[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

CHAPTER 5:	STANDARDS FOR REAL ESTATE APPRAISAL EXPERIENCE

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Chapter 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  The General Assembly passed Senate Bill 90-34, effective July 1, 1990, which created the Board and mandated the licensing of real estate appraisers under the statutory terms and conditions.  The General Assembly has variously amended the statutes by passing House Bill 92-1177, House Bill 96-1080, Senate Bill 97-90, House Bill 97-1056, House Bill 00-1137 and House Bill 02-1130.

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to amend or repeal existing rules with respect to requirements for real estate appraiser experience necessary for licensure. 

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 5:	STANDARDS FOR REAL ESTATE APPRAISAL EXPERIENCE

[PUBLICATION INSTRUCTIONS: 5.5 and 5.6 IN EFFECT UNCHANGED]

5.1	Acceptable experience includes appraisal, appraisal review, appraisal consulting and mass appraisal experience where the appraiser demonstrates proficiency in the development and reporting of the assignment results utilizing recognized appraisal principles and methodology during the appraisal process as defined by Board Rule 1.29.  The Board may consider other experience upon petition by the applicant.
5.2	REPEALED.
5.3	Reports or file memoranda claimed as evidence of meeting experience requirements shall have been prepared in conformance with the edition of the Uniform Standards of Professional Appraisal Practice in effect as of the date of the appraisal report.
5.4	REPEALED.
5.7	REPEALED.
5.8	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 Board Rule 5.8 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, as defined by Board Rule 1.36;
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 will be required to:
1.	Review the Trainee appraisal reports;
2.	Accept responsibility for the appraisal by signing and certifying the appraisal complies with the Uniform Standards of Professional Appraisal Practice; and
3.	Personally inspect each appraised property with the Trainee appraiser until the supervisory appraiser determines the Trainee appraiser is competent to inspect the property, in accordance with the Competency Rule of the Uniform Standards of Professional Appraisal Practice for the property type; and
4.	Jointly maintain an appraisal experience log with the Trainee appraiser.  It will be the responsibility of both the supervisory appraiser and the Trainee appraiser to ensure that the experience log is accurate, current and complies with the requirements of the Board.  At a minimum, the appraisal log requirements are:
A)	Type of property;
B)	Date of report;
C)	Address of appraised property;
D)	Description of work performed by the Trainee appraiser and scope of the review and supervision of the supervisory appraiser;
E)	Number of actual work hours by the Trainee appraiser on the assignment; 
F)	The signature and state certification number of the supervisory appraiser; and
G)	Separate appraisal logs shall be maintained by each supervisory appraiser, if applicable;
D.	Experience shall build upon itself and need not include the entire appraisal process including arriving at an opinion of value.  Experience may include one or all of the steps taken in the appraisal process as defined by Board Rule 1.29; and
E.	Appraisal experience gained without a traditional client (i.e. a client hiring an appraiser for a business purpose) may be counted as experience for up to 50% of an applicant’s total experience requirement.  A non-traditional client may include practicum courses defined by the Real Property Appraiser Qualification Criteria published by the AQB or demonstration type reports.
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 on a 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 original, 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	REPEALED.
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 USPAP. 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, appraisal reports, and/or work files. Staff within the Division or appraisers selected by the Division 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 and in accordance with Board Rule 13.8.