1. (a) Examination criteria.

   1. (1)

      1. (A) A new applicant, not currently licensed or certified and in good standing in another jurisdiction, shall have up to twenty-four (24) months, after approval by the State Board of Appraisers, Abstracters, and Home Inspectors, to take and pass an Appraiser Qualifications Board-approved qualifying examination for the credential.
      2. (B) Successful completion of the examination is valid for a period of twenty-four (24) months.
   2. (2) Upon completion of all applicable requirements, applicants for state license credential, state-certified residential credential, and state-certified general appraiser credential shall be personally interviewed by members of the State Board of Appraisers, Abstracters, and Home Inspectors prior to sitting for the exam.
   3. (3) An applicant who fails to pass the exam after two (2) attempts will not be afforded an opportunity to retake the exam for at least six (6) months from the date of last exam.
   4. (4) Applicants seeking to sit for the fourth attempt are required to submit a new application, any required fees, and any additional education he or she may have acquired.

2. (b) Experience criteria.

   1. (1) Education may not be substituted for experience, except as shown in subdivision (b)(4) of this section.

   2. (2)

      1. (A) The quantitative experience requirements must be satisfied by time spent in the appraisal process.
      2. (B) The appraisal process consists of:

3. (i) Analyzing factors that affect value;

   1. (ii) Defining the problem;

      1. (iii) Gathering and analyzing data;

         1. (iv) Applying the appropriate analysis and methodology; and
         2. (v) Arriving at an opinion and correctly reporting the opinion in compliance with USPAP.

   2. (3)

      1. (A) Hours may be treated as cumulative in order to achieve the necessary number of hours of appraisal experience.
      2. (B) Cumulative is defined as experience that may be acquired over multiple time periods.
   3. (4) There need not be a client in a traditional sense, e.g., a client hiring an appraiser for business purposes, in order for an appraisal to qualify for experience, but experience gained for work without a traditional client can meet any portion of the total experience requirement.

   4. (5)

      1. (A) Practicum courses that are approved by the Appraiser Qualifications Board’s CAP or the State Board of Appraisers, Abstracters, and Home Inspectors can satisfy the nontraditional client experience requirement.

      2. (B)

         1. (i) A practicum course must include the generally applicable methods of appraisal practice for the credential category.
         2. (ii) Content includes, but is not limited to:
4. (a) (a) Requiring the student to produce credible appraisals that utilize an actual subject property;

5. (b) (b) Performing market research containing sales analysis; and

   1. (c) (c) Applying and reporting the applicable appraisal approaches in conformity with USPAP.

      1. (iii) Assignments must require problem-solving skills for a variety of property types for the credential category.

         1. (iv) 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.

   2. (6)

      1. (A) An hour of experience is defined as verifiable time spent in performing tasks in accordance with acceptable appraisal practice.

      2. (B) Acceptable real property appraisal practice for experience credit includes:

         1. (i) Appraisal;
         2. (ii) Appraisal review;
         3. (iii) Appraisal consulting; and
         4. (iv) Mass appraisal.
      3. (C) All appraisal experience must be USPAP compliant.
   3. (7) Documentation in the form of reports, certifications, or file memoranda, or, if such reports and memoranda are unavailable for good cause, other evidence at the State Board of Appraisers, Abstracters, and Home Inspectors’ discretion that the work is compliant with USPAP must be provided as part of the State Board of Appraisers, Abstracters, and Home Inspectors’ experience verification process to support the experience claimed.
   4. (8) The burden of proving the amount and validity of experience claimed is entirely the responsibility of the applicant.

   5. (9) At a minimum, the applicant must be prepared to substantiate, on request by the State Board of Appraisers, Abstracters, and Home Inspectors, the experience claimed with:

      1. (A) A true copy of appraisal assignment reports;
      2. (B) Work file to support the nature of the experience claims; and
      3. (C) True copies of time records or calendars which support actual work time associated with the assignments.

   6. (10)

      1. (A) The verification for experience credit claimed by an applicant shall be on the forms prescribed by the State Board of Appraisers, Abstracters, and Home Inspectors, which shall include:

         1. (i) Type of property;
         2. (ii) Date of report;
         3. (iii) Address of appraised property, including city name;
         4. (iv) Description of work performed by the applicant and scope of the review and supervision of the supervising appraiser;
         5. (v) Number of actual work hours by the applicant on the assignment; and
         6. (vi) The signature and credential number of the supervising appraiser, if applicable.
      2. (B) Separate appraisal logs shall be maintained for each supervising appraiser, if applicable.
   7. (11) The State Board of Appraisers, Abstracters, and Home Inspectors reserves the right, at its discretion, to hold for a reasonable length of time for investigation of the amount of experience claimed on the application of any applicant.

   8. (12) There is no maximum time limit during which experience may be obtained.

      1. (c) Practical Applications of Real Estate Appraisal (PAREA).
   9. (1) PAREA programs approved by the Appraiser Qualifications Board utilize simulated experience training and serve as an alternative to the traditional supervisor/trainee experience model under subsection (b) of this section.

   10. (2) To qualify as creditable experience, Appraiser Qualifications Board-approved PAREA programs shall:

       1. (A) Contain, at a minimum, the content specified in the Practical Applications of Real Estate Appraisal section of the Real Property Appraiser Qualification Criteria;

       2. (B) Require participants to possess the following prerequisites prior to commencement of training:

          1. (i) For the state-licensed module: one hundred fifty (150) hours of qualifying education as specified in the required core curriculum for the State-Licensed Residential Real Property Appraiser classification; and
          2. (ii) For the certified residential module: two hundred (200) hours of qualifying education as specified in the required core curriculum for the Certified Residential Real Property Appraiser classification, and:
6. (a) (a) Possession of a valid State-Licensed Residential Real Property Appraiser credential; or

7. (b) (b) Successful completion of an Appraiser Qualifications Board-approved PAREA program for the State-Licensed Real Property Appraiser classification;

   1. (C) Provide an adequate number of mentors to ensure timely and competent mentoring for all program participants;

      1. (D) Ensure mentors meet or exceed the following qualifications:

         1. (i) Mentors shall be state-certified appraisers and in good standing for a period of at least three (3) years prior to being eligible to become a mentor; and
         2. (ii)
8. (a) (a) Mentors shall not have been subject to any disciplinary action within any jurisdiction within the last three (3) years that affected the mentor’s legal eligibility to engage in appraisal practice or to act as a supervisory appraiser.

9. (b) (b) A mentor subject to a disciplinary action would be considered to be in good standing three (3) years after the successful completion or termination of the imposed sanction;

   1. (E) Ensure program participants produce demonstration appraisal reports that comply with USPAP, and meet or exceed the following requirements:

      1. (i)
10. (a) (a) State-licensed.

11. (b) (b) No fewer than three (3) demonstration appraisal reports.

    1. (c) (c) Demonstration reports must represent a variety of assignment types and property types that are consistent with the state-licensed program content.

       1. (d) (d) Reports must comply with the edition of USPAP that is in effect at the time; and

          1. (ii)
12. (a) (a) Certified residential.

13. (b) (b) No fewer than three (3) demonstration appraisal reports.

    1. (c) (c) Demonstration reports must represent a variety of assignment types and property types that are consistent with the certified residential program content.

       1. (d) (d) Demonstration reports must comply with the edition of USPAP that is in effect at the time;

       2. (F) Provide each program participant that successfully completes PAREA training with a certificate of completion, subject to the following:

          1. (i) Participants may not receive partial credit for PAREA training;
          2. (ii) Participants may not receive a certificate of completion until all required components of PAREA training have been successfully completed and approved by a program mentor;
          3. (iii) Certificates of completion must be signed by an individual from the training entity qualified to verify a participant’s successful completion; and
          4. (iv) Certificates of completion must not contain an expiration date or other constraints that either limit or restrict the participant’s ability to receive appropriate credit; and

       3. (G) Allow participants successfully completing approved PAREA programs to receive the following experience credit:

          1. (i) For participants completing an approved state-licensed program:
14. (a) (a) State-licensed classification: one hundred percent (100%) of the required experience hours;

15. (b) (b) Certified residential classification: sixty-seven percent (67%) of the required experience hours; and

    1. (c) (c) Certified general classification: thirty-three percent (33%) of the total required experience, none of which is eligible towards the required nonresidential hours; and

       1. (ii) For participants completing an approved certified residential program:
16. (a) (a) State-licensed classification: one hundred percent (100%) of the required experience hours;

17. (b) (b) Certified residential classification: one hundred percent (100%) of the required experience hours; and

    1. (c) (c) Certified general classification: fifty percent (50%) of the total required experience, none of which is eligible towards the required nonresidential hours.

Codification Notes: “CAP” means Course Approval Program.