Board Policies, Advisories and Guidelines (Real Estate Appraisers)

Board of Real Estate Appraisers CORI Policy

This Policy Statement replaces Policy Statement 2007-001, entitled “Upgrading Existing Credentials under the 2008 Criteria”.

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation adopted amendments to the Real Property Appraiser Qualification Criteria, effective date of January 1, 2015 (2015 Criteria). The Board also adopted the AQB’s 2015 Criteria located at 264 Code of Massachusetts Regulation (CMR) 5.00.

Accordingly, any Applicant taking the State-Licensed or Stated-Certified Real Estate Appraiser Examination on or after January 1, 2015 must meet the 2015 Criteria on the date of the examination. Per the AQB, there will be no exceptions and no grandfathering provisions.

APPRAISER TRAINEE:

Appraiser Trainee to State-Licensed Appraiser:

Appraiser Trainee to Certified Residential Appraiser:

Appraiser Trainee to Certified General Appraiser:

STATE-LICENSED APPRAISER:

State-Licensed Appraiser to Certified Residential Appraiser:

State-Licensed Appraiser to Certified General Appraiser:

CERTIFIED RESIDENTIAL APPRAISER:

Certified Residential Appraiser to Certified General Appraiser:
 

Adopted Date: October 9, 2014

Effective Date: January 1, 2015

Adopted: November 29, 2012

INTRODUCTION

One of the most common complaints received by the Board is that an appraiser did not value a property correctly. The value reached by the appraiser may be actually appropriate, however, the report failed to justify that value. This avoidable problem can be addressed by appraisers focusing on the relatively straightforward requirements of Standard Rule 1-6. 

RULE

Standard Rule 1-6

In developing a real property appraisal, an appraiser must:

(a)       reconcile the quality and quantity of data available and analyzed within the approaches used; and

(b)       reconcile the applicability or suitability of the approaches used to arrive at the value conclusion(s).

ADVISORY

The purpose of Standard Rule 1-6 is clear on its face, that once an appraiser has done the work of choosing the data used in creating a value, the choices of data and the basis for the value must be justified. Generally speaking, section (a) of the rule requires that the appraiser show, in writing, how they came up with a value WITHIN the chosen approach. For example, a written reason for the basis for final value within the Market Approach would explain how and which sales are weighted in that value and why. Similarly, section (b) of the rule follows up on this justification with the requirement that the appraiser must identify which approach was used and justify, in writing, why that approach was used for the final value. As one might assume, the provisions section (a) must be fulfilled before section (b), thus the appraiser must explain the value picked within each individual approach before the appraiser can justify the approach chosen as that appropriate for the final value. 

This Policy Statement replaces Policy Statement 2002-003, dated December 12, 2002.

Any licensee/certificate holder who has obtained a Massachusetts license/certification by reciprocity may complete the requisite continuing education of either Massachusetts or from the state in which reciprocity was granted. Licensees/certificate holders who do not hold a current license in the State where the continuing education was satisfied on the exact date of renewal will not get credit for the out-of-state continuing education. Therefore, in the case where the licensee of another State completes their State's continuing education requirement but chooses not to renew their State's license, they may not use the continuing education to renew their Massachusetts license.

Adopted December 15, 2011

An applicant for licensure may qualify for licensure by out-of-state endorsement provided the applicant:
has completed qualifying education that meets the minimum AQB education criteria; and
has passed an AQB certified examination; and
is currently licensed in another state (with which the Board does on offer reciprocity); and
has been working as a state licensed, certified residential or certified general for 3 of the past five years; and
is applying for the same level license; and
is listed on the Federal Registry as in compliance with AQB minimum criteria for licensure/certification.
may apply for licensure by out-of-state endorsement by submitting, together with a completed application and the appropriate fees, the following:

a score report issued by the examination authority or service that indicates a passing score consistent with Massachusetts;
a certified record of license history issued by the state in which the license/certification is held;
a written request that the Board accept the examination, experience and education and grant licensure by out-of-state endorsement.
other such documents including but not limited to: completed appraisal assignments done after passing the AQB examination.
The Board may upon review of the application, and accompanying submissions, require successful completion of the Massachusetts examination, additional experience, and/or completion of Massachusetts approved courses prior to licensure.
Adopted December 12, 2002

At the 11-14-02 Board meeting a question of approving multiple properties for one temporary permit was brought to the Board by the administrative staff. An applicant for temporary permit submitted two applications, one each for two properties. Although the company engaging the appraisal services was the same, the applicant understood from past applications that two permits were needed.

This was discussed and it was determined that the ASB encouraged expedient approval of temporary permits and ASB guidelines allowed one permit to be applicable for all properties under one employer.

Therefore the policy is as follows:

In the event that an applicant for a temporary permit is being employed by one individual or company for more than one property, only one temporary permit is required. However, if there are separate employers on different properties then a temporary permit is required for each property or properties under each employer.

Adopted December 12, 2002

Board of Real Estate Appraisers Policy on Distance Education
September 9, 2021

The Board of Real Estate Appraisers ("Board") voted at its meeting on September 9, 2021, to adopt the following Policy on Distance Education.

In this Policy, the following words and acronyms shall have the following meanings:

“AQB” means the federal Appraiser Qualifications Board established by Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989;

“AQB Criteria” means the Real Property Appraiser Qualifications Criteria established by the AQB;

“Second Exposure Draft” means the Second Exposure Draft of Proposed Changes to the Criteria adopted by the AQB on August 24, 2021 and available here.

This Policy incorporates provisions of the AQB Real Property Appraiser Qualification Criteria, including the Second Exposure Draft of Proposed Changes to the AQB Criteria, which the AQB voted to adopt on August 24, 2021, to become effective January 1, 2022.

This Policy incorporates the Second Exposure Draft immediately, although the effective date of the changes to the AQB Criteria is January 1, 2022.

Policy: Distance Education

1. Board Approved Distance Education Courses may be utilized for Primary Education and Continuing Education requirements in accordance with (1) this Policy and (2) the AQB Criteria, including the Second Exposure Draft of Proposed Changes to the AQB Criteria adopted by the AQB on August 24, 2021. The mandatory course governing the requirements and responsibilities of trainees and supervisory appraisers, as referred to in 264 CMR 5.02 and 264 CMR 6.01(6)(a)(8), may be a Distance Education course.

2. Distance education is defined as any education process based on the geographical separation of student and instructor. Components of distance education include synchronous, asynchronous, and hybrid. In synchronous educational offerings, the instructor and students interact simultaneously online, similar to a phone call, video chat or live webinar, or web-based meeting. In asynchronous educational offerings, the instructor and student interaction is non-simultaneous; the students progress at their own pace and follow a structured course content and quiz/exam schedule. Hybrid courses, also known as blended courses, are learning environments that allow for both in–person and online (synchronous, or asynchronous) interaction.

3. Synchronous courses provide for instruction and interaction substantially the same as on-site classroom courses. Synchronous courses meet class hour requirements if they comply with requirements III.A and III.B of the AQB Criteria.

4. An asynchronous distance education course is acceptable to meet class hour requirements if:

a. The course provides interaction. Interaction is a reciprocal environment where the student has verbal or written communication with the instructor; and

b. Content approval is obtained from the AQB, the Board, or an accredited college, community college, or university that offers distance education programs and is approved or accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the US Secretary of Education. Non-academic credit college courses provided by a college shall be approved by the AQB or the Board; and

c. Course delivery mechanism approval is obtained in compliance with AQB requirements.

5. Hybrid courses meet class hour requirements if each of its sessions meet the requirement for the delivery method employed:

a. in-person course sessions must meet all requirements for classroom education in the Board’s regulations;

b. synchronous course sessions must meet all requirements for classroom education in the Board’s regulations.

c. asynchronous courses sessions must meet requirements in paragraph 4 above.

Primary Education, a/k/a Qualifying Education

6. In addition to the requirements for Primary Education described in the Board’s regulations 264 CMR 5.00, distance education courses intended for use as qualifying education must include a written, closed-book final examination. The examination must be proctored in person or remotely by (proctored by an official approved by the college or university, or by the sponsoring organization). Bio-metric proctoring1 is acceptable as part of the method of proctoring, but a natural person must supplement the bio-metric proctoring at the time all exams for qualifying education are administered. The term, “written,” as used herein, refers to an exam that might be written on paper or administered electronically on a computer workstation or other device. Oral exams are not acceptable. The testing must comply with the examination requirements of this section.

_{1 Bio-metric proctoring process provides that student identity is continually verified through processes, such as facial recognition, consistency in keystroke cadence, and the observation of activity in the testing location. Aberrant behavior or activity can be readily observed.}

Continuing Education

7. In addition to the requirements for continuing education described in the Board’s regulations 264 CMR 4.00, asynchronous distance education courses intended for use as continuing education must include at least one of the following:

a. A written examination proctored by an official approved by the sponsoring organization. Remote proctoring, including bio-metric procedures supplemented by a natural person per paragraph 6 and Footnote 1 above, is acceptable. The term, “written,” as used herein, refers to an exam that might be written on paper or administered electronically on a computer workstation or other device. Oral exams are not acceptable; or

b. Successful completion of prescribed course

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A downloadable, PDF version of this policy is available here.

January 12, 2023

The Board of Real Estate Appraisers ("Board") voted at its meeting on January 12, 2023 to issue the following guidance about the extension of the 2020-21 Uniform Standards of Professional Appraisal Practice (USPAP), the 7-Hour National USPAP Update Course and the 15-Hour National USPAP Course:

• The 2020-2021 edition of the USPAP has been extended by one additional year until December 31, 2023. See USPAP Extension (appraisalfoundation.org).
• Appraisers must complete the 7-Hour National USPAP Update Course during every two- year license renewal cycle regardless of the extension of the 2020-21 USPAP.
• On November 16, 2022, the Appraisal Standards Board issued a stand-alone revised Part 2 of the Student Manual for the 7-Hour National USPAP Course (“Revised Part 2”) and distributed it to all licensees who took or will take this Course. For 7-Hour National USPAP Course offerings after November 16, 2022, the Revised Part 2 was incorporated into and made part of the 7-Hour National USPAP Student Manual available from The Appraisal Foundation.
• The stand-alone Revised Part 2 of the Student Manual does not qualify as a new 7-Hour USPAP Update Course.
• The Revised Part 2 of the Student Manual is a required part of the 2022-23 7-hour National USPAP Update Course. Therefore, all licensees who received the stand-alone Revised Part 2 of the Student Handbook AFTER taking the 2022-23 7-Hour USPAP Course are required to review Revised Part 2 immediately. Licensees are not required to retake the entire 7-Hour course.
• If a licensee has not yet renewed their license, they must either review the stand-alone Revised Part 2 OR have completed the 2022-23 7-Hour National USPAP Update Course with the Revised Part 2 included therein before signing the attestation that they have completed continuing education required to renew the license.
• The expiration date for the 15-Hour National USPAP Course has been extended to December 31, 2023, because the curriculum of this course has not changed. See the Board’s list of Real Estate Appraiser Approved Courses: Primary and Continuing Education.

Please contact the Board at DPL-Appraiser-Board@mass.gov with any questions about this information.