4 CCR 725-2 – Rules Governing the Practice of Real Estate Appraisers of the Board of Real Estate Appraisers

DEPARTMENT OF REGULATORY AGENCIES Division of Real Estate RULES OF THE COLORADO BOARD OF REAL ESTATE APPRAISERS 4 CCR 725-2 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] CHAPTER 1 DEFINITIONS 1.1 The Appraisal Foundation: That appraisal foundation established November 30, 1987 as an Illinois not-for-profit corporation, and its boards, councils and groups. [Eff. 10/02/2006] 1.2 Appraiser Qualifications Board, or AQB: The Appraiser Qualifications Board of The Appraisal Foundation.

1.3 Appraisal Standards Board, or ASB: The Appraisal Standards Board of The Appraisal Foundation. 1.4 Examination: The examination(s) developed or contracted for by the Board and issued or approved by the AQB.

1.5 FIRREA: The Financial Institutions Reform, Recovery and Enforcement Act of 1989. 1.6 Board: The Colorado Board of Real Estate Appraisers. 1.7 Applicant: Any person applying for a license or temporary practice permit, or applying for renewal of a license.

1.8 Initial license: That license issued when an applicant is first approved for a license at that level of licensure. An initial license is valid through December 31 of the year of issue. 1.9 Colorado Real Estate Appraiser Licensing Act: That portion of Colorado statutes known as Section 12 61 701, et seq., Colorado Revised Statutes, as amended. 1.10 Uniform Standards of Professional Appraisal Practice, or USPAP: Those Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of The Appraisal Foundation and adopted in Chapter 11 of these Rules through incorporation by reference. 1.11 Board Rules or Rules: Those rules adopted by the Colorado Board of Real Estate Appraisers pursuant to Section 12 61 704(1)(a), C.R.S., as amended. 1.12 Registered Appraiser: A person who has been granted a license pursuant to § 12-61-706(1)(b)(IV), C.R.S. as a Registered Appraiser by the Board as a result of meeting the real estate appraisal education and real estate appraisal examination requirements established by Board Rule 2.1, which license is in good standing. The scope of practice for the Registered Appraiser shall be those properties that the supervising appraiser is permitted and competent to appraise, or as allowed by Section 12-61-706 (5), C.R.S.

1.13 Licensed Appraiser: A person who has been granted a license pursuant to § 12-61-706(1)(b)(III), C.R.S. as a Licensed Appraiser by the Board as a result of meeting the real estate appraisal education, real estate appraisal experience and real estate appraisal examination requirements established by Board Rule 2.2, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules, which license is in good standing. The usual scope of practice for the Licensed Appraiser shall be, if competent for the assignment, appraisal of non-complex one to four unit residential properties having a transaction value of less than $1,000,000 and complex one to four unit residential properties having a transaction value of less than $250,000, or as allowed by Section 12-61-706 (5), C.R.S. 1.14 Certified Residential Appraiser: A person who has been granted a license pursuant to § 12-61- 706(1)(b)(II), C.R.S. as a Certified Residential Appraiser by the Board as a result of meeting the real estate appraisal education, real estate appraisal experience and real estate appraisal examination requirements established by Board Rule 2.3, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules, which license is in good standing. The usual scope of practice for the Certified Residential Appraiser shall be, if competent for the assignment, appraisal of one to four unit residential properties without regard to transaction value or complexity, or as allowed by Section 12-61-706 (5), C.R.S. Such scope of practice includes land suitable for development to one to four residential units, but does not include land for which a subdivision analysis or appraisal is necessary. 1.15 Certified General Appraiser: A person who has been granted a license pursuant to § 12-61-706(1) (b)(I), C.R.S. as a Certified General Appraiser by the Board as a result of meeting the real estate appraisal education, real estate appraisal experience and real estate appraisal examination requirements established by Board Rule 2.4, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules, which license is in good standing. The scope of practice for the Certified General Appraiser shall be, if competent for the assignment, appraisal of all types of real property.

1.16 Residential Property: Properties comprising one to four residential units; also includes building sites suitable for development to one to four residential units. Residential property does not include land for which a subdivision analysis or appraisal is necessary. 1.17 Non Residential Property: Properties other than those comprised of one to four residential units and building sites suitable for development to one to four residential units. Non-residential property includes, without limitation, properties comprised of five or more dwelling units, farm and ranch, retail, manufacturing, warehousing, and office properties, large vacant land parcels and other properties not within the definition of residential property. 1.18 Temporary Practice Permit: A permit issued pursuant to Section 12 61 708 (2), C.R.S., (as amended) and Chapter 10 of these rules allowing an appraiser licensed in another jurisdiction to appraise property in Colorado under certain conditions without obtaining Colorado licensure. 1.19 Title XI, FIRREA: That part of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 known as the Appraisal Reform Amendments, and also known as 12 U.S.C. Section 3331 through 12 U.S.C. Section 3351.

1.20 Contingent Fee: Compensation paid to a person who is licensed as a registered, licensed or certified appraiser, as a result of reporting a predetermined value or direction of value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. A person licensed as a registered, licensed or certified appraiser employed by a business entity which is compensated by a contingent fee is considered to be compensated by a contingent fee.

1.21 Licensee: A collective term used to refer to a person who has been licensed by the Board as a Registered Appraiser, Licensed Appraiser, Certified Residential Appraiser or Certified General Appraiser.

1.22 Distance education: Educational methodologies and presentation techniques other than traditional classroom formats, including, without limitation, live teleconferencing, cd-rom or disk based computer presentations, written correspondence courses, internet on-line learning, video and audio tapes, and others.

1.23 Complex Residential Property: Properties comprising one to four residential dwelling units, or land suitable for development to one to four residential units exhibiting complex appraisal factors such as atypical form of ownership, atypical size, atypical design characteristics, atypical locational characteristics, atypical physical condition characteristics, landmark designation, non-conforming zoning, lack of appraisal data, and other similar factors. Complex residential property does not include land for which a subdivision analysis or appraisal is necessary. 1.24 Signature: As defined in the Uniform Standards of Professional Appraisal Practice incorporated by reference in Board Rule 11.1, and including all methods of indicating a signature, such as, without limitation, a handwritten mark, digitized image, coded authentication number, stamped impression, embossed or applied seal, or other means.

1.25 Supervisory appraiser: any licensee who shall act in a supervisory role in the preparation of appraisals, appraisal reports, and other appraisal work products. Includes, without limitation, any licensee who signs a report in a manner indicating they exert control over the actions of any assistant or associate, or who acts to guide or manage the work of any assistant or associate. 1.26 Qualifying education: real estate appraisal education courses completed for credit toward the licensing requirements set forth in Chapter 2 of these Board Rules and meeting the requirements of Chapter 3 of these Board Rules. Qualifying education courses must be at least 15 classroom hours in length and must include an examination. Qualifying education courses may be used to satisfy the continuing education requirements set forth in Chapter 7 of these Board Rules. 1.27 Continuing education: real estate and real estate appraisal related courses completed for credit toward meeting the continuing education requirements set forth in Chapter 7 of these Board Rules. Continuing education courses meeting the requirements of Chapter 3 of these Board Rules may be acceptable for credit toward meeting qualifying education requirements. 1.28 Transaction value: for purposes of these rules transaction value means: A. For appraisal assignments carried out as part of a loan transaction, the amount of the loan; or B. For appraisal assignments carried out for other than a loan transaction, the market value of the real property interest.

1.29 Appraisal process: the analysis of factors that bear upon value, including definition of the appraisal problem, gathering and analyzing data, applying appropriate valuation approaches and methods, arriving at an opinion of value and reporting the opinion of value. 1.30 Accredited college, junior college, community college or university: a higher education institution accredited by the Commission on Colleges, a regional or national accreditation association, or an accrediting agency that is recognized by the U. S. Secretary of Education. 1.31 Real Property Appraiser Qualification Criteria: Pursuant to Section 12 61 706, (1) and (2), C.R.S. (as amended), the Board incorporates by reference in compliance with Section 24-4-103(12.5), C.R.S., the Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation through May 5, 2006, including the Interpretations thereof. Amendments to the Real Property Appraiser Qualification Criteria adopted subsequent to May 5, 2006 are not included in this rule. A certified copy of the Real Property Appraiser Qualification Criteria is on file and available for public inspection with the Program Administrator at the offices of the Board of Real Estate Appraisers at 1560 Broadway, Suite 925, Denver, Colorado. Copies of the Real Property Appraiser Qualification Criteria incorporated under this rule may be examined at any state publications depository library. The Real Property Appraiser Qualification Criteria may be examined at the Internet website of The Appraisal Foundation at www.appraisalfoundation.org, and copies may be ordered through that mechanism. The Appraisal Foundation may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or by telefax at (202) 347-7727. The Real Property Appraiser Qualification Criteria shall remain in effect through December 31, 2007. 1.32 2008 Real Property Appraiser Qualification Criteria: Pursuant to Section 12 61 706, (1) and (2), C.R.S. (as amended), the Board incorporates by reference in compliance with Section 24-4- 103(12.5), C.R.S., the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation on February 20, 2004, and as amended through May 5, 2006, including the Required Core Curricula, Guide Notes and Interpretations thereof. Amendments to the 2008 Real Property Appraiser Qualification Criteria adopted subsequent to May 5, 2006 are not included in this rule. A certified copy of the 2008 Real Property Appraiser Qualification Criteria is on file and available for public inspection with the Program Administrator at the offices of the Board of Real Estate Appraisers at 1560 Broadway, Suite 925, Denver, Colorado. Copies of the 2008 Real Property Appraiser Qualification Criteria incorporated under this rule may be examined at any state publications depository library. The 2008 Real Property Appraiser Qualification Criteria may be examined at the Internet website of The Appraisal Foundation at www.appraisalfoundation.org, and copies may be ordered through that mechanism. The Appraisal Foundation may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or by telefax at (202) 347-7727. The 2008 Real Property Appraiser Qualification Criteria shall go into effect on January 1, 2008. CHAPTER 2: REQUIREMENTS FOR LICENSURE AS A REAL ESTATE APPRAISER 2.1 An applicant for licensure as a Colorado Registered Appraiser shall meet the following requirements: A. Real estate appraisal education:

1. For applications received in the offices of the Board through December 31, 2007, at least 75 classroom hours of real estate appraisal education acceptable to the Board under the provisions of Chapter 3 of these Rules. Pursuant to Board Rule 3.6, such education shall be completed in courses not less than 15 classroom hours in length and including an examination. Real estate appraisal education programs completed for credit toward this requirement shall demonstrate coverage of all the following topics, with emphasis on basic appraisal principles and procedures:

a. Influences on real estate value;

b. Legal considerations in appraisal;

c. Types of value;

d. Economic principles;

e. Real estate markets and analysis;

f. Valuation process;

g. Property description;

h. Highest and best use analysis;

i. Appraisal statistical concepts;

j. Sales comparison approach;

k. Site value;

l. Cost approach;

m. Income approach;

n. Valuation of partial interests; and o. 15-hour National USPAP Course 2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Registered Appraiser shall: (1) demonstrate to the satisfaction of the Board that the applicant met the real estate appraisal education requirements set forth in Board Rule 2.1A1 on or before December 31, 2007; or (2) meet the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008 and incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours; and c. 15-hour National USPAP Course: 15 classroom hours.

3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Registered Appraiser shall meet the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008 and incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours; and c. 15-hour National USPAP Course: 15 classroom hours.

B. Real estate appraisal examination: successful completion the Registered Appraiser examination as provided in Chapter 4 of these Rules.

2.2 An applicant for licensure as a Colorado Licensed Appraiser shall meet the following requirements: A. Real estate appraisal education:

1. For applications received in the offices of the Board through December 31, 2007, at least 90 classroom hours of real estate appraisal education acceptable to the Board under the provisions of Chapter 3 of these rules. Pursuant to Board Rule 3.6, such education shall be completed in courses not less than 15 classroom hours in length and including an examination. Real estate appraisal education programs completed for credit toward this requirement shall demonstrate coverage of all the following topics, with emphasis on the appraisal of typical, non-complex one to four unit residential properties:

a. Influences on real estate value;

b. Legal considerations in appraisal;

c. Types of value;

d. Economic principles;

e. Real estate markets and analysis;

f. Valuation process;

g. Property description;

h. Highest and best use analysis;

i. Appraisal statistical concepts;

j. Sales comparison approach;

k. Site value;

l. Cost approach;

m. Income approach, emphasizing gross rent multiplier, estimation of income and expenses, and operating expense ratios;

n. Valuation of partial interests; and o. 15-hour National USPAP course.

2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Licensed Appraiser shall: (1) demonstrate to the satisfaction of the Board that the applicant met the real estate appraisal education requirements set forth in Board Rule 2.2A1 on or before December 31, 2007; or (2) meet the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, and incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

d. Residential market analysis and highest and best use: 15 classroom hours; e. Residential appraiser site valuation and cost approach: 15 classroom hours; f. Residential sales comparison and income approaches: 30 classroom hours; g. Residential report writing and case studies: 15 classroom hours. 3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Licensed Appraiser shall meet the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, and incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

1. An applicant submitting an application received in the offices of the Board through December 31, 2007 for licensure as a Colorado Licensed Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,000 hours of real estate appraisal experience acceptable to the Board under the provisions of Chapter 5 of these Rules. Pursuant to § 12-61-706(9), C.R.S., such real estate appraisal experience shall have been gained across a period of not less than 12 months.

2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Licensed Appraiser shall demonstrate to the satisfaction of the Board that: (1) the applicant completed at least 2,000 hours of appraisal experience on or before December 31, 2007 in conformance with the provisions of Chapter 5 of these Rules as set forth in Board Rule 2.2B1; or (2) the applicant completed at least 2,000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Pursuant to §12-61-706(9), C.R.S., real estate appraisal experience under this Rule 2.2B2 shall have been gained across a period of not less than 12 months.

3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Licensed Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Pursuant to §12-61-706(9), C.R.S., real estate appraisal experience under this Rule 2.2B3 shall have been gained across a period of not less than 12 months.

C. Real estate appraisal examination: successful completion of the Licensed Appraiser examination as provided in Chapter 4 of these Rules.

2.3 An applicant for licensure as a Colorado Certified Residential Appraiser shall meet the following requirements:

A. Real estate appraisal education:

1. For applications received in the offices of the Board through December 31, 2007, at least 120 classroom hours of real estate appraisal education acceptable to the Board under the provisions of Chapter 3 of these Rules. Pursuant to the Appraiser Qualifications Criteria established by the Appraiser Qualifications Board of The Appraisal Foundation and Board Rule 3.6, such education shall be completed in courses not less than 15 classroom hours in length and including an examination. Real estate appraisal education programs completed for credit toward this requirement shall demonstrate coverage of all the following topics, with emphasis on the appraisal of one to four unit residential properties, and shall demonstrate coverage of appraisal of complex residential properties as defined in Chapter 1 of these rules:

a. Influences on real estate value;

b. Legal considerations in appraisal;

c. Types of value;

d. Economic principles;

e. Real estate markets and analysis;

f. Valuation process;

g. Property description;

h. Highest and best use analysis;

i. Appraisal statistical concepts;

j. Sales comparison approach;

k. Site value;

l. Cost approach;

m. Income approach, emphasizing gross rent multiplier, estimation of income and expenses, operating expense ratios and direct capitalization; n. Valuation of partial interests;

o. Narrative report writing; and p. 15-hour National USPAP Course.

2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Certified Residential Appraiser shall: (1) demonstrate to the satisfaction of the Board that the applicant met the real estate appraisal education requirements set forth in Board Rule 2.3A1 on or before December 31, 2007; or (2) meet the education requirements set forth in Board Rule 2.3A4 and the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, as incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

d. Residential market analysis and highest and best use: 15 classroom hours; e. Residential appraiser site valuation and cost approach: 15 classroom hours; f. Residential sales comparison and income approaches: 30 classroom hours; g. Residential report writing and case studies: 15 classroom hours; h. Statistics, modeling and finance: 15 classroom hours; i. Advanced residential applications and case studies: 15 classroom hours; and j. Appraisal subject matter electives: 20 classroom hours. 3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Certified Residential Appraiser shall meet the education requirements set forth in Board Rule 2.3A4 and the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, as incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

1. Hold an associate degree, or higher, from an accredited college, junior college, community college or university as defined in Board Rule 1.30; or 2. Successfully complete at least 21 semester credit hours or 32 quarter credit hours in the following collegiate subject matter courses from an accredited college, junior college, community college or university as defined in Board Rule 1.30. Courses in all the listed topics shall be completed. No topics shall be omitted. Credits earned through the College Level Examination Program ("CLEP") are acceptable to meet this requirement.

a. English composition;

b. Principles of economics;

c. Finance;

d. Algebra, geometry or higher mathematics;

e. Statistics;

f. Introduction to computers, word processing and spreadsheets; and g. Business or real estate law.

B. Real estate appraisal experience:

1. An applicant submitting an application received in the offices of the Board through December 31, 2007 for licensure as a Colorado Certified Residential Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,500 hours of real estate appraisal experience acceptable to the Board under the provisions of Chapter 5 of these Rules. Such real estate appraisal experience shall have been gained across a period of not less than 24 months. 2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Certified Residential Appraiser shall demonstrate to the satisfaction of the Board that: (1) the applicant completed at least 2,500 hours of appraisal experience on or before December 31, 2007 in conformance with the provisions of Chapter 5 of these Rules as set forth in Board Rule 2.3B1; or (2) the applicant completed at least 2,500 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Real estate appraisal experience under this Rule 2.3B2 shall have been gained across a period of not less than 24 months. 3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Certified Residential Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,500 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Real estate appraisal experience under this Rule 2.3B3 shall have been gained across a period of not less than 24 months. C. Real estate appraisal examination: successful completion of the Certified Residential Appraiser examination as provided in Chapter 4 of these Rules. 2.4 An applicant for licensure as a Colorado Certified General Appraiser shall meet the following requirements:

A. Real estate appraisal education:

1. For applications received in the offices of the Board on and after January 1, 1998 and through December 31, 2007, at least 180 classroom hours of real estate appraisal education acceptable to the Board under the provisions of Chapter 3 of these Rules. Pursuant to the Appraiser Qualifications Criteria established by the Appraiser Qualifications Board of The Appraisal Foundation and Board Rule 3.6, such education shall be completed in courses not less than 15 classroom hours in length and including an examination. Real estate appraisal education programs completed for credit toward this requirement shall demonstrate coverage of all the following topics, with emphasis on the appraisal of nonresidential properties:

a. Influences on real estate value;

b. Legal considerations in appraisal;

c. Types of value;

d. Economic principles;

e. Real estate markets and analysis;

f. Valuation process;

g. Property description;

h. Highest and best use analysis;

i. Appraisal statistical concepts;

j. Sales comparison approach;

k. Site value;

l. Cost approach;

m. Income approach, emphasizing estimation of income and expenses, operating statement ratios, direct capitalization, cash flow estimates, measures of cash flow and discounted cash flow analysis; n. Valuation of partial interests;

o. Narrative report writing; and p. 15-hour National USPAP Course.

2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Certified General Appraiser shall: (1) demonstrate to the satisfaction of the Board that the applicant met the real estate appraisal education requirements set forth in Board Rule 2.4A1 on or before December 31, 2007; or (2) meet the education requirements set forth in Board Rule 2.4A4 and the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Core Curriculum of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, as incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

d. General appraiser market analysis and highest and best use: 30 classroom hours;

e. Statistics, modeling and finance: 15 classroom hours; f. General appraiser sales comparison approach: 30 classroom hours; g. General appraiser site valuation and cost approach: 30 classroom hours; h. General appraiser income approach: 60 classroom hours; i. General appraiser report writing and case studies: 30 classroom hours; and j. Appraisal subject matter electives: 30 classroom hours. 3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Certified General Appraiser shall meet the education requirements set forth in Board Rule 2.4A4 and the following real estate appraisal education module requirements, or the substantial equivalent thereof, as set forth in the Core Curriculum of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of The Appraisal Foundation on February 20, 2004, and amended through May 5, 2006, with an effective date of January 1, 2008, as incorporated by reference in Rule 1.32:

a. Basic appraisal principles: 30 classroom hours;

b. Basic appraisal procedures: 30 classroom hours;

c. 15-hour National USPAP Course: 15 classroom hours;

d. General appraiser market analysis and highest and best use: 30 classroom hours;

1. Hold a bachelors degree or higher from an accredited college or university as defined in Board Rule 1.30, or 2. Successfully complete not less than 30 semester credit hours or 45 quarter credit hours in the following collegiate subject matter courses from an accredited college, junior college, community college or university as defined in Board Rule 1.30. Courses in all the listed topics shall be completed. No topics shall be omitted. Credits earned through the College Level Examination Program ("CLEP") are acceptable to meet this requirement.

a. English composition;

b. Macro economics;

c. Micro economics;

d. Finance;

e. Algebra, geometry or higher mathematics;

f. Statistics;

g. Introduction to computers, word processing and spreadsheets; h. Business or real estate law; and i. Two elective courses in accounting, geography, agricultural economics, business management or real estate.

B. Real estate appraisal experience:

1. An applicant submitting an application received in the offices of the Board through December 31, 2007 for licensure as a Colorado Certified General Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 3,000 hours of real estate appraisal experience acceptable to the Board under the provisions of Chapter 5 of these Rules. Such real estate appraisal experience shall have been gained across a period of not less than 30 months and shall include at least 1,500 hours of appraisal of non-residential property, as defined in Chapter 1 of these Rules.

2. An applicant submitting an application received in the offices of the Board on and after January 1, 2008 but before January 1, 2010 for licensure as a Colorado Certified General Appraiser shall demonstrate to the satisfaction of the Board that: (1) the applicant completed at least 3,000 hours of appraisal experience on or before December 31, 2007 in conformance with the provisions of Chapter 5 of these Rules as set forth in Board Rule 2.4B1; or (2) the applicant completed at least 3,000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Real estate appraisal experience under this Rule 2.4B2 shall have been gained across a period of not less than 30 months and shall include at least 1,500 hours of appraisal of non-residential property, as defined in Chapter 1 of these Rules.

3. An applicant submitting an application received in the offices of the Board on and after January 1, 2010 for licensure as a Colorado Certified General Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 3,000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Real estate appraisal experience under this Rule 2.4B3 shall have been gained across a period of not less than 30 months and shall include at least 1,500 hours of appraisal of non-residential property, as defined in Chapter 1 of these Rules.

C. Real estate appraisal examination: successful completion of the Certified General Appraiser examination as provided in Chapter 4 of these Rules.

2.5 Complete and properly documented applications for licensure received in the offices of the Board on or before December 31, 2007 will be evaluated pursuant to the requirements set forth in Board Rules 2.1A1 and 2.1B (Registered Appraiser Applications); 2.2A1, 2.2B1 and 2.2C (Licensed Appraiser Applications); 2.3A1, 2.3B1 and 2.3C (Certified Residential Appraiser Applications); and 2.4A1, 2.4B1 and 2.4C (Certified General Appraiser Applications), as applies. 2.6 Complete and properly documented applications received in the offices of the Board on and after January 1, 2008 will be evaluated pursuant to the requirements set forth in Board Rules 2.1A2, 2.1A3 and 2.1B (Registered Appraiser Applications); 2.2A2, 2.2A3, 2.2B2, 2.2B3 and 2.2C (Licensed Appraiser Applications); 2.3A2, 2.3A3, 2.3A4, 2.3B2, 2.3B3 and 2.3C (Certified Residential Appraiser Applications); and 2.4A2, 2.4A3, 2.4A4, 2.4B2, 2.4B3 and 2.4C (Certified General Appraiser Applications), as applies.

2.7 An applicant submitting an application received in the offices of the Board on and after January 1, 2008 who cannot demonstrate to the satisfaction of the Board that the applicant met the real estate appraisal education requirements set forth in Board Rules 2.1A1, 2.2A1, 2.3A1 or 2.4A1 on or before December 31, 2007 shall include with their application properly completed education matrix forms clearly indicating the number of education hours applicable to each of the real estate appraisal education module requirements as set forth in the Required Core Curriculum and Guide Note 1 of the 2008 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation. Such education matrix forms shall be substantially in the format used by the Appraiser Qualifications Board’s Course Approval Program or such other format as may be approved by the Director of the Colorado Division of Real Estate. CHAPTER 3 STANDARDS FOR REAL ESTATE APPRAISAL QUALIFYING EDUCATION PROGRAMS 3.1 All qualifying education requirements may be completed at any time prior to filing of the application for registration, licensure or certification.

3.2 Appraisal education and training courses shall be taken from providers approved by the Board. In order to be approved, the course shall meet the following standards at the time it is offered: A. The course was developed by persons qualified in the subject matter and instructional design; B. The program content is current;

C. The instructor is qualified with respect to course content and teaching methods; D. The number of participants and the physical facilities are consistent with the teaching method; and E. The course includes an examination for measuring the information learned. 3.3 The following may be approved as providers of appraisal education and training provided the standards set forth in Rule 3.2 are maintained and provided they have complied with all other requirements of the State of Colorado:

A. Universities, colleges, junior colleges or community colleges accredited by a regional accrediting body accredited by the council on post secondary accreditation; B. Professional appraisal and real estate related organizations; C. State or federal government agencies;

D. Proprietary schools holding valid certificates of approval from the Colorado Division of Private Occupational Schools, Department of Higher Education;

E. As to courses completed in other jurisdictions, providers approved by such other jurisdiction, provided that the jurisdiction’s appraiser regulation program has been determined to be in compliance with FIRREA;

F. As to courses approved under the course approval program of The Appraisal Foundation, the providers of such courses; and G. Such other providers as the Board may approve upon petition of the course provider or the applicant in a form acceptable to the Board.

3.4 As to course work offered on or after January 1, 1991, in order to be approved by the Board, each course provider shall maintain, and provide to the Board upon request, information regarding the course offerings including, but not limited to the following: A. Course outline or syllabus;

B. All texts, workbooks, hand outs or other course materials; C. Instructors and their qualifications, including selection, training and evaluation criteria; D. Course examinations;

E. Dates of course offerings; and F. Location of course offerings.

3.5 The number of hours credited shall be equivalent to the actual number of contact hours of in-class instruction and testing. An hour of appraisal education and training is defined as at least 50 minutes of instruction out of each 60-minute segment. For distance education courses, the number of hours credited shall be that number of hours allowed by the Course Approval Program of The Appraisal Foundation.

3.6 In order to be approved as qualifying education and training, a course must be at least 15 hours in duration and must include an examination pertinent to the material covered. Courses may be comprised of segments of not less than one classroom hour. 3.7 Appraisal education and training courses must be successfully completed by the applicant. Except as otherwise provided in Rule 3.8, successful completion means the applicant has attended the class, participated in class activities and achieved a passing score on the course examination. Teaching of approved appraisal education and training courses shall constitute successful completion.

3.8 Credit will be granted for classroom hours where the applicant obtained credit from the course provider by challenge examination without attending the course, provided that such credit was granted by the provider prior to July 1, 1990 and provided further that the Board is satisfied with the quality of the challenge examination administered.

3.9 The responsibility for establishing that a particular course or other program for which credit is claimed is acceptable rests upon the applicant.

3.10 Each applicant shall provide a signed statement, under penalty of perjury, attesting to the successful completion of the required hours of appraisal education and training on a form prescribed by the Board. The Board reserves the right to require an applicant or licensee to provide satisfactory documentary evidence of completion of appropriate course work. 3.11 Hours of appraisal education and training accepted in satisfaction of the education requirement of one level of registration, licensure or certification may be applied toward the requirement for another level and need not be repeated. Applicants are responsible for demonstrating coverage of the required topics.

3.12 The following factors shall be used to convert university, college, junior college and community college course credits into classroom hours:

A. Semester Credits x 15.00 = Classroom Hours B. Quarter Credits x 10.00 = Classroom Hours 3.13 Applicants shall successfully complete a course or series of courses of appraisal education and training which build upon and augment previous courses. Courses which substantially repeat other course work in terms of content and level of instruction will not be accepted. The Board will give appropriate consideration to courses where substantive changes in content have occurred. 3.14 To be acceptable for qualifying real estate appraisal education, distance education offerings must incorporate methods and activities that promote active student engagement and participation in the learning process. Among those methods and activities acceptable are written exercises which are graded and returned to the student, required responses in cd-rom, disk and on-line computer based presentations, provision for students to submit questions during teleconferences, and examinations proctored by an independent third party. Simple reading, viewing or listening to materials is not sufficient engagement in the learning process to satisfy the requirements of this rule.

3.15 As to qualifying education courses completed in other jurisdictions with appraiser regulatory programs established in conformance with Title XI, FIRREA, the Board will accept the number of classroom hours of education accepted by that jurisdiction. 3.16 To be acceptable for qualifying real estate appraisal education, distance education courses shall meet the other requirements of this Chapter 3, and shall include a written, closed book final examination proctored by an independent third party, or other final examination testing procedure acceptable to the Board. Examples of acceptable examination proctors include public officials who do not supervise the student, secondary and higher education school officials, and public librarians. Failure to observe this requirement may result in rejection of the course and/or course provider by the Board for that applicant, and may result in the Board refusing or withdrawing approval of any courses offered by the provider.

3.17 All qualifying education courses in the Uniform Standards of Professional Appraisal Practice begun on and after January 1, 2003 shall be in the form of a course approved under the course approval program of the Appraiser Qualifications Board of The Appraisal Foundation, and taught by an instructor certified by the Appraiser Qualifications Board of The Appraisal Foundation and who is a state certified appraiser.

3.18 Course providers shall provide each student who successfully completes a qualifying real estate appraisal education course in the manner prescribed in Board Rule 3.7 a course completion certificate. The Board will not mandate the exact form of course certificates, however, the following information shall be included:

A. Name of course provider;

B. Course title, which shall describe topical content, or 2008 Real Property Appraiser Qualification Criteria Core Curriculum module title;

C. Course number, if any;

D. Course dates;

E. Number of classroom hours;

F. Statement that the required examination was successfully completed; G. Course location, which for distance education modalities shall be the principal place of business of the course provider;

H. Name of student; and I. For all Uniform Standards of Professional Appraisal Practice courses begun on and after January 1, 2003, the name(s) and Appraiser Qualifications Board Uniform Standards of Professional Appraisal Practice instructor certification number(s) of the instructor(s). 3.19 The provisions of Board Rule 3.3 notwithstanding, real estate appraisal qualifying education courses begun on and after January 1, 2004 and offered through distance education modalities must be approved through the Course Approval Program of The Appraisal Foundation. The Board will not accept distance education courses begun on and after January 1, 2004 that have not been approved through the Course Approval Program of The Appraisal Foundation. 3.20 All qualifying education courses in the Uniform Standards of Professional Appraisal Practice (USPAP) shall be presented using the most recent edition of the Uniform Standards of Professional Appraisal Practice and the most recent version of the National USPAP Course (real property) or equivalent as approved by the Course Approval Program of The Appraisal Foundation, with the exception that courses begun in the three months preceding the effective date of a new edition may be presented using the next succeeding USPAP edition and course version, if available from The Appraisal Foundation.

3.21 All qualifying education courses begun on or after January 1, 2008 must be approved through the Course Approval Program of the Appraisal Foundation, except as otherwise may be approved in advance and in writing by the Director of the Colorado Division of Real Estate (the “Director” ) on a limited case by case basis where the Director determines that the public would not be served if course approval were required through the Course Approval Program of the Appraiser Qualifications Board of the Appraisal Foundation for a particular course. Course providers seeking approval of qualifying education courses that have not been approved through the Course Approval Program of the Appraiser Qualifications Board of the Appraisal Foundation shall provide the Director with all requested information the Director deems necessary. CHAPTER 4 STANDARDS FOR REAL ESTATE APPRAISAL LICENSING EXAMINATIONS 4.1 Any person wishing to apply for any appraiser's license shall register for and achieve a passing score on the appropriate level of examination with the testing service designated by the Board. No other examination results will be accepted. The appropriate levels of examination for the respective levels of licensure are as follows:

License Level Examination Registered Appraiser Registered Appraiser Licensed Appraiser Licensed Real Property Appraiser Certified Residential Certified Residential Appraiser Appraiser Certified General Certified General Appraiser Appraiser 4.2 Examinees shall comply with the standards of test administration established by the Board and the testing service.

4.3 A passing score on an examination shall be valid for two years from the examination date. Failure to file a complete application within the two year period will result in the examination grade being void.

4.4 Examinations will be given only to duly qualified applicants for an appraiser's license; however, one instructor from each appraisal qualifying education course provider approved pursuant to Rule 3.3 may take the examination one time during any 12 month period in order to conduct research for course content.

4.5 Each examination for a license may, as determined by the Board, be a separate examination. 4.6 Examinations developed or contracted for by the Board for licensed and certified appraisers shall comply with Title XI, FIRREA.

4.7 Repealed 4.8 Examinees may use financial calculators during the examination process. The memory functions of any such calculator shall be cleared by the testing service staff prior to the beginning and after the conclusion of the examination.

CHAPTER 5 STANDARDS FOR REAL ESTATE APPRAISAL EXPERIENCE 5.1 The following areas of appraisal activity shall constitute acceptable appraisal experience under this Chapter:

A. Fee and staff appraisal;

B. Ad valorem tax appraisal;

C. Review appraisal;

D. Appraisal analysis;

E. Real estate counseling;

F. Highest and best use analysis;

G. Feasibility analysis/study; and H. Such other experience as the Board may accept upon petition by the applicant in a form acceptable to the Board.

5.2 An applicant must have made a substantial contribution to the appraisal process and arrived at a conclusion of value in any appraisal claimed as evidence of meeting experience requirements. Only those real property appraisals, appraisal reviews or appraisal consulting assignments culminating in a written or oral report and workfile compliant with the Uniform Standards of Professional Appraisal Practice shall be acceptable as evidence of meeting appraisal experience requirements.

5.3 Reports or file memoranda claimed as evidence of meeting experience requirements shall: A. As to reports or file memoranda completed prior to July 1, 1991, such reports or file memoranda shall have been prepared in conformance with the generally accepted standards of professional appraisal practice for the type of real estate as of the time the work was completed; and B. As to reports or file memoranda completed on or after January 1, 1991, such reports or file memoranda shall have been prepared in conformance with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of The Appraisal Foundation on January 30, 1989 and amended through the date of completion of the report or file memoranda.

5.4 Each applicant shall provide a statement signed under penalty of perjury, attesting to acceptable completion of the required appraisal experience on a form provided by the Board. 5.5 The Board reserves the right to verify an applicant's or licensee's evidence of appraisal experience by such means as it deems necessary, including, but not limited to requiring the following: A. Submission of a detailed log of appraisal activity on the form or in the manner specified by the Board;

B. Submission of appraisal reports, workfiles or file memoranda; C. Employer affidavits or interviews;

D. Client affidavits or interviews; and E. Submission of appropriate business records.

5.6 Repealed.

5.7 On and after January 1, 2005, and prior to January 1, 2008, to be acceptable for licensing purposes, real estate appraisal experience gained by an unlicensed person or a person licensed at the Registered Appraiser level shall be gained under the following conditions: A. The unlicensed person or Registered Appraiser shall be under the active, diligent and personal supervision of a supervising appraiser who has been a Licensed Appraiser as defined by Board Rule 1.13 for at least two years, or a Certified Residential Appraiser as defined by Board Rule 1.14, or a Certified General Appraiser as defined by Board Rule 1.15. The provisions of this Rule 5.7 a shall not apply to an unlicensed person or Registered Appraiser employed in the office of a Colorado county assessor when appraising real estate in fulfillment of their official duties; B. The Licensed Appraiser, Certified Residential Appraiser or Certified General Appraiser acting as supervisor shall be in good standing with the Board. For purposes of this rule, good standing is defined as not having been subject to any disciplinary action under Section 12-61-710 (5)(a), (b), or (c), C.R.S., during the preceding two (2) years; C. Real estate appraisal experience gained in conformance with Board Rule 5.7 prior to January 1, 2008 shall continue to be acceptable after January 1, 2008. Real estate appraisal experience gained on and after January 1, 2008 shall be gained in conformance with Board Rule 5.8.

5.8 On and after January 1, 2008, to be acceptable for licensing purposes, real estate appraisal experience gained by an unlicensed person or a person licensed at the Registered Appraiser level shall be gained under the following conditions:

A. The unlicensed person or Registered Appraiser shall be under the active, diligent and personal supervision of a Certified Residential Appraiser as defined by Board Rule 1.14, or a Certified General Appraiser as defined by Board Rule 1.15. The provisions of this Rule 5.8 a shall not apply to an unlicensed person or Registered Appraiser employed in the office of a Colorado county assessor when appraising real estate in fulfillment of their official duties;

B. The Certified Residential Appraiser or Certified General Appraiser acting as supervisor shall be in good standing with the Board. For purposes of this rule, good standing is defined as not having been subject to any disciplinary action under Section 12-61-710 (5)(a), (b), or (c), C.R.S., during the preceding two (2) years;

C. The Certified Residential Appraiser or Certified General Appraiser acting as supervisor shall not supervise more than three (3) unlicensed persons or Registered Appraisers at any one time; and D. Real estate experience gained in conformance with Board Rule 5.7 prior to January 1, 2008 shall continue to be acceptable after January 1, 2008. Real estate appraisal experience gained on and after January 1, 2008 shall be gained in conformance with Board Rule 5.8. 5.9 Each application for licensure pursuant to Board Rules 2.2, 2.3, and 2.4 shall be accompanied by a log of real estate appraisal experience. The log of real estate appraisal experience claims submitted in support of an application for licensure shall be on the form or in the manner specified by the Board. Such log shall be subject to the following requirements: A. The log shall include statements certifying to the accuracy and truthfulness of the information therein;

B. Signatures shall be individual handwritten marks. Photocopied, computer generated, stamped or other facsimile signatures are not acceptable. No one other than the applicant or supervisory appraiser shall sign the certifications.

5.10 Driving time in the market neighborhood of the subject property for inspection of the subject and comparable properties may qualify as part of appraisal experience. 5.11 An applicant for licensure as a Colorado Licensed Appraiser, a Colorado Certified Residential Appraiser or a Colorado Certified General Appraiser must demonstrate that the applicant is capable of performing appraisals that are compliant with the Uniform Standards of Professional Appraisal Practice. In accordance with Board Rule 5.5, the Board may verify an applicant’s appraisal experience by such means as it deems necessary, including but not limited to requiring the applicant to submit a detailed log of appraisal experience and appraisal reports and work files. Staff within the Colorado Division of Real Estate or appraisers selected by the Colorado Division of Real Estate may review an applicant’s appraisal reports and work files to determine whether the applicant is capable of performing appraisals that are compliant with USPAP. Such review shall not be considered an “Appraisal Review” as defined by USPAP. An appraiser performing a review of appraisal reports and work files in accordance with this rule shall not be required to perform a USPAP Standard 3 appraisal review. [Emer. Rule eff. 12/07/2007] CHAPTER 6 APPLICATION FOR INITIAL LICENSURE 6.1 An applicant for licensure as a registered, licensed or certified appraiser shall complete all requirements prior to filing the application, including education, experience (if required) and examination.

6.2 Each applicant shall submit original documentary evidence of a passing score on the appropriate examination with the application.

6.3 An application is deemed complete at the time all required supporting documents and fees are received at the Board offices.

6.4 Repealed.

6.5 Licenses shall be issued by the Board as soon as practicable after receipt of a complete application, required fees and all supporting documentation. The Board reserves the right to require additional information and documentation from an applicant, and to verify any information and documentation submitted.

6.6 Submission of an application does not guaranty issuance of a license, or issuance of a license within a specific period of time. Applicants shall observe the provisions of Section 12-61-714, C.R.S. and Board Rules Chapter 12. Applicants shall not represent themselves as being licensees of the Board until receipt of the Board issued license document. 6.7 Pursuant to Section 12-61-709(1), C.R.S., an applicant who has been convicted of, entered a plea of guilty to, or entered a plea of nolo contendere to any felony, or any crime involving moral turpitude, or any other like crime under Colorado law, federal law, or the laws of another state within the ten (10) years preceding application shall file with his or her application an addendum to the application in a form prescribed by the Board. Such addendum shall be supported and documented by, without limitation, the following:

A. Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;

B. Police officer’s report;

C. Probation or parole officer’s report;

D. A written personal statement explaining the circumstances surrounding each violation, and including the statement “I have no other violations either past or pending” ; E. Letters of recommendation; and F. Employment history for the preceding five years.

6.8 Prior to application for licensure a person who has been convicted of, entered a plea of guilty to, or entered a plea of nolo contendere to any felony, or any crime involving moral turpitude, or any other like crime under Colorado law, federal law, or the laws of another state within the preceding ten (10) years may request the Board to issue a preliminary advisory opinion regarding the possible effect of such conduct on an application for licensure. A person requesting such an opinion is not an applicant for licensure. The Board may, at its sole discretion, issue such an opinion, which shall not be binding on the Board or limit the authority of the Board to investigate a later application for licensure. The issuance of such an opinion by the Board shall not act to prohibit a person from submitting an application for licensure. A person requesting such an opinion shall do so in a request form prescribed by the Board. Such request form shall be supported and documented by, without limitation, the following: A. Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;

B. Police officer’s report(s);

C. Probation or parole officer’s report(s);

6.9 Repealed CHAPTER 7: CONTINUING EDUCATION REQUIREMENTS 7.1 For initial licenses issued on or after July 1 of any year, there shall be no continuing education requirement as a condition of renewal of such initial license that expires December 31 of the year of issue as defined in Board Rule 1.8. For initial licenses issued before July 1 of any year, there shall be an obligation to complete 14 hours of continuing education as a condition of renewal before the initial license expires on December 31 of the year of issue as defined in Board Rule 1.8. Continuing education requirements established by this Chapter 7 shall apply to all other license renewals.

7.2 Except as provided under Board Rule 7.1, each applicant for renewal of a license shall complete at least 42 classroom hours of real estate appraisal continuing education during the three year period preceding expiration of the license to be renewed. All licensees renewing a license at the end of a three-year licensing period shall complete 7-hour National Uniform Standards of Professional Appraisal Practice Update Courses in compliance with the every other year schedule established in Board Rule 7.19. All Uniform Standards of Professional Appraisal Practice Update Courses begun on and after January 1, 2003 must comply with Board Rule 7.19. Continuing education requirements must be completed after the effective date of the license to be renewed and prior to the expiration of such license.

7.3 Continuing appraisal education programs and courses shall be taken from providers approved by the Board. In order to be approved by the Board, programs shall meet the following standards: A. The program shall have been developed by persons qualified in the subject matter and instructional design;

B. The program shall be current;

C. The instructor shall be qualified with respect to course content and teaching methods; D. The number of participants and the physical facilities are consistent with the teaching method(s).

7.4 The following may be approved as providers of continuing appraisal education and training provided the standards set forth in Rule 7.3 are maintained and provided they have complied with all other requirements of the State of Colorado:

A. Universities, colleges, junior colleges or community colleges accredited by a regional accrediting body accredited by the Council on Post Secondary Accreditation; B. Professional appraisal and real estate related organizations; C. State or federal government agencies;

D. Proprietary schools holding valid certificates of approval from the Colorado Division of Private Occupational Schools, Department of Higher Education E. As to courses completed in other jurisdictions, providers approved by such other jurisdiction, provided that the jurisdiction’s appraiser regulation program has been determined to be in compliance with Title XI, FIRREA;

7.5 In order to be approved by the Board, each continuing education provider shall at its expense maintain, and provide to the Board on request, information regarding the program offerings including, but not limited to the following:

A. Course outline or syllabus;

B. All texts, workbooks, hand outs or other course materials; C. Instructors and their qualifications, including selection, training and evaluation criteria; D. Course examinations (if any);

E. Dates of course offerings;

F. Location of course offerings;

G. Record of participation;

7.6 In order to be approved as continuing appraisal education a program or course shall be at least 2 classroom hours in duration including examination time (if any). A program or course shall be comprised of segments of not less than one classroom hour. Continuing appraisal education programs and courses are intended to maintain and improve the appraiser’s skill, knowledge and competency. Continuing appraisal education courses and programs may include, without limitation, these real estate and real estate appraisal related topics: A. Ad valorem taxation;

B. Arbitration;

C. Business courses related to practice of real estate appraisal; D. Construction cost estimating;

E. Ethics and standards of professional practice;

F. Land use planning, zoning and taxation;

G. Management, leasing, brokerage and timesharing;

H. Property development;

I. Real estate appraisal (valuation/evaluation);

J. Real estate law;

K. Real estate litigation;

L. Real estate financing and investment;

M. Real estate appraisal related computer applications; N. Real estate securities and syndication;

O. Real property exchange; and P. Such other topics as the Board may approve, upon its own motion or upon petition by the course provider or the licensee in a form acceptable to the Board. 7.8 The Board may consider alternatives to continuing appraisal education programs and courses such as teaching, authorship of textbooks or articles, educational programs development or similar activities for up to one-half of the required continuing education. Licensees desiring continuing appraisal education credit for alternative activities must petition the Board for approval in a form acceptable to the Board. Such petition for approval of alternatives to continuing appraisal education programs and courses shall be submitted to the Board in writing for review and possible approval prior to commencement of the alternative activity. 7.9 The act of applying for renewal or reinstatement shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board Rules. The Board reserves the right to require a renewal applicant or licensee to provide satisfactory documentary evidence of completion of continuing appraisal education requirements. The Board may at its option require such submission as part of the renewal process or subsequent to renewal.

7.10 With the exception of the 7-hour National Uniform Standards of Professional Appraisal Practice Update Course(s) required pursuant to Board Rule 7.19, applicants for renewal of a license may complete the required hours of continuing appraisal education at any time during the licensing period preceding expiration.

7.11 To complete continuing education requirements an appraiser may repeat courses or programs previously completed, subject to the limitation that no course or program may be repeated more frequently than once every two (2) years, except as authorized by the Board. Courses or programs in appraisal ethics and the Uniform Standards of Professional Appraisal Practice are not subject to this limitation.

7.12 In order to receive credit, continuing appraisal education courses and programs shall be successfully completed by the holder of the license to be renewed. Successful completion means attendance at the class or program and participation in class activities. Successful completion of courses undertaken through distance education requires compliance with the provisions of Board Rule 7.14. Teaching of continuing appraisal education courses and programs shall constitute successful completion, however, credit shall be given for only one presentation of a particular course or program during each renewal period.

7.13 The number of hours credited shall be equivalent to the actual number of contact hours of in class instruction and testing. An hour of appraisal education and training is defined as at least 50 minutes of instruction out of each 60-minute segment. For distance education courses, the number of hours credited shall be that number of hours allowed by the Course Approval Program of The Appraisal Foundation.

7.14 To be acceptable for real estate appraisal continuing education, distance education offerings shall include methods and activities which promote active student engagement and participation in the learning process. Among those methods and activities acceptable are written exercises which are graded and returned to the student, required responses in cd-rom, disk and on-line computer based presentations, provision for students to submit questions during teleconferences, and examinations proctored by an independent third party. Simple reading, viewing or listening to materials is not sufficient engagement in the learning process to satisfy the requirements of this rule.

7.15 As to continuing education courses and programs completed in other jurisdictions with appraiser regulatory programs established in conformance with Title XI, FIRREA, the Board shall accept the number of classroom hours of continuing education accepted by that jurisdiction. 7.16 Repealed.

7.17 Prior to enrolling in a continuing education course presenting topics other than those listed in Board Rule 7.6.A-O, a licensee shall request Board approval of such course or topic. Failure to request and receive approval of such course or topic prior to commencement of the course may result in Board refusal to accept the course for continuing education credit. 7.18 To be acceptable for continuing education credit, continuing education course content must have a clear application to real estate appraisal practice. The following topics or types of courses are not acceptable for satisfaction of the continuing education requirements established by these rules: motivational courses, personal growth or self-improvement courses, general business courses and general computing courses.

7.19 All licensees shall complete a 7-hour National Uniform Standards of Professional Appraisal Practice Update Course every other year. Such 7-hour National Uniform Standards of Professional Appraisal Practice Update Course shall be in the form of a course approved by the Appraiser Qualifications Board of The Appraisal Foundation, and taught by an instructor certified by the Appraiser Qualifications Board of The Appraisal Foundation. 7.20 A licensee who is a resident of a jurisdiction other than the State of Colorado may comply with the continuing education requirements of this Chapter 7 by documenting, at the request of the Board, compliance with the continuing education requirements of their jurisdiction of residence. In the event the jurisdiction of residence does not impose continuing education requirements consistent with the criteria promulgated by the Appraiser Qualifications Board of The Appraisal Foundation, the licensee shall comply with the continuing education requirements established by this Chapter 7.

7.21 A licensee who renews a license subject to a continuing education requirement shall retain documentary evidence of compliance with these continuing education requirements for a period of not less than five (5) years after the expiration of the license being renewed. [Emer. Rule eff. 12/07/2007] 7.22 Course providers shall provide each student who successfully completes a continuing education course in the manner prescribed in Board Rule 7.12 a course completion certificate. The Board will not mandate the exact form of course certificates, however, the following information shall be included:

A. Name of course provider;

B. Course title, which shall describe topical content;

C. Course number, if any;

D. Course dates;

E. Number of classroom hours;

F. Statement that the required examination was successfully completed, if an examination is a regular part of the course;

G. Course location, which for distance education modalities shall be the principal place of business of the course provider;

H. Name of student; and I. For Uniform Standards of Professional Appraisal Practice courses begun on and after January 1, 2003, the name and Appraiser Qualifications Board Uniform Standards of Professional Appraisal Practice instructor certification number of the instructor. 7.23 The provisions of Board Rule 7.4 notwithstanding, real estate appraisal continuing education courses begun on and after January 1, 2004 and offered through distance education modalities must be approved through the Course Approval Program of The Appraisal Foundation. The Board will not accept distance education courses begun on and after January 1, 2004 that have not been approved through the Course Approval Program of The Appraisal Foundation. CHAPTER 8 RENEWAL, REINSTATEMENT, SURRENDER, REVOCATION OF LICENSURE 8.1 Prior to the expiration of any license the holder thereof shall make application for renewal of same in the form and manner provided by the Board, and pay the specified fees. The act of applying for renewal shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board Rules. 8.2 After expiration of an unrenewed license but before the thirty-first day following the date of expiration, the holder of such license may reinstate same by applying for reinstatement in the form and manner provided by the Board, and paying the specified renewal fees. The act of applying for reinstatement shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board Rules. 8.3 On and after the thirty-first day following the date of expiration, and before the end of the first year following the date of expiration, the holder of an expired license may reinstate same by applying in the form and manner provided by the Board, and paying the specified fees plus a reinstatement fee equal to one third of the base renewal fee. For purposes of this rule, the base renewal fee is defined as the total renewal fee less the National Appraiser Registry fee collected by the Board and remitted to the federal Appraisal Subcommittee. The act of applying for reinstatement shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board Rules.

8.4 After the end of the first year following the date of expiration, and before the end of the second year following the date of expiration, the holder of an expired license may reinstate same by applying in the form and manner provided by the Board, and paying the specified fees plus a reinstatement fee equal to two thirds of the base renewal fee. For purposes of this rule, the base renewal fee is defined as the total renewal fee less the National Appraiser Registry fee collected by the Board and remitted to the federal Appraisal Subcommittee. The act of applying for reinstatement shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board Rules.

8.5 No holder of an expired license which may be reinstated may apply for a new license of the same type. Such person shall reinstate the expired license as provided in these rules. Nothing in this Rule 8.5 shall act to prevent a person from applying for and receiving a license or certificate with higher qualification requirements than those of the expired license. 8.6 Each Licensee shall provide the Board with the following information: (1) a current mailing address and phone number for the licensee; (2) a current email address for the licensee or a letter explaining why the licensee cannot provide an email address; and (3) such other contact information as may be required by the Board from time to time. Each Licensee shall inform the Board within ten (10) calendar days of any change in such contact information on a form or in the manner prescribed by the Board. Contact information for the licensee will be posted on the division of real estate’s public website, and it is the licensee’s responsibility to inform the division of real estate of any required changes to the licensee’s contact information on the division of real estate’s public website. The address shown for the licensee on the Division of Real Estate’s public website shall be considered the licensee’s address of record. [Emer. Rule eff. 12/07/2007] 8.7 Repealed.

8.8 The holder of a registration, license, certificate or temporary practice permit may surrender such to the Board. The Board may deem a surrendered registration, license, certificate or temporary practice permit as permanently relinquished. Such surrender shall not remove the holder from the jurisdiction of the Board for acts committed while holding a registration, license, certificate or temporary practice permit. A person who surrenders a registration, license, certificate or temporary practice permit may not reinstate same, but must reapply and meet the current requirements for initial licensure. [Emer. Rule eff. 12/07/2007] 8.9 Upon revocation, suspension, surrender or expiration of a license or temporary practice permit the holder shall:

A. Immediately cease all activities requiring licensure or a temporary practice permit; B. In the instance of revocation, suspension or surrender, immediately return the license document or temporary practice permit to the Board;

C. Immediately cease all actions which represent the holder to the public as being licensed or being the holder of a temporary practice permit, including, without limitation, the use of advertising materials, forms, letterheads, business cards, correspondence, internet website content, statements of qualifications and the like. 8.10 A licensee who has not completed continuing education requirements established pursuant to Chapter 7 of these rules may renew or reinstate licensure on inactive status. A licensee desiring to renew or reinstate licensure on inactive status must submit their renewal or reinstatement on inactive status application directly to the Board at the designated offices of the Board. Failure to submit the renewal or reinstatement on inactive status application directly to the Board at the designated offices of the Board shall result in renewal or reinstatement on active status, and fully subject the licensee to the continuing education requirements for renewal or reinstatement of licensure.

8.11 A licensee may, without limitation, renew or reinstate licensure on inactive status for subsequent renewal periods by complying with the requirements of Rule 8.10. 8.12 Renewal or reinstatement of licensure on inactive status may be elected at the time of application for renewal or reinstatement. A licensee may not renew or reinstate on active status and then change to inactive status, unless advance, written approval is given by the board. A licensee who has renewed or reinstated on active status is subject to the continuing education requirements for renewal or reinstatement of licensure. [Emer. Rule eff. 12/07/2007] 8.13 A licensee who has renewed or reinstated on inactive status may change to active status by submitting a written request to the Board. The act of requesting a change from inactive status to active status shall constitute a statement under penalty of perjury in the second degree that the licensee had the present intent of affirmatively stating the licensee had complied with the continuing education requirements of Colorado statutes and Board rules. The Board shall require any licensee requesting a change from inactive status to active status to document completion of continuing education before implementing the change.

8.14 No person whose license has expired may represent themselves in any manner which creates the impression of holding active licensure. A person whose license has expired may refer to the fact of previous licensure by the Board by stating the dates of active licensure in parentheses after the license title, or by placing the word “expired” in parentheses after the license title. 8.15 No person whose license is on inactive status may represent themselves in any manner which creates the impression of holding active licensure. A person whose license is on inactive status may refer to the fact of previous active licensure or current inactive licensure by stating the dates of active licensure in parentheses after the license title, or by placing the word “inactive” in parentheses after the license title.

8.16 No person whose license has expired may represent themselves in any manner which creates the impression of holding inactive licensure.

CHAPTER 9 LICENSURE AND CERTIFICATION BY ENDORSEMENT 9.1 Pursuant to Section 12-61-708(1), C.R.S. (as amended), licensure by endorsement shall be subject to the following restrictions and requirements:

A. The Board may issue licenses by endorsement only to those persons holding an active license from another jurisdiction which is substantially equivalent to those described in Board Rules 1.13, 1.14 or 1.15, with qualification requirements substantially equivalent to those in Board Rules 2.2, 2.3 or 2.4, respectively. Licensure by endorsement is not available to persons holding licensure in another jurisdiction at a trainee, apprentice, associate, intern or other entry level similar to that defined in Board Rule 1.12. B. The applicant must be the holder of an active license in good standing under the laws of another jurisdiction;

C. The appraiser regulatory program of the jurisdiction where the applicant holds an active license in good standing must not have been disapproved by the appropriate authority under 12 U.S.C.A., Section 3347, FIRREA;

D. The applicant must apply for licensure by endorsement on a form provided by the Board, pay the specified fees and meet all other Board requirements; E. The applicant must apply for and be issued by the Board a license by endorsement prior to undertaking appraisal activities in Colorado that would require licensure in Colorado; and F. A license issued by endorsement shall be subject to the same renewal requirements as a license issued pursuant to Section 12-61-706, C.R.S. (as amended), and Board Rules Chapters 7 and 8.

CHAPTER 10 TEMPORARY PRACTICE IN COLORADO 10.1 Pursuant to Sections 12-61-701, 12-61-704(1)(a), 12-61-708(1), 12-61-715(1)(c), C.R.S. (as amended) and in conformance with 12 U.S.C.A. Section 3351(a), FIRREA, a Temporary Practice Permit may be issued to the holder of an active appraiser's license from another state. Such Temporary Practice Permit shall be subject to the following restrictions and requirements: A. The applicant must apply for and be issued a Temporary Practice Permit prior to undertaking appraisal activities in Colorado that would require licensure in Colorado; B. The applicant shall identify in writing the appraisal assignment(s) to be completed under the Temporary Practice Permit prior to being issued a Temporary Practice Permit; C. The Temporary Practice Permit shall be valid only for the appraisal assignment(s) listed thereon;

D. The applicant must be the holder of an active license in good standing under the laws of another state;

E. The state in which the applicant holds an active license in good standing must impose licensure requirements that are in conformance with FIRREA; F. The appraiser regulatory program of the state where the applicant holds a license in good standing must not have been disapproved by the appropriate authority under the provisions of 12 U.S.C.A. Section 3347, FIRREA;

G. The applicant must apply for a Temporary Practice Permit on a form provided by the Board, pay the specified fees, and meet all other Board requirements; and H. Pursuant to Section 12-61-708 (1.2), C.R.S., Temporary Practice Permits are available only to persons holding active licensure in another jurisdiction at levels substantially equivalent to those defined in Board Rules 1.13, 1.14 and 1.15. Temporary Practice Permits are not available to persons holding licensure in another jurisdiction at a trainee, apprentice, associate, intern or other entry level similar to that defined in Board Rule 1.12. 10.2 No person may be issued more than two Temporary Practice Permits in any rolling twelve-month period.

10.3 A Temporary Practice Permit issued pursuant to this Chapter 10 shall be valid for the period of time necessary to complete the original assignment(s) listed thereon, including time for client conferences and expert witness testimony. A Temporary Practice Permit issued pursuant to this Chapter 10 shall not be valid for completion of additional or update assignments involving the same property or properties. Additional or update assignments involving the same property or properties are new assignments, requiring a new Temporary Practice Permit or licensure by endorsement as provided in Chapter 9 of these Rules.

CHAPTER 11 STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE 11.1 Pursuant to Section 12-61-710(1)(g), C.R.S. (as amended), the Board adopts, and incorporates by reference in compliance with Section 24-4-103(12.5), C.R.S., as the generally accepted standards of professional appraisal practice the definitions, preamble, rules, standards and standards rules and statements of the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation on January 30, 1989 and amended through June 8, 2007 and known as the 2008-2009 edition. Amendments to the Uniform Standards of Professional Appraisal Practice subsequent to June 8, 2007 are not included in this Rule. A certified copy of the Uniform Standards of Professional Appraisal Practice is on file and available for public inspection with the Program Manager at the offices of the Board of Real Estate Appraisers at 1560 Broadway, Suite 925, Denver, Colorado. Copies of the Uniform Standards of Professional Appraisal Practice adopted under this rule may be examined at any state publications depository library. The 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice may be examined at the Internet website of The Appraisal Foundation at www.appraisalfoundation.org, and copies may be ordered through that mechanism. The Appraisal Foundation may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or by telefax at (202) 347-7727. The 2006 edition of the Uniform Standards of Professional Appraisal Practice, incorporating amendments made through October 28, 2005 shall remain in effect through December 31, 2007. Beginning January 1, 2008, the 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice shall be in effect. [Emer. Rule eff. 12/07/2007] 11.2 A licensee appraiser using the services of an unlicensed assistant under the provisions of Section 12-61-716, C.R.S. (as amended), or the services of another licensee in the preparation of appraisals or other work products shall, consistent with the Uniform Standards of Professional Appraisal Practice, supervise each such assistant or licensee in an active, diligent and personal manner, and describe the research, analysis and reporting contributions of each such assistant or other licensee in each such report or other work product. 11.3 When disclosing a contingent fee arrangement pursuant to Section 12-61-702(2.5), Section 12-61- 710(1)(g), and Section 12-61-712(1)(b), (c) and (d), C.R.S. (as amended), Board Rule 1.20, and the ETHICS RULE and Standards 4 and 5 of the Uniform Standards of Professional Appraisal Practice, a licensee shall do so in a clear and unequivocal manner in any oral report, and in the letter of transmittal, summary of salient facts and conclusions, statement of limiting conditions, and certifications of any written report.

The Board has chosen not to require specific contingent fee disclosure language, believing that licensees will use language appropriate to each situation. However, the Board recommends the following model language as being a “safe harbor” :

“[nameof firm or individual] has been retained to provide consulting services and is being compensated in whole or part on the basis of [state the basis of the contingency, such as achieving a property tax saving through a reduction in valuation for assessment, achieving a change in zoning, approval of a development plan, etc.]. This disclosure of a contingent fee is intended to comply with the requirements of Colorado law, Rules of the Colorado Board of Real Estate Appraisers and the Uniform Standards of Professional Appraisal Practice." CHAPTER 12 LICENSE TITLES, LICENSE DOCUMENTS, AND SIGNATURES 12.1 The descriptive license titles defined in Board Rules 1.12, 1.13, 1.14, 1.15 and 1.18 shall only be used by persons who hold such Board issued license or permit in good standing. 12.2 The descriptive license titles defined in Board Rules 1.12, 1.13, 1.14, 1.15 and 1.18 may only be used to refer to the individual holder of a license or permit in good standing, and shall not be used in such manner as to create the impression that any other person or group of persons, including a corporation, partnership or other business entity, holds such a license or permit. 12.3 No person shall use any title, designation or abbreviation issued by a private professional appraisal organization in a manner that creates the impression of licensure by the Board. 12.4 In each appraisal report or other appraisal related work product the license held by the appraiser(s) shall be clearly identified by using the license titles defined in Board Rules 1.12, 1.13, 1.14 and 1.15 and including the license number. Such license titles and numbers shall be identified wherever the licensee signs, by any means or method, the report or other work product, including, but not limited to the:

A. Letter of transmittal;

B. Certification of the appraiser(s); and C. Appraisal or other work product report form or document, including addenda thereto. 12.5 Repealed 12.6 An appraiser practicing in Colorado under authority of a Temporary Practice Permit shall identify the state where they hold licensure, the type of license and the license number, and shall further state they hold a Temporary Practice Permit and state the permit number in all instances where license type and number are required under this Chapter 12.

12.7 The real estate appraiser’s license or temporary practice permit document and identification card issued to an initial or renewal applicant shall remain the property of the Board. Such document and card shall be surrendered to the Board immediately upon demand. The reasons for such demand may include, but are not limited to, suspension, revocation, stipulated settlement or failure to pay required fees.

12.8 When complying with Rule 12.4 an appraiser shall use the full license or permit title in Rules 1.12, 1.13, 1.14, 1.15, and 1.18, or shall use the appropriate abbreviation as listed below, followed by the license or permit number. Use of initials only, such as RA, LA, CRA, CGA, or TP to identify the type of license or permit is prohibited.

Registered Appraiser: Reg. App. or Reg. Appr.

Licensed Appraiser: Lic. App. or Lic. Appr.

Certified Residential Appraiser: Crt. Res. App. or Cert. Res. Appr. Certified General Appraiser: Crt. Gen. App. or Cert. Genl. Appr. Temporary Practice Permit: Temp. Prac. Pmt.

12.9 Repealed 12.10 When stating the type of license or permit held, and the number thereof, an appraiser may make use of an impression, provided such impression is legible on each copy of the appraisal report or other work product.

12.11 Where appraisal report forms or other work product forms do not allow space for placing the information required by Rule 12.4 immediately following the name and signature of the appraiser the required information shall be placed in the closest reasonable available space on the same page.

12.12 The holder of a license or permit in good standing may copy the license or permit document for inclusion in an appraisal report or other appraisal work product. Such copy shall have the word "COPY" boldly marked across the face of the copy, in letters at least one inch in height, at least one half inch in width, and with a stroke width of at least one eighth inch. The word "COPY" marked on such copy shall be placed so as to substantially overlay the printed portions of the license or permit document.

12.13 The requirements of this chapter shall be complied with in any electronic copy or transmittal of an appraisal report or other appraisal related work product. 12.14 No holder of a license or temporary practice permit, or any other person, shall make or cause to be made or allow to be made, any alteration to a Board-issued license or permit document or copy thereof, other than as provided in Board Rule 12.12.

12.15 No licensee or other person may affix or cause to be affixed the name or signature of a licensee to an appraisal report or other appraisal related work product without the express permission of the licensee to do so for that assignment, report or other work product. No licensee shall give blanket permission for affixing their signature to appraisal reports or other work products. 12.16 No licensee shall permit, through action or inaction, their name or signature to be affixed to an appraisal report or other appraisal related work product without their first personally examining and approving the final version of such report or other work product. CHAPTER 13 DISCIPLINARY PROCEDURES 13.1 Complaints alleging violation of Section 12-61-701, et seq. , C.R.S. or the Rules of the Board of Real Estate Appraisers shall be in writing on a form or in the manner prescribed by the Board. Nothing in this rule shall act to prevent the Board from acting upon its own motion to open a complaint.

13.2 Pursuant to Section 12-61-704(1)(d), C.R.S., and Section 24-4-105(3), C.R.S., any disciplinary hearing conducted on behalf of the Board may, at the discretion of the Board, be conducted by an Administrative Law Judge from the Office of Administrative Courts of the Department of Personnel & Administration.

13.3 Pursuant to Section 12-61-710(7), C.R.S., complaints of record in the offices of the Board and the results of staff investigations shall be closed to public inspection, except as provided by court order, during the investigatory period and until notice of hearing and charges are served on the licensee. Pursuant to Section 12-61-710(7), C.R.S., Section 24-72-203, C.R.S., and Section 24- 72-204, C.R.S., complaints of record that are dismissed by the Board and the results of investigation of such complaints shall be closed to public inspection, except as provided by court order.

13.4 When an appraiser licensed under the provisions of Section 12-61-701, et seq., C.R.S., (as amended) has been sent written notification from the Board that a complaint has been filed against the appraiser, such appraiser shall submit to the Board a written answer. Such written answer shall address all of the issues raised in the complaint in a substantive manner. Mailing by first class mail to the last known address in the records of the Board shall constitute such written notification. Failure to submit a written answer within the time set by the Board in its notification shall be grounds for disciplinary action unless the Board has granted a written extension of time for the answer.

13.5 The holder of a Board-issued license or permit shall inform the Board in writing within ten (10) days of any disciplinary action taken by any other state, district, territorial, or provincial real estate appraiser or real estate brokerage licensing authority. For purposes of this rule, disciplinary action shall include, without limitation, actions such as fines, required education, probation, suspension, revocation, letters of censure, debarment, required supervision, and the like. 13.6 Pursuant to Section 24-34-106, C.R.S., when a licensee is required to complete real estate appraisal education as part of a disciplinary action, no portion of any such courses or programs completed to satisfy the terms of a disciplinary action shall be creditable toward continuing education requirements.

13.7 The holder of a Board-issued license or permit shall inform the Board in writing within ten days of conviction of, entering a plea of guilty to, or entering a plea of nolo contendere to any felony, or any crime involving moral turpitude, or any other like crime under Colorado law, federal law, or the laws of other states. A certified copy of the judgment of a court of competent jurisdiction of such conviction or other official record indicating that such plea was entered shall be conclusive evidence of such conviction or plea in any hearing under Section 12-61-701, et seq., C.R.S., or these Rules.

13.8 An investigation performed by staff within the Colorado Division of Real Estate or an appraiser selected by the Colorado Division of Real Estate to perform an investigation is not considered an “Appraisal Review” as defined by USPAP. An appraiser performing an investigation in accordance with this rule shall not be required to perform a USPAP Standard 3 appraisal review. [Emer. Rule eff. 12/07/2007] 13.9 A licensee shall respond in writing to any correspondence from the board requiring a response. The written response shall be submitted within the time period provided by the board. The board shall send such correspondence to the licensee’s address of record with the board. Failure to submit a timely written response shall be grounds for disciplinary action. [Emer. Rule eff. 12/07/2007] CHAPTER 14 DECLARATORY ORDERS PURSUANT TO SECTION 24-4-105 (11), C.R.S. 14.1 Any person may petition the Board for a declaratory order to terminate controversies or to remove uncertainties as to the applicability to the petitioner of any statutory provisions or of any rule or order of the Board.

14.2 The Board will determine, in its discretion and without notice to petitioner, whether to rule upon any such petition. If the Board determines that it will not rule upon such a petition, the Board shall promptly notify the petitioner in writing of its action and state the reasons for such action. 14.3 In determining whether to rule upon a petition filed pursuant to this rule, the Board will consider the following matters, among others:

A. Whether a ruling on the petition will terminate a controversy or remove uncertainties as to the applicability to petitioner of any statutory provision or rule or order of the Board. B. Whether the petition involves any subject, question or issue which is the subject of a formal or informal matter or investigation currently pending before the Board or a court involving one or more of the petitioners.

C. Whether the petition involves any subject, question or issue which is the subject of a formal or informal matter or investigation currently pending before the Board or a court but not involving any petitioner.

D. Whether the petition seeks a ruling on a moot or hypothetical question or will result in an advisory ruling or opinion.

E. Whether the petitioner has some other adequate legal remedy, other than an action for declaratory relief pursuant to Rule 57, C.R.C.P., which will terminate the controversy or remove any uncertainty as to the applicability to the petitioner of the statute, rule or order in question.

14.4 Any petition filed pursuant to this rule shall set forth the following: A. The name and address of the petitioner and whether the petitioner holds a registration, license or certificate issued pursuant to Section 12-61-701 et. seq. C.R.S. (as amended). B. The statute, rule or order to which the petition relates. C. A concise statement of all of the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to the petitioner.

14.5 If the Board determines that it will rule on the petition, the following procedures shall apply: A. The Board may rule upon the petition based solely upon the facts presented in the petition. In such a case:

1. Any ruling of the Board will apply only to the extent of the facts presented in the petition and any amendment to the petition.

2. The Board may order the petitioner to file a written brief, memorandum or statement of position.

3. The Board may set the petition, upon due notice to the petitioner, for a non-evidentiary hearing.

4. The Board may dispose of the petition on the sole basis of the matters set forth in the petition.

5. The Board may request the petitioner to submit additional facts, in writing. In such event, such additional facts will be considered as an amendment to the petition. 6. The Board may take administrative notice of facts pursuant to the Administrative Procedures Act, Section 24-4-105 (8), C.R.S., (as amended), and may utilize its experience, technical competence and specialized knowledge in the disposition of the petition.

7. If the Board rules upon the petition without a hearing, it shall promptly notify the petitioner of its decision.

B. The Board may, in its discretion, set the petition for hearing, upon due notice to petitioner, for the purpose of obtaining additional facts or information or to determine the truth of any facts set forth in the petition or to hear oral argument on the petition. The notice to the petitioner setting such hearing shall set forth, to the extent known, the factual or other matters into which the Board intends to inquire. For the purpose of such a hearing, to the extent necessary, the petitioner shall have the burden of proving all of the facts stated in the petition, all of the facts necessary to show the nature of the controversy or uncertainty and the manner in which the statute, rule or order in question applies or potentially applies to the petitioner and any other facts the petitioner desires the Board to consider. 14.6 The parties to any proceeding pursuant to this rule shall be the Board and the petitioner. Any other person may seek leave of the Board to intervene in such a proceeding, and leave to intervene will be granted at the sole discretion of the Board. A petition to intervene shall set forth the same matters as required by section 14.4 of this Rule. Any reference to a "petitioner" in this Rule also refers to any person who has been granted leave to intervene by the Board. 14.7 Any declaratory order or other order disposing of a petition pursuant to this Rule shall constitute agency action subject to judicial review pursuant to Section 24-4-106, C.R.S., (as amended). CHAPTER 15 WRITTEN NOTICES - BANKING EXEMPTIONS 15.1 Pursuant to Section 12-61-702 (1), C.R.S., (as amended), any appraisal, analysis, valuation, opinion, conclusion, notation or compilation prepared by an officer, director or regular salaried employee of a financial institution as defined in Section 12-61-702 (6), C.R.S., (as amended) , who is not a registered, licensed or certified appraiser under the provisions of Section 12-61-701, et seq., C.R.S., (as amended), shall contain the following written notice: NOTICE: The preparer of this appraisal is not licensed as a real estate appraiser under the laws of the State of Colorado."

15.2 Pursuant to Section 12-61-718 (1), C.R.S., (as amended), any appraisal prepared for a financial institution as defined in Section 12-61-702 (1), C.R.S. (as amended), where the real estate related transaction or loan made or to be made is excepted from appraisal regulations established by the primary federal regulator of the defined financial institution, by any person who is not a registered, licensed or certified appraiser under the provisions of Section 12-61-701, et seq. , C.R.S. (as amended) shall contain the following written notice: "NOTICE: The preparer of this appraisal is not licensed as a real estate appraiser under the laws of the State of Colorado."

15.3 The notices required under Section 12-61-702 (1) and Section 12-61-718 (1), C.R.S. (as amended), and Board Rules 15.1 and 15.2 shall:

A. Be placed on the first or cover page of each such appraisal, analysis, valuation, opinion, conclusion, notation or compilation, and on any page containing a value conclusion, signature or certification of the preparer;

B. Be placed on each copy of each such appraisal, analysis, valuation, opinion, conclusion, notation or compilation;

C. Be clearly legible in any xerographic or other reproduction of each such appraisal, analysis, valuation, opinion, conclusion, notation or compilation; and D. Be in a type size not smaller than the type size used in the body of any such appraisal, analysis, valuation, opinion, conclusion, notation or compilation. 15.4 The notices required under Section 12-61-702(1) and Section 12-61-718 (1), C.R.S. (as amended) and Board Rules 15.1 and 15.2 may be provided through use of a rubber stamped impression, provided such impression meets the requirements of Board Rule 15.3. [Eff. 10/02/2006] 15.5 The notice requirements established under Section 12-61-702(1) and Section 12-61-718(1), C.R.S. (as amended) and Board Rules 15.1 and 15.2 shall be complied with in any electronic copy or transmittal of any such appraisal, analysis, valuation, opinion, conclusion, notation or compilation. [Eff. 10/02/2006] ___________________________________________________ Editor’s Notes History Chapters 1 - 3, 7 - 8, 15 eff. 09/30/2007. Emer. Rule Chapters 5, 7, 8, 11, 13 eff. 12/07/2007.