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.
