Q. What are the current requirements for appraising real estate in North Carolina?
A At the present time, there are no qualifications or regulatory requirements for persons who appraise red estate. No training, experience or examination is required, and no standards of conduct must be followed. Although certain appraisers voluntarily belong to trade and professional associations which require appraisal training and experience as a prerequisite to membership, nevertheless, anyone in North Carolina may "hang out his shingle" as a real estate appraiser.

Q. By should real estate appraisers be regulated?
A. Governmental agencies, banks and individual consumers lend and borrow billions of real estate secured dollars each year based upon the advice of red estate appraisers. The potential for injury to the public has recently been demonstrated by the failure of various financial institutions in other states, where fraudulent and incompetently performed appraisals were found to be a major contributing cause. This has prompted Congress to consider legislation which would require federal regulation of appraisers. It is believed that by regulating the appraisal industry, the public would be better able to Identify competent red estate appraisers and the government would be better able to protect consumers by preventing dishonest and incompetent persons from entering and engaging in the real estate appraisal business.

Q. Are any plans being considered for regulating; real estate appraisers in North Carolina?
A. Yes. The North Carolina Real Estate Commission believes that red estate appraisers (like other occupations and professions) can be regulated most effectively and efficiently at the state level; therefore, the Commission plans to recommend to the State Legislature at its 1989 Session a comprehensive program for regulating real estate appraisers. Under the proposed "two-tiered" program, persons who appraise real estate must first be licensed as real estate brokers or salesmen. And real estate brokers and salesmen may then become "state certified real estate appraisers" by satisfying certain qualification requirements established by the State Legislature.

Q. Would the requirements for obtaining a real estate license be changed?
A. Hopefully. The Commission plans to ask the State Legislature to add a separate 30-hour course in Real Estate Appraisal Fundamentals for applicants for broker licenses and to increase the education requirements for a salesman license to 60 classroom hours (now 30) to afford schools additional time to teach real estate appraisal and other subjects.

Q. Why should I become a "state certified real estate appraiser"?
A. Only real estate brokers and salesmen who have satisfied the qualification requirements to be "state certified real estate appraisers" would be authorized to use the term "state certified" (or any similar term implying state certification) to identify themselves or their appraisals to the public. Consequently, persons in need of red estate appraisal services (banks, savings and loan institutions, governmental agencies, Individual consumers, etc.) would be assured that when they employ a "state certified real estate appraiser," they have employed someone who has met state-mandated standards of competency and will be held to a legally enforceable standard of professional conduct.

Q. Will there be separate classes of certification?
A. Yes. Qualified real estate brokers and salesmen could be certified as either "Residential' or "General" real estate appraisers. Certified Residential Real Estate Appraisers could perform "certified" appraisals of residential properties containing not more than four dwelling units. And Certified General Real Estate Appraisers could perform "certified" appraisals of all types of real property. (Note: Licensed real estate brokers and salesmen who are not state certified appraisers could assist in performing certified appraisals so tong as they are supervised by the state certified appraiser).

Q. What would the qualification requirements be for state certification as a real estate appraiser?
A. To become a state certified real estate appraiser, applicants must (1) hold a current North Carolina rest estate broker or salesman license, (2) be of good character, (3) pass a written examination, and (4) satisfy the following education requirements: Residential—One year full-time experience In real estate appraising, and completion of two 30-classroom hour appraisal courses (Fundamentals and Residential Principles and Practices); or the equivalent. General—Two years' full-time experience in real estate appraising, completion of two 30-classroom hour appraisal courses (Fundamentals and Residential Principles and Practices), and completion of 60 additional hours covering general real estate appraisal practices; or the equivalent. (Note: The federal government's Office of Management and Budget is expected to issue a statement directing certain federal agencies to utilize only those real estate appraisers who possess a minimum level of appraisal education and experience and who have passed a comprehensive qualifying examination. If this occurs, the Commission proposes to revise the above certification requirements to comply with these federal directives).

Q. Must these appraisal courses be approved by the Real Estate Commission?
A. Yes. The Commission would adopt standards for the offering of appraisal courses. Although the Commission may accept "non-approved courses" as being equivalent, these determinations would be made on a case-by-case basis. Therefore, persons who enroll in appraisal courses prior to the adoption of these standards are advised that the courses may not be accepted by the Commission for either precertification or continuing education purposes.

Q. Would state certified appraisers be required to take continuing education courses after they bare been certified ?
A. Possibly. The Red Estate Commission plans to ask the State Legislature for authority to adopt rules establishing a continuing education program for state certified appraisers. If the Commission determines that continuing education is needed, the amount of continuing education required would not exceed 24 classroom hours for any two-year period.

Q. How much would it cost to become state certified?
A. The Commission estimates that the application/examination fee for certification would be between S100 and $150 and the annual renewal fee would be between $50 and $100. The actual fees would reflect the costs of implementing and administering the appraiser regulatory program.

Q. Would the Real Estate Commission seek the advice of professional appraisers in implementing and administering the appraiser regulation program?
A. Yes. An advisory body consisting primarily of knowledgeable and experienced appraisers would be created to give the Commission technical advice and assistance on appraisal matted, including recommending standards for red estate appraiser education and standards of practice for appraisers; developing or approving questions on appraisal topics for real estate licensing and appraiser certification examinations; recommending to the Red Estate Commission whether probable cause exists of a violation of the laws and rules governing red estate appraisers; and providing expert testimony at hearings Involving real estate appraisal subject matter. The Commission also supports legislation requiring at least one member of the Real Estate Commission to be an experienced red estate appraiser.