In the last issue of your Bulletin, it was reported that legislation would be introduced in the current Session of the North Carolina General Assembly to regulate North Carolina's real estate appraisers. The legislation, as described in the Bulletin, for a two-tiered approach to regulation requiring real estate appraisers to be licensed as either real estate brokers or salesmen and creating a voluntary "certification" program for real estate appraisers.
This legislation, which was drafted by the Real Estate Commission following more than a year of study and discussions with representatives of appraisal organizations, thrift institutions, governmental agencies, and others, was introduced on March 9. However, major revisions to the bill were required in April. The revisions were necessary due to concerns expressed by many legislators over the proposed requirement that real estate appraisers obtain broker or salesman licenses and because of legislation which was pending before Congress requiring states to establish special appraiser licensing and certification programs. [NOTE: Under the proposed federal legislation, after July 1, 1991, only "state licensed" or "state certified" appraisers who meet federal standards would be able to appraise real estate in any "federally related transaction," constituting approximately 87% of all real estate transactions.]
To address the concerns of the North Carolina General Assembly regarding mandatory real estate licensing for appraisers, and to comply with the pending federal legislation, a Committee Substitute to the Commission's bill was introduced.
Following is a summary of the major provisions of the Committee Substitute:
1. On January 1, 1991, a program would be available for persons who wish to become "state licensed" or "state certified" real estate appraisers. [Note: This program is totally voluntary. No North Carolina license or certificate would be required to appraise real estate.]
2. State licensed or certified appraisers could
a. Identify themselves to the public as being "state licensed" or "state certified" real estate appraisers.
b. Qualify to perform appraisals in federally related transactions. [Note: Pending federal legislation would require the use of state licensed or certified appraisers In all federally related transactions after July 1, 1991, including the sale, lease, financing, etc. of real estate in which the FDIC, FSLIC, FNMA, FHA, VA, etc. has an interest.]
3. Qualification requirements:
a. To become "state licensed," persons would be required to complete 90 classroom hours of instruction approved by the Real Estate Commission concentrating on residential appraising, or have equivalent appraisal education and/or experience; and pass an examination.
b. To become "state certified," persons would be required to complete 180 classroom hours of instruction approved by the Commission in general appraisal subjects (residential, commercial, farm and land, etc.) and have two Years' appraisal experience, or equivalent appraisal education and/or experience; and pass an examination.
c. Additional education and experience may be required, if necessary, to satisfy federal law.
d. up to 12 hours per vear~continuing education could be required to retain an appraiser license or certificate.
4. Fees
a. Appraiser license or certificate (including examination): $150 maximum.
b Appraiser license or certificate annual renewal fee $100 maximum.
c. An additional fee ($25 - $50) could be collected and paid to the federal government from persons who wish to be placed on the federal registry of appraisers qualified to perform appraisals in federally related transactions.
5. One member of the Real Estate Commission must be a state licensed or certified real estate appraiser, and a five-member Real Estate Appraisal Committee would be appointed by the Commission to assist in developing and administering the appraiser license and certification program.
6. "State licensed" and "state certified" appraisers who violate the Appraiser Act would be subject to disciplinary action by the Real Estate Commission, including:
a. Loss of their privilege to use the term "state licensed" or "state certified";
b. Loss of their eligibility to perform appraisals in federally related transactions; and
c. Loss of their real estate broker or salesman license (if they are so licensed).