Idaho Admin. Code r. 24.18.01.100

Current through September 2, 2024

Section 24.18.01.100 - LICENSURE

All applicants for licensure must comply with the following requirements:

01.Education. Classroom hours will be credited only for the Required Core Curriculum as outlined by the AQB.

a. Credit toward the classroom hour requirement may only be granted where:

i. The length of the educational offering is at least fifteen (15) hours, and the individual successfully completes a closed-book examination, or;

ii. A Trainee Appraiser successfully completes a course which meets the AQB content requirements of the Valuation Bias and Fair Housing Laws and Regulations Outline.

iii. Distance education courses intended for use as qualifying education must include a written, proctored closed-book final examination - proctored by an official approved by the college or university or by the sponsoring organization. Biometric proctoring is acceptable. The testing must be in compliance with the examination requirements of this section.

b. Credit for the classroom hour requirement may be obtained: from Colleges or Universities; Community or Junior Colleges, the Appraisal Foundation or its boards; State or Federal Agencies or commissions; or other providers approved by the Board.

c. Only those courses completed preceding the date of application will be accepted for meeting educational requirements.

d. Course credits that are obtained from the course provider by challenge examination without attending the course will not be accepted.

e. Credit toward education requirements may be obtained through completion of a degree in Real Estate from an accredited degree-granting college or university approved by the Association to Advance Collegiate Schools of Business, or a regional or national accreditation agency recognized by the US Secretary of Education whose curriculum has been reviewed and approved by the AQB.

f. Applicants with a college degree from a foreign country may have their education evaluated for equivalency by one (1) of the following:

i. An accredited, degree-granting domestic college or university;

ii. The American Association of Collegiate Registrars and Admissions Officers (AACRAO);

iii. A foreign degree credential evaluation services company that is a member of the National Association of Credential Evaluation Services (NACES); or

iv. A foreign degree credential evaluation service company that provides equivalency evaluation.

02.Experience.

a. The work product claimed must be in conformity with USPAP. All appraisal experience must be obtained as a registered trainee, licensed or certified appraiser, or participant in an AQB approved PAREA program. For Registered Trainees, only experience gained during the five (5) years immediately preceding application will be considered. Each applicant must verify completion of the required experience on a Board approved form. An appraisal log that contains the following must be submitted:

i. Type of property;

ii. Address of the property;

iii. Report date;

iv. Description of work performed by the trainee/applicant and scope of the review and supervision of the Supervisory Appraiser;

v. Number of work hours by the trainee/applicant on the assignment;

vi. Signature and certification number of the Supervisory Appraiser.

b. Ad valorem tax appraisers must demonstrate the use of techniques to value properties similar to those used by appraisers and effectively use the process as defined in Subsection 004.05, Field Real Estate Appraisal Experience.

c. PAREA programs approved by the AQB may serve as an alternative pathway to the experience requirements, subject to the following rules:

i. Applicants may not receive partial credit for PAREA training;

ii. Applicants may not receive a certificate of completion until all required components of PAREA training have been successfully completed and approved by a program mentor;

iii. Certificates of completion must be signed by an individual from the training entity qualified to verify an applicant's successful completion and;

iv. Certificates of completion must not contain an expiration date or other constraints that either limit or restrict the applicant's ability to receive appropriate credit.

03.Examination. A passing grade on an examination approved by the Board pursuant to the guidelines of the AQB.

04.Registered Real Estate Appraiser Trainee.

a. Qualifications. An applicant must have completed seventy-five (75) hours of qualifying education as specified in the Required Core Curriculum within the last five (5) years, consisting of not less than thirty (30) hours of Basic Appraisal Principles, including: fifteen (15) hour National USPAP course or AQB approved equivalent.

b. Appraisers holding a Licensed Residential Real Property Appraiser credential satisfy the educational requirements for the Trainee Appraiser credential.

i. Each trainee applicant shall pass the end of course examinations in each of the prerequisite courses in order to earn credit.

ii. Prior to registration as an Appraiser Trainee, each applicant must complete a trainee appraiser course that complies with the requirements established by the AQB.

iii. An Appraiser Trainee shall not be involved in the appraisal of any property that exceeds the scope of practice of the Supervisory Appraiser, and is subject to USPAP.

iv. Each Appraiser Trainee is permitted to have more than one (1) Supervisory Appraiser. An appraisal log shall be maintained jointly.

c. Prior to the second and subsequent renewals, an appraiser trainee shall be required to obtain the equivalent of twenty-eight (28) classroom hours of instruction in approved courses or seminars. Once every twenty-four (24) months, registered appraiser trainees will be required to attend an approved seven-hour USPAP Continuing Education Course or the equivalent. The course must cover the most recent USPAP edition.

i. If the licensee completes two (2) or more courses having substantially the same content during any one (1) continuing education cycle, the licensee only will receive continuing education credit for one (1) of the courses.

ii. Continuing education credit may be granted for participation in appraisal educational processes and programs, including: teaching, program development, authorship of textbooks, or similar activities that are determined to be equivalent to obtaining continuing education, up to one-half (1/2) of total credits for renewal period.

d. An individual may only be registered as an appraiser trainee for a maximum period of five (5) years, unless approved by the Board.

05.Supervisory Appraiser.

a. Qualifications. Hold a license in good standing with no disciplinary history in any jurisdiction that affected the Supervisory Appraiser's eligibility to engage in appraisal practice for at least three (3) years immediately prior to providing supervision; and;

i. Completion of a course that complies with requirements established by the AQB focused on the responsibilities of a Supervisory Appraiser.

ii. Not supervise more than three (3) Appraiser Trainees at one time;

iii. Be responsible for the training and direct supervision of the Appraiser Trainee; and

iv. Accept responsibility for all Trainee Appraiser appraisal reports by signing and certifying that the report is in compliance with USPAP; and

v. Review and sign all appraiser trainee appraisal report(s); and

vi. Personally inspect each appraised property with the appraiser trainee until the Supervisory Appraiser determines the Appraiser Trainee is competent in accordance with the Competency Rule of USPAP for the property type.

b. An accurate, current and complete appraisal experience log shall be maintained by the Supervisory Appraiser and the Appraiser Trainee.

c. A Supervisory Appraiser may not continue to supervise if:

i. The appraiser ceases to meet supervisor requirements; or has

ii. Discipline that affects the Supervisory Appraiser's ability to engage in appraisal practice.

06.Licensed Residential Real Estate Appraiser. Applies to the appraisal of residential real property consisting of one (1) to four (4) non-complex residential units having a transaction value less than one million dollars ($1,000,000) and complex one (1) to four (4) residential units having a transaction value less than four hundred thousand dollars ($400,000). Requirements:

a. Education. An applicant may either complete one hundred and fifty (150) qualified class hours as specified in the Required Core Curriculum, including the 15-Hour National USPAP course or, register as an Appraiser Trainee and complete seventy-five (75) classroom hours in: Residential Market Analysis and Highest and Best Use -fifteen (15) hours; Residential Appraiser Site Valuation and Cost Approach -fifteen (15) hours; Residential Sales Comparison and Income Approaches -thirty (30) hours; and Residential Report Writing and Case Studies - fifteen (15) hours.

b. Experience. Either:

i. One thousand (1,000) hours of experience in no less than six (6) months; or

ii. Successful completion of a Licensed Residential or Certified Residential PAREA program in accordance with Subsections 100.02.a. and c. of this rule.

c. Examination. Successful completion of the AQB-approved Licensed Residential or the successful completion of the Certified Residential or Certified General examination.

07.State Certified Residential Real Estate Appraiser. Applies to the appraisal of residential properties of four (4) or less units without regard to value or complexity. Requirements:

a. Education.

i. Bachelor's degree in any field of study from an accredited degree-granting college or university, or meet one of the following options:

ii. Associate's degree in a field of study related to business administration, accounting, finance, economics or real estate; or

iii. Completion of thirty (30) semester hours of college-level courses that cover each of the following specific topic areas and hours: English composition (three (3) semester hours), microeconomics (three (3) semester hours), macroeconomics (three (3) semester hours), finance (three (3) semester hours), algebra, geometry or higher mathematics (three (3) semester hours), statistics (three (3) semester hours), computer science (three (3) semester hours), business or real estate law (three (3) semester hours), and two (2) elective courses in any of the topics listed above or in accounting, geography, agricultural economics, business management, or real estate (three (3) semester hours each); or

iv. Completion of at least thirty (30) semester hours of College Level Examination Program® (CLEP®) examinations from each of the following subject matter areas: college algebra (three (3) semester hours), college composition (six (6) semester hours), college composition modular (three (3) semester hours), college mathematics (six (6) semester hours), principles of macroeconomics (three (3) semester hours), principles of microeconomics (three (3) semester hours), introductory business law (three (3) semester hours), and information systems (three (3) semester hours), or

v. Any combination of the above.

b. As an alternative to the requirements above, individuals who have held a Licensed Residential credential for a minimum of five (5) years may qualify if they do not have a record of any disciplinary action affecting their legal eligibility to engage in appraisal practice within the five (5) years immediately preceding the date of application.

c. Registration as an Appraiser Trainee and completion of the education required for licensure as a Licensed Residential Real Estate Appraiser, or hold a current license as a Licensed Residential Real Estate Appraiser; and;

d. Document the successful completion of not less than fifty (50) classroom hours of courses in subjects related to real estate appraisal as follows:

i. Statistics, Modeling and Finance: not less than fifteen (15) hours;

ii. Advanced Residential Applications and Case Studies: not less than fifteen (15) hours; and

iii. Appraisal Subject Matter Electives: not less than twenty (20) hours.

e. Experience. Either:

i. One thousand five hundred (1,500) hours of appraisal experience in no less than twelve (12) months, with at least one thousand two hundred (1,200) hours of the experience from residential field appraisal experience; or

ii. Successful completion of a Certified Residential PAREA program in accordance with Subsections 100.02.a. and c. of this rule; or

iii. Successful completion of a Licensed Residential PAREA program in accordance with Subsections 100.02.a. and c. of this rule and an additional five hundred (500) hours of appraisal experience.

f. Examination. Successful completion of the Certified Residential Appraiser examination approved by the Board pursuant to the guidelines of the AQB.

08.State Certified General Real Estate Appraiser. Applicants must meet the following:

a. Education

i. Bachelor's degree or higher from an accredited degree-granting college or university; and

ii. Document registration as an Appraiser Trainee and successful completion of not less than two hundred twenty-five (225) classroom hours of courses in:

iii. Statistics, Modeling and Finance: not less than fifteen (15) hours, specifically including Statistics; Valuation Models (AVM's and Mass Appraisal), and Real Estate Finance;

iv. General Appraiser Market Analysis and Highest and Best Use: not less than thirty (30) hours;

v. General Appraiser Sales Comparison Approach: not less than thirty (30) hours, including Value Principles, Procedures, Identification and Measurement of Adjustments, Reconciliation, and Case Studies;

vi. General Appraiser Site Valuation and Cost Approach: not less than thirty (30) hours;

vii. General Appraiser Income Approach: not less than sixty (60) hours, specifically including Overview, Compound Interest, Lease Analysis, Income Analysis, Vacancy and Collection Law, Estimating Operating Expenses and Reserves, Reconstructed Income and Expense Statement, Stabilized Net Operating Income Estimate, Direct Capitalization, Discounted Cash Flow, Yield Capitalization, Partial Interest, and Case Studies;

viii. General Appraiser Report Writing and Case Studies: not less than thirty (30) hours, specifically including Writing and Reasoning Skills, Common Writing Problems, Report Options and USPAP Compliance, and Case Studies; and

ix. Appraisal Subject Matter Electives: not less than thirty (30) hours; or

b. Completion of not less than one hundred fifty (150) classroom hours of courses in:

i. Statistics, Modeling and Finance: not less than fifteen (15) hours, specifically including Statistics; Valuation Models (AVM's and Mass Appraisal); and Real Estate Finance; and

ii. General Appraiser Market Analysis and Highest and Best Use: not less than fifteen (15) hours; and

iii. General Appraiser Sales Comparison Approach: not less than fifteen (15) hours, specifically including Value Principles, Procedures, Identification and Measurement of Adjustments, Reconciliation, and Case Studies; and

iv. General Appraiser Site Valuation and Cost Approach: not less than fifteen (15) hours; and

v. General Appraiser Income Approach: not less than forty-five (45) hours, specifically including Overview, Compound Interest, Lease Analysis, Income Analysis, Vacancy and Collection Law, Estimating Operating Expenses and Reserves, Reconstructed Income and Expense Statement, Stabilized Net Operating Income Estimate, Direct Capitalization, Discounted Cash Flow, Yield Capitalization, Partial Interest, and Case Studies; and

vi. General Appraiser Report Writing and Case Studies: not less than fifteen (15) hours, specifically including Writing and Reasoning Skills, Common Writing Problems, Report Options and USPAP Compliance, and Case Studies; and

vii. Appraisal Subject Matter Electives: not less than thirty (30) hours, or completion of one hundred five (105) classroom hours of courses in: General Appraiser Market Analysis and Highest and Best Use: not less than fifteen (15) hours; and General Appraiser Sales Comparison Approach: not less than fifteen (15) hours, including Value Principles, Procedures, Identification and Measurement of Adjustments, Reconciliation, and Case Studies; and General Appraiser Site Valuation and Cost Approach: not less than fifteen (15) hours; and General Appraiser Income Approach: not less than forty-five (45) hours, including Overview, Compound Interest, Lease Analysis, Income Analysis, Vacancy and Collection Law, Estimating Operating Expenses and Reserves, Reconstructed Income and Expense Statement, Stabilized Net Operating Income Estimate, Direct Capitalization, Discounted Cash Flow, Yield Capitalization, Partial Interest, and Case Studies; and General Appraiser Report Writing and Case Studies: not less than fifteen (15) hours, including Writing and Reasoning Skills, Common Writing Problems, Report Options and USPAP Compliance, and Case Studies.

c. Experience. Either:

i. Three thousand (3,000) hours of appraisal experience in no less than eighteen (18) months. One thousand five hundred (1,500) hours of the experience must be non-residential appraisal experience. The balance of one thousand five hundred (1,500) hours may be solely residential experience or can include up to five hundred (500) hours of non-field experience; or

ii. Successful completion of a Certified Residential PAREA program in accordance with Subsections 100.02.a. and c. of this rule and an additional two thousand (2,000) hours of non-residential appraisal experience.

d. Examination. Successful completion of the Certified General Appraiser examination approved by the Board pursuant to the guidelines of the AQB.

09.Continuing Education. All certified/licensed appraisers must comply with the following requirements:

a. Twenty-eight (28) classroom hours of instruction in courses or seminars during the twenty-four (24) months prior to renewal. If the licensee completes two (2) or more courses having substantially the same content during anyone (1) continuing education cycle, the licensee only will receive continuing education credit for one (1) of the courses.

i. If the educational offering is taken in a virtual classroom, the course must include successful completion of prescribed course mechanisms required to demonstrate knowledge of the subject matter.

ii. Credit toward the classroom hour requirement may be granted only where the length of the educational offering is at least two (2) hours.

iii. Credit for the classroom hour requirement may be obtained by accredited courses which have been approved by the AQB and by courses approved by Real Estate Appraiser Boards of states with reciprocity with Idaho. All other courses must have approval of the Board. Courses shall be approved for a period of four (4) years.

iv. Every twenty-four (24) months, Idaho State Certified/Licensed Real Estate Appraisers and registered trainees will be required to attend an approved seven (7) hour USPAP Continuing Education course covering the most recent edition, or the AQB approved equivalent.

v. Continuing education credit may be granted for participation, other than as a student, in appraisal educational processes and programs. Continuing education shall not exceed one-half (1/2) of the total continuing education credits required for a renewal period.

vi. Credit may be awarded for a single state appraisal regulatory meeting per continuing education cycle. The must be open to the public and must be a minimum of two (2) hours in length. The total credit cannot exceed seven (7) hours.

vii. Continuing education will be granted for successful completion of a course which meets the AQB content requirements of the Valuation Bias and Fair Housing Laws and Regulations Outline.

viii. For each year in which a license is inactive, fourteen (14) hours of continuing education must be completed prior to reinstatement. For a license inactive for less than two (2) years, the hours must include the most recent seven (7) hour USPAP Continuing Education course. For a license inactive more than two (2) years but less than five (5) years, the hours must include the most recent fifteen (15) hour National USPAP course.

10.Temporary License. An individual may receive a permit to temporarily practice on a per appraisal assignment basis for not more than six (6) months. The applicant must be listed on the National Registry, maintained by the Appraisal Subcommittee, as current and in good standing and comply with Section 54-4115(3), Idaho Code.

Idaho Admin. Code r. 24.18.01.100

Effective July 1, 2024