1. (a) This chapter does not apply to appraisal management services provided:

   1. (1) for the appraisal of:

      1. (A) commercial property; or
      2. (B) residential properties of more than four units; or
   2. (2) by persons exempted under §1104.004, Texas Occupations Code.

2. (b) For the purposes of §1104.004, Texas Occupations Code:

   1. (1) a person exclusively employs appraisers on an employer and employee basis for the performance of appraisals if the person does not also employ appraisers as independent contractors or under any other arrangement;

   2. (2) a person employs not more than 15 appraisers on an exclusive basis as independent contractors for the performance of appraisals if:

      1. (A) the person prohibits the independent contractors from performing appraisals for others; and
      2. (B) the person does not employ more than 15 appraisers as independent contractors at any time;
   3. (3) a subsidiary of a financial institution is not a department or unit within the institution;
   4. (4) an appraisal management company that requires an employee of the appraisal management company who is an appraiser to sign an appraisal that is completed by another appraiser who contracts with the appraisal management company in order to avoid the requirements of Chapter 1104, Texas Occupations Code, is not exempt from registration requirement or other requirements of the chapter; and
   5. (5) an appraisal management company has an appraisal panel of not more than 15 appraisers at all times during a calendar year if it does not have more than 15 appraisers on its panel at any time.
3. (c) A person may solicit prospective panelists in anticipation of acting as an appraisal management company without being registered as an AMC, provided that it is registered prior to forming a panel, accepting an appraisal assignment, or performing any other act constituting an appraisal management service.
4. (d) For the purposes of the Act, a property is located in Texas if it is located wholly or partly in the state.

Source Note:The provisions of this §159.4 adopted to be effective November 3, 2011, 36 TexReg 7320.