Or. Admin. Code § 161-025-0025

Current through Register Vol. 63, No. 12, December 1, 2024

Section 161-025-0025 - Supervising Appraiser (SA)

To supervise Registered Appraiser Assistants, the supervising appraiser must be state-certified and in "good standing" for a period of at least 3 years. Supervising Appraisers shall not have been subject to any disciplinary action within any jurisdiction within the last 3 years that affects the Supervising Appraiser's legal eligibility to engage in appraisal practice. Only qualified State Certified Residential Appraisers and State Certified General Appraisers may supervise Registered Appraiser Assistants.

(1) Supervisory appraisers may not supervise more than three (3) registered appraiser assistants at one time.

(2) The supervising appraiser shall be responsible for the training, guidance and direct supervision of the appraiser assistant, including accepting responsibility for the appraisal by signing and certifying the appraisal complies with USPAP, reviewing and signing the appraiser assistant experience appraisal reports, and personally inspecting each appraised property with the appraiser assistant until the supervisory appraiser determines the appraiser assistant is competent to inspect the property, in accordance with the COMPETENCY RULE of USPAP for the property type and all applicable appraisal laws and rules.

(3) The Supervising Appraiser must ensure that the appraiser assistant gains sufficient knowledge, skills and abilities that will enable the appraiser assistant to do all of the following:

(a) Define the appraisal problem.

(A) Identify and locate the real estate;

(B) Identify the property rights to be valued;

(C) Identify the use of the appraisal

(D) Define value(s) to be estimated;

(E) Establish date(s) of value estimate(s);

(F) Identify and describe the scope of the appraisal; and

(G) Identify and describe limiting conditions or other limitations.

(b) Conduct preliminary analysis, select and collect applicable data.

(A) Identify general data (regional, city and neighborhood) including social, economic, governmental and environmental factors; and

(B) Identify specific data (subject and comparables) including site and improvement, cost and depreciation, income/expense and capitalization rate, history of ownership and use of property; and

(C) Identify competitive supply and demand factors (the subject market) including inventory of competitive properties, sales and listings, vacancies and offerings, absorption rates, demand studies.

(c) Conduct an analysis of the subject property which includes:

(A) Site/improvements;

(B) Size;

(C) Costs;

(D) Elements of comparison; and

(E) Units of comparison.

(d) Conduct highest and best use analysis (specified in terms of use, time and market participants) including:

(A) Land as if vacant and available; and

(B) Property as improved (existing or proposed).

(e) Estimate land value, including on-site improvements.

(f) Estimate value of the property using each of the three approaches to value - cost, sales comparison and income capitalization.

(g) Reconcile each value indication and reconcile the approaches to arrive at a final value estimate.

(h) Report estimate(s) of value(s) as defined for the assignment.

(4) Review each appraisal report the appraiser assistant participates in preparing to ensure accuracy and reliability;

(5) Ensure that the appraisal report includes proper disclosure regarding the inspection of the subject and the comparable sales as required by OAR 161-025-0060(3).

(6) Make a clear and prominent disclosure of real estate appraisal assistance in each appraisal report by identifying each individual category of experience that the appraiser assistant provided as outlined in OAR 161-025-0025(3)(a) through (h); and

(7) Accept responsibility for the appraisal report by signing and certifying that the report has been prepared in compliance with USPAP.

(8) Ensure that the appraiser assistant will be granted experience credit by doing the following:

(a) Verify that the appraiser assistant is currently registered with the Board. Experience gained prior to registration or after a registration has lapsed will not be credited toward the experience hours required to become licensed or certified.

(b) Jointly maintain the appraisal experience log with the appraiser assistant to ensure the log is accurate, current and complies with Oregon Administrative Rules. At a minimum, the appraisal log reporting requirements shall include:

(A) Type of property; and

(B) Date of Report; and

(C) Address of appraised property; and

(D) Description of work performed by the appraiser assistant and the scope of the review and supervision of the Supervisory Appraiser; and

(E) Number of actual work hours by the appraiser assistant on the assignment; and

(F) The signature and state certification number of the supervisory appraiser.

(c) Maintain a separate experience log for each appraiser assistant who contributes to an assignment.

(d) Review the log on a monthly basis to ensure the appraiser assistant signs the log and maintains the ongoing log for any future application.

(e) Allow the appraiser assistant to obtain copies of any appraisal reports and associated supporting documentation on which they provided assistance.

Or. Admin. Code § 161-025-0025

ACLB 4-2005, f. & cert. ef. 11-2-05; ACLB 2-2006, f. & cert. ef. 7-26-06; ACLB 1-2007, f. & cert. ef. 2-9-07; ACLB 4-2007, f. 11-1-07, cert. ef. 1-1-08; ACLB 1-2008, f. & cert. ef. 5-13-08; ACLB 1-2010(Temp), f. 1-29-10, cert. ef. 2-1-10 thru 7-27-10; ACLB 2-2010, f. & cert. ef. 4-23-10; ACLB 2-2012(Temp), f. & cert. ef. 8-3-12 thru 1-30-13; ACLB 1-2013, f. 1-30-13, cert. ef. 1-31-13; ACLB 5-2014, f. 12-19-14, cert. ef. 1/1/2015; ACLB 1-2019, amend filed 05/03/2019, effective 5/4/2019; ACLB 1-2023, amend filed 07/24/2023, effective 7/24/2023; ACLB 1-2024, amend filed 07/30/2024, effective 7/30/2024

Statutory/Other Authority: ORS 674.305(8) & 674.310

Statutes/Other Implemented: ORS 674