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ORR # 2004-040
DEPARTMENT OF LABOR & ECONOMIC GROWTH BOARD OF REAL ESTATE APPRAISERS
GENERAL RULES
Filed with the Secretary of State on December 16, 2004.
These rules are effective 7 days after filing with the Secretary of State
(By authority conferred on the department of labor and economic growth by sections 205, 308, 2605, and 2617 of 1980 PA 299, MCL 339.205, 339.308, 339.2605, and 339.2607, and Executive
Reorganization Orders No. 1996-2, MCL 445.2001, and 2003-18, MCL 445.2011)
R 339.23101 and R 339.23309 of the Michigan Administrative Code are amended as follows:
R 339.23101 Definitions.
Rule 101. (1) As used in these rules:
(a) “A course covering the “uniform standards of professional appraisal practice” in section 2627(5) and the “uniform standards of appraisal practice and ethics” in sections 2611(1), 2613(a)(xv), 2614(b)(xv) and 2615(b)(xv) of the act means the 15-hour national USPAP course or the 7-hour national USPAP update seminar, or their equivalent, as required by the AQB real property appraiser qualification criteria, adopted on October 27, 2000, and effective January 1, 2003.
(b) "Act" means 1980 PA 299, MCL 339.101 et seq., and known as the occupational code.
(c) "Board" means the board of real estate appraisers.
(d) "Licensee" means an individual who is licensed under article 26 of the act, including a real estate valuation specialist, a limited real estate appraiser, a state-licensed real estate appraiser, a certified residential real estate appraiser, or a certified general real estate appraiser.
(e) "Market analysis as performed by a real estate licensee” means the activity defined in section 2601(a)(i) and (ii) of the act, and means analysis solely for the purpose of establishing potential sale, purchase, or listing price of real property or the rental rate of real property and is not for the purpose of evaluating a property for mortgage lenders in the primary or secondary mortgage market.
“Real estate consulting”, as used in sections 2613, 2614, and 2615 of the act, is that
function or functions described in standards 4 and 5 of the uniform standards of the uniform standards of professional appraisal practice.
“Transaction value” means any of the following:
(i) For loans or other extensions of credit, the amount of the loan or the extension of credit.
(ii) For sales, leases, purchases, and investments, or in exchanges of real property, the market value of the real property interest involved.
For the pooling of loans or interests in real property for resale or purchase, the amount
of the loan or market value of the real property calculated with respect to each such loan or interest in real property.
“Uniform standards of professional appraisal practice” or “USPAP” means the
uniform standards of professional appraisal practice, published by the Appraisal Foundation, effective January 1, 2005. Copies of the USPAP 2005 edition are available at a cost at the time of adoption of these rules of $30.00 plus $8.50 for shipping from the Appraisal Foundation, 1029 Vermont Avenue NW, Suite 900, Washington DC 20005-3517. Mail orders: P.O. Box 96724, Washington DC 20090- 6734, phone: toll-free 800/805-7857 or 240/864-0100. Copies of the current USPAP edition may be downloaded without charge from the following Internet address: www.appraisalfoundation.org. The USPAP 2005 edition may be reviewed or purchased from the department of labor and economic growth by mailing to the Bureau of Commercial Services, 2501 Woodlake Circle, Okemos Michigan 48824, mailing address, P.O. Box 30018, Lansing MI 48909, phone: 517/241-9201, at a cost as of the time of adoption of these rules of $50.00 plus $11.00 shipping and handling costs.
(2) Terms defined in articles 1 to 6 and 26 of the act have the same meanings when used in these rules.
R 339.23309 Sponsors; duties; instructors.
Rule 309. (1) Each sponsor shall be responsible for all of the following:
(a) Compliance with all laws and rules relating to appraiser education.
(b) Providing students with current and accurate information.
(c) Maintaining an atmosphere that is conducive to learning in the classroom.
(d) Assuring and certifying the attendance of students who are enrolled in courses.
(e) Providing assistance to students and responding to questions relating to course materials.
(f) Supervising all guest lecturers and relating all information that is presented to the practice of real estate appraisal.
(2) Distance education sponsors shall ensure that all of the following qualifications for their courses are complied with:
(a) The course shall be presented with an instructor available to answer questions, provide information, and monitor student attendance.
(b) The course meets 1 of the following criteria:
(i) The course has been presented by an accredited college or university (through the commission on colleges or a regional accreditation association) that offers distance education programs in other disciplines.
(ii) The course has received approval of the international distance education certification center (IDECC) for the course design and delivery mechanism and either of the following:
(A) The approval of the appraiser qualification board through the AQB course approval program.
(B) The approval of the licensing or certifying jurisdiction where the course is being offered for the content of the course.
(C) The course meets all of the following requirements: The course is equivalent to 2 classroom hours.
(ii) A student successfully completes a written examination proctored by an official
approved by the presenting college or university or by the sponsoring organization consistent with the requirements of the course accreditation. If a written examination is not required for accreditation, a student successfully completes course mechanisms required for accreditation which demonstrate mastery and fluency.
(iii) The sponsor ensures that students completing the distance education courses will achieve the equivalent of the stated classroom hours per course.
A sponsor shall select as instructors only individuals who can demonstrate mastery of the material being taught and who possess 1 of the following qualifications:
(a) Experience as a faculty member of an institution of higher education that is authorized to grant degrees.
(b) A state licensed, certified residential, or certified general appraise with 3 years of appraisal experience.
(c) Other experience acceptable to the sponsor for courses other than prelicensure courses.
(4) Instructors of the uniform standards of professional appraisal practice (USPAP)
shall have complied with the AQB instructor certification program as required by the real property appraiser qualification criteria, effective January 1, 2003. This requirement will be effective in this state on January 1, 2003, or on the effective date of these rules, whichever is later.
