W. Va. Code R. § 190-2-5

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 190-2-5 - Additional Qualifications for Licensed Residential Appraisers

5.1. Education.

5.1.a. An applicant who has completed and passed one hundred fifty (150) classroom hours of courses required under this subsection, of which fifteen (15) hours shall be the National Uniform Standards of Professional Appraisal Practice Course or equivalent, meets the education requirements for licensure. Equivalency shall be determined through the AQB course approval program or by an alternate method established by the AQB.

5.1.b. The board shall grant credit towards classroom hours or classroom hours of distance education only where the length of the educational course is at least fifteen (15) hours and the applicant completed and passed an examination concerning that course: Provided, that effective January 1, 2015, the applicant shall have passed a final written exam, which for classroom hours of distance education shall be a closed-book written exam proctored by an official approved by the college, university or other sponsoring organization.

5.1.c. An applicant may obtain credit towards classroom hours or classroom hours of distance education from the following entities provided that the courses have been registered with and approved by the board:

5.1.c.1. Accredited colleges or universities;

5.1.c.2. Community or junior colleges;

5.1.c.3. Real estate appraisal or real estate related organizations;

5.1.c.4. Local, state or federal agencies, boards or commissions;

5.1.c.5. Proprietary schools;

5.1.c.6. Adult distributive or marketing educational programs;

5.1.c.7. Upon completion of a degree in Real Estate from an accredited degree-granting college or university approved by the Association to Advance Collegiate Schools of Business, or a regional or national accreditation agency recognized by the U.S. Secretary of Education, provided that the college or university has had its curriculum reviewed and approved by the AQB; or

5.1.c.8. Any other entity which has received prior approval by the board.

5.1.d. The applicant shall complete all qualifying education within the five (5) year period prior to the date of submission of application for an apprentice permit.

5.1.e. The Board shall only credit appraisal courses completed by an applicant for Licensed Residential real estate appraiser and required by subdivision 5.1.a. of this subsection, if the applicant can show that his or her education involved coverage of all of the following topics and all minimum corresponding hours attendant with each topic:

5.1.e.1. Thirty (30) hours of basic appraisal principles, of which course hours may be evidenced by the following educational subtopics:

5.1.e.1.A. Real Property Concepts and Characteristics, including, but not limited to:

5.1.e.1.A.1. Basic Real Property Concepts;

5.1.e.1.A.2. Real Property Characteristics; and

5.1.e.1.A.3. Legal Description;

5.1.e.1.B. Legal Consideration, including, but not limited to:

5.1.e.1.B.1. Forms of Ownership;

5.1.e.1.B.2. Public and Private Controls;

5.1.e.1.B.3. Real Estate Contracts; and

5.1.e.1.B.4. Leases;

5.1.e.1.C. Influences on Real Estate Values, including, but not limited to:

5.1.e.1.C.1. Governmental;

5.1.e.1.C.2. Economic;

5.1.e.1.C.3. Social; and

5.1.e.1.C.4. Environmental, Geographic and Physical;

5.1.e.1.D. Types of Value, including, but not limited to:

5.1.e.1.D.1. Market Value; and

5.1.e.1.D.2. Other Value Types;

5.1.e.1.E. Economic Principles, including, but not limited to:

5.1.e.1.E.1. Classical Economic Principles; and

5.1.e.1.E.2. Application and Illustrations of the Economic Principles;

5.1.e.1.F. Overview of Real Estate Markets and Analysis, including, but not limited to:

5.1.e.1.F.1. Market Fundamentals, Characteristics, and Definitions;

5.1.e.1.F.2. Supply Analysis;

5.1.e.1.F.3. Demand Analysis;

5.1.e.1.F.4. Use of Market Analysis; and

5.1.e.1.G. Ethics and How They Apply in Appraisal Theory and Practice;

5.1.e.2. Thirty (30) hours of basic appraisal procedures, of which course hours may be evidenced by the following educational subtopics:

5.1.e.2.A. Overview of Approaches to Value;

5.1.e.2.B. Valuation Procedures, including, but not limited to:

5.1.e.2.B.1 Defining the Problem;

5.1.e.2.B.2. Collecting and Selecting Data;

5.1.e.2.B.3. Analyzing;

5.1.e.2.B.4. Reconciling and Final Value Opinion; and

5.1.e.2.B.5. Communicating the Appraisal;

5.1.e.2.C. Property Description, including, but not limited to:

5.1.e.2.C.1. Geographic Characteristics of the Land/Site;

5.1.e.2.C.2. Geologic Characteristics of the Land/Site;

5.1.e.2.C.3. Location and Neighborhood Characteristics;

5.1.e.2.C.4. Land/Site Considerations for Highest and Best Use; and

5.1.e.2.C.5. Improvements -- Architectural Styles and Types of Construction;

5.1.e.2.D. Residential Applications;

5.1.e.3. Successful completion of the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Course, or its equivalent;

5.1.e.4. Fifteen (15) hours of residential market analysis and highest and best use, of which course hours may be evidenced by the following educational subtopics:

5.1.e.4.A. Residential Markets and Analysis, including, but not limited to:

5.1.e.4.A.1. Market Fundamentals, Characteristics and Definitions;

5.1.e.4.A.2. Supply Analysis;

5.1.e.4.A.3. Demand Analysis; and

5.1.e.4.A.4. Use of Market Analysis;

5.1.e.4.B. Highest and Best Use, including, but not limited to:

5.1.e.4.B.1. Test Constraints;

5.1.e.4.B.2. Application of Highest and Best Use;

5.1.e.4.B.3. Special Considerations;

5.1.e.4.B.4. Market Analysis; and

5.1.e.4.B.5. Case Studies;

5.1.e.5. Fifteen (15) hours of residential appraiser site valuation and cost approach, of which course hours may be evidenced by the following educational subtopics:

5.1.e.5.A. Site Valuation, including, but not limited to:

5.1.e.5.A.1. Methods; and

5.1.e.5.A.2. Case Studies;

5.1.e.5.B. Cost Approach, including, but not limited to:

5.1.e.5.B.1. Concepts and Definitions;

5.1.e.5.B.2. Replacement/Reproduction Cost New;

5.1.e.5.B.3. Accrued Depreciation;

5.1.e.5.B.4. Methods of Estimating Accrued Depreciation; and

5.1.e.5.B.5. Case Studies;

5.1.e.6. Thirty (30) hours of residential sales comparison and income approaches, of which course hours may be evidenced by the following educational subtopics:

5.1.e.6.A. Valuation Principles & Procedures -- Sales Comparison Approach;

5.1.e.6.B. Valuation Principles & Procedures -- Income Approach;

5.1.e.6.C. Finance and Cash Equivalency;

5.1.e.6.D. Financial Calculator Introduction;

5.1.e.6.E. Identification, Derivation and Measurement of Adjustments;

5.1.e.6.F. Gross Rent Multipliers;

5.1.e.6.G. Partial Interests;

5.1.e.6.H. Reconciliation; and

5.1.e.6.I. Case Studies and Applications;

5.1.e.7. Fifteen (15) hours of residential report writing and case studies, of which course hours may be evidenced by the following educational subtopics:

5.1.e.7.A. Writing and Reasoning Skills;

5.1.e.7.B. Common Writing Problems;

5.1.e.7.C. Form Reports;

5.1.e.7.D. Report Options and USPAP Compliance; and

5.1.e.7.E. Case Studies.

5.1.f. An applicant shall submit to the board a listing of courses, which he or she claims meet the education credit requirement, on a form approved by the board. An applicant shall submit proof of the completion of a course claimed for credit.

5.2 Experience.

5.2.a. An applicant shall have a minimum of one thousand (1,000) hours of appraisal experience. An applicant shall obtain all qualifying experience hours in no fewer than six months. Applicants shall be able to demonstrate the ability to develop all three (3) approaches to value as set forth in USPAP Standards Rule 1-4.

5.2.b. As a part of the application for licensure, an applicant shall execute an affidavit attesting to his or her experience in the field of real estate appraisal. This affidavit shall be on forms provided by the board with the application. In addition, an applicant shall provide, on forms provided by the board, a detailed list of the real estate appraisal reports or file memoranda for each year for which experience is claimed. Upon request, an applicant shall provide the board a sample of appraisal reports which the applicant has prepared. Experience obtained after January 1, 1991, shall comply with the USPAP.

5.3. Examination.

5.3.a. Before the board issues an initial license, an applicant shall complete and pass a national written exam administered by the board or by a testing service acting on behalf of the board. The passing score shall be determined by the board based upon the recommendation of the testing service. The applicant shall complete education and experience requirements before taking the national written exam.

5.3.b. Before the board issues an initial license, an applicant shall complete and pass a written state examination covering the sections of the West Virginia Code that regulate the practice of real estate appraisal: Provided, that, an applicant shall complete and pass a three (3) hour West Virginia law course by an examination approved by the board. The passing score shall be determined by the board.

W. Va. Code R. § 190-2-5