§ 3542. Acceptable Categories of Experience and Criteria for Each Category.

(a) Acceptable categories of experience to meet the minimum requirements of Section 3541 and the criteria for each category are as follows:

(1) Fee and staff appraisal (a real property appraisal prepared by a person who is employed by another, usually a lending institution or government agency, or who is paid a fee for the appraisal assignments he or she performs):

(A) Shall be a written document;

(B) Shall have used the entire appraisal process;

(C) Shall have used all appraisal methods (market, cost, income) customarily used for a particular property type (i.e., residential, commercial, industrial, etc.);

(D) Shall conform to USPAP, particularly Standards Rules 1 and 2; and

(E) Analysis must be completed by the applicant.

(2) Ad valorem tax appraisal (a real estate appraisal prepared by an appraiser which estimates a value that is used for property tax purposes):

(A) Appraisal:

1. Shall be a written document;

2. Shall use appraisal methods (sales comparison, cost, income) required for the property type being appraised (i.e. residential or non-residential);

3. Shall effectively use the appraisal process; and

4. Shall conform to USPAP, particularly Standards Rules 1 and 2.

(B) Mass Appraisal:

1. Shall conform to USPAP, particularly Standards Rules 1 and 2, or 6.

(3) Review of an appraisal (field or desk):

(A) Shall be a written document separate from the appraisal itself;

(B) The review shall be of an appraisal prepared either by employees, associates or others;

(C) The appraisal being reviewed shall not be signed by the reviewer;

(D) Shall be a “technical review” where the review appraiser forms an opinion as to whether the analyses, opinions, and conclusions in the appraisal report under review are appropriate and reasonable, as opposed to an “administrative review”, which is work performed by clients and users of appraisal services as a due diligence function in the context of making a business decision (e.g., underwriting, buying, selling, etc.); and

(E) The work shall conform to USPAP, particularly Standard Rule 3.

(4) Appraisal analysis:

(A) Shall be a written document; and

(B) The work shall conform to USPAP, particularly Standards Rules 4 and 5.

(5) Real Estate consulting:

(A) Shall be a written document;

(B) The work shall conform to USPAP, particularly Standards Rules 4 and 5; and

(C) “Real estate consulting” incorporates those activities described in USPAP Standards Rules 4 and 5.

(6) Highest and best use analysis:

(A) Shall be a written document; and

(B) The work shall conform to USPAP, particularly Standards Rules 4 and 5.

(7) Feasibility analysis/study:

(A) Shall be a written document; and

(B) The work shall conform to USPAP, particularly Standards Rules 4 and 5.

(8) Teaching of appraisal courses:

Teaching of appraisal courses shall not be an acceptable category of experience to meet minimum requirements after December 31, 1997.

(9) Setting forth opinions of value of real property for tax purposes:

(A) Shall be experience as an employee of a California County Assessor's Office or the California Board of Equalization in setting forth opinions of value of real property for tax purposes, and;

1. Shall be a written document;

2. Shall use appraisal methods (sales comparison, cost, income) required for the property type being appraised (i.e. residential or non-residential);

3. Shall effectively use the appraisal process; and

4. Shall conform to USPAP, particularly Standards Rules 1 and 2, or 6.

(10) Assisting in the preparation of appraisals:

(A) Shall be a written document;

(B) Shall effectively use the appraisal process performing market research, data analysis and applying the appropriate appraisal techniques. The work experience must go beyond such tasks as taking photographs, typing the appraisal report, measuring improvements, or finding sales that may or may not be used in the appraisal. At least 75% of the professional work shall have been performed by the applicant;

(C) The work shall conform to all of the applicable USPAP standards, state laws and Bureau of Real Estate Appraisers (BREA) regulations; and

(D) A maximum of 400 hours of assisting in the preparation of appraisals may be accepted for credit towards meeting the minimum experience requirements.

(11) Real estate valuation experience such as that of a real estate lending officer or a real estate broker:

(A) Appraisal: Same requirements as Category 1;

(B) Review of Appraisals: Same requirements as Category 3; and

(C) Consulting:

1. Shall be a written document; and

2. The work shall conform to USPAP, particularly Standards Rules 4 and 5.

(b) Only appraisals performed for a business purpose (e.g. loans, litigation, etc.) may be credited for purposes of meeting the minimum experience requirements except that experience gained through case studies and practicum courses that are approved by the AQB Course Approval Program may be credited for no more than 50 percent of the total experience requirement.

(c) Each applicant shall meet additional requirements as may be established from time to time by the Appraiser Qualifications Board of The Appraisal Foundation.

HISTORY

1. Renumbering and amendment of former section 3511 to new section 3542 and renumbering of former section 3542 to new section 3682 filed 11-1-96; operative 11-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 44). For prior history, see Register 94, No. 23.

2. Amendment of subsections (a)(5) and (a)(5)(C), repealer of subsections (a)(8)(A)-(B) and subsection (a)(8)(C) designator and amendment of subsection (b) filed 8-8-2006; operative 9-7-2006 (Register 2006, No. 32).

3. Amendment of subsection (a)(2)(A)2., repealer of subsections (a)(2)(B)1.-4., subsection renumbering, amendment of newly designated subsection (a)(2)(B)1. and subsection (a)(9)(A) and new subsections (a)(9)(A)1.-4. filed 8-24-2010; operative 9-23-2010 (Register 2010, No. 35).

4. Change without regulatory effect amending subsection (a)(10)(C) filed 2-11-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 7).

Note

Note: Authority cited: Sections 11313, 11314 and 11340, Business and Professions Code. Reference: Section 11340, Business and Professions Code.