201 KAR 30:050. Examination and experience requirement

Link to law: http://www.lrc.ky.gov/kar/201/030/050.htm
Published: 2015

      201 KAR 30:050. Examination and

experience requirement.

 

      RELATES TO: KRS 324A.010, 324A.035(1),

(3), 324A.040(2), 12 U.S.C. 3331-3351

      STATUTORY AUTHORITY: KRS 324A.020,

324A.035(1), (3), 12 U.S.C. 3331 - 3351

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 324A.035(1)

requires the board to establish by administrative regulation requirements for

certification or licensure of appraisers of real property in federally related

transactions. KRS 324A.035(3)(d), (e), and (f) require the board to establish

by administrative regulations requirements for experience and examination of

applicants. 12 U.S.C. 331 through 3351 authorizes requirements for certification

or licensure of appraisers of real property in federally related transactions.

This administrative regulation establishes the examination and experience

requirements for appraisers of real property in federally related transactions.

 

      Section 1. Examination. (1) An applicant

for certification as a certified general real property appraiser, certified

residential real property appraiser, or licensed real property appraiser shall

pass an examination specific for the certification or license applied for and approved

by:

      (a) The board; and

      (b) The Appraiser Qualifications Board of

the Appraisal Foundation.

      (2) A score from an examination shall no

longer be acceptable for licensure after two (2) years from the date on which

the applicant takes and passes the examination.

      (3) An applicant shall complete all the

education and experience requirements for the credential which the individual

is seeking prior to being approved to sit for the national appraisal

examination.

      (4)(a) An individual shall submit a

complete Appraiser License/Certification Application, incorporated by reference

in 201 KAR 30:030, which documents the completed education and experience to

the board prior to being approved to sit for the national appraisal

examination.

      (b) The applicant shall submit the

following information with the application:

      1. Proof of completion of the education

required by 201 KAR 30:190;

      2. Proof of completion of the required

experience as established in Section 2 of this administrative regulation, including

any reports identified by the board; and

      3. The fee required by 201 KAR 30:060.

      (5)(a) An applicant shall verify experience

credit on the Appraiser Assignment Log.

      (b) An applicant shall submit

satisfactory reports, file memoranda, and other documentation requested by the

board to confirm the applicant's appraisal experience.

 

      Section 2. Required Experience. (1)(a) For

certification as a general real property appraiser, at least 1,500 hours of

appraisal experience shall consist of nonresidential appraisal experience.

      1. More than fifty (50) percent of the

general experience shall not be claimed for appraisal review or appraisal

consulting assignments.

      2. More than fifty (50) percent of the

general experience shall not be claimed for appraisal of vacant land.

      3. At least fifty (50) percent of the

general experience claimed shall include development of the cost approach,

sales comparison approach, and income approach.

      4. More than fifty (50) percent of the

general experience shall not be claimed for restricted use appraisal reports.

      (b) Prior to certification as a general

real property appraiser, an applicant shall have acquired 3,000 hours of

appraisal experience. This experience shall not be acquired in a period of

fewer than thirty (30) calendar months.

      (2) Prior to certification as a

residential real property appraiser, an applicant shall have acquired 2,500

hours of appraisal experience. This experience shall not be acquired in a

period of fewer than twenty-four (24) calendar months.

      (a) More than fifty (50) percent of the

residential experience shall not be claimed for appraisal review or appraisal

consulting assignments.

      (b) More than fifty (50) percent of the

residential experience shall not be claimed for appraisal of vacant land.

      (c) At least fifty (50) percent of the

residential experience claimed shall include development of the cost approach,

sales comparison approach, and income approach.

      (d) More than fifty (50) percent of the

residential experience shall not be claimed for restricted use appraisal

reports.

      (3) Prior to licensure as a licensed real

property appraiser, an applicant shall have acquired 2,000 hours of appraisal

experience. This experience shall not be acquired in a period of fewer than twenty-four

(24) calendar months.

      (a) More than fifty (50) percent of the

residential experience shall not be claimed for appraisal review or appraisal consulting

assignments.

      (b) More than fifty (50) percent of the

residential experience shall not be claimed for appraisal of vacant land.

      (c) At least fifty (50) percent of the

residential experience claimed shall include development of the cost approach,

sales comparison approach, and income approach.

      (d) More than fifty (50) percent of the

residential experience shall not be claimed for restricted use appraisal

reports.

      (4) More than fifty (50) percent of the

required experience credit shall not be obtained for appraisal assignments

without a traditional client being identified.

      (5) More than fifty (50) percent of the

required experience credit shall not be obtained in a board-approved practicum

course that requires students to:

      (a) Produce credible appraisals that

utilize an actual subject property;

      (b) Perform market research containing

sales analysis;

      (c) Perform assignments that require

problem solving skills for a variety of property types; and

      (d) Apply and report the appraisal

approaches in compliance with the Uniform Standards of Professional Appraisal

Practice (USPAP), incorporated by reference in 201 KAR 30:040.

      (6) The appraisal experience required by

this section may have been acquired in any calendar years, whether or not the

calendar years are consecutive. Hours may be treated as cumulative in order to

achieve the necessary hours of appraisal experience.

      (7) Real property appraisal assignments

submitted for experience credit shall be completed:

      (a) In compliance with the requirements of

USPAP as incorporated in 201 KAR 30:040 and defined in KRS 324A.010(7);

      (b) Under the supervision of a certified

residential real property appraiser for experience of one (1) to four (4) unit

residential properties; and

      (c) Under the supervision of a certified

general real property appraiser for experience of all property uses other than one

(1) to four (4) unit residential properties.

      (8) To count towards the requirements of

this section, the experience shall be acquired while the applicant is licensed

or certified by the board as one (1) of the types of appraisers identified in

201 KAR 30:030, Section 1(2), (3), or (4).

 

      Section 3. The requirements of USPAP

shall not apply to the board, its agents, and employees while conducting an

appraisal review for purposes of confirming an applicant's experience pursuant

to this administrative regulation.

 

      Section 4. Incorporation by Reference.

(1) "Appraiser Assignment Log", 8/09, is incorporated by reference.

      (2) This material may be inspected,

copied, or obtained, subject to applicable copyright law, at the Kentucky Real

Estate Appraisers Board, 135 W. Irvine Street, Suite

301, Richmond, Kentucky 40475, (859) 623-1658, Monday through Friday, 8

a.m. to 4:30 p.m. (19 Ky.R. 2167; Am. 2461; eff. 7-9-93; 20 Ky.R. 2051; eff.

3-1-94; 21 Ky.R. 2727; 22 Ky.R. 277; eff. 8-10-95; 24 Ky.R. 2736; eff. 8-17-98;

27 Ky.R. 1540; 2429; eff. 3-19-2001; 28 Ky.R. 1488; 1823; eff. 2-11-2002; 29

Ky.R. 2502; 2865; eff. 6-16-03; 32 Ky.R. 121; 478; eff. 10-7-05; 34 Ky.R. 2209;

2392; eff. 6-6-2008; 36 Ky.R. 152; 569; eff. 10-2-2009; TAm eff. 12-28-2009; 37

Ky.R. 2047; 2380; eff. 5-6-2011; 38 Ky.R. 1768; 1947; eff. 7-6-2012; 39 Ky.R.

1488; 1875; eff. 4-5-2013.)
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