W. Va. Code R. § 190-2-6

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

Section 190-2-6 - Additional Qualifications for Certified General and Certified Residential Appraisers

6.1. Education.

6.1.a. An applicant who has completed and passed three hundred (300) classroom hours of courses required under this subsection, of which fifteen (15) hours include the National Uniform Standards of Professional Appraisal Practice Course or its equivalent, meets the education requirements for general certification. Equivalency shall be determined through the AQB course approval program or by an alternate method established by the AQB.

6.1.b. An applicant who has completed and passed two hundred (200) classroom hours of courses required under this subsection, of which fifteen (15) hours include the National Uniform Standards of Professional Appraisal Practice Course or its equivalent, meets the education requirements for residential certification. Equivalency shall be determined through the AQB course approval program or by an alternate method established by the AQB.

6.1.c. The board shall grant credit towards classroom hours or classroom hours of distance education only where the length of the educational course was at least fifteen (15) hours and an applicant passed an examination concerning the course.

6.1.d. 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:

6.1.d.1. Accredited colleges or universities;

6.1.d.2. Community or junior colleges;

6.1.d.3. Real estate appraisal or real estate related organizations;

6.1.d.4. Local, state or federal agencies, boards or commissions;

6.1.d.5. Proprietary schools;

6.1.d.6. Adult distributive or marketing educational programs;

6.1.d.7. 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

6.1.d.8. Any other entity which has received prior approval by the board.

6.1.e. There is no time limit for when an applicant must obtain qualifying education credit: Provided, that all qualifying education shall be completed within the five (5) year period prior to the date of submission of an application for an apprentice permit.

6.1.f. The Board shall only credit appraisal courses completed by an applicant for state certified general classification and required by subdivision 6.1.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, with particular emphasis on the appraisal of non- residential properties:

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

6.1.f.1.A. Real Property Concepts and Characteristics, including, but not limited to:

6.1.f.1.A.1. Basic Real Property Concepts;

6.1.f.1.A.2. Real Property Characteristics; and

6.1.f.1.A.3. Legal Description;

6.1.f.1.B Legal Consideration, including, but not limited to:

6.1.f.1.B.1. Forms of Ownership;

6.1.f.1.B.2. Public and Private Controls;

6.1.f.1.B.3. Real Estate Contracts; and

6.1.f.1.B.4. Leases;

6.1.f.1.C Influences on Real Estate Values, including, but not limited to:

6.1.f.1.C.1. Governmental;

6.1.f.1.C.2. Economic;

6.1.f.1.C.3. Social; and

6.1.f.1.C.4. Environmental, Geographic and Physical;

6.1.f.1.D. Types of Value, including, but not limited to:

6.1.f.1.D.1. Market Value;

6.1.f.1.D.2. Other Value Types; and

6.1.f.1.E. Economic Principles, including, but not limited to:

6.1.f.1.E.1. Classical Economic Principles; and

6.1.f.1.E.2. Application and Illustrations of the Economic Principles;

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

6.1.f.1.F.1. Market Fundamentals, Characteristics, and Definitions;

6.1.f.1.F.2. Supply Analysis;

6.1.f.1.F.3. Demand Analysis; and

6.1.f.1.F.4. Use of Market Analysis;

6.1.f.1.G. Ethics and How They Apply in Appraisal Theory and Practice;

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

6.1.f.2.A. Overview of Approaches to Value;

6.1.f.2.B. Valuation Procedures, including, but not limited to:

6.1.f.2.B.1. Defining the Problem;

6.1.f.2.B.2. Collecting and Selecting Data;

6.1.f.2.B.3. Analyzing;

6.1.f.2.B.4. Reconciling and Final Value Opinion; and

6.1.f.2.B.5. Communicating the Appraisal;

6.1.f.2.C Property Description, including, but not limited to:

6.1.f.2.C.1. Geographic Characteristics of the Land/Site;

6.1.f.2.C.2. Geologic Characteristics of the Land/Site;

6.1.f.2.C.3. Location and Neighborhood Characteristics;

6.1.f.2.C.4. Land/Site Considerations for Highest and Best Use; and

6.1.f.2.C.5. Improvements - Architectural Styles and Types of Construction;

6.1.f.2.D. Residential Applications;

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

6.1.f.4. Thirty (30) hours of general appraiser market analysis and highest and best use, of which course hours may be evidenced by the following educational subtopics:

6.1.f.4.A. Real Estate Markets and Analysis, including, but not limited to:

6.1.f.4.A.1. Market Fundamentals, Characteristics and Definitions;

6.1.f.4.A.2. Supply Analysis;

6.1.f.4.A.3. Demand Analysis; and

6.1.f.4.A.4. Use of Market Analysis;

6.1.f.4.B. Highest and Best Use, including, but not limited to:

6.1.f.4.B.1. Test Constraints;

6.1.f.4.B.2. Application of Highest and Best Use;

6.1.f.4.B.3. Special Considerations;

6.1.f.4.B.4. Market Analysis; and

6.1.f.4.B.5. Case Studies;

6.1.f.5. Fifteen (15) hours of statistics, modeling and finance, of which course hours may be evidenced by the following educational subtopics:

6.1.f.5.A. Statistics;

6.1.f.5.B. Valuation Models ((Automated Value Models (AVM) and Mass Appraisal)); and

6.1.f.5.C. Real Estate Finance;

6.1.f.6. Thirty (30) hours of general appraiser sales comparison approach, of which course hours may be evidenced by the following educational subtopics:

6.1.f.6.A. Value Principles;

6.1.f.6.B. Procedures;

6.1.f.6.C. Identification and Measurement of Adjustments;

6.1.f.6.D. Reconciliation; and

6.1.f.6.E. Case Studies;

6.1.f.7. Thirty (30) hours of general appraiser site valuation and cost approach, of which course hours may be evidenced by the following educational subtopics:

6.1.f.7.A. Site Valuation, including, but not limited to:

6.1.f.7.A.1. Methods; and

6.1.f.7.A.2. Case Studies;

6.1.f.7.B. Cost Approach, including, but not limited to:

6.1.f.7.B.1. Concepts and Definitions;

6.1.f.7.B.2. Replacement/Reproduction Cost New;

6.1.f.7.B.3. Accrued Depreciation;

6.1.f.7.B.4. Methods of Estimating Accrued Depreciation; and

6.1.f.7.B.5. Case Studies;

6.1.f.8. Sixty (60) hours of general appraiser income approach, of which course hours may be evidenced by the following educational subtopics:

6.1.f.8.A. Overview;

6.1.f.8.B. Compound Interest;

6.1.f.8.C. Lease Analysis;

6.1.f.8.D. Income Analysis;

6.1.f.8.E. Vacancy and Collection Loss;

6.1.f.8.F. Estimating Operating Expenses and Reserves;

6.1.f.8.G. Reconstructed Income and Expense Statement;

6.1.f.8.H. Stabilized Net Operating Income Estimate;

6.1.f.8.I. Direct Capitalization;

6.1.f.8.J. Discounted Cash Flow;

6.1.f.8.K. Yield Capitalization;

6.1.f.8.L. Partial Interests; and

6.1.f.8.M. Case Studies;

6.1.f.9. Thirty (30) hours of general appraiser report writing and case studies, of which course hours may be evidenced by the following educational subtopics:

6.1.f.9.A. Writing and Reasoning Skills;

6.1.f.9.B. Common Writing Problems;

6.1.f.9.C. Report Options and USPAP Compliance; and

6.1.f.9.D. Case Studies;

6.1.f.10. Thirty (30) hours of appraisal subject matter electives.

6.1.g. The Board shall only credit appraisal courses completed by an applicant for state certified residential classification and required by subdivision 6.1.b. 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 with particular emphasis on the appraisal of one to four unit residential properties:

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

6.1.g.1.A. Real Property Concepts and Characteristics, including, but not limited to:

6.1.g.1.A.1. Basic Real Property Concepts;

6.1.g.1.A.2. Real Property Characteristics; and

6.1.g.1.A.3. Legal Description;

6.1.g.1.B. Legal Consideration, including, but not limited to:

6.1.g.1.B.1. Forms of Ownership;

6.1.g.1.B.2. Public and Private Controls;

6.1.g.1.B.3. Real Estate Contracts; and

6.1.g.1.B.4. Leases;

6.1.g.1.C. Influences on Real Estate Values, including, but not limited to:

6.1.g.1.C.1. Governmental;

6.1.g.1.C.2. Economic;

6.1.g.1.C.3. Social; and

6.1.g.1.C.4. Environmental, Geographic and Physical;

6.1.g.1.D. Types of Value, including, but not limited to:

6.1.g.1.D.1. Market Value; and

6.1.g.1.D.2. Other Value Types;

6.1.g.1.E. Economic Principles, including, but not limited to:

6.1.g.1.E.1. Classical Economic Principles; and

6.1.g.1.E.2. Application and Illustrations of the Economic Principles;

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

6.1.g.1.F.1. Market Fundamentals, Characteristics, and Definitions;

6.1.g.1.F.2. Supply Analysis;

6.1.g.1.F.3. Demand Analysis; and

6.1.g.1.F.4. Use of Market Analysis; and

6.1.g.1.G. Ethics and How They Apply in Appraisal Theory and Practice

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

6.1.g.2.A. Overview of Approaches to Value;

6.1.g.2.B. Valuation Procedures, including, but not limited to:

6.1.g.2.B.1. Defining the Problem;

6.1.g.2.B.2. Collecting and Selecting Data;

6.1.g.2.B.3. Analyzing;

6.1.g.2.B.4. Reconciling and Final Value Opinion; and

6.1.g.2.B.5. Communicating the Appraisal;

6.1.g.2.C. Property Description, including, but not limited to:

6.1.g.2.C.1. Geographic Characteristics of the Land/Site;

6.1.g.2.C.2. Geologic Characteristics of the Land/Site;

6.1.g.2.C.3. Location and Characteristics;

6.1.g.2.C.4. Land/Site Considerations for Highest and Best Use; and

6.1.g.2.C.5. Improvements - Architectural Styles and Types of Construction;

6.1.g.2.D. Residential Applications;

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

6.1.g.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:

6.1.g.4.A. Residential Markets and Analysis, including, but not limited to:

6.1.g.4.A.1. Market Fundamentals, Characteristics and Definitions;

6.1.g.4.A.2. Supply Analysis;

6.1.g.4.A.3. Demand Analysis; and

6.1.g.4.A.4. Use of Market Analysis;

6.1.g.4.B. Highest and Best Use, including, but not limited to:

6.1.g.4.B.1. Test Constraints;

6.1.g.4.B.2. Application of Highest and Best Use;

6.1.g.4.B.3. Special Considerations;

6.1.g.4.B.4. Market Analysis; and

6.1.g.4.B.5. Case Studies;

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

6.1.g.5.A. Site Valuation, including, but not limited to:

6.1.g.5.A.1. Methods; and

6.1.g.5.A.2. Case Studies;

6.1.g.5.B. Cost Approach, including, but not limited to:

6.1.g.5.B.1. Concepts and Definitions;

6.1.g.5.B.2. Replacement/ Reproduction Cost New;

6.1.g.5.B.3. Accrued Depreciation;

6.1.g.5.B.4. Methods of Estimating Accrued Depreciation; and

6.1.g.5.B.5. Case Studies;

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

6.1.g.6.A. Valuation Principles & Procedures -- Sales Comparison Approach;

6.1.g.6.B. Valuation Principles & Procedures -- Income Approach;

6.1.g.6.C. Finance and Cash Equivalency;

6.1.g.6.D. Financial Calculator Introduction;

6.1.g.6.E. Identification, Derivation and Measurement of Adjustments;

6.1.g.6.F. Gross Rent Multipliers;

6.1.g.6.G. Partial Interests;

6.1.g.6.H. Reconciliation; and

6.1.g.6.I. Case Studies and Applications;

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

6.1.g.7.A. Writing and Reasoning Skills;

6.1.g.7.B. Common Writing Problems;

6.1.g.7.C. Form Reports;

6.1.g.7.D. Report Options and USPAP Compliance; and

6.1.g.7.E. Case Studies;

6.1.g.8. Fifteen (15) hours in statistics, modeling and finance, of which course hours may be evidenced by the following educational subtopics:

6.1.g.8.A. Statistics;

6.1.g.8.B. Valuation Models ((Automated Value Models (AVM) and Mass Appraisal)); and

6.1.g.8.C. Real Estate Finance;

6.1.g.9. Fifteen (15) hours in advanced residential applications and case studies, of which course hours may be evidenced by the following educational subtopics:

6.1.g.9.A. Complex Property, Ownership and Market Conditions;

6.1.g.9.B. Deriving and Supporting Adjustments;

6.1.g.9.C. Residential Market Analysis; and

6.1.g.9.D. Advanced Case Studies;

6.1.g.10. Twenty (20) hours in appraisal subject matter electives.

6.1.h. 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.

6.1.i. An applicant for the Certified Residential appraiser certification must satisfy at least one of the following options

6.1.i.1. Possession of a Bachelor's Degree in any field of study;

6.1.i.2. Possession of an Associate's Degree in a field of study related to:

6.1.i.2.A. Business Administration;

6.1.i.2.B Accounting;

6.1.i.2.C. Finance;

6.1.i.2.D. Economics; or

6.1.i.2.E. Real Estate;

6.1.i.3 Successful completion of thirty (30) semester hours of college-level courses that cover each of the following specific topic areas and hours:

6.1.i.3.A. English Composition (3 semester hours);

6.1.i.3.B. Microeconomics (3 semester hours);

6.1.i.3.C. Macroeconomics (3 semester hours);

6.1.i.3.D. Finance (3 semester hours);

6.1.i.3.E. Algebra, Geometry or higher mathematics (3 semester hours);

6.1.i.3.F. Statistics (3 semester hours);

6.1.i.3.G. Computer Science (3 semester hours;

6.1.i.3.H. Business or Real Estate Law (3 semester hours); and

6.1.i.3.I. Two elective courses in any of the topics listed in this paragraph or in accounting, geography, agricultural economics, business management or real estate (3 semester hours each);

6.1.i.4. Successful completion of at least thirty (30) hours of College Level Examination Program (CLEP) Examinations from each of the following subject matter areas:

6.1.i.4.A. College Algebra (3 semester hours);

6.1.i.4.B. College Composition (6 semester hours);

6.1.i.4.C. College Composition Modular (3 semester hours);

6.1.i.4.D. College Mathematics (6 semester hours);

6.1.i.4.E. Principles of Macroeconomics (3 semester hours);

6.1.i.4.F. Principles of Microeconomics (3 semester hours);

6.1.i.4.G. Introductory Business Law (3 semester hours); and

6.1.i.4.H. Information systems (3 semester hours).

6.1.i.5. Any combination of paragraphs 6.1.i.3 and 6.1.i.4 of this rule that ensures coverage of all topics and hours identified in 6.1.i.3.

6.1.j. An applicant for the Certified General appraiser certification shall have a bachelor's degree, or higher, from an accredited college or university

6.1.k. As an alternative to the Bachelor's Degree requirement, individuals who have held a Licensed Residential credential for a minimum of five (5) years may qualify for a Certified Residential credential by satisfying the following:

6.1.k.1. Has no finally adjudicated disciplinary action affecting the appraiser's legal eligibility to engage in appraisal practice within five (5) years immediately preceding the date of application for a Certified Residential credential; and

6.1.k.2. Completion of specific additional education which includes the following:

6.1.k.2.A. Statistics, Modeling and Finance consisting of fifteen (15) hours;

6.1.k.2.B. Advanced Residential Applications and Case Studies consisting of fifteen (15) hours; and

6.1.k.2.C. Appraisal Subject Matter Electives consisting of twenty (20) hours.

6.2. Experience.

6.2.a. An applicant for the state certified residential classification shall have one thousand five hundred (1,500) hours of appraisal experience over a period of not less than 12 months. Applicants shall be able to demonstrate the ability to develop all three (3) approaches to value.

6.2.b An applicant for the state certified general classification shall have a minimum of three thousand (3,000) hours of appraisal experience over a period of not less than 18 months. At least one-half (1,500) of the hours of the required experience shall be in non-residential assignments. Applicants shall be able to demonstrate the ability to develop all three (3) approaches to value.

6.2.c. As a part of the application for license or certification, an applicant shall execute an affidavit attesting to his or her experience in the field of real estate appraisal. 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.

6.2.d. A licensed or certified residential appraiser may assist a certified general appraiser in the appraisal of non-residential property valued over one hundred thousand dollars ($100,000) in order to accumulate the experience hours required by subdivision 6.2.b of this rule. The licensed or certified residential real estate appraiser shall work under the direct supervision of a state certified general appraiser, view the property on site and participate in the appraisal process in order to sign the report and receive credit for the experience hours.

6.3. Examination.

6.3.a. Before the board issues an initial certification or 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 before taking the national written exam.

6.3.b. Before the board issues an initial certification or 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. § 190-2-6