The Vermont Statutes Online

Title 26: Professions and Occupations

Chapter 069: Real Estate Appraisers

• Subchapter 001: GENERAL PROVISIONS

• § 3311. Definitions

  As used in this chapter:

  (1) “Act” means the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub. L. No. 101-73, as amended.

  (2) “Appraisal” means an analysis, opinion, or conclusion relating to the value of specified interests in or aspects of identified real estate or identified real property.

  (3) “Appraisal management company” means an entity that acts as a broker in acquiring finished appraisals from real estate appraisers licensed under this chapter and that supplies the appraisals to third parties.

  (4) “Appraiser” or “real estate appraiser” means a person licensed under this chapter.

  (5) “AQB” means the Appraisal Qualifications Board of the Appraisal Foundation as referenced in the Act. Under the provisions of the Act, the AQB establishes the minimum education, experience, and examination requirements for real property appraisers to obtain a state license or certification.

  (6) “ASC” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council created pursuant to the Act. The ASC oversees the real estate appraisal process as it relates to federally related transactions as defined in the Act.

  (7) “Director” means the Director of the Office of Professional Regulation.

  (8)(A) “Disciplinary action” means any action by any regulatory or certifying authority against a licensed real estate appraiser or applicant premised upon a finding that the person has engaged in unprofessional conduct.

  (B)(i) The term includes all sanctions of any kind, including obtaining injunctions, refusing to grant or renew a license, suspending, revoking, or restricting a license, and issuing warnings.

  (ii) The term does not include monetary civil penalties imposed by a hearing officer in relation to an express finding under 3 V.S.A. § 129(a)(3) that the subject matter does not constitute unprofessional conduct.

  (9) “Office” means the Office of Professional Regulation. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 1; 2009, No. 103 (Adj. Sess.), § 40; 2013, No. 27, § 37; 2019, No. 30, § 21.)

• § 3312. Prohibitions; penalty; exemption

  (a) Unless licensed in accordance with the provisions of this chapter, a person shall not:

  (1) perform an appraisal in a federally related transaction when a licensed or certified appraiser is required by the Act; or

  (2) use in connection with his or her name any letters, words, or insignia indicating that he or she is a State certified or licensed real estate appraiser.

  (b) An individual who violates a provision of subsection (a) of this section shall be subject to the penalties provided in 3 V.S.A. § 127.

  (c) A registered appraisal management company shall not be required to be licensed in order to acquire and provide finished appraisals to third parties. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 2; 2007, No. 29, § 48; 2009, No. 103 (Adj. Sess.), § 41; 2019, No. 30, § 21.)

• Subchapter 002: ADMINISTRATION

• § 3313. Regulation of real estate appraisers; Director; advisor appointees

  (a)(1) Director shall administer the provisions of this chapter.

  (2)(A) The Secretary of State shall appoint six persons of suitable qualifications in accordance with this section to advise the Director in matters concerning real estate appraisal.

  (B) The Secretary shall appoint the advisors for five-year staggered terms. Four of the initial appointments shall be for four-, three-, two-, and one-year terms.

  (3) The Director shall consult the appointed advisors prior to exercising interpretive discretion, adopting or amending rules, and determining any substantial regulatory question presented in the course of administering this chapter.

  (b) Three advisors shall be real estate appraisers licensed under this chapter who have been actively engaged in the full-time practice of real estate appraising for five years preceding appointment and have been practicing in Vermont for the two-year period immediately preceding appointment.

  (c) Two advisors shall be public members who shall have no direct financial interest personally or through a spouse, parent, child, brother, or sister in real estate appraising.

  (d) One advisor shall be a public member actively engaged in the business of banking, including lending for the purpose of buying real property, or shall be a person who is a consumer of appraisal services in the regular course of his or her business. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 2; 1993, No. 217 (Adj. Sess.), § 3; 1999, No. 133 (Adj. Sess.), § 30; 2005, No. 27, § 95; 2009, No. 103 (Adj. Sess.), § 42; 2019, No. 30, § 21.)

• § 3314. Director; powers and duties

  (a) The Director shall administer the provisions of this chapter in a manner that conforms in all respects with the requirements of the Act.

  (b) In addition to the Director’s other powers and duties under this chapter, the Director shall:

  (1) Receive and review applications.

  (2) Collect the registry fee as required by the Act and transmit that fee to the ASC. The registry fee shall be in addition to State licensing and registration fees.

  (3) Annually publish a roster of all licensees and transmit the roster to the ASC as required by the Act.

  (4) Register appraisal management companies.

  (5) Make inquiries he or she deems necessary into the character, integrity, and reputation of the applicant.

  (6) Perform other functions and duties as may be necessary to carry out the provisions of this chapter and to comply with the requirements of the Act, including by adopting rules defining and regulating appraisal management companies in a manner consistent with the Act. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 2009, No. 103 (Adj. Sess.), § 43; 2013, No. 27, § 38; 2013, No. 138 (Adj. Sess.), § 41; 2017, No. 48, § 22; 2019, No. 30, § 21.)

• § 3315. Rules

  (a) The Director may adopt rules necessary to implement the provisions of this chapter.

  (b) The Director shall adopt rules relating to procedures for processing applications, issuing licenses, registering trainees, inspecting records, and instituting and conducting disciplinary proceedings. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 3; 1993, No. 217 (Adj. Sess.), §§ 4, 5; 2013, No. 27, § 39; 2019, No. 30, § 21.)

• Subchapter 003: LICENSES, CERTIFICATIONS, AND REGISTRATIONS

• § 3316. Licensing and registration fees

  Applicants and persons regulated under this chapter shall pay those fees set forth in 3 V.S.A. § 125(b). (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 4; 1991, No. 167 (Adj. Sess.), § 56; 1993, No. 217 (Adj. Sess.), § 6; 2005, No. 202 (Adj. Sess.), § 19; 2009, No. 103 (Adj. Sess.), § 44; 2015, No. 57, § 5; 2019, No. 70, § 23; 2019, No. 178 (Adj. Sess.), § 18, eff. Oct. 1, 2020.)

• § 3317. Application

  An individual who desires to be licensed under this chapter shall submit an application as specified by the Director, accompanied by payment of the required fee. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 2019, No. 30, § 21.)

• § 3318. Examination

  The Director shall examine applicants using an AQB-approved qualifying examination applicable to the credential sought by the applicant. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 5; 1993, No. 217 (Adj. Sess.), § 7; 2013, No. 27, § 40; 2019, No. 30, § 21.)

• § 3319. Temporary practice

  The Director shall issue a temporary license to an individual, after filing of an application and fee, who is a certified or licensed real estate appraiser in another jurisdiction if all of the following apply:

  (1) the property to be appraised is part of a federally related transaction for which a licensed or certified appraiser is required by the Act;

  (2) the applicant’s business is of a temporary nature; and

  (3) the applicant registers with the Office. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1991, No. 92, § 6; 1993, No. 217 (Adj. Sess.), § 8; 2019, No. 30, § 21.)

• § 3319a. Appraiser trainee registration

  (a)(1)(A) A person who has completed a course of instruction approved by the AQB may work as a certified residential or certified general appraiser trainee provided the person is registered with the Office.

  (B) An appraiser trainee shall work under the direct supervision of an appraiser who holds either a certified residential or a certified general license in good standing and has held the certified residential or certified general license for at least the minimum number of years required by the AQB.

  (2)(A) An appraiser trainee may perform activities within the scope of practice of the license sought, provided that the supervising appraiser reviews and signs all resulting appraisals.

  (B) The supervising appraiser shall be professionally responsible for such activities performed by the trainee.

  (3) As used in this subsection, “good standing” means that the appraiser supervisor holds a current, unrestricted license.

  (b) [Repealed.]

  (c) The Director may give credit for training hours, not exceeding 10 percent of the total hourly experience requirement, for hours worked or training given that does not include or is unrelated to a site inspection.

  (d) Appraiser trainees registered with the Board as of July 1, 2013 and who continue on to satisfy the requirements specified by the AQB may become State licensed appraisers, notwithstanding the elimination of that license category. (Added 1993, No. 217 (Adj. Sess.), § 9; amended 2003, No. 60, § 18; 2005, No. 27, § 96; 2005, No. 148 (Adj. Sess.), § 37; 2013, No. 27, § 41; 2013, No. 138 (Adj. Sess.), § 42; 2019, No. 30, § 21.)

• § 3320. Licensure by reciprocity

  The Director shall waive all licensing requirements for an appraiser applicant holding a valid certification from another state if:

  (1) the appraiser licensing and certification program of the other state is in compliance with the provisions of the Act; and

  (2) the appraiser applicant holds the valid certification from a state whose requirements for certification or licensing meet or exceed the licensure standards established by this chapter. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 10; 2013, No. 27, § 42; 2019, No. 30, § 21.)

• § 3320a. Repealed. 2017, No. 48, § 23, eff. August 10, 2018.

• § 3321. Renewals

  (a) Except for a license issued to an appraisal management company, a licensed issued under this chapter shall be renewed biennially upon payment of the required fee and upon satisfactory completion of the minimum continuing education requirements established by AQB during the immediately preceding two-year period. An appraisal management company shall renew its license annually in compliance with State and federal regulations.

  (b) If an individual or an appraisal management company fails to renew in a timely manner, he, she, or it may renew the license within 30 days of the renewal date by satisfying all requirements set forth in law, including, as applicable, those requirements of AQB for reactivation and payment of an additional late renewal penalty.

  (c) The Director may reactivate the license of an individual or an appraisal management company whose license has lapsed for more than 30 days upon payment of the renewal fee, the reactivation fee, and the late renewal penalty, provided the individual or appraisal management company has satisfied all the requirements set forth in law, including, as applicable, those requirements of AQB for reactivation.

  (d) The Director may require, by rule, as a condition of reactivation, that an applicant, other than an appraisal management company, undergo review of one or more aspects of the applicant’s professional work in the practice of real estate appraising, provided that the manner and performance results of the review be specified by the Director. Such a review requirement shall:

  (1) be adopted reasonably in advance of the time when it is first required to be met; and

  (2) provide for compliance if the applicant shows that within the two years preceding renewal, the applicant underwent a satisfactory quality review for other purposes and that review was substantially equivalent to a review required under this section.

  (e) [Repealed.] (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), §§ 11, 12; 2009, No. 103 (Adj. Sess.), § 46, eff. May 12, 2010; 2011, No. 66, § 11, eff. June 1, 2011; 2013, No. 27, § 44; 2019, No. 30, § 21; 2019, No. 178 (Adj. Sess.), § 18, eff. Oct. 1, 2020.)

• § 3322. Use of license number; consumer fee disclosure

  (a)(1) Each licensee or registrant shall be assigned a license or registration number that shall be used in a report, a contract, engagement letter, or other instrument used by the licensee or registrant in connection with the licensee’s or registrant’s activities under this chapter. The license number shall be placed adjacent to or immediately below the title the licensee is entitled to use under this chapter.

  (2) Each licensed appraiser shall ensure that the registration number and the appraiser’s fee for appraisal services shall appear adjacent to or immediately below the appraisal management company’s registered name on documents supplied to clients or customers in this State.

  (b) Each licensed appraiser shall include within the body of the appraisal report the amount of the appraiser’s fee for appraisal services. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 13; 2009, No. 103 (Adj. Sess.), § 47; 2011, No. 66, § 11, eff. June 1, 2011; 2019, No. 30, § 21.)

• § 3323. Unprofessional conduct

  (a) The following conduct by a licensee and the conduct set forth in 3 V.S.A. § 129a constitute unprofessional conduct. When that conduct is by an applicant or a person who later becomes an applicant, it may constitute grounds for denial of a license:

  (1) Procuring or attempting to procure a license under this chapter by knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for licensure, or through any form of fraud or misrepresentation.

  (2) An act or omission involving dishonesty, fraud, or misrepresentation with the intent to benefit the licensee or another person or with the intent to injure another person.

  (3) Violation of any of the standards for the development or communication of real estate appraisals established under the Act.

  (4) Failure or refusal to exercise reasonable diligence in developing an appraisal, preparing a report, or communicating an appraisal.

  (5) Negligence or incompetence in developing an appraisal, in preparing a report, or in communicating an appraisal.

  (6) Accepting an appraisal assignment when the employment itself is contingent upon the appraiser reporting a predetermined analysis or opinion, or where the fee to be paid for the performance of the appraisal assignment is contingent upon the opinion, conclusion, or valuation reached, or upon the consequences resulting from the appraisal assignment.

  (7) Violating the confidential nature of governmental records to which the licensee gained access through employment or engagement as an appraiser by a governmental agency.

  (8) Violating any term or condition of a license restricted by the Office.

  (9) Failing to comply with practice standards adopted by the Director.

  (b) The following conduct by an appraisal management company and the conduct set forth in 3 V.S.A. § 129a constitute unprofessional conduct. An appraisal management company includes agents acting on behalf of the registrant in the acquisition, delivery, or use of a real estate appraisal produced by a licensed real estate appraiser. When that conduct is by an applicant or an entity that later becomes an applicant for registration, it may constitute grounds for denial of a license:

  (1) Influencing or attempting to influence the development, reporting, result, or review of a real estate appraisal through coercion, compensation, inducement, intimidation, or other manner intended to affect the independent judgment of a licensed real estate appraiser, including:

  (A) Withholding or threatening to withhold timely payment for a real estate appraisal report.

  (B) Withholding or threatening to withhold future business or work opportunities from a licensed real estate appraiser.

  (C) Expressly or implicitly promising future business or work-related compensation for a real estate appraiser.

  (D) Ordering or paying for real estate appraisal services based on predetermined valuations or other conclusions to be reached by a licensed real estate appraiser.

  (E) Requesting or suggesting that a licensed real estate appraiser provide an estimated, predetermined, or desired valuation in a real estate appraisal report or provide estimated values or comparable sales prior to completion of the appraisal report.

  (2) Altering or otherwise changing a completed appraisal report submitted by a licensed appraiser.

  (3) Using an appraisal report submitted by an appraiser for a transaction other than the one for which it was developed.

  (4) Requiring an independent appraiser to enter into an agreement requiring the independent appraiser to defend, to indemnify, or to hold harmless the registrant or other third party for the development, use, or contents of a real estate appraisal. This subdivision shall not affect a licensee’s or a registrant’s professional liability to consumers or to other licensees or registrants.

  (5) Using or possessing an independent licensed real estate appraiser’s digital signature, seal, or other similar stamp of endorsement.

  (c) Registrants shall only transmit an exact copy of the completed appraisal to the client or other intended user.

  (d) [Repealed.]

  (e) Appeals from disciplinary orders and final license denials shall be governed by the provisions of 3 V.S.A. § 130a. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 14; 1997, No. 145 (Adj. Sess.), § 55; 2007, No. 29, § 49; 2009, No. 103 (Adj. Sess.), § 48; 2019, No. 30, § 21.)

• § 3324. Record retention

  (a) A licensee or registrant shall retain all records related to an appraisal, review, or consulting assignment for not fewer than five years after preparation.

  (b) A licensee or registrant shall retain records under this section that relate to a matter in litigation for two years after the litigation concludes or in conformance with the “Uniform Standards of Professional Appraisal Practice,” as promulgated by the Appraisal Standards Board of the Appraisal Foundation, whichever period is longer.

  (c) Upon reasonable notice, a licensee or registrant shall provide to the Director for inspection and copying any records governed by this section. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 15; 2009, No. 103 (Adj. Sess.), § 49; 2019, No. 30, § 21.)

• § 3325. Reporting

  An appraiser who reports to the Director appraisal work that does not comply with the provisions of this chapter shall not be considered to have violated the ethics provision of the uniform standards of professional practice. (Added 1993, No. 217 (Adj. Sess.), § 16; amended 2019, No. 30, § 21.)