1. (a) A salesperson may make, sign, and present real estate appraisals for the salesperson's sponsoring broker, but the appraisals must be submitted in the broker's name and are the broker's responsibility. A real estate salesperson may not appraise real property for others and for compensation without such activity being conducted through the salesperson's sponsoring broker.
2. (b) Although a real estate license is required before a party may engage in the appraisal of real estate, a real estate license itself is not an appraiser's license.
3. (c) This section does not cover a situation wherein a savings and loan association, mortgage bank, commercial bank, credit union, or any other financial institution, or its employees, in contemplation of making a loan, appraises a piece of property and charges and receives a fee for its services. If a financial institution or its employees appraise property for a fee and not in contemplation of making a loan based on the appraisal, the activity would be considered within the coverage of this section and a license would be required.
4. (d) Real estate licensure is not required for one to testify as to the value of real property, but if in preparing to testify, the person actually does appraise the property for another person and for compensation, licensure would be required.
5. (e) Real estate licensure is not required for an employee of an investment firm performing appraisals in the course of the employee's employment.
6. (f) A trade association or organization is required to be licensed as a real estate broker when it offers to appraise or actually appraises real estate for others and for compensation.
7. (g) Real estate licensure is not required for one to estimate the cost of repairing or replacing damaged portions of real property.
8. (h) The selling or appraising of household items or antiques is not activity requiring licensure under the Real Estate License Act.
9. (i) A Texas real estate broker's license entitles one to appraise real estate in Texas for another person and for compensation.
10. (j) Except as provided by this section, appraisals of real property performed in this state by Texas real estate licensees shall be conducted in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation in effect at the time the appraisal is performed. A real estate licensee may, for a separate fee, provide an opinion of value or comparative market analysis which does not conform with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, if the licensee provides the person for whom the opinion or analysis is prepared with a written statement containing the following language: "THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation."
11. (k) The statement required by subsection (j) of this section must be made part of any written opinion or analysis report and must be reproduced verbatim.
12. (l) The exception allowed by subsection (j) of this section does not apply to a transaction in which the Resolution Trust Corporation or a federal financial institutions regulatory agency has required compliance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

Source Note:The provisions of this §535.17 adopted to be effective January 1, 1976; amended to be effective March 1, 1991, 15 TexReg 7435; amended to be effective August 19, 1991, 16 TexReg 4284; amended to be effective April 14, 1998, 23 TexReg 3682.