Section .0100 – Application For Appraisal Management Registration

Link to law: http://reports.oah.state.nc.us/ncac/title 21 - occupational licensing boards and commissions/chapter 57 - appraisal board/subchapter d/subchapter d rules.html
Published: 2015

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SUBCHAPTER 57D – APPRAISAL MANAGEMENT COMPANIES

 

SECTION .0100 – APPLICATION FOR APPRAISAL management

REGISTRATION

 

21 NCAC 57D .0101          FORM

An appraisal management company that wishes to file an

application for an appraisal management company certificate of registration may

obtain the required form upon request to the Board or on the Board's website at

www.ncappraisalboard.org. The form calls for information such as:

(1)           the legal name of the applicant;

(2)           the name under which the applicant will do

business in North Carolina;

(3)           the type of business entity;

(4)           the address of its principal office;

(5)           the applicant's NC Secretary of State Identification

Number if required to be registered with the Office of the NC Secretary of

State;

(6)           a completed application for approval of the

compliance manager;

(7)           any past criminal conviction of and any

pending criminal charge against any person or entity that owns ten percent or

more of the appraisal management company;

(8)           any past revocation, suspension, or denial

of an appraisal license of any person or entity that owns ten percent or more

of the appraisal management company;

(9)           if a general partnership, a description of

the applicant entity, including a copy of its written partnership agreement or

if no written agreement exists, a written description of the rights and duties

of the several partners;

(10)         if a business entity other than a corporation,

limited liability company, or partnership, a description of the organization of

the applicant entity, including a copy of its organizational documents;

(11)         if a foreign business entity, a certificate

of authority to transact business in North Carolina and an executed consent to

service of process and pleadings; and

(12)         a certification that the applicant has

obtained a surety bond as required by G.S. 93E-2-4(g).

Incomplete applications shall not be acted upon by the

Board.

 

History Note:        Authority G.S. 93E-2-4; S.L. 2013-403;

Eff. January 1, 2011;

Amended Eff. July 1, 2014.

21 NCAC 57D .0102          Filing and Fees

(a)  Each application for registration shall be accompanied

by the required application fee.  The Board shall reject and return to the

applicant any application which is incomplete or not accompanied by the

required fee or fees.  Application fees accompanying complete applications are

not refundable.

(b)  The application fee shall be thirty-five hundred

dollars ($3,500).

(c)  Payment of application fees shall be made by certified

check, bank check or money order payable to the North Carolina Appraisal Board.

(d)  In the event that the Board asks an applicant to submit

updated information or provide further information necessary to complete the

application and the applicant fails to submit such information within 90 days

following the Board's request, the Board shall cancel the applicant's

application and the application fee shall be retained by the Board. An

applicant whose application has been cancelled and who wishes to obtain a

registration must start the process over by filing a complete application with

the Board and paying all required fees.

(e)  An applicant may request that its application be

withdrawn at any time before final action is taken by the Appraisal Board on

the application. The application fee shall not be refunded. 

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-6;



Eff. January 1, 2011;

Amended Eff. January 1, 2013.

 

section .0200 – appraisal management company registration

 

21 NCAC 57D .0201          FITNESS FOR REGISTRATION

(a)  The Appraisal Board shall consider the fitness for

registration of each applicant. When the fitness of an applicant is in

question, action by the Board shall be deferred until the applicant has

affirmatively demonstrated that the applicant possesses the requisite

competency, truthfulness, honesty and integrity.

(b)  When the application is deferred, the Board shall

notify the applicant and the applicant shall be entitled to demonstrate his or

her fitness for registration at a hearing before the Board.

(c)  The inquiry into fitness for registration shall include

consideration of whether the applicant has had any disciplinary action taken

against any professional license in North Carolina or any other state, and

whether the applicant has committed or done any act which would be grounds for

disciplinary action including the suspension or revocation of registration, and

whether the applicant has been convicted of or pleaded guilty to any criminal

act, and whether any such actions or charges are pending.

(d)  All applicants shall obtain a criminal records check pursuant

to G.S. 93E-2-11.  This records check must have been performed within 60 days

of the date the completed application for registration is received by the

Board.  Applicants shall pay all required fees required to perform the check.

(e)  Notice to the applicant that its competency or fitness

for registration is in question shall be in writing, sent by certified mail,

return receipt requested, to the address shown upon the application.  The

applicant has 60 days from the date of receipt of this notice to request a

hearing before the Board.  Failure to request a hearing within this time

constitutes a waiver of the applicant's right to a hearing on its application

for registration, and the application shall be deemed denied.  Nothing in this

Rule shall be interpreted to prevent an applicant from reapplying for

registration.

(f)  For the purposes of this Section, "applicant"

shall mean any person owning 10 percent or more of the appraisal management

company.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-11;

Eff. February 1, 2011.

 

21 NCAC 57D .0202          REGISTRATION RENEWAL

(a)  All registrations expire on June 30, 2012 and every

June 30 of each year thereafter unless renewed before that time. The renewal

period shall be from May 1 through June 30 of each year.

(b)  A holder of an appraisal management company

registration desiring the renewal of such registration shall apply in writing

upon the form provided by the Board and shall forward the renewal fee. The

renewal fee shall be two thousand dollars ($2000).  The renewal fee is not

refundable under any circumstances.

(c)  Any company who acts or holds itself out as a

registered appraisal management company while its appraisal management company

registration is expired is subject to disciplinary action and penalties as

prescribed in G.S. 93E-2-8 and G.S. 93E-2-10.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-6;

Eff. January 1, 2011;

Amended Eff. July 1, 2014.

 

21 NCAC 57D .0203          EXPIRED REGISTRATION

(a)  Expired registrations may be reinstated within six

months after expiration upon proper application and payment to the Board of the

renewal fee of two thousand dollars ($2,000) and the late filing fee of twenty dollars

($20.00) for each month or part thereof that the registration is lapsed, not to

exceed one hundred twenty dollars ($120.00).

(b)  Reinstatement is not retroactive.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-6;

Eff. January 1, 2011.

 

21 NCAC 57D .0204          PAYMENT OF FEES TO THE BOARD

Checks given the Board in payment of fees that are returned

unpaid are cause for registration denial, suspension or revocation.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-8(a)(7);

Eff. January 1, 2011.

 

section .0300 – appraisal management company procedures

 

21 NCAC 57D .0301          USE OF REGISTRATION NUMBER

A real estate appraisal management company shall state its

North Carolina registration number on any appraisal order for a property

located in North Carolina.

 

History Note:        Authority G.S. 93E-2-3;

Eff. January 1, 2011.

 

21 NCAC 57D .0302          CHANGE OF NAME OR CONTACT INFORMATION

Appraisal management companies shall notify the Board in

writing of each change of trade name, business address, telephone number, or

email address within 10 days of said change.  The address shall be sufficiently

descriptive to enable the Board to electronically correspond with and

physically locate the appraisal management company.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-9;

Eff. January 1, 2011.

 

21 NCAC 57D .0303          COMPLIANCE MANAGER

(a)  A compliance manager shall be designated with the Board

for each appraisal management company.  The compliance manager shall be a

certified real estate appraiser certified under Article I of this chapter or in

another state.

(b)  An appraisal management company shall file an

application with the Board for approval of the designated compliance manager.

This application shall provide the Board with information such as the

compliance manager's name, mailing and physical address, and phone and email

contact information, and shall be signed by the designated compliance manager. The

application may be accessed at the Board's website at www.ncappraisalboard.org.

(c)  The designated compliance manager shall obtain a

criminal records check pursuant to 93E-2-11. Applicants shall pay all required

fees to perform the check. This records check shall have been performed within

60 days of the date the completed application is received by the Board. The

criminal records check results must be attached to the application for approval

as a compliance manager.

(d)  The designated compliance manager is responsible for:

(1)           the notification to the Board of any change

of trade name or contact information of  the appraisal management company and

the registration of any assumed business name adopted by the appraisal

management company for its use;

(2)           the retention and maintenance of records

relating to appraisals conducted by or on behalf of the appraisal management

company;

(3)           the maintenance of a record of all

appraisers in North Carolina who perform appraisals for the appraisal

management company, including a log of payments to appraisers; and

(4)           the conduct of advertising of appraisal

management services by or in the name of the appraisal management company;

(e)  If an appraisal management company intends to change

its compliance manager, it must submit an application for approval of the new

compliance manager at least 10 business days before the effective date of the

change.  The form may be accessed at the Board's website at

www.appraisalboard.org.

(f)  If a compliance manager leaves the appraisal management

company and the company is unable to give at least 10 days' notice of the

change, the company shall have 15 business days from the date the compliance

manager leaves to obtain a new compliance manager.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b);

93E-2-5;

Eff. January 1, 2011;

Amended Eff. July 1, 2014.

 

21 NCAC 57D .0304          APPRAISER QUALIFICATIONS

An appraisal management company shall assure that any

appraiser being added to its appraiser panel to appraise properties in North

Carolina holds a license in good standing in this State pursuant to the North Carolina

Appraisers Act. The appraisal management company shall verify the status of the

appraiser by contacting the North Carolina Appraisal Board or by utilizing the

National Registry of the Appraisal Subcommittee.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(f);

Eff. January 1, 2011.

 

21 NCAC 57D .0305          APPRAISER COMPETENCY

Before an appraiser is added to a panel, an appraisal

management company shall require the appraiser to declare in writing the

appraiser's areas of geographic competency, the types of properties the

appraiser is competent to appraise, and the methodologies the appraiser is

competent to perform.  The appraisal management company shall require the

appraiser to update this information at least annually, and shall keep copies

of all such declarations for a period of five years from the date they are

submitted.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b);

Eff. January 1, 2011.

 

21 NCAC 57D .0306          APPRAISAL REVIEW

An appraisal management company shall review the work of all

independent appraisers that are performing real estate appraisal services for

the appraisal management company to validate that the real estate appraisal

services are being conducted in accordance with USPAP.  An appraisal management

company is not required to review all appraisals performed by each appraiser,

but may chose a representative sample of each appraiser's reports.  An

appraisal management company must review each appraiser's work at least once a

year, and shall keep records of such reviews for a period of five years from

the date they are done.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b);

93E-2-9;

Eff. January 1, 2011.

 

21 NCAC 57D .0307          RECORDS

(a)  An appraisal management company shall maintain a record

of each request it receives for its services in North Carolina.  If an

appraisal is ordered, the record shall include the name of the appraiser who

performs the appraisal, the physical address or legal identification of the

subject property, the name of the appraisal management company's client for the

appraisal, and the amount paid to the appraiser.

(b)  The Board shall maintain a list of all applicants for

registration under this Article that includes for each applicant the date of

application, the name and primary business location of the applicant, phone and

email contact information, and whether the registration was granted or refused.

(c)  A registered appraisal management company shall

maintain the accounts, correspondence, memoranda, papers, books, and other

records related to services provided by the appraisal management company.  Such

records may be maintained in electronic form.  All records shall be preserved

for five years.

(d)  If the information contained in any document filed with

the Board is or becomes inaccurate or incomplete in any material respect, the

appraisal management company shall file a correcting amendment to the

information contained in the document to the Board within 10 days of the

change.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-9;

Eff. January 1, 2011.

 

21 NCAC 57D .0308          PRODUCTION OF RECORDS

If an appraisal management company is requested to produce

books and records to the Appraisal Board pursuant to G.S. 93E-2-8(g) or 93E-2-8(i),

the appraisal management company shall produce those records so that they may

be viewed in the Appraisal Board's office in Raleigh, North Carolina.  Books

and records shall be produced in writing, by computer disc or by electronic

delivery.  If the appraisal management company is unable to comply, the company

shall pay all costs associated with viewing the records in another location.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-8;

Eff. January 1, 2011.

 

21 NCAC 57D .0309          COMPLAINTS AGAINST APPRAISERS

If an appraisal management company has a good faith belief

that a real estate appraiser licensed in this State has violated applicable law

or the Uniform Standards of Professional Appraisal Practice, or engaged in

unethical conduct, it shall file a complaint with the Board.  The complaint

shall be filed within 90 days of the date the appraisal is submitted to the

appraisal management company.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(c);

Eff. January 1, 2011.

 

21 NCAC 57D .0310          PAYMENT OF FEES TO APPRAISERS

(a)  Appraisal management companies shall pay fees to an

appraiser within 30 days of the date the appraisal is first transmitted by the real

estate appraiser to the company as follows:

(1)           If payment is made by electronic means, the

funds for the fee shall be deposited into the appraiser's account so that they

are available to the appraiser on the 31st day following the date the appraisal

is first transmitted to the company.

(2)           If payment is made by check, the check

shall be postmarked no later than the 30th day following the date the appraisal

is first transmitted to the company.

(b)  If an appraisal management company decides that it will

not pay a fee to an appraiser for an appraisal, the appraisal management

company shall notify the appraiser in writing of the reason for nonpayment.

Such notice shall be sent to the appraiser within 30 days after the date the

appraiser first transmits the appraisal to the appraisal management company by any

established method that provides proof of delivery, including registered mail,

return receipt requested. The notice shall state the address of the subject

property of the appraisal, the name of the appraiser(s) signing the report, and

the reason why the fee shall not be paid. The notice shall also notify the

appraiser of any dispute resolution process that the appraisal management

company may have in place.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-4(d);

Eff. January 1, 2011;

Amended Eff. July 1, 2014.

 

21 NCAC 57D .0311          Removal of an Appraiser from an

Appraisal Panel

(a)  If an appraisal management company decides to remove an

independent appraiser from its list of qualified appraisers, the appraisal

management company shall notify the appraiser in writing of the reason for

removal.

(b)  Such notice shall be sent to the appraiser by any

established method that provides proof of delivery, including but not limited

to registered mail, return receipt requested.

(c)  If applicable, the notice shall include a description

of the appraiser's illegal conduct, substandard performance, or otherwise

improper or unprofessional behavior, or of any violation of the Uniform

Standards of Professional Appraisal Practice or state licensing standards.

(d)  The appraisal management company shall also notify the

appraiser of any dispute resolution process that it may have in place through

which the appraiser may dispute the removal.

 

History Note:        Authority G.S. 93E-2-3; 93E-2-7(a);

Eff. January 1, 2011;

Amended Eff. January 1, 2013.

 

21 NCAC 57D .0312          Requesting Additional Information from

an Appraiser

An appraisal management company may request that a real

estate appraiser who performs an appraisal for the appraisal management company

provide additional information as follows:

(1)           An appraisal management company may request

that the appraiser consider additional appropriate property information

including relevant sales data and property characteristics. Such request shall

be made within 30 days of the date the appraisal is first transmitted by the

appraiser to the appraisal management company.

(2)           An appraisal management company may request

that the appraiser provide further detail, substantiation, or explanation for

the appraiser's value conclusion, or to correct errors in an appraisal report.

There is no time limit on such requests.

(3)           Any request under this Rule shall be sent

to the appraiser in writing or by electronic means. 

 

History Note:        Authority G.S. 93E-2-3; 93E-2-7;

Eff. January 1, 2011;

Amended Eff. January 1, 2013.

 

section .0400 – appraisal management company general practices

 

21 NCAC 57D .0401          BUSINESS PRACTICES

An appraisal management company may not:

(1)           prohibit an appraiser from stating on an appraisal

the fee the appraiser was paid by the company for the appraisal;

(2)           prohibit an appraiser from stating on an appraisal

the appraiser's primary business address; or

(3)           prohibit an appraiser from informing a property

owner, lender, or any other person or entity the appraiser's primary business

address.

 

History Note:        Authority G.S. 93E-2-3; 93E-7;

Eff. January 1, 2011.