N.C. Appraiser Act Amended

The N.C. General Assembly during its Summer Session amended the North Carolina Real Estate Appraisers Act. The legislation was sponsored by Representative Harold J. Brubaker and supported by the Real Estate Commission, the Real Estate Appraisal Committee and various real estate and lending organizations. Under the amended Appraiser Act, the powers, composition and appointment of the Commission's Appraisal Committee will be changed, and a new classification of "state-certified residential real estate appraiser" has been created.

Appraisal Committee: effective July I, 1991, the "Real Estate Appraisal Committee" will become the "Real Estate Appraisal Board." It will be expanded from five to seven members (to include two "public members"), with the Governor appointing five members and the Speaker of the House of Representatives and the President Pro Tempore of the Senate each appointing one member. The Board win have final decision-making authority over various appraiser licensing and regulatory matters, including approving applicants for appraiser licensure and certification, and conducting hearings and disciplining appraisers for violations of the Appraiser Act and rules.

Certified Residential Appraiser: Effective immediately, a third category of appraiser was created and the names of the other two categories changed. Qualified persons may now apply to become either licensed as a "state-licensed residential real estate appraiser" or certified as a "state-certified residential real estate appraiser" or a "state-certified general real estate appraiser." Although licensed appraisers must have completed certain education requirements and pass an examination, they are not required to possess any appraisal experience. Because of their lack of experience, there is concern that (depending upon final Federal regulations) they may not be eligible to appraise real estate in any "federally related transactions." On the other hand, certified appraisers must have at least two years appraisal experience in addition to completing an approved or equivalent education program and passing an examination. Consequently, certified "residential" appraisers should be eligible to appraise residential rea1 estate in federally related transactions and certified "general" appraisers should be qualified to appraise any type of real estate.

As a result of these statutory changes, it was necessary to amend various rules previously adopted by the Commission. The temporary adoption and filing of the amended rules was accomplished on July 5 and a rulemaking hearing has been scheduled for September 5 to consider the permanent adoption of the rules.