PURPOSE: This rule informs applicants of the requirements, procedures and qualifications necessary for obtaining a certificate or license. FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

1. (1) The commission shall pass upon the granting of all certificates and licenses with due regard to the paramount interest of the public as to the honesty, integrity, fair dealing and competency of applicants.
2. (2) All applications for certification, licensure, renewal and examination shall be made on forms provided by the commission and completed and signed by the applicant, with the signature acknowledged before a notary public. All original applications shall include proof of submission of fingerprints to the Missouri State Highway Patrol’s approved vendor for both a Missouri State Highway Patrol and Federal Bureau of Investigation fingerprint background check. Any fees due for fingerprint background checks shall be paid by the applicant directly to the Missouri State Highway Patrol or its approved vendor. All applications shall include the appropriate fees as established pursuant to 20 CSR 2245- 5.020 and physical work and home addresses for the applicant. The commission will not consider an application which is incomplete or with which the correct fees have not been submitted.
3. (3) The commission may require each applicant for a certificate or license to furnish, at his/her expense, any information deemed necessary by the commission to determine the applicant’s qualifications for a certificate or license.
4. (4) The commission reserves the right, at its discretion, to hold, for a reasonable length of time for investigation, the application of any applicant who has not been previously certified or licensed, before issuing a certificate or license to that applicant.

5. (5) Prerequisite for Certification.

   1. (A) State-Certified General Real Estate Appraiser.

      1. 1. As a prerequisite for certification as a

state-certified general real estate appraiser, an applicant shall present satisfactory evidence to the commission that the applicant possesses three thousand (3,000) hours of appraisal experience obtained continuously over a period of not less than thirty (30) months. The applicant must have at least fifty percent (50%) of the required experience hours in the state of Missouri. Hours may be treated as cumulative in order to achieve the necessary three thousand (3,000) hours of appraisal experience, and there are no limitations on the number of hours which may be awarded in any year. The applicant, for experience credit, shall have accumulated a total of three thousand (3,000) hours of appraisal experience of which at least fifty percent (50%) (one thousand five hundred (1,500) hours) shall be in non-residential appraisal work and under the supervision of a state-certified general real estate appraiser.

1. (B) State-Certified Residential Appraiser.

   1. 1. The prerequisite for certification as a

state certified residential appraiser shall be two thousand five hundred (2,500) hours of appraisal experience obtained continuously over a period of not less than twenty-four (24) months under the supervision of a state-certified real estate appraiser. The applicant must have at least fifty percent (50%) of the required experience hours in the state of Missouri. Hours may be treated as cumulative in order to achieve the necessary two thousand five hundred (2,500) hours of appraisal experience and there is no limitation on the number of hours which may be awarded in any year. Each applicant for certification shall furnish, under oath, a detailed listing of the real estate appraisal reports or file memoranda for each year for which experience is claimed by the applicant. Upon request, the applicant shall make available to the commission a sample of appraisal reports which the applicant has prepared in the course of the applicant’s appraisal practice. For the purposes of this section, “prepared” means the participation in any function of the real estate appraisal report. Education may not be substituted for experience except as allowed in section (8) of this rule. All experience shall have been obtained after January 30, 1989, and shall be Uniform Standards of Professional Appraisal Practice (USPAP) compliant. The USPAP, 2006 Edition, is incorporated herein by reference and can be obtained from The Appraisal Foundation, 1155 15th Street NW, Suite 1111, Washington, DC 20005, by calling (202) 347-7722 or at www.appraisal foundation.org. This rule does not incorporate any subsequent amendments or additions to the USPAP. Acceptable appraisal experience as defined by the Appraiser Qualifications Board (AQB) includes, but is not limited to, the following (this should not be construed as limiting credit to only those individuals who are state-certified or state-licensed):

1. A. Fee and staff appraisal;
2. B. Ad valorem tax appraisal;
3. C. Technical review appraisal;
4. D. Appraisal analysis;
5. E. Real estate consulting;
6. F. Highest and best use analysis;
7. G. Feasibility analysis/study; and
8. H. Condemnation appraisal.

9. (C) State-Licensed Real Estate Appraiser.

   1. 1. As a prerequisite for licensure as a

state-licensed real estate appraiser, an applicant shall present satisfactory evidence to the commission that the applicant possesses the equivalent of two thousand (2,000) hours of appraisal experience obtained over a period of not less than twelve (12) months under the supervision of a state-certified real estate appraiser and supported by adequate written reports or file memoranda. The applicant must have at least fifty percent (50%) of the required experience hours in the state of Missouri. Hours may be treated as cumulative in order to achieve the necessary two thousand (2,000) hours of appraisal experience.

1. (D) All Applicants.

   1. 1. Each applicant for licensure shall fur-

nish, under oath, a summarized listing of the real estate appraisal reports or file memoranda for each year for which experience is claimed by the applicant. Upon request, the applicant shall make available to the commission a sample of the appraisal reports that the applicant has prepared in the course of the applicant’s appraisal practice. For the purposes of this section, “prepared” means the participation in any functions of the real estate appraisal report.

1. 2. Education may not be substituted for

experience except as allowed in section (8) of this rule. All experience shall have been obtained after January 30, 1989, and shall be USPAP compliant. Acceptable appraisal experience as defined by the AQB includes, but is not limited to, the following (this should not be construed as limiting credit to only those individuals who are state-certified or state-licensed):

1. A. Fee and staff appraisal;
2. B. Ad valorem tax appraisal;
3. C. Technical review appraisal;
4. D. Appraisal analysis;
5. E. Real estate consulting;
6. F. Highest and best use analysis;
7. G. Feasibility analysis/study; and
8. H. Condemnation appraisal.

1. (6) Maximum number of hours that shall be awarded for various types of appraisal and other experience is as follows with exceptions noted in subsection (6)(M):

   1. (A) R1=single family, condo., or similar*
   2. (B) R2=2, 3, or 4 unit family dwellings
   3. (C) R3=vacant residential sites (up to 40 acres)
   4. (D) G1=apartments 5–12 units
   5. (E) G2=apartments 13 and more units
   6. (F) G3=vacant land (other than single family)**
   7. (G) G4=industrial
   8. (H) G5=office space
   9. (I) G6=retail space
   10. (J) G7=special use property (provide explanation)
   11. (K) G8=operating or special use agriculture***
   12. (L) G9=other (provide detailed explanation) *1. Includes homes on acreage, hobby farms, etc. **2. Includes non-crop acreage, commercial land, etc. ***3. If operating, primary income shall come from property. Some explanation relating to type of use should be provided.
   13. (M) Additional Hours May be Credited for Appraisals. Experience hours listed in subsection (6)(A) through (L) are considered typical. If an applicant feels more hours should be awarded for an appraisal, s/he shall list the hours requested and attach a written justification to the appraisal log. The commission will consider the additional hours based upon the applicant justification statement and may request a copy of the appraisal(s) to assist in the decision. Experience credit will be awarded on time spent in the development of the appraisal and preparation of the report. Travel and clerical time will not be considered.
2. (7) Include the signature of the individual responsible for the analysis, opinions and conclusions contained in the report. The applicant seeking experience credit shall have signed the report or shall be listed in the report as an individual who provided a significant contribution. An affidavit of significant contribution shall be considered by the commission if it is signed by the appraiser who signed the report or by an official of the organization, government, firm or other entity who was responsible for causing the appraisal to be prepared.

3. (8) Effective January 1, 2008, there need not be a client in order for an appraisal to qualify for experience, but experience gained for work without a client cannot exceed fifty percent (50%) of the total experience requirement. Case study or practicum courses that 10 hrs are approved by the AQB course approval program or by an alternate method established by the AQB, can satisfy the non-client 15 hrs experience requirement. A case study or practicum course shall include the generally 5 hrs 20 hrs applicable methods of appraisal practice for the credential category. A real estate 35 hrs appraisal assignment from a case study or practicum course shall require actual problem 10 hrs solving skills for a variety of property types 35 hrs for the credential category. Credit shall be granted for a maximum of thirty (30) class- 35 hrs 35 hrs room hours of instruction and a maximum of ninety (90) hours of experience credit per 35 hrs course. Content of case study or practicum courses shall include, but not be limited to:

   1. (A) Requiring the student to produce cred-

35 hrs ible appraisals that utilize an actual subject property;

1. (B) Performing actual market research containing actual sales analysis; and
2. (C) Applying and reporting the applicable appraisal approaches in conformity with USPAP.

AUTHORITY: sections 339.509, RSMo 2000, and 339.515 and 339.517, RSMo Supp. 2006.* This rule originally filed as 4 CSR 245-3.010. Emergency rule filed Dec. 6, 1990, effective Dec. 16, 1990, expired April 14, 1991. Emergency rule filed April 4, 1991, effective April 14, 1991, expired Aug. 11, 1991. Original rule filed Jan. 3, 1991, effective April 29, 1991. Amended: Filed Aug. 14, 1991, effective Jan. 13, 1992. Amended: Filed July 21, 1992, effective April 8, 1993. Amended: Filed March 14, 1996, effective Sept. 30, 1996. Emergency amendment filed Sept. 1, 1998, effective Sept. 11, 1998, expired March 9, 1999. Amended: Filed Sept. 1. 1998, effective Feb. 28, 1999. Moved to 20 CSR 2245-3.010, effective Aug. 28, 2006. Amended: Filed Nov. 21, 2006, effective July 30, 2007. *Original authority: 339.509, RSMo 1990, amended 1998; 339.515, RSMo 1990, amended 1998, 2005; and 339.517, RSMo 1990, amended 1990, 1993, 1998, 2003.