4 Colo. Code Regs. § 725-2, ch. 17
Current through Register Vol. 47, No. 22, November 25, 2024
Chapter 17 - LICENSING REQUIREMENTS FOR APPRAISAL MANAGEMENT COMPANIES17.1. The Board has set forth in Rule 6.6 the fitness standards that an Applicant for a license must demonstrate. To assist the Board in making the determination whether the Applicant has satisfied the fitness requirements of Rule 6.6, an Applicant for an AMC or a Controlling Appraiser's license who has past or pending criminal action(s) or professional disciplinary action(s) must submit their application for licensure in accordance with subsection A. and B. of this Rule. A. Applicants who have at any time in the past been convicted of, entered a plea of guilty to, entered a plea of nolo contendere, entered an Alford plea, or received a deferred judgment and sentence to a misdemeanor (excluding misdemeanor traffic violations) or a felony or any like municipal code violation, or has such charges pending must submit with their application required documentation. The documentation pursuant to this Rule, and the Board's consideration of same, must be handled in accordance with the procedures and requirements set forth in Rule 6.7.B. An Applicant who has any past or pending administrative disciplinary actions or findings of an appraiser registration, license, certificate or any other professional license from Colorado or any other Jurisdiction must submit with their application information and documentation that is relevant and available to the Applicant. The information and documentation pursuant to this Rule, and the Board's consideration of same, must be handled in accordance with the procedures and requirements set forth in Rule 6.8.17.2. Prior to application for licensure for an AMC or as a Controlling Appraiser, a Person may request that the Board issue a preliminary advisory opinion regarding the potential effect that previous professional conduct, criminal conviction(s), plea(s) of guilt or nolo contendere, deferred judgment(s) and sentence for criminal offense(s), or violation(s) of the real estate appraiser license law may have on a future formal application for licensure. All requests for a preliminary advisory opinion pursuant to this Rule, and the Board's consideration of same, must be handled in accordance with the procedures and requirements set forth in Rule 6.9.17.3. Initial Licenses will expire on December 31 of the year of issuance. All AMC and Controlling Appraiser licenses expire annually on December 31.17.4. An AMC must have a Controlling Appraiser, with an Active Controlling Appraiser's license, to perform services requiring a license. If the Controlling Appraiser leaves the employment of the AMC, the Controlling Appraiser or an authorized representative of the AMC must notify the Board within three (3) business days in a manner acceptable to the Board. Upon such notification or discovery by the Board, the license of the AMC will be placed on Inactive status unless or until a replacement Controlling Appraiser has been identified by the AMC and approved by the Board or a temporary Controlling Appraiser license is timely processed by the Division.17.5. The Controlling Appraiser license will be placed on Inactive status upon notification to the Board that the Controlling Appraiser has left the employ of the AMC. The Controlling Appraiser license will remain on Inactive status until the license expires or the Controlling Appraiser is designated to be the responsible party for an AMC.17.6. A Person's license cannot be transferred for use of the licensed name or license for the benefit of another person, partnership, limited liability company, or corporation.17.7. The Controlling Appraiser, or an authorized representative, must notify the Board within ten (10) business days of any change in ownership of the AMC including a change in ownership that increases an existing individual's total ownership to more than ten (10) percent.17.8. The Board may refuse to issue a license to a partnership, limited liability company, or corporation if the name of said corporation, partnership, or limited liability company is the same as that of any Person's whose license has been suspended or revoked in any Jurisdiction or is so similar as to be easily confused with that of the suspended or revoked person or entity by members of the general public.17.9. No license will be issued to an AMC under a trade name, corporate name, partnership name, or limited liability company name which is identical to another licensed AMC. A license will not be issued to an individual proprietorship that adopts a trade name which includes the following words: corporation, partnership, limited liability company, limited, incorporated, or the abbreviations thereof.17.10. All applications will contain a certification that the Controlling Appraiser is responsible for the AMC. All applications will require the AMC to identify at least one authorized representative responsible for contacting the Board when there has been a change in the employment of the Controlling Appraiser or there is a change in the ownership of the entity.17.11. When an application for licensure as an AMC is submitted, the Controlling Appraiser must certify the following: A. If the AMC is a corporation, that the corporation complies with section 12-10-607(8)(c), C.R.S. and that the Controlling Appraiser has been authorized by the corporation as the Controlling Appraiser for the corporation.B. If the AMC is a partnership, that the partnership complies with section 12-10-607(8)(a), C.R.S. and that the Controlling Appraiser has been authorized by the partnership as the Controlling Appraiser for the partnership.C. If the AMC is a limited liability company, that the company complies with section 12-10-607(8)(b), C.R.S. and that the Controlling Appraiser has been authorized by the company as the Controlling Appraiser for the limited liability company.17.12. An AMC is not required to be domiciled in Colorado in order to obtain a license, if the company maintains a definite place of business in another Jurisdiction and is registered as a foreign entity with the Colorado Secretary of State.17.13. If the AMC has no registered agent registered in Colorado, such registered agent is not located under its registered agent name at its registered agent address, or the registered agent cannot with reasonable diligence be served, the Controlling Appraiser, on behalf of the AMC, may be served by registered mail or by certified mail, return receipt requested, addressed to the entity at its principal address and to the Controlling Appraiser's address of record. Service is perfected at the earliest of:A. The date the Controlling Appraiser receives the process, notice, or demand;B. The date shown on the return receipt, if signed by or on behalf of the Controlling Appraiser; orC. Five (5) days after mailing.17.14. Applicants for licensure, Activation, renewal, or reinstatement as an AMC must certify compliance with section 12-10-609, C.R.S. in a manner prescribed by the Board.A. The AMC must maintain at all times a surety bond subject to the following terms and conditions: 1. Be for a minimum of $ 25,000.00;2. Be in conformance with all relevant Colorado statutory requirements; and3. Cover acts contemplated for AMCs under part 6 of article 10 of title 12 during the period of licensure by the AMC.B. Any licensed AMC that certifies compliance and fails to maintain a surety bond, or to provide proof of continuous coverage, will be placed on Inactive status: 1. Immediately if a current surety bond is not provided to the Board; or2. Immediately upon the expiration of any current surety bond when certification of continued coverage is not provided.17.15. An AMC or Controlling Appraiser whose license has been placed on Inactive status must: A. Cease any activities requiring a license.B. Cease all advertising of licensed services.C. If an AMC, inform all clients of the company's license status and inability to provide any services requiring a license.D. If an AMC, ensure that all appraisal fees collected from the client(s) have been accounted for and disbursed pursuant to section 12-10-614(1)(h), C.R.S.E. If an AMC, fees for services requiring a license can be collected for licensed services performed prior to Inactivation of the license.17.18 A temporary Controlling Appraiser's license may be issued to a corporation, partnership, or limited liability company to prevent hardship. No application for a temporary Controlling Appraiser's license will be approved unless the designated individual is a certified appraiser, in Good Standing. The temporary license is valid for ninety (90) days. Upon application and showing of good cause, the Board may extend a temporary license for one additional ninety (90) day period.17.19 Applicants for licensure, renewal, or reinstatement as an AMC must complete the following: A. The Controlling Appraiser must report and certify: 1. The number of licensed or certified appraisers that provided an appraisal in connection with a Covered Transaction on the AMC's Panel in Colorado during the Reporting Period;2. The total number of licensed or certified appraisers on the Panel in Colorado, whether or not the appraisers provided an appraisal in connection with a Covered Transaction, during the Reporting Period; and3. The total number of licensed or certified appraisers on the Panel in all states that the AMC is licensed during the Reporting Period.B. Submit to the Division the AMC Registry Fee for AMCs that meet the Panel Size Threshold and the AMC minimum requirements pursuant to section 12-10-607(9), C.R.S., along with the application for Initial Licensure, renewal, or reinstatement.17.20 Federally Regulated AMCs must report to the Division the information required to be submitted by the Division to the ASC pursuant to the ASC's policies regarding the determination of the AMC Registry Fee and annually submit the AMC Registry Fee for AMCs that meet the Panel Size Threshold.17.21 A licensed or certified appraiser who is part of an AMC's Panel will remain on the Panel until the date on which the Controlling Appraiser: A. Sends written notice to the appraiser removing the appraiser from the Panel, with an explanation of its action; orB. Receives written notice from the appraiser asking to be removed from the Panel or notice of the death or incapacity of the appraiser.17.22 If a licensed or certified appraiser is removed from a Panel as set forth in Rule 17.21., but the Controlling Appraiser subsequently accepts the appraiser for consideration for future assignments or engages the appraiser at any time during the twelve (12) months after the appraiser's removal, the removal will be considered not to have occurred, and the appraiser will be considered to have been part of the Panel without interruption.17.23 Invalid Payment. If the Fees accompanying any application made to the Board are paid for by check and the check is not immediately paid upon presentment to the bank upon which the check was drawn, or if payment is submitted in any other manner and payment is denied, rescinded, or returned as invalid, the application will be canceled. The application or renewal must be re-submitted to the Board along with full payment of any Fees and payment of the fee required by State Fiscal Rules for the clerical services necessary for invalid payment.17.24. Review of Application Completeness. All applications will be reviewed by the Division for completeness of all required supporting documents and the Fee. If the application is deemed incomplete by the Division, the Applicant will be notified in writing of the deficiencies identified within the application and will have thirty (30) days to provide the documentation. Otherwise, the application will be canceled, and the Fee will be forfeited.17.25. Once the application is Deemed Complete, the Board will timely process the application. The Board reserves the right to require additional information and documentation from an Applicant to determine compliance with applicable laws and regulations, and to verify any information and documentation submitted.17.26. Submission of an application does not guarantee issuance of a license, or issuance of a license within a specific period of time. Applicants will not represent themselves as being Licensees of the Board until the license has been issued by the Board.37 CR 15, August 10, 2014, effective 8/30/201437 CR 23, December 10, 2014, effective 1/1/201538 CR 19, October 10, 2015, effective 10/30/201539 CR 11, June 10, 2016, effective 6/30/201639 CR 23, December 10, 2016, effective 1/1/201740 CR 15, August 10, 2017, effective 8/30/201740 CR 23, December 10, 2017, effective 1/1/201841 CR 07, April 10, 2018, effective 4/30/201841 CR 15, August 10, 2018, effective 8/30/201841 CR 23, December 10, 2018, effective 12/31/201842 CR 11, June 10, 2019, effective 6/30/201942 CR 23, December 10, 2019, effective 1/1/202043 CR 23, December 10, 2020, effective 1/1/202144 CR 07, April 10, 2021, effective 4/30/202144 CR 23, December 10, 2021, effective 1/1/202245 CR 07, April 10, 2022, effective 4/30/202245 CR 19, October 10, 2022, effective 10/30/202245 CR 23, December 10, 2022, effective 12/30/202246 CR 23, December 10, 2023, effective 1/1/2024