CHAPTER 57 – APPRAISAL BOARD

subchapter 57a – registration, licensing, certification and practice

section .0100 – application for real estate appraiser license or certification

21 NCAC 57A .0101         FORM

A person who wishes to be registered as a trainee or to obtain licensure as a licensed real estate appraiser or certification as a certified real estate appraiser may obtain the required form upon request to the Board or from the Board's website at www.ncappraisalboard.org. The form calls for information such as the applicant's name and address, the applicant's social security number, a passport size photograph of the applicant, places of residence and employment, education, and such other information as may be necessary to identify the applicant and determine his qualifications and fitness for registration, licensure, or certification.

History Note:        Authority G.S. 93E-1-6(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; April 1, 1999.

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0102         FILING AND FEES

(a)  Each application for registration as a trainee, licensure as a licensed real estate appraiser, or certification as a certified real estate appraiser shall be accompanied by the required application fee. An additional fee may be charged to defray the cost of any competency examination administered by a private testing service. This additional fee shall be no more than the fee set by the private testing agency. The Board may reject and return to the applicant any application which is incomplete or not accompanied by the required fee or fees. Application fees accompanying complete applications are not refundable.

(b)  The application fee shall be that prescribed in G.S. 93E-1-6(b).

(c)  Payment of application fees shall be made by certified check, bank check, or money order payable to the North Carolina Appraisal Board.

History Note:        Authority G.S. 93E-1-6; 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; January 1, 2008; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0200 – TRAINEE REGISTRATION AND APPRAISER LICENSING AND CERTIFICATION

21 NCAC 57A .0201         Qualifications for Trainee Registration and Appraiser Licensure and Certification

(a)  Applicants for trainee registration, licensure as a licensed residential real estate appraiser, and for certification as a certified real estate appraiser shall satisfy the qualification requirements set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board, which is hereby incorporated by reference, including subsequent amendments and editions and can be found at www.appraisalfoundation.org at no cost.

(b)  Applicants for licensure or certification who are currently registered trainees shall submit a copy of their complete appraisal log in accordance with Rule .0407(c) of this Subchapter. Applicants for certification who are currently licensed or certified appraisers shall submit an appraisal log showing that they possess the amount and length of experience as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. All applicants for licensure or certification shall provide to the Board copies of appraisal reports and work files in order for an appraisal to be given experience credit.

(c)  When a trainee or a licensed real estate appraiser becomes a certified real estate appraiser, his or her previous registration or licensure shall be canceled by the Board. When a certified residential real estate appraiser becomes certified as a general real estate appraiser, his or her previous certification shall be canceled by the Board.

(d)  In the event that the Board requests that an applicant submit updated information or provide further information that the Board determines is necessary in order for the applicant to complete the application and the applicant fails to submit the requested information within 90 days following the Board's request, the Board shall defer the applicant's application until the applicant requests a hearing. An applicant whose application has been deferred and does not request a hearing and who wishes to obtain a registration, license, or certificate shall start the licensing process over by filing a complete application with the Board and paying all required fees, as set forth in G.S. 93E-1-6.

(e)  If an applicant has an open complaint before the North Carolina Appraisal Board or an appraiser licensing board from any other state, the application shall be accepted but no further action shall be taken on the application until the complaint is resolved. If the applicant has any pending criminal charges in this or any state, they shall be reviewed as set forth in G.S. 93B-8.1.

History Note:        Authority G.S. 93E-1-6; 93E-1-10; 93B-8.1;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; July 1, 2010; September 1, 2008; January 1, 2008; March 1, 2007; April 1, 2006, July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. June 1, 2020; May 1, 2020.

21 NCAC 57A .0202         FITNESS FOR REGISTRATION, LICENSURE, OR CERTIFICATION

(a)  The Appraisal Board shall consider the fitness for registration, licensure, or certification of each applicant. When the fitness of an applicant is in question, action by the Board shall be deferred until the applicant has demonstrated that the applicant possesses the requisite competency, truthfulness, honesty and integrity.

(b)  When the application is deferred, the Board shall notify the applicant and the applicant shall be entitled to demonstrate his or her competency or fitness for registration or certification at a hearing before the Board.

(c)  The inquiry into fitness for registration, licensure, or certification may include consideration of whether the applicant has:

(1)           had disciplinary action taken against any professional license in North Carolina or any other state;

(2)           committed or done any act that, if committed or done by any real estate trainee or appraiser, would be grounds pursuant to the North Carolina Appraiser's Act for disciplinary action including the suspension or revocation of registration, licensure, or certification; or

(3)           been convicted of or pleaded guilty to any criminal act, or whether any such actions or charges are pending.

(d)  All applicants for registration, licensure, or certification shall obtain a criminal records check that is satisfactory to the Board. This records check must have been performed within 60 days of the date the completed application for registration, licensure, or certification is received by the Board. Applicants shall pay the vendor directly for the cost of these reports.

(e)  In order to be satisfactory to the Board, the criminal records check must contain all of the following:

(1)           a state court felony and misdemeanor criminal records search for each state lived in for at least the last seven years;

(2)           a state probation and incarceration check for each state lived in for at least the last seven years;

(3)           a federal court felony and misdemeanor criminal records check;

(4)           a state sex offender search for each state lived in for at least the last seven years;

(5)           a federal sex offender search; and

(6)           an address trace on the applicant's Social Security number.

(f)  Notice to the applicant that his or her competency or fitness for registration, licensure, or certification is in question shall be sent by the Board in writing, by certified mail, return receipt requested, to the address shown upon the application. The applicant shall have 60 days from the date of receipt of this notice to request a hearing before the Board. Failure to request a hearing within this time constitutes a waiver of the applicant's right to a hearing on his or her application for registration, licensure, or certification, and the application shall be deemed denied. Nothing in this Rule shall be interpreted to prevent an applicant from reapplying for registration, licensure, or certification.

History Note:        Authority G.S. 93E-1-6; 93E-1-10;

Eff. July 1, 1994;

Amended Eff. February 1, 2014; January 1, 2013; September 1, 2008; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0203         Registration, LICENSE, and Certificate Renewal

(a)  All registrations, licenses, and certificates expire on June 30 of each year unless renewed before that time.

(b)  A holder of a trainee registration, an appraiser license, or certificate applying to renew such registration, license, or certificate shall apply for renewal in writing upon the form provided by the Board or log into the licensee login section on the Board's website and shall pay the renewal fee as prescribed in G.S. 93E-1-7(a). Forms are available on the Board's website at www.ncappraisalboard.org. The renewal fee is not refundable after July 1.

(c)  All trainees, licensees, and certificate holders, either resident or non-resident, who are required by G.S. 93E-1-7 to complete continuing education as a condition of renewal, shall satisfy the continuing education requirements set forth in Rule .0204 of this Section.

(d)  An applicant for renewal who initially qualified for licensure or certification pursuant to Rule .0211 of this Section, is not required to maintain licensure with the appraiser regulatory authority of the other state in order to renew the license in North Carolina.

(e)  Any person who acts or holds himself out as a registered trainee, licensed, or certified real estate appraiser while his trainee registration, appraiser license, or certificate is expired shall be subject to disciplinary action and penalties as prescribed in G.S. 93E.

History Note         Authority G.S. 93E-1-7(a),(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; January 1, 2008; March 1, 2007; March 1, 2006; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57A .0204         CONTINUING EDUCATION

(a)  All registered trainees, real estate appraiser licensees, and certificate holders shall, upon the renewal of their registration, license, or certificate in every odd-numbered year, have obtained continuing education, as required by this Rule. Trainees and appraisers who initially registered with the Board after January 1 of an odd-numbered year are not required to obtain continuing education for renewal of their registration in that odd-numbered year.

(b)  Each trainee, licensee, and certificate holder who is required to obtain continuing education pursuant to Paragraph (a) of this Rule shall complete 28 hours of continuing education before June 1 of every odd-numbered year. Specific topics required as part of the 28 hours of continuing education are outlined in Paragraph (d) of this Rule. Except as provided in Paragraphs (g) and (h) of this Rule, such education shall have been obtained by taking courses approved by the Board for continuing education credit, at schools approved by the Board to offer such courses, as set forth in 21 NCAC 57B .0603. Such education shall relate to real estate appraisers maintaining and increasing their skill, knowledge, and competency in real property appraising. There is no exemption from the continuing education requirement for trainees or appraisers whose status has been upgraded to the level of licensed residential, certified residential, or certified general appraiser, since the issuance or most recent renewal of their registration, license, or certificate. Trainees, licensees, and certificate holders shall not take the same continuing education course more than once during the two-year continuing education cycle.

(c)  Each appraisal continuing education course shall include a minimum of two classroom hours of instruction on real estate appraisal or related topics, as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board, which is hereby incorporated by reference, including subsequent amendments and editions, and can be found at www.appraisalfoundation.org, at no cost.

(d)  Each trainee, licensee, and certificate holder who is required to obtain continuing education pursuant to Paragraph (a) of this Rule shall, as part of the 28 hours of continuing education required in Paragraph (b) of this Rule, complete the seven-hour National Uniform Standards of Professional Appraisal Practice (USPAP) Continuing Education course, as required by the Appraiser Qualifications Board of the Appraisal Foundation, between October 1 of an odd-numbered year and June 1 of an even numbered year. Beginning June 1, 2025, each trainee, licensee, and certificate holder shall complete a course which meets the content requirements of the Valuation Bias and Fair Housing Laws and Regulations outline, as set forth in the Real Property Appraiser Qualification Criteria, every continuing education cycle. The course length must be at least seven-hours the first time a trainee, licensee, or certificate holder completes the continuing education requirements of the Valuation Bias and Fair Housing Laws and Regulations requirement. If an appraiser completes the seven-hour (plus one hour exam) course as part of their qualifying education, they have met this requirement. Each continuing education cycle thereafter, the course length shall be at least four-hours.

(e)  A trainee, licensee, or certificate holder who completes approved continuing education courses in excess of the requirement shall not carry over any continuing education credits from those courses into the subsequent years.

(f)  Course sponsors shall provide a certificate of course completion to each trainee, licensee, and certificate holder who completes a course, as set forth in 21 NCAC 57B .0603. Course sponsors shall send to the Board a roster of all who completed the course. This roster shall be sent within 15 days of completion of the course. In order to renew a registration, license, or certificate in a timely manner, the Board shall receive proof of completion of the continuing education requirement prior to processing a registration, license, or certificate renewal application. Proof of completion shall be receipt by the Board of a roster from a school or course sponsor showing the courses completed by the applicant. If proof of having completed the continuing education requirement is not provided, the registration, license, or certificate shall expire and the trainee, licensee, or certificate holder shall be subject to the provisions of Rules .0203(e) and .0206 of this Section.

(g)  A current or former trainee, licensee, or certificate holder may request that the Board grant continuing education credit for a course that has been completed but is not approved by the Board, or for appraisal education activity equivalent to a Board approved course, by making such request and submitting a non-refundable fee of fifty dollars ($50.00) as set out in G.S. 93E-1-8(d) for each course or type of appraisal education activity to be evaluated. Such requests shall be received before June 15 of an odd-numbered year to be credited towards the continuing education requirement for that odd-numbered year. Continuing education credit for a non-approved course shall be granted only if the trainee, licensee, or certificate holder provides proof of course completion and the Board finds that the course satisfies the requirements for approval of appraisal continuing education courses with regard to subject matter, course length, instructor qualifications, and student attendance, as set forth in 21 NCAC 57B .0603. Appraisal education activities for which credit may be awarded include teaching appraisal courses, authorship of appraisal textbooks, and development of instructional materials on appraisal subjects. Up to 14 hours of continuing education credit may be granted in each continuing education cycle for participation in appraisal education activities. Trainees, and licensed or certified appraisers who have taught an appraisal course approved by the Board for continuing education credit, are deemed to have taken an equivalent course and are not subject to the fee prescribed in G.S. 93E-1-8(d), provided they submit verification of having taught the course(s). A trainee, licensee, or certificate holder who teaches a Board approved continuing education course shall not receive continuing education credit for the same course more than once every two years, regardless of how often he or she teaches the course.

(h)  A trainee, licensee, or certificate holder may receive continuing education credit by taking any of the Board approved precertification courses, other than Basic Appraisal Principles and Basic Appraisal Procedures, or their approved equivalents. Trainees, licensees, and certificate holders who wish to use a precertification course for continuing education credit shall comply with the provisions of 21 NCAC 57B .0604.

(i)  A licensee or certificate holder who resides in another state, and is currently credentialed in another state, may satisfy the continuing education requirements by submitting an affidavit prior to renewal which lists the course provider, title, hours, and date of completion of all continuing education completed within the current continuing education cycle. The affidavit form may be found on the Board's website at www.ncappraisalboard.org. The Board will audit no less than ten percent of licensees who renew with an affidavit. A licensee or certificate holder selected for a continuing education audit shall make the certificates available to the Board upon request. A licensee or certificate holder who became licensed in North Carolina by licensure or certification with another state and now resides in North Carolina, may renew by affidavit for his or her first renewal as a resident of North Carolina only if the appraiser moved to North Carolina on or after January 1 of an odd-numbered year. If an appraiser was a resident of this state before January 1 of an odd-numbered year, the appraiser shall comply with the requirements of this section regardless of how the license or certificate was obtained.

(j)  A trainee, licensee, or certificate holder who returns from active military duty on or after February 1 of an odd-numbered year, may renew his or her registration, license, or certificate in that odd-numbered year even if the required continuing education is not completed before June 1 of that year. When a trainee, licensee, or certificate holder returns from active duty, all required continuing education shall be completed pursuant to the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. The Board shall immediately place any licensee or certificate holder enrolled in the Appraisal Subcommittee's National Registry in an inactive status and may revoke the registration, license, or certificate, in accordance with G.S. 93E-1-12, if the required continuing education is not completed pursuant to the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. This Paragraph applies to an individual who is serving in the armed forces of the United States and to whom G.S. 105-249.2 grants an extension of time to file a tax return.

History Note:        Authority G.S. 93B-15; 93E-1-7(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; July 1, 2011; July 1, 2010; January 1, 2008; March 1, 2007; March 1, 2006; July 1, 2005; July 1, 2003; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B.21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; July 1, 2022; July 1, 2019; July 1, 2018.

21 ncac 57a .0205         Inactive Status

History Note:        Authority G. S.  93E-1-7; 93E-1-10;

Eff. July 1, 1994;

Repealed Eff. August 1, 2002.

21 NCAC 57A .0206         Expired Registration, License or Certificate

(a)  Expired registrations, licenses, and certificates may be reinstated within 12 months after expiration upon payment to the Board of the renewal and late filing fees as set out in G.S. 93E-1-7, and proof of having completed the continuing education that would have been required had the registration, license, or certificate been renewed. This includes the most recent seven-hour National Uniform Standards of Professional Appraisal Practice (USPAP) Continuing Education course and the required number of hours of a course which meets the content requirements of the Valuation Bias and Fair Housing Laws and Regulations outline, as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board, which is hereby incorporated by reference, including subsequent amendments and editions, and can be found at www.appraisalfoundation.org at no cost.

(b)  If a registration, license, or certificate has been expired for more than 12 months, but less than five years, an applicant may apply for reinstatement. In order to be considered for reinstatement, the applicant shall pay the filing fee as set out in G.S. 93E-1-7 and include in the application proof that the applicant has completed the continuing education that would have been required had the registration, license, or certificate been continuously renewed. This includes the most recent edition of the seven-hour National USPAP Continuing Education course and the required number of hours of a course which meets the content requirements of the Valuation Bias and Fair Housing Laws and Regulations outline, as required by the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. In addition, the Board shall consider whether the applicant for reinstatement has any prior or current disciplinary actions, and shall examine the applicant's fitness for registration, licensure, or certification before granting the request for reinstatement. A completed application for reinstatement shall be received by June 1 of the fifth year after the registration, license, or certificate expired.

(c)  The reinstatement application is available on the Board's website at www.ncappraisalboard.org, and shall include the following:

(1)           the applicant's name, address, phone number, email, date of birth, social security number and driver's license number;

(2)           the applicant's license number;

(3)           the applicant's previous places of residence and employment for the past five years;

(4)           whether the applicant is a citizen of the United States of America, active military, military veteran, or a military spouse;

(5)           the name of the applicant's high school, location, and year graduated;

(6)           whether the applicant has ever had any disciplinary actions taken against them in connection with any appraiser, real estate, or other professional license held;

(7)           whether the applicant has ever been convicted of any criminal offense, or has any criminal charges pending;

(8)           a criminal background check; and

(9)           the signature of the applicant.

(d)  An application for reinstatement shall not be granted if the registration, license, or certificate has been expired for more than five years.

(e)  Reinstatement of a registration, license or certification is effective on the date it is issued by the Board. It is not retroactive.

(f)  A trainee or appraiser whose registration, license, or certification has expired, and who is returning from active military duty, may renew his or her registration, license, or certificate when the trainee or appraiser returns from active duty, without payment of a late filing fee, as long as the trainee or appraiser renews the registration, license, or certificate within the timeframe outlined in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. This Rule applies to an individual who is serving in the armed forces of the United States and to whom G.S. 105-249.2 grants an extension of time to file a tax return.

History Note         Authority G.S. 93E-1-6; 93E-1-7; 93E-1-10; 93E-1-11; 93E-1-12;

Eff. July 1, 1994;

Amended Eff. September 1, 2014; July 1, 2014; July 1, 2011; September 1, 2008; March 1, 2007; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; July 1, 2022.

21 ncac 57a .0207         Payment of Registration, License and Certificate Fees

Checks given to the Board in payment of registration, license and certificate fees which are returned unpaid shall be cause for registration, license or certificate denial, suspension or revocation.

History Note:        Authority G.S. 93E-1-10; 93E-1-12(a)(9);

Eff. July 1, 1994;

Amended Eff. August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. September 1, 2021.

21 NCAC 57A .0208         Replacement Registration, License and Certificate Fees

(a)  A trainee, licensee, or certificate holder may, by paying the fee prescribed in G.S. 93E-1-7(d) to the Board, obtain a duplicate trainee registration, appraiser license, or certificate to replace an original registration, license, or certificate that has been lost, damaged, or destroyed or if the name of the trainee, licensee, or certificate holder has been lawfully changed. The Request for Reissuance of Appraiser Wall Certificate is available on our website at www.ncappraisalboard.org.

(b)  The form shall include the following:

(1)           the appraiser's name and signature;

(2)           the appraiser's license number; and

(3)           the appraiser's address.

History Note:        Authority G.S. 93E-1-7(d); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57A .0209         National Appraiser Registry

Licensees and certificate holders may apply for enrollment in the national registry of licensed and certified real estate appraisers or for the renewal or reinstatement of such enrollment online through the licensee login section on the Board's website at www.ncappraisalboard.org. The enrollment shall be accompanied by the fee specified in G.S. 93E-1-11(d) plus any additional fee that may be required by the appropriate agency or instrumentality of the federal government.

History Note:        Authority G.S. 93E-1-10; 93E-1-11(d);

Eff. July 1, 1994;

Amended Eff. January 1, 2008; March 1, 2007; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57A .0210         TEMPORARY PRACTICE

(a)  A real estate appraiser who does not reside in North Carolina and who is licensed or certified by the appraiser licensing or certifying agency in another state may apply to receive temporary appraiser licensing or certification privileges in this State by filing an application with the Board. The application is available on the Board's website at www.ncappraisalboard.org. The application shall include:

(1)           the applicant's name, address, phone number, email;

(2)           license or certification number currently held in another state;

(3)           whether the applicant has had any disciplinary actions taken against them in connection with any appraiser, real estate, or other professional license held;

(4)           whether the applicant has ever been convicted of any criminal offense or has any criminal charges pending;

(5)           the projected beginning and ending date of the appraisal assignment;

(6)           a legal description of the subject properties and purpose of the appraisal assignment; and

(7)           the signature of the applicant.

(b)  Upon filing a completed application accompanied by the fee prescribed in G.S. 93E-1-9(c), the Board shall consider whether an applicant's appraiser license or certification is or has been subject to discipline in their resident state or any other state, and shall consider all other information outlined in Rule .0202 of this Section, in determining whether to approve an application. If the application is approved, an applicant shall be granted a temporary practice permit by the Board authorizing the applicant to perform in this State the appraisal assignment described in the application, provided that the Board determines that the length of time projected by the applicant for completion of the assignment is reasonable given the scope and complexity of the assignment.

(c)  Privileges granted under the provisions of this Rule shall expire upon the expiration date set forth in the temporary practice permit. If additional time is needed to complete the appraisal assignment, the permittee may request an extension of the temporary practice permit. The request shall be submitted and received by the Board prior to the expiration of the original practice permit, shall be in writing, and shall include the following:

(1)           temporary practice permit number;

(2)           the amount of additional time needed to complete the assignment; and

(3)           the reason the extension is necessary.

Upon receipt of the request, the Board shall extend the temporary practice privileges if it determines that additional time is needed to complete the assignment.

(d)  An applicant for a temporary practice permit shall not begin performing any appraisal work in this State until the temporary practice permit has been issued by the Board. The Board shall deny an applicant who begins work before the permit is issued.

(e)  Persons granted temporary practice privileges under this Rule shall only advertise or otherwise hold themselves out as being a North Carolina licensed or certified appraiser for the assignment for which they received the temporary practice permit. Any appraisal report for an appraisal of property located in North Carolina shall contain a copy of the temporary practice permit number for that assignment.

(f)  A trainee shall not apply for a temporary practice permit. The term "trainee" shall include apprentices and others who are licensed and regulated by a state agency to perform real estate appraisals under the supervision of a certified appraiser. If a trainee not registered in this State inspects a property located in this State, the trainee shall be accompanied by the trainee's supervising appraiser. The trainee's supervisor shall be a North Carolina certified real estate appraiser. If not, the supervising appraiser shall be certified as a real estate appraiser in another state and shall receive a temporary practice permit for the assignment.

History Note:        Authority G.S. 93E-1-9; 93E-1-10; 12 U.S.C. 3351(a);

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; January 1, 2008; March 1, 2007; July 1, 2005; July 1, 2003; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020.

21 NCAC 57A .0211         APPLICANTS lICENSED OR CERTIFIED IN ANOTHER STATE

(a)  Applicants for licensure or certification who are not licensed or certified in North Carolina but are licensed or certified in another State shall file an application as stated in Rule .0101 of this Subchapter. The application may be found on the Board's website at www.ncappraisalboard.org. The application requires:

(1)           the applicant's name and contact information;

(2)           the applicant's education background;

(3)           the applicant's prior disciplinary and criminal history; and

(4)           a sworn statement that the information in the application is correct.

Applicants who do not reside in North Carolina, shall consent to service of process in this State and file an affidavit of residency with the application. If the applicant is not active on the Appraisal Subcommittee's National Registry, the applicant shall file with the application a letter of good standing from the appraiser licensing board of any state where the applicant is licensed or certified no later than 30 days prior to the date application is made in this State.

(b)  Applicants for licensure or certification shall obtain a criminal records check that complies with the requirements of G.S. 93E-1-6(c1).

(c)  An appraiser whose license or certification is suspended in North Carolina shall not apply for licensure or certification in this State under this Rule while the license or certification is suspended. An appraiser whose license or certification was revoked in North Carolina shall not apply for licensure or certification in this State under this Rule for five years after the date of revocation.

History Note:        Authority G.S. 93E-1-6(c1); 93E-1-9 ; 93E-1-10; 93E-1-12(c);

Eff. March 1, 2007;

Amended Eff. July 1, 2016; January 1, 2013; September 1, 2008; January 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. May 1, 2020.

SECTION .0300 – APPRAISER EXAMINATIONS

21 NCAC 57A .0301         TIME AND PLACE

(a)  Applicants who have completed the education and experience requirements for licensure or certification as set forth in G.S. 93E-1-6 shall be issued an examination authorization by the Board. The examination authorization is valid for 24 months from date of issuance.

(b)  Examination results are valid for 24 months from the date the examination is completed, as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board, which is hereby incorporated by reference, including subsequent amendments and editions, and can be found at www.appraisalfoundation.org at no cost.

History Note:        Authority G.S. 93E-1-6(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; September 1, 2008; January 1, 2008; April 1, 2006; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; May 1, 2020.

21 NCAC 57A .0302         SUBJECT MATTER AND PASSING SCORES

History Note:        Authority G.S. 93E-1-6(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; September 1, 2008; March 1, 2007; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Repealed Eff. May 1, 2020.

21 NCAC 57A .0303         RE-EXAMINATION

(a)  Applicants for an appraiser license or certificate who fail to pass or appear for any examination for which the applicant has been scheduled by the Board-approved private testing service, may schedule a subsequent examination and shall pay the prescribed examination testing fees to the Board-approved private testing service.

(b)  If an applicant fails the examination, the applicant shall wait a minimum of 30 days before retaking the examination. If the applicant does not pass the examination within 24 months from the date of issuance of the examination authorization, the applicant shall reapply for licensure or certification.

History Note:        Authority G.S. 93E-1-6; 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; September 1, 2008; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024.

21 NCAC 57A .0304         Cheating and Related Misconduct

Applicants shall not cheat or attempt to cheat on an examination by any means, including both giving and receiving assistance, and shall not communicate in any manner for any purpose with any person other than an examination supervisor during an examination. Violation of this Rule shall be grounds for dismissal from an examination, invalidation of examination scores, and denial of an appraiser certificate, as well as for disciplinary action if the applicant holds a trainee registration, an appraiser license or certificate.

History Note:        Authority G.S. 93E-1-6(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0305         CONFIDENTIALITY OF EXAMINATIONS

History Note:        Authority G.S. 93E-1-6(c); 93E-1-10;

Eff. July 1, 1994;

Repealed Eff. April 1, 1999.

21 NCAC 57A .0306         EXAMINATION REVIEW

History Note:        Authority G.S. 93E-1-6(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Repealed Eff. May 1, 2020.

SECTION .0400 – GENERAL APPRAISAL PRACTICE

21 NCAC 57A .0401         Use of Titles

(a)  A trainee shall utilize either the term "registered trainee" or the term "trainee real estate appraiser" when performing an appraisal of real estate or any interest therein, and when referring to himself as a trainee.

(b)  A licensed residential real estate appraiser shall utilize the term "licensed residential real estate appraiser" and a certified residential real estate appraiser shall utilize the term "certified residential real estate appraiser" when performing an appraisal of real estate or any interest therein, and when referring to himself or herself as an appraiser. A certified general real estate appraiser shall utilize the term "certified general real estate appraiser" when performing appraisals of all types of real estate or any interest therein, and when referring to himself or herself as an appraiser.

(c)  Trainee registration, licensure or certification as a real estate appraiser is granted only to persons and does not extend to a business entity operated by a trainee, licensed or certified real estate appraiser.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; July 1, 2005; July 1, 2003; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0402         Display of Registrations, Licenses and Certificates

(a)  The original or a copy of the registration, license, or certificate shall be displayed at each of the trainee's or appraiser's places of business.

(b)  The annual registration, license, or certificate renewal issued by the Board to each trainee, licensed, or certified real estate appraiser shall be retained by the trainee, licensee, or certificate holder as evidence of registration, licensure, or certification.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. March 1, 2006; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57A .0403         Advertising

(a)  When advertising or otherwise holding himself out as a trainee or real estate appraiser, a trainee shall identify himself or herself either as a "registered trainee" or as a "trainee real estate appraiser," a licensed residential real estate appraiser shall identify himself or herself as a "licensed residential real estate appraiser," a certified residential real estate appraiser shall identify himself or herself as a "certified residential real estate appraiser," and a certified general real estate appraiser shall identify himself or herself as a "certified general real estate appraiser".

(b)  A registered trainee, licensed or certified real estate appraiser doing business as a partnership, association, corporation or other business entity shall not represent in any manner to the public that the partnership, association, corporation or other business entity is registered, licensed or certified by the State of North Carolina to engage in the business of real estate appraising.

(c)  In the event that any trainee, licensee or certificate holder shall advertise in any manner using a firm name, corporate name, or an assumed name which does not set forth the surname of the trainee, licensee or certificate holder, he shall first notify the Board in writing of such name and furnish the Board with a copy of each registration of assumed name certificate filed with the office of the county register of deeds in compliance with Section 66-68, North Carolina General Statutes.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; July 1, 2005; July 1, 2003; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 ncac 57a .0404         Change of Name or Address

All trainees, licensees, and certificate holders shall notify the Board in writing of each change of business address, residence address, or name change within 10 days of the change. The trainee, licensee, or certificate holder shall submit the Request for Reissuance of Appraiser Wall Certificate Due to Name Change form. The form shall be accompanied by the fee prescribed in G.S. 93E-1-7(d). The form may be found on the Board's website at www.ncappraisalboard.org, and shall include the following information:

(1)           licensee's previous name;

(2)           licensee's new name;

(3)           the date the name was legally changed;

(4)           signature, date, and license number; and

(5)           the legal documentation showing the name change.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020.

21 NCAC 57A .0405         Appraisal Reports

(a)  Each written appraisal report prepared by or under the supervision of a licensed or certified real estate appraiser shall bear the signature of the licensed or certified appraiser, the license or certificate number of the licensee or certificate holder in whose name the appraisal report is issued, and the designation "licensed residential real estate appraiser," "certified residential real estate appraiser," or "certified general real estate appraiser," as applicable. Each such appraisal report shall also indicate whether or not the licensed or certified appraiser has personally inspected the property, and shall identify any other person who assists in the appraisal process other than by providing clerical assistance. Such identification must be placed in the body of the report. Appraisers shall personally affix their signature to their appraisal reports and shall not allow any other person or entity to affix their signature. Trainees are not required to affix their signatures to appraisal reports, but if they do so, they must personally affix their signature and shall not allow any other person or entity to affix their signature. Trainees and appraisers shall sign their reports with the same name and in the same manner as it printed on their pocket cards.

(b)  Every licensed and certified real estate appraiser shall affix or stamp to all appraisal reports a seal which shall set forth the name and license or certificate number of the appraiser in whose name the appraisal report is issued and shall identify the appraiser as a "licensed residential real estate appraiser", a "certified residential real estate appraiser", or as a "certified general real estate appraiser", as applicable. The seal must be legible, must conform to the seal authorized by the Board at time of initial licensure or certification, and must be a minimum of 1 inch in diameter. Appraisers shall personally affix their seal to their appraisal reports and shall not allow any other person or entity to affix their seal. Registered trainees are prohibited from using a seal on appraisal reports.

(c)  A licensed or certified real estate appraiser who signs an appraisal report prepared by another person, in any capacity, is responsible for the content and conclusions of the report.

(d)  A written appraisal report shall be issued on all real estate appraisals performed in connection with federally related transactions.

(e)  Appraisers shall keep a log of all appraisals performed. The log shall contain the appraiser's license or certificate number, the street address of the subject property, the date the report was signed, the name of anyone assisting in the preparation of the report and the name of the client. These logs shall be updated at least every 30 days.

(f)  Any appraiser who signs an appraisal report is entitled to make or retain a copy of that appraisal report, as long as the copy is made at the time the report is prepared. Any appraiser who signs an appraisal report must be given a copy of the appraisal report and the work file upon request for the purpose of submission of the report and work file to the Appraisal Board, compliance with due process of law, such as a subpoena, submission to a peer review committee, or in accordance with retrieval arrangements made by the appraiser and the person or entity retaining the report and work file.

(g)  Appraisal reports transmitted electronically to clients shall be sent in a secure format, such as Adobe PDF.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2011; July 1, 2010; September 1, 2008; January 1, 2008; March 1, 2007; March 1, 2006; July 1, 2003; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0406         Business Practices

History Note:        Authority G.S. 93E-1-3(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Repealed Eff. August 1, 2024.

21 NCAC 57A .0407         Supervision of Trainees

(a)  A certified real estate appraiser may engage a registered trainee to assist in the performance of real estate appraisals, provided that the appraiser:

(1)           has been certified for at least three years;

(2)           has the number of trainees working under him or her at any one time as follows:

(A)          a certified residential appraiser may have two trainees working under his or her supervision at any one time. Once at least one of those trainees has completed 50 percent of the required appraisal experience as set forth in G.S. 93E-1-6, a certified residential appraiser may add another trainee; and

(B)          a certified general appraiser may have three trainees working under his or her supervision.

(3)           prior to the date any trainee begins performing appraisals under his or her supervision, the supervisor shall inform the Board of the name of the trainee by filing a Supervisor Declaration Form with the Board. The form may be found on the Board's website at www.ncappraisalboard.org. The supervisor shall also inform the Board when a trainee is no longer working under his or her supervision by using the Supervisor Declaration Form. The form shall include the following information:

(A)          the name and registration number of trainee;

(B)          the name and certification number of supervisor;

(C)          the date the trainee completed the supervisor/trainee course;

(D)          the date the supervisor completed the supervisor/trainee course;

(E)           whether the supervisor has had any disciplinary action within the past three years or pending complaints against his or her certification; and

(F)           the signature of both the supervisor and trainee (only required for association).

(4)           actively and personally supervises the trainee on all appraisal reports and appraisal related activities until the trainee is no longer under his or her supervision;

(5)           reviews all appraisal reports and supporting data used in connection with appraisals in which the services of a trainee is utilized, and assures that research of general and specific data has been conducted and reported, application of appraisal principles and methodologies has been applied, and that any analysis, opinions, or conclusions are developed and reported so that the appraisal report is not misleading;

(6)           complies with all provisions of Rule .0405 of this Section regarding appraisal reports;

(7)           reviews and signs the trainee's log of appraisals prepared in accordance with Paragraph (c) of this Rule. The supervisor shall make available to the trainee a copy of every appraisal report where the trainee performs more than 75 percent of the work on the appraisal; and

(8)           has not received any disciplinary action against his or her appraisal certificate from the State of North Carolina or any other state within the previous three years. For the purposes of this Subparagraph, "disciplinary action" means an active suspension, a downgrade of a credential, a revocation, or any other action that restricts a supervisor's ability to engage in appraisal practice.

(b)  "Active and personal supervision" includes direction, guidance, and support from the supervisor. The supervising appraiser shall have input into and knowledge of the appraisal report prior to its completion, and shall make any changes to the report before it is transmitted to the client. In addition, the supervisor shall accompany the trainee on the inspections of the subject property on the first 50 appraisal assignments or the first 1500 hours of experience, whichever comes first, for which the trainee will perform more than 75 percent of the work. After that point, the trainee may perform the inspections without the presence of the supervisor provided that the supervisor is satisfied that the trainee is competent to perform those inspections, and that the subject property is less than 50 miles from the supervisor's primary business location. The supervisor shall accompany the trainee on all inspections of subject properties that are located more than 50 miles from the supervisor's primary business location.

(c)  An appraisal experience log shall be maintained jointly by the supervisor and the trainee. Both the supervisor and the trainee are responsible for maintaining the experience log and ensuring that it is accurate, current, and includes the following:

(1)           the type of property appraised;

(2)           the type of appraisal performed;

(3)           the date the report was signed;

(4)           the complete street address of appraised property;

(5)           a description of the work performed by the trainee;

(6)           the scope of review and supervision of the supervisor, including whether the supervisor accompanied the trainee on the inspection of the subject property;

(7)           the number of actual work hours by the trainee on the assignment; and

(8)           the signature and state certification number of the supervisor.

The log shall be updated at least every 30 days. A separate log shall be maintained for each supervising appraiser. A log form is available on the Board's website at www.ncappraisalboard.org.

(d)  An appraiser shall attend an education program regarding the role of a supervisor before any supervision of a trainee. This course shall be taught only by instructors approved by the Board in accordance with 21 NCAC 57B .0614.

(e)  Trainees shall ensure that the Appraisal Board has received the Supervisor Declaration Form on or before the day the trainee begins assisting the supervising appraiser by contacting the Board by telephone or email at ncab@ncab.org. The form may be found on the Board's website at www.ncappraisalboard.org. Trainees shall not receive appraisal experience credit for appraisals performed in violation of this Paragraph.

(f)  Supervising appraisers shall not be employed by a trainee or by a company, firm, or partnership in which the trainee has a controlling interest.

(g)  If a trainee signs an appraisal report or provides assistance in the appraisal process and is noted in the report as having provided assistance, the appraiser signing the report shall have notified the Appraisal Board before the appraisal is signed that he or she is the supervisor for the trainee. If more than one appraiser signs the report, the appraiser with the highest level of credential shall be the declared supervisor for the trainee. If all appraisers signing the report have the same level of credential, at least one of them shall be declared as the trainee's supervisor before the report is signed.

(h)  Only one trainee may receive credit for providing real property appraisal assistance on an appraisal report.

History Note:        Authority G.S. 93E-1-6.1; 93E-1-10; 93E-1-12;

Eff. July 1, 1994;

Amended Eff. January 1, 2015; July 1, 2014; January 1, 2013; July 1, 2010; September 1, 2008; January 1, 2008; March 1, 2007; March 1, 2006; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. May 1, 2020; July 1, 2019.

21 ncac 57a .0408         Supervision of Licensed and Certified Residential Appraisers

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Repealed Eff. August 1, 2002.

21 ncac 57a .0409         Reporting required actions

Whenever any of the actions outlined in G.S. 93E-1-12(b)(1),(2),(4),(5),(6) are taken against a trainee, licensee or certificate holder, the registration/license/certificate holder must report those actions to the Board within 60 days of the final judgment or final order on a form prescribed by the Board.

History Note:        Authority G.S. 93E-10; 93E-1-12(b)(7);

Eff. August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57A .0410         APPRAISAL MANAGEMENT COMPANIES

An appraiser who performs an appraisal for an appraisal management company (AMC) shall verify that the company is registered with the North Carolina Appraisal Board pursuant to G.S. 93E-2-4, unless the AMC is exempt from registration pursuant to G.S. 93E-2-2, before accepting the assignment.

History Note:        Authority G.S. 93E-2-1; 93E-2-3; 93E-2-4(a);

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. September 1, 2021; May 1, 2020.

SECTION .0500 – STANDARDS OF APPRAISAL PRACTICE

21 NCAC 57A .0501         APPRAISAL STANDARDS

(a)  Every registered trainee, and licensed and certified real estate appraiser, shall comply with the following provisions of the "Uniform Standards of Professional Appraisal Practice" (USPAP), promulgated by the Appraisal Standards Board of the Appraisal Foundation, all of which are incorporated by reference, including subsequent amendments and editions:

(1)           Definitions;

(2)           Preamble;

(3)           Ethics Rule;

(4)           Record Keeping Rule;

(5)           Competency Rule;

(6)           Scope of Work Rule;

(7)           Jurisdictional Exception Rule; and

(8)           Standards Rules 1, 2, 3, and 4.

(b)  A copy of the USPAP document may be obtained from the Appraisal Foundation at https://www.appraisalfoundation.org. The cost for a copy of the USPAP document shall be no more than the fee set by the Appraisal Foundation.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2016; January 1, 2013; January 1, 2008; July 1, 2005; August 1, 2002; April 1, 1999;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; July 1, 2022; August 1, 2018.

SECTION .0600 - EXPERIENCE CREDIT

21 NCAC 57A .0601         EXPERIENCE CREDIT TO UPGRADE

Applicants for licensure or certification shall meet the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. An applicant shall obtain the required experience by performing or reviewing appraisals using appraisal methods and processes that are employed by real estate appraisers and shall comply with the edition of the USPAP in effect at the time of the appraisal, in addition to meeting the applicable requirements set forth in this Section.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 2016;

Amended Eff. May 1, 2020.

21 NCAC 57A .0602         ACCEPTABLE EXPERIENCE – RESIDENTIAL CATEGORY

Appraising the following types of properties qualifies as residential appraisal experience:

(a)           residential single-family;

(b)           residential multi-family of 2 – 4 units;

(c)           residential vacant lot (1 – 4 family property); and

(d)           farm properties consisting of less than 100 acres and a homestead.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 2016.

21 NCAC 57A .0603         ACCEPTABLE EXPERIENCE – GENERAL CATEGORY

Appraising the following types of properties qualifies as general appraisal experience:

(1)           land such as farms of 100 acres or more in size, undeveloped tracts, residential multi-family sites other than those listed in Rule .0602 of this Section, commercial sites, industrial sites, or land in transition;

(2)           residential multi-family properties (5 or more units) such as apartments, condominiums, town-houses, or mobile home parks;

(3)           commercial single-tenant properties such as office buildings, retail stores, restaurants, service stations, banks, or day care centers;

(4)           commercial multi-tenant properties such as office buildings, hotels, or shopping centers;

(5)           industrial properties such as warehouses or manufacturing plants; and

(6)           institutional properties such as assisted living facilities, nursing homes, hospitals, schools, churches, or government buildings.

History Note         Authority G.S. 93E-1-10;

Eff. July 1, 2016.

21 NCAC 57A .0604         TYPES OF APPRAISAL EXPERIENCE

(a)  An applicant may receive experience credit for standard appraisals, supervising appraiser's reviews, review appraisals, and condemnation appraisals.

(b)  If the applicant performed at least 75 percent of the work associated with an appraisal, including a field inspection and preparation of the appraisal report, full credit shall be given for that appraisal. Except as provided in Paragraphs (d) and (e) of this Rule, no credit shall be awarded if the applicant performed less than 75 percent of the work on an appraisal.

(c)  A "standard appraisal" means the process of developing an appraisal in accordance with Standard Rule 1 of USPAP and preparing a written appraisal report or file memorandum describing the appraisal and reporting the estimate of value.

(d)  A "supervising appraiser's review" means the process of reviewing an appraisal report prepared by an affiliated appraiser and signing the appraisal report, including signing as “review appraiser” on a Uniform Residential Appraisal Report form.  It shall not include signing a report that a real estate appraiser trainee has prepared.

(e)  A "review appraisal" means the process of reviewing an appraisal report prepared by another appraiser and preparing a separate written appraisal report or file memorandum setting forth the results of the review process. No more than 50 percent of an applicant's appraisal experience credit shall be from preparing review appraisals. 

(f)  A "condemnation appraisal" means an appraisal of real property for eminent domain proceedings where a partial taking is involved and the appraiser must develop both a "before taking" and an "after taking" value. 

(g)  A "demonstration appraisal" means an appraisal performed without a client.  No more than 25 percent of the applicant's experience shall be from preparing demonstration appraisals. If a trainee performs a demonstration appraisal, the trainee's supervisor shall sign the appraisal in order for the trainee to receive experience credit for it.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 2016.

21 NCAC 57A .0605         REPORTING APPRAISAL EXPERIENCE

(a)  Applicants shall use the Appraisal Board's Appraisal Experience Log to report appraisal experience. The log is available on the Board's website at www.ncappraisalboard.org.

(b)  The Log shall contain the following:

(1)           the applicant's name and signature;

(2)           the supervisor's name and signature;

(3)           the supervisor's certificate number;

(4)           the date the supervisor signed the log;

(5)           the subject property address;

(6)           the date the appraisal report was signed;

(7)           the report type such as an appraisal report, a restricted appraisal report, or the type of reporting form used;

(8)           the client's name;

(9)           the applicant's file number for the appraisal assignment, if any;

(10)         the number of hours requested for appraisal experience;

(11)         whether the supervisory appraiser accompanied the applicant on the inspection of the subject property; and

(12)         a description of the work performed by the applicant and his or her supervisor on each assignment.

(c)  Applicants shall retain copies of all appraisals and their associated work files in accordance with the Record Keeping Rule of USPAP to support all appraisal experience reported on the log.

History Note:        Authority G.S. 93E-1-6.1; 93E-1-10;

Eff. July 1, 2016;

Amended Eff. September 1, 2019.

SUBCHAPTER 57B - REAL ESTATE APPRAISAL EDUCATION

SECTION .0100 - COURSES REQUIRED FOR REGISTRATION, LICENSURE AND CERTIFICATION

21 NCAC 57B .0101          REGISTERED TRAINEE COURSE REQUIREMENTS

(a)  Each applicant for registration as a trainee shall meet the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board.

(b)  The Board shall approve all course sponsors, schools, and course content that qualify for credit. These courses shall be completed within the five-year period immediately preceding the date when application for registration is made to the Board by the applicant.

(c)  Before the application may be granted by the Board, the applicant shall complete the supervisor-trainee course as set forth in 21 NCAC 57A .0407(d).

History Note:        Authority G.S. 93E-1-6(a); 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2015; January 1, 2013; July 1, 2010; September 1, 2008; January 1, 2008; July 1, 2005; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. February 1, 2024; July 1, 2022; May 1, 2020.

21 NCAC 57B .0102          LICENSED RESIDENTIAL AND CERTIFIED RESIDENTIAL REAL ESTATE APPRAISER COURSE REQUIREMENTS

21 NCAC 57B .0103          CERTIFIED GENERAL REAL ESTATE APPRAISER COURSE REQUIREMENTS

History Note:        Authority G.S. 93E-1-6(a); 93E-1-6(b); 93E-1-6(c); 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2015; July 1, 2014; January 1, 2013; July 1, 2010; September 1, 2008; January 1, 2008; March 1, 2007; July 1, 2005; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. March 21, 2019;

Repealed Eff. May 1, 2020.

21 NCAC 57B .0104          COURSE EXEMPTIONS FOR EQUIVALENT EDUCATION

History Note:        Authority G.S. 93E-1-6(a); 93E-1-10;

Eff. July 1, 1994;

Repealed Eff. July 1, 2014.

SECTION .0200 – COURSE SPONSOR STANDARDS FOR PRELICENSING AND PRECERTIFICATION EDUCATION

21 NCAC 57B .0201          PURPOSE AND APPLICABILITY

This Section establishes criteria for approval and operational requirements for all real estate appraisal qualifying course sponsors and schools. These standards shall be satisfied in order for course sponsors and schools to obtain and maintain approval of their courses for appraiser qualifying education credit. Schools and course sponsors shall obtain course approval from the Board prior to conducting qualifying courses and prior to advertising or otherwise representing that a course is or may be approved for credit in North Carolina.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0202          APPLICATION FOR APPROVAL

Schools and other course sponsors seeking approval to conduct real estate appraisal qualifying courses shall make written application to the Board. The application form may be found on the Board's website at www.ncappraisalboard.org.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0203          CRITERIA FOR APPROVAL

Approval to conduct real estate appraisal qualifying courses shall be granted to a school or course sponsor when it is shown to the satisfaction of the Board that:

(1)           the school or course sponsor has submitted a completed application form. The form may be found at the Board's website at www.ncappraisalboard.org;

(2)           the school or course sponsor complies with the standards described in this Section; and

(3)           the courses to be conducted comply with the standards described in Section .0300 of this Subchapter.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0204          Facilities and Equipment

(a)  Classrooms shall be of sufficient size to accommodate comfortably all students enrolled in a course, shall have adequate light, heat, cooling and ventilation and shall be free of distractions which would disrupt class sessions.

(b)  Classrooms shall contain a student desk or worktable space for each student that contains sufficient area for each student.

(c)  Sponsors are required to comply with all applicable local, state and federal laws and regulations regarding safety, health and sanitation. Sponsors shall furnish the Board with inspection reports from appropriate local building, health and fire inspectors upon the request of the Board.

(d)  Sponsors must supply separate restroom facilities for males and females.

(e)  Classes may not be held in a personal residence under any circumstances.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0205          ENROLLMENT CONTRACTS

Schools and course sponsors shall execute a written contract with each student enrolled and shall provide a copy of such contract to the student. Such contract shall state the amount of tuition and fees paid, the school's policy regarding refund of tuition and fees, and the title and dates of the courses for which the student is enrolled.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 ncac 57b .0206          ADMISSIONS POLICY AND PRACTICE

Schools and course sponsors shall not discriminate in their admissions policy, practice or general operations against any person on the basis of age, sex, race, color, creed, national origin, religious preference or handicap. A statement to this effect shall be included in all bulletins, catalogues or similar official publications.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0207          ADMINISTRATION

One person shall be designated as the Director for each approved school or course sponsor and shall be responsible for administrative matters such as program development, scheduling of classes, advertising, maintenance of facilities and equipment, record keeping, and general supervision of the instruction program. The director shall ensure that the policies and general operations of the school or course sponsor comply with the provisions of Sections .0200 and .0300 of this Subchapter. The Director shall meet the fitness standards for applicants for trainee registration or appraiser licensure or certification. The Director shall:

(1)           have a baccalaureate or higher degree in the field of education; or

(2)           have at least two years full time experience within the past 10 years as an instructor or school administrator; or

(3)           meet the minimum appraisal education and experience qualifications listed in 21 NCAC 57B .0306 to teach either the residential or general appraisal precertification courses; or

(4)           possess qualifications which are found by the Board to be substantially equivalent to Item (1), (2), or (3) of this Rule.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0208          ACCOMMODATIONS FOR PERSONS WITH DISABILITIES

The Board may suspend, revoke, or deny renewal of approval of a real estate school or course sponsor to conduct appraiser qualifying courses upon finding that any court of competent jurisdiction has found the school or course sponsor official or instructor in the employ of the school or course sponsor to be in violation of any applicable federal or state law or regulation prohibiting discrimination on the basis of disability, requiring that courses related to certification for professional or trade purposes be offered in a place and manner accessible to persons with disabilities.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0209          Certification of Course Completion

Approved schools or course sponsors must provide each passing student with a course completion certificate. Certificates of course completion shall be on a document bearing the letterhead or insignia of the school or course sponsor and shall have the signature or signature stamp of the school or course sponsor director. A student who has taken a qualifying course, other than the 15 hour National USPAP course, for continuing education credit and who does not pass the examination shall not be given a course completion certificate, but shall be given a certificate of attendance for the course, provided that the student complies with the provisions of 21 NCAC 57B .0303. Either certificate is valid to obtain continuing education credit, in accordance with 21 NCAC 57B .0604.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; January 1, 2008; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0210          Course Records

Schools and course sponsors shall:

(1)           retain on file for five years copies of all grade and attendance records for each approved course and shall make such records available to the Board upon request;

(2)           retain on file for two years a master copy of each final course examination, which shall include the answer key, course title, course dates, and name of instructor. Examination file copies shall be made available to the Board upon request;

(3)           within 15 days of course completion, submit to the Board a roster of all students who completed the course; and

(4)           provide each student with contact information for the Appraisal Board so that students may contact the Board with questions or concerns regarding the course.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; January 1, 2008; March 1, 2007; July 1, 2005; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0211          Program Changes

Approved schools and course sponsors must notify the Board of any changes to be made with respect to course content, course completion standards, instructors, school director or textbooks as prescribed in Section .0300 of this Subchapter. Requests for approval of such changes must be in writing, and must be sent to the Board at least 15 calendar days before the proposed change would take effect. In the event of an emergency, such as the disability, death or unforeseen departure of the instructor or school director, where it is not possible to request approval of a change at least 15 days in advance, the school must request such change immediately but no later than the end of the next business day via fax, telephone or other electronic means.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. March 1, 2006; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0212          WITHDRAWAL OR DENIAL OF BOARD APPROVAL

The Board may deny or withdraw approval of any school or course sponsor upon finding that:

(1)           the school or course sponsor director has refused or failed to comply with any of the provisions of Sections .0200 and .0300 of this Subchapter;

(2)           the school or course sponsor has made any false statements or presented any false information in connection with an application for Board approval or renewal of the sponsor or its courses; or

(3)           the school or course sponsor director has performed any act which constitutes improper, fraudulent, or dishonest conduct.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0300 – COURSE STANDARDS FOR PRELICENSING AND PRECERTIFICATION EDUCATION

21 NCAC 57B .0301          PURPOSE

This Section establishes minimum standards for real estate appraisal qualifying courses prescribed by G.S. 93E-1-6(a).

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0302          COURSE CONTENT

(a)  All courses shall consist of instruction in the subject areas outlined in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board, which is hereby incorporated by reference, including subsequent amendments and editions, and can be found at www.appraisalfoundation.org at no cost.

(b)  Partial credit shall be awarded when only part of the course covers the subject areas outlined in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board.

(c)  On or before the first class meeting day of the Basic Appraisal Principles course, the instructor shall give to each student a handout prepared by the Board regarding the trainee registration process and the process to upgrade to a licensed or certified appraiser. The student handout may be accessed on the Board's website at www.ncappraisalboard.org.

History Note:        Authority G.S. 93E-1-6; 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; January 1, 2008; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; May 1, 2020; September 1, 2019.

21 NCAC 57B .0303          COURSE COMPLETION STANDARDS

(a)  Academic standards for course completion shall assure that students receiving a passing grade possess knowledge and understanding of the subject areas prescribed for the course. A student's grade shall be based on his or her performance on examinations, graded homework, and class work assignments.

(b)  Course completion requirements shall include a comprehensive final examination that accounts for at least 50 percent of a student's grade for the course. Open book final examinations shall be prohibited. Schools and course sponsors may, within 90 days of the course ending date, allow a student one opportunity to make up any missed course examination or to retake any failed course examination without repeating the course; however, any make up examination shall be comparable to the initial examination with regard to the number of questions and overall difficulty, and at least 75 percent of the questions in the make up examination shall be different from those used in the initial examination.

(c)  The final examination shall be proctored in person or remotely. If in person, the proctor shall:

(1)           require photographic identification from the applicant, such as a driver's license or a passport;

(2)           not allow a student to bring any personal items such as a backpack, purse, briefcase, or device that would enable the student to access the internet during the examination; and

(3)           be the school or course sponsor director, an employee of the school or course sponsor, or the instructor for the course. If a director, employee, or instructor is not available to proctor the examination, the school or course sponsor shall employ an official to serve as a proctor. Officials that may serve as proctors include a public librarian, notary public, attorney, police officer, or teacher. A proctor shall not be a family member or friend of a student unless that person is the director, an employee, or an instructor of the school or the course sponsor.

(d)  If the final examination is proctored remotely, the proctor shall ensure that it is a closed book exam with no study materials available during the exam, through continuously observing the student remotely from a web camera or through use of software with bio-metric proctoring.

(e)  The instructor may offer additional hours of instruction so that students may make up lost hours of instruction.

(f)  Students who are taking a qualifying course, other than the 15 hour National USPAP course, for continuing education credit, may sit for the final course examination, but they shall not be required to pass the examination in order to receive continuing education credit. Students who take and pass the examination, and who comply with the provisions of this Rule shall be given a course completion certificate. Students who do not take and pass the examination but who otherwise comply with the provisions of this Rule shall be given a certificate of attendance. The requirements set forth in a conditional dismissal, consent order, or order of the Board after a hearing shall not be modified by the provisions of this Paragraph.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2016; July 1, 2014; July 1, 2010; September 1, 2008; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0304          Course scheduling

(a)  All courses shall have fixed beginning and ending dates. Late enrollment shall be permitted only if the enrolling student satisfies the attendance requirements set forth in Paragraph (e) of Rule .0303 of this Section.

(b)  Courses shall be scheduled in a manner that provides for class meetings of up to eight classroom hours in any given day.

(c)  A classroom hour consists of 50 minutes of classroom instruction. Classroom breaks at the rate of 10 minutes per classroom hour shall be scheduled; however, instructors shall not use accumulated, unused break time to end the class early.

(d)  Instruction shall be given for the minimum hours as set forth in the Real Property Appraiser Qualifications Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board.

(e)  All courses, except asynchronous distance education courses, shall have a minimum of three students in attendance in order for the course to be held.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2016; July 1, 2010; January 1, 2008; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020.

21 NCAC 57B .0305          TEXTBOOKS

Each course must utilize a textbook or course materials which are approved by the Board as well as any additional instructional materials which may be prescribed by the Board for such course.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0306          INSTRUCTOR REQUIREMENTS

(a)  Except for guest lecturers as set forth in Paragraph (b) of this Rule, all courses that qualify for credit pursuant to this Section shall be taught by instructors who meet the following minimum qualifications:

(1)           for residential appraiser courses, the instructor shall:

(A)          have two years' full-time experience, consisting of 1500 hours per year, as a certified residential or general real estate appraiser within the previous five years, with at least one-half of the experience in residential property appraising; and

(B)          be a current certified residential or general real estate appraiser.

(2)           for general appraiser courses, the instructor shall:

(A)          have three years' full-time experience as a general real estate appraiser within the previous five years, with at least one-half of the experience in income property appraising; and

(B)          currently be and has been a certified general real estate appraiser for at least five years.

(3)           for USPAP courses, the instructor shall:

(A)          currently be a certified residential or a certified general appraiser; and

(B)          be certified by the Appraiser Qualifications Board of the Appraisal Foundation as an instructor for the National USPAP Course. If a USPAP instructor fails to renew or loses his or her certification by the Appraiser Qualifications Board, the instructor shall stop teaching and notify the Appraisal Board of the loss of certification.

(4)           for statistics, modeling and finance courses, the instructor shall:

(A)          have previously completed this class; or

(B)          have completed 3 semester hours of statistics from a regionally accredited college or university.

(b)  Guest lecturers who do not possess the qualifications set forth in Paragraph (a) of this Rule may teach collectively up to one-fourth of any course, if each guest lecturer possesses education and experience in the subject area about which the lecturer is teaching.

(c)  Instructors shall conduct their classes in a manner that demonstrates knowledge of the subject matter being taught and mastery of the following teaching skills:

(1)           The ability to utilize illustrative examples, and to respond to questions from students;

(2)           The ability to utilize varied instructive techniques other than straight lecture, such as class discussion;

(3)           The ability to utilize instructional aids to enhance learning;

(4)           The ability to maintain a learning environment and control of a class; and

(6)           The ability to interact with students in a professional and non-discriminatory manner.

(d)  Upon request of the Board, an instructor or proposed instructor shall submit to the Board a recording that depicts the instructor teaching portions of a qualifying course, in order to ensure that all requirements of this Rule are being met.

(e)  The inquiry into determining whether to approve an instructor shall include consideration of whether the instructor has ever had any disciplinary action taken or has a disciplinary action pending against his or her appraisal license or certificate or any other professional license or certificate in North Carolina or any other state. If the instructor has any pending criminal charges in this or any state, they shall be reviewed as set forth in G.S. 93B-8.1 in determining whether to approve the instructor. An instructor shall not have received any disciplinary action against his or her appraisal license or certificate from the State of North Carolina or any other state within the previous two years. For the purposes of this Section, disciplinary action means a reprimand, suspension (whether active or inactive), or a revocation.

(f)  Proposed qualifying course instructors who do not meet the minimum appraisal education and experience qualifications listed in Paragraph (a) of this Rule, and who seek to have their qualifications determined by the Board to be equivalent to the qualifications listed in Paragraph (a) of this Rule, shall supply the Board with copies of sample appraisal reports or other evidence of experience.

(g)  Persons desiring to become instructors for qualifying courses shall file an instructor application for qualifying education and be approved by the Board. There is no fee for application for instructor approval. Once an instructor has been approved to teach a specific qualifying course, that person may teach the course at any school or for any course sponsor approved by the Appraisal Board to offer qualifying courses. The instructor application form shall include the following information:

(1)           the instructor's name, address, phone number, and email address;

(2)           a list of course provider(s) the instructor will be teaching for;

(3)           the programs the instructor is seeking approval for;

(4)           the instructor's licensing/certification history;

(5)           whether the instructor has ever been denied a trainee registration, or appraiser license, or certificate in NC or any other state;

(6)           whether the instructor has any disciplinary action taken against a trainee registration, appraiser license or certificate in NC or any other state;

(7)           whether the instructor has had any disciplinary action within the past three years or pending complaints or charges pending against any professional license in this State;

(8)           the instructor's college education, appraisal education, appraisal experience, and description of work experience; and

(9)           the signature of applicant.

(h)  Current Appraisal Board members shall not be eligible to teach qualifying courses during their term of office on the Board.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; July 1, 2010; September 1, 2008; March 1, 2007; March 1, 2006; July 1, 2005; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. June 1, 2020; May 1, 2020; July 1, 2019.

21 NCAC 57B .0307          CRITERIA FOR COURSE RECOGNITION

(a)  Schools and course sponsors seeking to offer appraiser qualifying courses shall make written application to the Board and pay applicable fees as required by G.S. 93E-1-8(b). The application may be accessed on the Board's website at www.ncappraisalboard.org. This application shall include:

(1)           the name of school, mailing address, and phone number;

(2)           the name and email address of the school owner and contact person;

(3)           the name of the school's Director pursuant to Rule .0207 of this Subchapter;

(4)           whether the school owner(s), Director, or any proposed instructor have had any criminal convictions or had any disciplinary action taken against a professional license;

(5)           whether the classroom facilities meet the minimum requirements in Rule .0204 of this Subchapter;

(6)           the courses they are seeking approval for;

(7)           the proposed instructors for the courses; and

(8)           the applicant's signature.

(b)  Appraisal subject matter electives offered for credit pursuant to the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board shall meet all other requirements of this Chapter. The content of these electives shall be related to the appraisal of real property to be approved for credit. Appraisal subject matter elective courses shall contain a minimum of 15 hours.

(c)  The 15 hour USPAP course shall be as approved by the Appraiser Qualifications Board of the Appraisal Foundation.

(d)  The application shall state the name of the instructor for each course. All instructors shall be approved by the Board pursuant to Rule .0306 of this Section. After the course is approved, if a school or course sponsor seeks to change instructors, the school shall notify the Board of the name of the new instructor at least seven calendar days before the proposed change would take effect. If the proposed instructor is not currently approved in accordance with Rule .0306 of this Section, the instructor shall be approved by the Board before the school or course sponsor may allow the instructor to start instructing.

(e)  Course sponsors may offer all qualifying classes via distance education, as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. The Board shall be provided access to the course online and shall not be charged any fee for such access. To be approved for credit, an online qualifying education course shall meet all of the conditions imposed by the Rules in this Subchapter. A course completion certificate shall be forwarded to the student as stated in Rule .0607 of this Subchapter.

History Note:        Authority G.S. 93E-1-8(a); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; July 1, 2010; September 1, 2008; January 1, 2008; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020.

section .0400 – course sponsor fees for prelicensing and precertification education

21 NCAC 57B .0401          APPLICABILITY

This Section applies to private real estate appraisal schools offering qualifying courses, appraisal trade organizations and to all other course sponsors other than North Carolina colleges, universities, community, or technical colleges accredited by the Southern Association of Colleges and Schools, and agencies of the federal, State or local government.

History Note:        Authority G.S. 93E-1-8(a),(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; January 1, 2008; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0402          Original Course Approval Fee

The original prelicensing and precertification approval fee shall be that specified in G.S. 93E-1-8(b). The fee shall be paid to the North Carolina Appraisal Board and is non-refundable. Schools and course sponsors may offer approved courses as frequently as is desired during the period for which approval is granted without paying additional course fees.

History Note:        Authority G.S. 93E-1-8(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0403          Fee for Renewal of Course Approval

(a)  Board approval of courses expires on the next December 31 following the date of issuance. In order to assure continuous approval of courses, applications for renewal of Board approval, accompanied by the renewal fee specified in G.S. 93E-1-8(b), must be filed with the Board annually on or before December 1. Applications which are incomplete, as well as all applications for renewal of course approval submitted after December 1, shall be treated as original course approval applications.

(b)  The fee is non-refundable.

History Note:        Authority G.S. 93E-1-8(a),(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; March 1, 2006; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0500 - PRIVATE REAL ESTATE APPRAISAL SCHOOL FEES FORPRELICENSING AND PRECERTIFICATION EDUCATION

21 NCAC 57B .0501          APPLICABILITY

21 NCAC 57B .0502          Original Course Approval Fee

21 NCAC 57B .0503          Fee For Renewal of Course Approval

History Note:        Authority G.S. 93E-1-8(a),(b); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. March 1, 2006; August 1, 2002;

Repealed Eff. January 1, 2008.

SECTION .0600 - CONTINUING EDUCATION COURSES

21 ncac 57b .0601          PURPOSE AND APPLICABILITY

This Section establishes minimum standards for appraisal continuing education courses authorized by G.S. 93E-1-8 (c) and required by Rule .0204 of Subchapter 57A. These standards must be satisfied in order for course sponsors to obtain and maintain approval of their courses for appraiser continuing education credit. Except as provided in Rule .0602(a) of this Section, any school, organization, agency, individual, or other entity is eligible to become a continuing education course sponsor. Course sponsors must obtain course approval from the Board prior to conducting the course for continuing education credit and prior to advertising or otherwise representing that a course is or may be approved for continuing education credit in North Carolina. To request credit for a continuing education course which has not been approved by the Board, a trainee, licensee or certificate holder must follow the procedure set forth in 21 NCAC 57A .0204(g).

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. September 1, 2019.

21 NCAC 57B .0602          Application And Fee

(a)  Course sponsors seeking approval of appraisal continuing education courses shall make written application to the Board. A course sponsor shall be the owner of the proprietary rights to the course for which approval is sought or shall have the permission of the course owner to seek course approval. After receipt of a completed application, the Board shall review the application pursuant to the criteria set forth in 21 NCAC 57B .0603 and shall notify the sponsor of its decision.

(b)  The original application fee shall be that specified in G.S. 93E-1-8(d) for each course for which approval is sought. A fee is not required if the course sponsor is an accredited North Carolina college, university, junior college, or community or technical college, or if the course sponsor is an agency of the federal, state, or local government. A course sponsor may offer approved courses as frequently as is desired during the period for which approval is granted without paying additional fees.

(c)  Each application shall be accompanied by copies of all course materials, including handbooks, slides, overheads, and other non-published materials. The application shall also include the title, author, publisher and edition for each published textbook. Each application shall also have a timed outline for the course.

(d)  The application shall state the name of the instructor for the course.

History Note:        Authority G.S. 93E-1-8(c),(d);

Eff. July 1, 1994;

Amended Eff. January 1, 2008; March 1, 2006; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0603          CRITERIA FOR COURSE APPROVAL

The following requirements shall be satisfied in order for course sponsors to obtain approval of a course for appraiser continuing education credit:

(1)           The subject matter of the course shall comply with the requirements of Rule .0204 of Subchapter 57A and the information to be provided in the course shall be both accurate and current.

(2)           The course shall involve a minimum of two hours of instruction on acceptable subject matter as outlined in 21 NCAC 57A .0204(c). A classroom hour consists of 50 minutes of classroom instruction and 10 minutes of break time. Instruction shall be given for the full number of hours for which credit is given. Instructors shall not accumulate unused break time to end the class early.

(3)           The course instructor(s) shall:

(a)           possess the fitness for licensure required of applicants for trainee registration, real estate appraiser licensure, or certification; and

(b)           either:

(i)            two years' full-time experience that is related to the subject matter to be taught;

(ii)           a baccalaureate or higher degree in a field that is related to the subject matter to be taught;

(iii)          two years' full-time experience teaching the subject matter to be taught; or

(iv)          an equivalent combination of such education and experience.

(4)           The course shall be one involving a qualified instructor who, except as noted in Item (5) of this Rule, shall be physically present in the classroom at all times, and shall personally provide the instruction for the course. The course instructor may utilize video instruction, or similar types of instruction by other persons to enhance or supplement his or her personal instruction; however, such other persons shall not be considered to be the course instructor and the course instructor shall be physically present when such indirect instruction by other persons is being utilized. No portion of the course shall consist of correspondence instruction. The instructor shall comply with Rule .0306(c) of this Subchapter. Instructors for the National USPAP courses shall be certified by the Appraiser Qualifications Board of the Appraisal Foundation. Current Appraisal Board members shall not teach continuing education courses during their term of office on the Board.

(5)           Course sponsors may offer all continuing education classes via distance education as set forth in the Real Property Appraiser Qualification Criteria as implemented by The Appraisal Foundation's Appraiser Qualifications Board. A sponsor seeking approval of a computer-based education course shall provide the Board access to the course via the internet at a date and time satisfactory to the Board and the Board shall not be charged any fee for such access. A course completion certificate shall be forwarded to the student as stated in Rule .0607 of this Section, and a course roster shall be sent to the Appraisal Board in accordance with Rule .0608 of this Section.

(6)           The course shall be an educational program intended to improve the knowledge, skill and competence of trainees, and licensed and certified real estate appraisers.

(7)           The course sponsor shall certify that the course shall be conducted in accordance with the operational requirements stated in Rule .0606 of this Section and that the course sponsor will comply with all other applicable rules contained in this Section.

(8)           The course title shall not include the words "Uniform Standards of Professional Appraisal Practice" or "USPAP" unless the course is either the 15 hour National USPAP course or the 7 hour National USPAP Continuing Education course. If the course is the 7 hour National USPAP Continuing Education course, the course title shall state which edition of USPAP will be taught in that specific course.

(9)           Each course shall utilize a textbook or course materials that have been approved by the Board.

(10)         If the course content is related to technology, such as software, hardware, electronic devices, manuals, or databases, the course shall be developed specifically for utilization in the real estate appraisal business in order to be approved for continuing education credit. Such courses shall not require the student to purchase specific products, and the course shall not be used to sell or advertise particular products or software.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2015; July 1, 2010; January 1, 2008; March 1, 2007; March 1, 2006; July 1, 2005; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. February 1, 2024; July 1, 2022; September 1, 2019.

21 NCAc 57B .0604          QUALIFYING COURSES

(a)  Appraisal qualifying courses conducted by North Carolina approved schools or by appraisal trade organizations which are approved as equivalent to the North Carolina qualifying courses may be separately approved as appraisal continuing education courses. Trainees, licensed, and certified appraisers may obtain continuing education credit for these courses only to the extent permitted by Rule .0204 of Subchapter 57A. Appraisal trade organizations shall at all times assure compliance with Rules .0606, .0607, and .0608 of this Section in order to retain such approval for these courses.

(b)  It is presumed that any person taking any of the qualifying courses is doing so for registration, licensure, or certification purposes. If the person wishes to obtain continuing education credit for the course, he or she shall request such credit in writing and shall send the original course completion certificate or course attendance certificate with the request.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; September 1, 2008; March 1, 2007; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0605          CONTINUING EDUCATION CREDIT HOURS

The course approval issued to a course sponsor shall include the number of hours of continuing education credit that will be awarded for the course. The minimum number of continuing education credit hours awarded for a course shall be two hours, and the maximum number of continuing education credit hours awarded for a course, regardless of its length, shall be thirty hours. Continuing education credit hours shall not be carried forward into subsequent licensing periods. No continuing education credit shall be awarded for courses taken before the student was registered as a trainee or licensed or certified as an appraiser in this state or any other state.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2013; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0606          COURSE OPERATIONAL REQUIREMENTS

Course sponsors shall maintain compliance with Rule .0603 of this Section and shall also comply with the following requirements:

(1)           Courses shall last a maximum of eight classroom hours in any day. A classroom hour shall consist of 50 minutes of classroom instruction and ten minutes of break time.

(2)           Course sponsors shall not utilize advertising of any type that is false or misleading about the course content, number of hours of credit that have been awarded by the Board, or credentials of instructor. Sponsors shall specify the number of continuing education credit hours awarded by the Board for the course.

(3)           Course sponsors shall, upon request, provide any prospective student a description of the course content regarding the instruction to be provided in the course.

(4)           Courses conducted in a facility shall meet the following requirements:

(a)           contains a student chair, desk or worktable space for each student;

(b)           is free of noise or visual distractions that disrupt class sessions; and

(c)           complies with all applicable local, state and federal laws and regulations regarding safety, health, and sanitation.

(d)           Classes shall not be held in a personal residence

(5)           Attendance shall be monitored during all class sessions to ensure compliance with the attendance requirement. Instruction shall be given for the number of hours for which credit is given. Instructors shall not accumulate unused break time to end the class early.

(6)           Instructors shall require student attentiveness during class sessions. Students shall not be permitted to engage in activities that are not related to the instruction being provided.

(7)           Course sponsors for which an application fee is required by Rules .0602(b) and .0611(b) of this Section shall have course cancellation and fee refund policies. In the event a scheduled course is canceled, efforts shall be made to notify preregistered students of the cancellation and all prepaid fees received from such preregistered students shall be refunded within 30 days of the date of cancellation or, with the student's permission, applied toward the fees for another course.

(8)           Upon request of the Board, in order to ensure compliance with the requirements of this Rule, the course sponsor shall submit to the Board a recording that depicts the instructor teaching portions of any continuing education course.

(9)           Course sponsors shall provide the Board in writing or via an electronic link to the sponsors' website with the dates and locations of all classes the sponsor is offering in North Carolina at least 10 calendar days before the class is offered, unless circumstances beyond the control of the course sponsor require that the course be rescheduled, such as a weather emergency. If the dates or location of the classes change after such information is provided to the Board, the course sponsor shall notify the Board of such changes within five days of the rescheduled date in writing or via an electronic link.

(10)         Course sponsors shall provide each student with contact information for the Appraisal Board.

(11)         If an instructor has any disciplinary action taken against his or her appraisal license or any other professional license in North Carolina or any other state, or if the instructor has been convicted of or pled guilty to any misdemeanor or felony, the school or course sponsor shall report that fact to the Board within 15 business days.

(12)         All courses, except asynchronous distance education courses, shall have a minimum number of three students enrolled in the course in order for the course to take place.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; July 1, 2010; January 1, 2008; March 1, 2007; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020; July 1, 2019.

21 NCAC 57B .0607          Certification of Course Completion

Course sponsors must issue a certificate of course completion within 15 days of completion of the course to all students who satisfactorily complete an approved course. If the course sponsor is located in North Carolina, the certificate, which the student must retain for a period of two years, must bear the signature or signature stamp of a person designated by the course sponsor to sign such certificate. North Carolina-based course sponsors must notify the Board in advance of the person(s) designated to sign certificates of course completion for courses conducted in North Carolina. If the course sponsor is not located in North Carolina, the certificate of course completion must show the name of the course sponsor, the name of the course, the number of classroom hours, the course dates, the state or city where the course was conducted, and the full name of the student.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; January 1, 2008; July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0608          Sponsor reporting of continuing EDUCATION credit

Course sponsors shall, within 15 days of course completion, submit to the Board a roster of all North Carolina registered trainees, licensed and certified appraisers, who completed the course.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-1;

Eff. July 1, 1994;

Amended Eff. July 1, 2010; January 1, 2008; July 1, 2005; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0609          changes during the approval period

(a)  Course sponsors shall obtain advance approval from the Board for any changes to be made in approved courses with regard to the number of hours, course content, or instructors. Requests for approval of such changes shall be in writing, and shall be sent to the Board at least 15 calendar days before the proposed change would take effect.

(b)  In the event of an emergency, such as the disability, death, or unforeseen departure of the instructor or school director, where it is not possible to request approval of a change at least 15 days in advance, the school shall request such change immediately but no later than the end of the next business day to the Board office via email to: ncab@ncab.org.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. March 1, 2006;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022.

21 NCAC 57B .0610          COURSE RECORDS

Course sponsors must retain on file for three years records of student registration and attendance for each approved course that is conducted and must make such records available to the Board upon request.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57B .0611          Renewal of Approval and Fees

(a)  Board approval of appraisal continuing education courses (except the seven hour National USPAP Continuing Education course) expires on the next December 31 following the date of issuance. In order to assure continuous approval, applications for renewal of Board approval, accompanied by the prescribed renewal fee, must be filed with the Board annually on or before December 1. All applications for renewal of course approval received on or before December 1, which are incomplete as of that date, as well as all applications for renewal of course approval submitted after December 1, shall be treated as original applications for approval of continuing education courses. Schools and course sponsors must send a copy of all course materials every third renewal of a continuing education course.

(b)  The annual fee for renewal of Board approval shall be that specified in G.S. 93E-1-8(d) for each course for which renewal of approval is requested, provided that no fee is required for course sponsors that are exempted from original application fees by Rule .0602(b) of this Section. The fee is non-refundable.

(c)  Application for approval of the even-numbered year edition of the seven hour National USPAP Continuing Education course shall be made when the instructor for the course has been certified by the Appraiser Qualifications Board of the Appraisal Foundation to teach that edition of USPAP. Such approval shall expire on December 31 of the following even numbered year. This course approval may be renewed in the fall of the even-numbered year, and shall expire on September 30 of the following odd-numbered year.

History Note:        Authority G.S. 93E-1-8(c),(d); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2013; July 1, 2010; January 1, 2008; March 1, 2007; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. February 1, 2024.

21 NCAC 57B .0612          Withdrawal Or Denial Of Approval

The Board may deny or withdraw approval of any course upon finding that:

(1)           the course sponsor has made any false statements or presented any false information in connection with an application for course approval or renewal of course approval;

(2)           the course sponsor has refused or failed to comply with any of the provisions of this Section;

(3)           the course sponsor has engaged in a pattern of consistently canceling scheduled courses;

(4)           the school or course sponsor has offered or held a continuing education course stating that the students will receive continuing education credit from the North Carolina Appraisal Board when it is not approved to do so;

(5)           the instruction provided in a course is of unsatisfactory quality; or

(6)           the instructor failed to demonstrate effective teaching skills.

(7)           the instructor has had disciplinary action taken on his or her appraisal license or any other professional license in North Carolina or any other state, or has been convicted of or pleaded guilty to any criminal act.

History Note:        Authority G.S. 93E-1-8(c); 93E-1-10;

Eff. July 1, 1994;

Amended Eff. January 1, 2008; March 1, 2006; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 Ncac 57B .0613          payment of fee required by g.s. 93E-1-7(b1)

Schools and course sponsors who are required by G.S. 93E-1-7(b1) to pay a fee to the Board for each licensee completing an approved continuing education course conducted by the school or course sponsor shall remit the fee to the Board upon uploading the course roster online.

History Note:        Authority G.S. 93E-1-7; 93E-1-10;

Eff. September 1, 2008;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. May 1, 2020; July 1, 2018.

21 NCAC 57B .0614          INSTRUCTORS FOR THE TRAINEE/SUPERVISOR COURSE REQUIRED BY G.S. 93E‑1‑6.1

(a)  Instructors for the trainee supervision course set forth in G.S. 93E-1-6.1 shall be real estate appraisers who have been certified residential or certified general appraisers for at least three years.

(b)  Instructors shall not have received any disciplinary action regarding their appraisal certificate from the State of North Carolina or any other state within the previous three years.

(c)  Persons who wish to teach the trainee supervision course shall be approved by the Board before they may teach this course. Approval of a trainee supervision course instructor authorizes the instructor to teach the course for any approved course sponsor.

(d)  Applicants who wish to become instructors for the trainee supervision course shall attend an educational workshop sponsored by the Board or complete the trainee supervision course with another approved sponsor, before they may be approved. Applicants may check the Board's website for information regarding the date and location of the workshop. The website may be accessed at www.ncappraisalboard.org.

(e)  Approval of trainee supervision course instructors expires on the next December 31 following the date of approval. Applications for renewal of Board approval, shall be filed with the Board annually on or before December 1.

History Note:        Authority G.S. 93E-1-6.1; 93E-1-8(c); 93E-1-10;

Eff. July 1, 2014;

Amended Eff. July 1, 2016;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. July 1, 2022; May 1, 2020.

21 NCAC 57B .0615          Emergency Provisions for EXTENSION for remote learning for Qualifying Education, Continuing Education and taking of licensing examination

History Note:        Authority; G.S. 93E-1-6; 93E-1-7; 93E-1-8; 93E-2-6; S.L. 2020-97, s. 3.20; S.L. 2021-3, s. 2.11;

Emergency Adoption Eff. April 1, 2020;

Emergency Adoption Eff. May 21, 2020 to expire pursuant to S.L. 2020-3, s. 4.38 (e);

Emergency Adoption Expired Eff. August 1, 2020 pursuant to S.L. 2020-3, s. 4.38 (e);

Emergency Adoption Eff. October 19, 2020 to expire pursuant to S.L. 2020-97, s. 3.20(e);

Emergency Adoption Eff. March 26, 2021 to expire pursuant to S.L. 2021-3, s. 2.11(a);

Emergency Adoption Expired Eff. December 31, 2021.

SUBCHAPTER 57C – ADMINISTRATIVE LAW PROCEDURES

SECTION .0100 – APPRAISAL BOARD HEARINGS

21 NCAC 57C .0101         FORM OF COMPLAINTS AND OTHER PLEADINGS

(a)  Complaints shall be in writing and contain the following information:

(1)           name of the trainee, appraiser, or appraisal management company;

(2)           name of the complainant;

(3)           physical address and contact information of the complainant; and

(4)           the facts that form the basis of the complaint.

(b)  When a complaint is received by the Board it shall be considered an allegation. The Board staff shall review the allegation to determine whether it shall be investigated, including examination of the appraisal report, if applicable, which shall be requested from the appraiser, and if based on this information there appears to be no violations of USPAP or any of the Board rules or statutes, then the allegations shall not be further investigated and will be dismissed. A three-panel committee of the Board shall review this decision.

(c)  If the three-panel committee determine that further investigation is required, then a formal complaint shall be opened, and the Board staff shall request a response and the entire workfile from the appraiser and shall proceed to investigate the matter.

(d)  After the review as set forth above, when the Board staff investigates a complaint, the scope of the investigation shall not be limited to the persons or transactions described or alleged in the complaint.

(e)  Complainants are not parties to contested cases heard by the Board, but may be witnesses in the cases.

(f)  There is no specific form required for answers, motions, or other pleadings submitted prior to the hearing relating to contested cases before the Board, except they shall be in writing. The document shall identify the file number and state the matters it alleges, answers, or requests. Motions may be made on the record during the course of the hearing before the Board.

(g)  After the review as set forth above, during the course of an investigation of a complaint, the Board, through its legal counsel or staff, may send a trainee, appraiser, or appraisal management company one or more letters of inquiry requesting a response from the trainee, appraiser, or appraisal management company. The initial letter of inquiry, or attachments thereto, shall set forth the subject matter being investigated. Upon receipt of a letter of inquiry, the trainee, appraiser, or appraisal management company shall respond within 30 calendar days. The response shall include copies of all documents requested in a letter of inquiry.

(h)  Hearings in contested cases before the Board shall be governed by the provisions of Article 3A of Chapter 150B of the General Statutes.

(i)  A complaint shall not be accepted if the applicable time period for retention of the work file for that appraisal assignment pursuant to the Recordkeeping Rule of the Uniform Standards of Professional Appraisal Practice has expired. This Section does not apply to complaints involving the actions outlined in G.S. 93E-1-12(b)(1),(2),(4), and (5).

History Note:        Authority G.S. 93E-1-10; 93E-1-12; 93E-2-3; 93E-2-8;

Eff. July 1, 1994;

Amended Eff. July 1, 2014; January 1, 2011; July 1, 2003; August 1, 2002;

Readopted Eff. July 1, 2018;

Amended Eff. May 1, 2020.

21 NCAC 57C .0102         PRESIDING OFFICER

(a)  The Appraisal Board may designate any of its members to preside over the hearing in a contested case. When no designation is made, the Chairman of the Board shall preside, or, in his absence, the Vice Chairman shall preside. The presiding officer shall rule on motions or other requests made in a contested case prior to the conduct of the hearing in that case except when the ruling on the motion would be dispositive of the case. When the ruling on a motion or request would be dispositive of the case, the presiding officer shall make no ruling and the motion or request shall be determined by a majority of the Board.

(b)  The Chairman of the Board may allow the Board's Executive Director to grant the first request for a continuance of a hearing. Any subsequent requests for continuance shall be granted by the Chairman of the Board. The granting of a continuance is wholly discretionary.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. July 1, 2003; August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57C .0103         SUBPOENAS

(a)  The Executive Director of the Appraisal Board and the Board's Legal Counsel shall have the authority to issue subpoenas in the name of the Board.

(b)  The presiding officer in a contested case shall also have the authority to issue subpoenas relating to that contested case.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57C .0104         PETITION TO REOPEN PROCEEDING

(a)  After a final decision has been reached by the Board in a contested case, a party may petition the Board to reconsider a case. Petitions will not be granted except when the petitioner can show that the reasons for reconsidering the case are to introduce newly discovered evidence which was not presented at the initial hearing because of some justifiable, excusable or unavoidable circumstance. Upon the running of the 30 day period for seeking judicial review, such petitions will have no effect. Petitions for reopening the proceedings shall not toll the 30 days available for seeking judicial review, as provided in G.S. 150B-45.

(b)  Decisions on petitions to reopen cases are within the discretion of the Board.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0200 - PETITIONS FOR RULES

21 NCAC 57C .0201         PETITION FOR RULEMAKING HEARINGS

(a)  Any person wishing to file a petition requesting the adoption, amendment or repeal of a rule by the Board shall file a written petition with the Executive Director.

(b)  The petition shall include the following information:

(1)           name, address and occupation of petitioner;

(2)           a summary of the proposed action (adoption, amendment or repeal of a rule or rules);

(3)           a draft of the proposed rule or other action;

(4)           a complete statement of the reason for the proposed action; and

(5)           an identification of the persons or class of persons most likely to be affected by the proposed action.

(c)  The Board shall decide whether to allow or deny a rule-making petition.

History Note:        Authority G.S. 93E-1-10; 150B-20;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0300 - RULE-MAKING

21 NCAC 57C .0301         WRITTEN SUBMISSIONS

Any person may file a written submission containing data, comments or arguments after publication of a rule-making notice and prior to the decision of the Board to adopt, amend or repeal the rule or rules in question. Written submissions shall be addressed to the Board and shall clearly state the rule or proposed rule to which the comments are directed.

History Note:        Authority G.S. 93E-1-10; 150B-21.2(e);

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 ncac 57c .0302         PRESIDING OFFICER

The presiding officer at any rule-making hearing shall have control of the proceedings, including: recognition of speakers, time allotments for presentations, the right to question speakers, direction of the discussion, and management of the hearing.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Amended Eff. August 1, 2002;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57C .0303         RECORD OF PROCEEDINGS

A record of rule-making proceedings will be available for public inspection during regular office hours at the Board's office. This record will contain the original petition, if any, the notice, all written memoranda and information submitted, and a record or summary of oral presentations, if any, and, in any case where a proposal was rejected, the reason therefor.

History Note:        Authority G.S. 93E-1-10; 150B-21;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SECTION .0400 - DECLARATORY RULINGS

21 NCAC 57C .0401         REQUESTS FOR RULINGS: DISPOSITION OF REQUESTS

(a)  All requests for declaratory rulings shall be written and filed with the Board. The request must contain the following information:

(1)           the name, address and signature of petitioner;

(2)           a concise statement of the manner in which petitioner is aggrieved by the rule or statute in question, or its potential application to him;

(3)           a statement of the interpretation given the statute or rule in question by petitioner;

(4)           a statement of the reasons, including any legal authorities, in support of the interpretation given the statute or rule by petitioner.

(b)  The Board shall either deny the request, stating the reasons therefor, or issue a declaratory ruling. When in its discretion, the Board determines that the issuance of a declaratory ruling is undesirable, it may refuse to issue such ruling.

(c)  The Board shall not issue a declaratory ruling when the petitioner or his or her request is the subject of, or materially related to, a matter under investigation by the Board or a contested case before the Board.

History Note:        Authority G.S. 93E-1-10;

Eff. July 1, 1994;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

SUBCHAPTER 57D – APPRAISAL MANAGEMENT COMPANIES

SECTION .0100 – APPLICATION FOR APPRAISAL MANAGEMENT REGISTRATION

21 NCAC 57D .0101         FORM

An appraisal management company that wishes to file an application for an appraisal management company certificate of registration may obtain the required form upon request to the Board or on the Board's website at www.ncappraisalboard.org. The appraisal management company shall submit an application to the Board by mail that includes the following information:

(1)           the legal name of the applicant;

(2)           the name under which the applicant will do business in North Carolina;

(3)           the type of business entity;

(4)           the address of its principal office;

(5)           the applicant's NC Secretary of State Identification Number if required to be registered with the Office of the NC Secretary of State;

(6)           a completed application for approval of the compliance manager, as set forth in G.S. 93E-2-5;

(7)           any past criminal conviction of and any pending criminal charge against the compliance manager and any person or entity that owns over 10 percent of the appraisal management company;

(8)           any past revocation, surrender in lieu of revocation, cancellation, refusal, or denial of an appraisal license of any person or entity that owns any part, directly or indirectly, of the appraisal management company;

(9)           any disciplinary action taken against the applicant, including the effective date of the disciplinary action and whether the applicant has complied;

(10)         other States where the applicant is registered to operate, if applicable;

(11)         applicant's employer identification number (EIN);

(12)         if a general partnership, a description of the applicant entity, including a copy of its written partnership agreement or, if no written agreement exists, a written description of the rights and duties of the several partners;

(13)         if a business entity other than a corporation, limited liability company, or partnership, a description of the organization of the applicant entity, including a copy of its organizational documents;

(14)         if a foreign business entity, a certificate of authority to transact business in North Carolina and an executed consent to service of process and pleadings;

(15)         a certification that the applicant has obtained a surety bond as required by G.S. 93E 2-4(g);

(16)         the name, address, and contact information for any individual or business entity that directly or indirectly owns over 10 percent of the appraisal management company; and

(17)         the annual size of the appraisal panel, in this state and nationwide, of the appraisal management company for the previous calendar year.

History Note:        Authority G.S. 93E-2-4; 93E-2-5; 93E-2-8;

Eff. January 1, 2011;

Amended Eff. July 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; May 1, 2020.

21 NCAC 57D .0102         Filing and Fees

(a)  Each application for registration shall be accompanied by the required application fee. The Board shall reject and return to the applicant any application which is incomplete or not accompanied by the required fee or fees. Application fees accompanying complete applications are not refundable.

(b)  The application fee shall be thirty-five hundred dollars ($3,500).

(c)  Payment of application fees shall be made by certified check, bank check or money order payable to the North Carolina Appraisal Board.

(d)  In the event that the Board asks an applicant to submit updated information or provide further information necessary to complete the application and the applicant fails to submit such information within 90 days following the Board's request, the Board shall cancel the applicant's application and the application fee shall be retained by the Board. An applicant whose application has been cancelled and who wishes to obtain a registration must start the process over by filing a complete application with the Board and paying all required fees.

(e)  An applicant may request that its application be withdrawn at any time before final action is taken by the Appraisal Board on the application. The application fee shall not be refunded.

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-6;

Eff. January 1, 2011;

Amended Eff. January 1, 2013;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

section .0200 – appraisal management company registration

21 NCAC 57D .0201         FITNESS FOR REGISTRATION

(a)  The Appraisal Board shall consider the fitness for registration of each applicant. When the fitness of an applicant is in question, action by the Board shall be deferred until the applicant has affirmatively demonstrated that the applicant possesses the requisite competency, truthfulness, honesty and integrity.

(b)  When the application is deferred, the Board shall notify the applicant and the applicant shall be entitled to demonstrate his or her fitness for registration at a hearing before the Board.

(c)  The inquiry into fitness for registration shall include consideration of whether the applicant has had any disciplinary action taken against any professional license in North Carolina or any other state, and whether the applicant has committed or done any act which would be grounds for disciplinary action including the suspension or revocation of registration, and whether the applicant has been convicted of or pleaded guilty to any criminal act, and whether any such actions or charges are pending.

(d)  All applicants shall obtain a criminal records check pursuant to G.S. 93E-2-11. This records check must have been performed within 60 days of the date the completed application for registration is received by the Board. Applicants shall pay all required fees required to perform the check.

(e)  Notice to the applicant that its competency or fitness for registration is in question shall be in writing, sent by certified mail, return receipt requested, to the address shown upon the application. The applicant has 60 days from the date of receipt of this notice to request a hearing before the Board. Failure to request a hearing within this time constitutes a waiver of the applicant's right to a hearing on its application for registration, and the application shall be deemed denied. Nothing in this Rule shall be interpreted to prevent an applicant from reapplying for registration.

(f)  For the purposes of this Section, "applicant" shall mean any person owning 10 percent or more of the appraisal management company.

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-11;

Eff. February 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0202         REGISTRATION RENEWAL

(a)  All registrations shall expire on June 30 of each year, unless renewed during the renewal period. The renewal period shall be from May 1 through June 30 of each year.

(b)  A holder of an appraisal management company registration applying for renewal of registration shall apply in writing upon the form provided by the Board or log into the licensee login section on the Board's website and shall pay the renewal fee. The renewal fee shall be two-thousand dollars ($2,000). The renewal fee is not refundable on or after July 1.

(c)  The renewal form shall include the following:

(1)           The appraisal management company's name and registration number;

(2)           the contact person for renewal;

(3)           the updated address for the company, service of process agent, direct and indirect owners of more than 10 percent, and compliance manager, if applicable;

(4)           whether the company owner(s) or compliance manager, as set forth in G.S. 93E-2-5, have had an appraiser credential refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state;

(5)           a copy of the surety bond that expires no sooner than June 30^th of the year following renewal;

(6)           the signature of the applicant; and

(7)           the operation type, total number of appraisers on the panel in North Carolina for the previous calendar year, the total number of appraisers on the panel nationwide for the previous calendar year, and the number of appraisers on the panel who performed one or more appraisals in connection with a covered transaction in North Carolina for the previous calendar year.

(d)  In addition to the renewal fee, an appraisal management company shall submit with its renewal the annual appraisal management company registry fee required by the Appraisal Subcommittee pursuant to 12 C.F.R. 1102.402. The fee shall then be transmitted by the Board to the Appraisal Subcommittee.

(e)  Any company who acts or holds itself out as a registered appraisal management company while its appraisal management company registration is expired shall be subject to disciplinary action and penalties in G.S. 93E-2-8 and G.S. 93E-2-10.

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-5; 93E-2-6; 93E-2-8; 93E-2-10;

Eff. January 1, 2011;

Amended Eff. July 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024; July 1, 2022; July 1, 2018.

21 NCAC 57D .0203         EXPIRED REGISTRATION

(a)  Expired registrations may be reinstated within six months after expiration upon proper application and payment to the Board of the renewal fee of two thousand dollars ($2,000) and the late filing fee of twenty dollars ($20.00) for each month or part thereof that the registration is lapsed, not to exceed one hundred twenty dollars ($120.00).

(b)  Reinstatement is not retroactive.

History Note:        Authority G.S. 93E-2-3; 93E-2-6;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0204         PAYMENT OF FEES TO THE BOARD

Checks given the Board in payment of fees that are returned unpaid are cause for registration denial, suspension or revocation.

History Note:        Authority G.S. 93E-2-3; 93E-2-8(a)(7);

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

section .0300 – appraisal management company procedures

21 NCAC 57D .0301         USE OF REGISTRATION NUMBER

A real estate appraisal management company shall state its North Carolina registration number on any appraisal order for a property located in North Carolina.

History Note:        Authority G.S. 93E-2-3;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0302         CHANGE IN registration & REPORTING REQUIREMENTS

(a)  Appraisal management companies shall notify the Board in writing of each change of name, trade name, federal identification number, organizational status, ownership structure, compliance manager, surety bond, registered agent, business address, telephone number, or email address within 10 business days of said change. The business address and email address provided shall enable the Board to electronically correspond with and physically locate the appraisal management company.

(b)  If an appraisal management company intends to change its designated compliance manager or direct or indirect owner, it must notify the Board at least 10 business days before the effective date of the intended change and submit an application for approval of the designated compliance manager or any new direct or indirect owner who will own more than ten percent of the appraisal management company. The application shall include a criminal records check pursuant to G.S. 93E-2-11.

(c)  If the appraisal management company has an unexpected change to its designated compliance manager or direct or indirect owner and is unable to provide at least 10 business days' notice of the change, the company shall have 10 business days from the unexpected change to notify the Board. An unexpected change shall consist of: death, sudden termination or resignation, injury, or illness. An application shall be submitted to the Board, which shall include a criminal records check pursuant to G.S. 93E-2-11, within 15 business days of when an interim designated compliance manager, a new designated compliance manager, or any new direct or indirect owner that owns more than ten percent of the appraisal management company as a result of the unexpected change, is appointed, hired, or otherwise determined.

(d)  Appraisal management companies shall notify the Board in writing within 10 business days of any event that may cause the applicant or registration to be disciplined in accordance with G.S. 93E-2-8(a).

History Note:        Authority G.S. 93E-2-3; 93E-2-4; 93E-2-5; 93E-2-8; 93E-2-9;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017;

Amended Eff. August 1, 2024.

21 NCAC 57D .0303         COMPLIANCE MANAGER

(a)  A compliance manager shall be designated with the Board for each appraisal management company. The compliance manager shall be a certified real estate appraiser certified under G.S. 93E, Article I or in another state.

(b)  An appraisal management company shall file an application with the Board for approval of the designated compliance manager. This application shall provide the Board with the compliance manager's name, mailing and physical address, and phone and email contact information, and shall be signed by the designated compliance manager. The application may be accessed at the Board's website at www.ncappraisalboard.org.

(c)  The designated compliance manager shall obtain a criminal records check pursuant to 93E-2-11. Applicants shall pay all required fees to perform the check. This records check shall have been performed within 60 days of the date the completed application is received by the Board. The criminal records check results must be attached to the application for approval as a compliance manager.

(d)  The designated compliance manager is responsible for:

(1)           notifying the Board of any change of trade name or contact information of the appraisal management company and the registration of any assumed business name adopted by the appraisal management company for its use;

(2)           the retention and maintenance of records relating to appraisals conducted by or on behalf of the appraisal management company;

(3)           the maintenance of a record of all appraisers in North Carolina who perform appraisals for the appraisal management company, including a log of payments to appraisers; and

(4)           the conduct of advertising of appraisal management services by or in the name of the appraisal management company.

(e)  If an appraisal management company intends to change its compliance manager, it must submit an application for approval of the new compliance manager at least 10 business days before the effective date of the change.

(f)  If a compliance manager leaves the appraisal management company and the company is unable to give at least 10 days' notice of the change, the company shall have 15 business days from the date the compliance manager leaves to obtain a new compliance manager.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b); 93E-2-5;

Eff. January 1, 2011;

Amended Eff. July 1, 2014;

Readopted Eff. July 1, 2018.

21 NCAC 57D .0304         APPRAISER QUALIFICATIONS

An appraisal management company shall assure that any appraiser being added to its appraiser panel to appraise properties in North Carolina holds a license in good standing in this State pursuant to the North Carolina Appraisers Act. The appraisal management company shall verify the status of the appraiser by contacting the North Carolina Appraisal Board or by utilizing the National Registry of the Appraisal Subcommittee.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(f);

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0305         APPRAISER COMPETENCY

Before an appraiser is added to a panel, an appraisal management company shall require the appraiser to declare in writing the appraiser's areas of geographic competency, the types of properties the appraiser is competent to appraise, and the methodologies the appraiser is competent to perform. The appraisal management company shall require the appraiser to update this information at least annually, and shall keep copies of all such declarations for a period of five years from the date they are submitted.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b);

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0306         APPRAISAL REVIEW

An appraisal management company shall review the work of all independent appraisers that are performing real estate appraisal services for the appraisal management company to validate that the real estate appraisal services are being conducted in accordance with USPAP. An appraisal management company is not required to review all appraisals performed by each appraiser, but may chose a representative sample of each appraiser's reports. An appraisal management company must review each appraiser's work at least once a year, and shall keep records of such reviews for a period of five years from the date they are done.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(b); 93E-2-9;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0307         RECORDS

(a)  An appraisal management company shall maintain a record of each request it receives for its services in North Carolina. If an appraisal is ordered, the record shall include the name of the appraiser who performs the appraisal, the physical address or legal identification of the subject property, the name of the appraisal management company's client for the appraisal, and the amount paid to the appraiser.

(b)  The Board shall maintain a list of all applicants for registration under this Article that includes for each applicant the date of application, the name and primary business location of the applicant, phone and email contact information, and whether the registration was granted or refused.

(c)  A registered appraisal management company shall maintain the accounts, correspondence, memoranda, papers, books, and other records related to services provided by the appraisal management company. Such records may be maintained in electronic form. All records shall be preserved for five years.

(d)  If the information contained in any document filed with the Board is or becomes inaccurate or incomplete in any material respect, the appraisal management company shall file a correcting amendment to the information contained in the document to the Board within 10 days of the change.

History Note:        Authority G.S. 93E-2-3; 93E-2-9;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0308         PRODUCTION OF RECORDS

If an appraisal management company is requested to produce books and records to the Appraisal Board pursuant to G.S. 93E-2-8(g) or 93E-2-8(i), the appraisal management company shall produce those records so that they may be viewed in the Appraisal Board's office in Raleigh, North Carolina. Books and records shall be produced in writing, by computer disc or by electronic delivery. If the appraisal management company is unable to comply, the company shall pay all costs associated with viewing the records in another location.

History Note:        Authority G.S. 93E-2-3; 93E-2-8;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0309         COMPLAINTS AGAINST APPRAISERS

(a)  If an appraisal management company believes that a real estate appraiser licensed in this State has violated applicable law or the Uniform Standards of Professional Appraisal Practice or has engaged in unethical conduct, it shall file a complaint with the Board. If the complaint relates to an appraisal, it shall be filed within 90 days of the date the appraisal is submitted to the appraisal management company. The complaint form may be found on the Board's website at www.ncappraisalboard.org.

(b)  The complaint shall state the name and contact information for the person at the appraisal management company who should be contacted during the investigation into the complaint. This person shall have knowledge of the basis for the complaint and shall be able to produce records required by the investigation.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(c);

Eff. January 1, 2011;

Amended Eff. July 1, 2016;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0310         PAYMENT OF FEES TO APPRAISERS

(a)  Appraisal management companies shall pay fees to an appraiser within 30 days of the date the appraisal is first transmitted by the real estate appraiser to the company as follows:

(1)           If payment is made by electronic means, the funds for the fee shall be deposited into the appraiser's account so that they are available to the appraiser on the 31st day following the date the appraisal is first transmitted to the company.

(2)           If payment is made by check, the check shall be postmarked no later than the 30th day following the date the appraisal is first transmitted to the company.

(b)  If an appraisal management company decides that it will not pay a fee to an appraiser for an appraisal, the appraisal management company shall notify the appraiser in writing of the reason for nonpayment. Such notice shall be sent to the appraiser within 30 days after the date the appraiser first transmits the appraisal to the appraisal management company by any established method that provides proof of delivery, including registered mail, return receipt requested. The notice shall state the address of the subject property of the appraisal, the name of the appraiser(s) signing the report, and the reason why the fee shall not be paid. The notice shall also notify the appraiser of any dispute resolution process that the appraisal management company may have in place.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(d);

Eff. January 1, 2011;

Amended Eff. July 1, 2014;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 NCAC 57D .0311         Removal of an Appraiser from an Appraisal Panel

(a)  If an appraisal management company decides to remove an independent appraiser from its list of qualified appraisers, the appraisal management company shall notify the appraiser in writing of the reason for removal.

(b)  Such notice shall be sent to the appraiser by any method that provides proof of delivery, including registered mail, return receipt requested.

(c)  If applicable, the notice shall include a description of the appraiser's illegal conduct, substandard performance, or otherwise improper or unprofessional behavior, or of any violation of the Uniform Standards of Professional Appraisal Practice or State licensing standards.

(d)  The appraisal management company shall also notify the appraiser of any dispute resolution process that it may have in place through which the appraiser may dispute the removal.

(e)  An appraisal management company shall not remove an appraiser from its panel in retaliation for the appraiser filing a complaint with the Board against the company.

History Note:        Authority G.S. 93E-2-3; 93E-2-7(a);

Eff. January 1, 2011;

Amended Eff. January 1, 2013;

Readopted Eff. July 1, 2018.

21 NCAC 57D .0312         Requesting Additional Information from an Appraiser

An appraisal management company may request that a real estate appraiser who performs an appraisal for the appraisal management company provide additional information as follows:

(1)           An appraisal management company may request that the appraiser consider additional appropriate property information including relevant sales data and property characteristics. Such request shall be made within 30 days of the date the appraisal is first transmitted by the appraiser to the appraisal management company.

(2)           An appraisal management company may request that the appraiser provide further detail, substantiation, or explanation for the appraiser's value conclusion, or to correct errors in an appraisal report. There is no time limit on such requests.

(3)           Any request under this Rule shall be sent to the appraiser in writing or by electronic means.

History Note:        Authority G.S. 93E-2-3; 93E-2-7;

Eff. January 1, 2011;

Amended Eff. January 1, 2013;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

section .0400 – appraisal management company general practices

21 NCAC 57D .0401         BUSINESS PRACTICES

An appraisal management company may not:

(1)           prohibit an appraiser from stating on an appraisal the fee the appraiser was paid by the company for the appraisal;

(2)           prohibit an appraiser from stating on an appraisal the appraiser's primary business address; or

(3)           prohibit an appraiser from informing a property owner, lender, or any other person or entity the appraiser's primary business address.

History Note:        Authority G.S. 93E-2-3; 93E-7;

Eff. January 1, 2011;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 3, 2017.

21 ncac 57D .0402         reserved for future codification

21 NCAC 57D .0403         CRIMINAL BACKGROUND CHECKS

(a)  A criminal background check for the purpose of this Rule shall meet the requirements of 21 NCAC 57A .0202(e).

(b)  If an appraisal management company requests a background check from an appraiser and that appraiser has had a criminal background check performed within the preceding twelve months, it shall be the responsibility of the appraiser to provide a complete copy of that background check to the appraisal management company.

(c)  If an appraisal management company's client requires a background check that is more comprehensive than the one required under G.S. 93E-1-6(c1) and codified in 21 NCAC 57A .0202(e), nothing in this Rule prohibits the client from obtaining that background check as long as the appraiser is not required to pay for that background check.

(d)  An appraisal management company may obtain more than one background check on an appraiser in a 12 month period as long as the appraiser is not required to pay for that additional background check.

(e)  An appraiser who alters, amends, or otherwise changes the results of a criminal background check submitted to an appraisal management company or a lender or who knowingly submits a background check that has been altered shall be subject to discipline pursuant to G.S. 93E-1-12.

History Note:        Authority G.S. 93E-2-3; 93E-2-4(h);

Eff. July 1, 2016.