the license shall become void if the Indiana trainee appraiser is not associated with a licensed or certified appraiser described in subsection (b)(1) within three (3) years after issuance of the inactive license.

(d) Upon termination of an Indiana licensed trainee appraiser's association with a licensed or certified appraiser described in subsection (b)(1), the trainee's license shall be returned to the Indiana professional licensing agency within five (5) working days. The Indiana professional licensing agency shall reissue the license to any licensed or certified appraiser upon application as described in subsection (b)(1).
(Indiana Real Estate Commission; 876 IAC 3-3-22; filed Dec 8, 1993, 4:00 p.m.: 17 IR 778; filed Jun 14, 1995, 11:00 a.m.: 18 IR 2792; errata filed Nov 13, 1995, 10:00 a.m.: 19 IR 675; filed Dec 24, 1997, 11:00 a.m.: 21 IR 1764; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; filed Dec 3, 2002, 3:00 p.m.: 26 IR 1107; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 14. 876 IAC 3-6-9 IS AMENDED TO READ AS FOLLOWS:

876 IAC 3-6-9 Indiana licensed trainee appraisers; supervision

Authority: IC 25-34.1-3-8
Affected: IC 25-34.1


Sec. 9. (a) This section establishes requirements for the use and supervision of Indiana licensed trainee appraisers.

(b) Indiana licensed trainee appraisers shall be subject to direct supervision, including inspection of all properties except as allowed by subsection (i), by a supervising appraiser:
(1) who:
(A) shall be licensed a certified residential appraiser or certified general appraiser in Indiana; and
(B) had no disciplinary action within the last two (2) years; and
(2) whose license or certificate is not currently on probation or suspended or has been revoked.

(c) The supervisor shall be responsible for the direct supervision of the Indiana licensed trainee appraiser by signing and certifying the report as in compliance with the Uniform Standards of Professional Appraisal Practice. Notwithstanding subsection (b)(1)(A), a licensed residential appraiser who was supervised by a licensed residential appraiser before January 1, 2008, may continue to be supervised by that licensed residential appraiser until December 31, 2009.

(d) The Indiana licensed trainee appraiser is permitted to have more than one (1) supervising appraiser in the office of the licensed or certified appraiser holder of record with whom the Indiana licensed appraiser has associated under 876 IAC 3-3-22.

(e) Effective January 1, 2004, a certified or licensed An appraiser may not be the supervising appraiser for more than two (2) trainees.

(f) An appraisal log shall be maintained by the Indiana licensed trainee appraiser and supervising appraiser and shall, at a minimum, include the following for each appraisal:
(1) Client name. and address.
(2) Address of appraised property.
(3) Description of work performed and scope of the review and supervision of the supervising appraiser.
(4) Number of work hours.
(5) Type of property.
(6) Date of report.

(g) The supervising appraiser shall:
(1) review and sign the appraisal log annually; and
(2) provide the log to the trainee; and
(3) include his or her state certification number.
It is the responsibility of the trainee to retain the log for submission to the board with any future application for license certification. The trainee shall be entitled to copies of appraisals, including appraisal reports and any work files, that the trainee completes.

(h) Separate appraisal logs shall be maintained by each supervising appraiser.

(i) The Indiana licensed trainee appraiser shall be subject to direct supervision until the Indiana licensed trainee appraiser is competent in accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice, as adopted in section 2 of this rule, to perform appraisals for the specific property type. After the Indiana licensed trainee appraiser demonstrates competency, the supervising appraiser is not required to inspect the properties. However, the supervising appraiser must continue to sign and accept full responsibility for all appraisals performed by the Indiana licensed trainee appraiser.

(j) In addition to the requirements in subsection (i), the supervising appraiser shall accompany the Indiana licensed trainee appraiser and inspect the subject and comparable properties on the following appraisal assignments:
(1) The first fifty (50) assignments performed by the trainee.
(2) During the first year the trainee holds an active license, all assignments located more than fifty (50) miles from the supervising appraiser's office.

(k) Subsections (e) and (j) do not apply when an Indiana licensed trainee appraiser is an employee of a governmental entity acting in the course of the governmental entity's activities.
(Indiana Real Estate Commission; 876 IAC 3-6-9; filed Dec 8, 1993, 4:00 p.m.: 17 IR 782; filed Apr 10, 1995, 10:00 a.m.: 18 IR 2124; readopted filed May 29, 2001, 10:00 a.m.: 24 IR 3238; filed Dec 3, 2002, 3:00 p.m.: 26 IR 1108; filed Dec 1, 2003, 9:45 a.m.: 27 IR 1182; readopted filed Jul 19, 2007, 1:16 p.m.: 20070808-IR-876070068RFA; filed Aug 15, 2007, 10:01 a.m.: 20070912-IR-876060095FRA, eff Jan 1, 2008)


SECTION 15. THE FOLLOWING ARE REPEALED: 876 IAC 3-3-3; 876 IAC 3-3-4; 876 IAC 3-3-5.

SECTION 16. 876 IAC 3-3-13 IS REPEALED.

SECTION 17. SECTIONS 1 through 4 and 6, 8, 9, and 12 through 15 of this document take effect January 1, 2008.

LSA Document #06-95(F)
Notice of Intent: May 1, 2006; 29 IR 2593
Proposed Rule: 20070328-IR-876060095PRA
Hearing Held: May 23, 2007
Approved by Attorney General: July 30, 2007
Approved by Governor: August 15, 2007
Filed with Publisher: August 15, 2007, 10:01 a.m.
Documents Incorporated by Reference: None Received by Publisher
Small Business Regulatory Coordinator: Nicholas Rhoad, Indiana Professional Licensing Agency, Indiana Government Center-South, 402 West Washington Street, Room W072, Indianapolis, Indiana 46204, (317) 234-3046, nrhoad@pla.in.gov

Posted: 09/12/2007 by Legislative Services Agency

DIN: 20070912-IR-876060095FRA
Composed: Apr 26,2024 6:10:40PM EDT
A PDF version of this document.