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Ohio Laws and Rules
“Nationally recognized appraisal organization” means an organization which:
(A) Offers classroom instruction in subjects related to real estate appraisal as specified in paragraphs (A) and (B) of rule 1301:11-3-03 of the Administrative Code, that would be acceptable towards satisfying the pre-certification education requirement,
(B) Offers a designation to real estate appraisers upon successful completion of appraisal education and attainment of appraisal experience,
(C) Has established standards of professional appraisal practice and a code of ethics for organization members which are consistent with the standards adopted by the real estate appraisal board, and
(D) Offers the classroom instruction specified in paragraph (A) of this rule to all individuals and does not require individuals to be a member of the organization to enroll and complete the instruction.
HISTORY: Eff 12-1-90
Rule promulgated under: RC Chapter 119.
Rule authorized by: RC 119.03, 4763.03
Rule amplifies: RC 4763.05
RC 119.032 review date: 6-29-01; 6-29-06
Rescinded eff 1-1-07
(A) Prior to January 1, 2008, an applicant for a residential real estate appraiser license, shall comply with the following: The applicant shall complete ninety classroom hours of instruction in subjects related to real estate appraisal which shall include at least one course devoted exclusively to federal, state, and municipal fair housing law, presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education. Fifteen of the ninety hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent. Equivalency shall be determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board.
(B) Prior to January 1, 2008, an applicant for a residential real estate appraiser certification shall comply with the following: The applicant shall complete one hundred twenty classroom hours of instruction in subjects related to real estate appraisal, which shall include at least one course devoted exclusively to federal, state, and municipal fair housing law, presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education, and which may include the applicant’s documentation of compliance with the ninety classroom hour requirement for the residential real estate appraiser license. Fifteen of the one hundred twenty hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent as determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board.
(C) Prior to January 1, 2008, an applicant for a general real estate appraiser certification shall comply with the following: The applicant shall complete one hundred eighty classroom hours of instruction in subjects related to real estate appraisal, which shall include at least one course devoted exclusively to federal, state, and municipal fair housing law, presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education, and which may include the applicant’s documentation of compliance with the ninety classroom hour requirement for the residential real estate appraiser license. Fifteen of the one hundred eighty hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent. Equivalency shall be determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board.
(D) Prior to January 1, 2008, as used in this rule, “instruction in subjects related to real estate appraisal” shall include, but not be limited to, courses emphasizing the following, with particular emphasis on the subject matter of the certificate or license being applied for:
(1) Real property concepts and characteristics,
(2) Legal considerations,
(3) Influences on real estate value,
(4) Types of value,
(5) Economic principles,
(6) Overview of real estate markets and analysis,
(7) Ethics and how they apply in appraisal theory and practice,
(8) Overview of approaches to value,
(9) Valuation procedures,
(10) Property description,
(11) Residential applications,
(12) Uniform standards of professional appraisal practice,
(13) Ohio real estate appraisal laws and rules,
(14) Highest and best use,
(15) Site valuation, and
(16) Cost approach.
(E) On or after January 1, 2008, but before January 1, 2009, in order to qualify for the license or certificate for which an application has been made, an applicant for a residential real estate appraiser license, a residential real estate appraiser certificate, or a general real estate appraiser certificate shall meet the experience requirements of rule 1301:11-3-04 of the Administrative Code as are in effect as of the date the applicant completes those experience requirements or on December 31, 2007, whichever is later; shall meet the education requirements of this rule as are in effect as of the date the applicant completes the education, or on December 31, 2007, whichever is later; and, shall successfully complete an examination as required by rule 1301:11-3-05 of the Administrative Code as of the date the applicant achieves a passing score on the examination requirements.
(F) On or after January 1, 2008, an applicant for a residential real estate appraiser license, shall comply with the following: The applicant shall complete one hundred fifty classroom hours of instruction in the required core curriculum listed in this paragraph and at least one course devoted exclusively to federal, state, and municipal fair housing law, presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education. Fifteen of the one hundred fifty hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent. Equivalency shall be determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board. The required core curriculum for licensing as a residential real estate appraiser shall also include thirty hours of instruction in basic appraisal principles, thirty hours of instruction in basic appraisal procedures, fifteen hours of instruction in residential market analysis and highest and best use, fifteen hours of instruction in residential appraiser site valuation and cost approach, thirty hours of instruction in residential sales comparison and income approaches, and fifteen hours of instruction in residential report writing and case studies.
(G) On or after January 1, 2008, an applicant for a residential real estate appraiser certification shall comply with both of the following:
(1) The applicant shall hold an associates degree or higher degree in any field of study, or, in lieu of a degree, twenty-one semester hours or their equivalent covering English composition, principles of economics (micro or macro), finance, algebra, geometry or higher mathematics, statistics, introduction to computers – word processing/spreadsheets, and business or real estate law; and
(2) The applicant shall complete two hundred classroom hours of instruction in the required core curriculum listed in this paragraph and at least one course devoted exclusively to federal, state, and municipal fair housing law presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education. Fifteen of the two hundred hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent. Equivalency shall be determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board. The required core curriculum for certification as a residential real estate appraiser shall also include thirty hours of instruction in basic appraisal principles, thirty hours of instruction in basic appraisal procedures, fifteen hours of instruction in residential appraiser market analysis and highest and best use, fifteen hours of instruction in residential appraiser site valuation and cost approach, thirty hours of instruction in residential sales comparison and income approaches, fifteen hours of instruction in residential report writing and case studies, fifteen hours of instruction in statistics, modeling and finance, fifteen hours of instruction in advanced residential applications and case studies, and twenty hours of instruction in appraisal subject matter electives.
(H) On or after January 1, 2008, an applicant for a general real estate appraiser certification shall comply with both of the following:
(1) The applicant shall hold a bachelors degree or higher degree in any field of study, or, in lieu of a degree, thirty semester hours or their equivalent covering English composition, micro economics, macro economics, finance, algebra, geometry or higher mathematics, statistics, introduction to computers – word processing/spreadsheets, business or real estate law, and two elective courses in accounting, geography, agricultural economics, business management or real estate; and
(2) The applicant shall complete three hundred classroom hours of instruction in the required core curriculum listed in this paragraph and at least one course devoted exclusively to federal, state, and municipal fair housing law, presented by a nationally recognized appraisal organization, an institution of higher education, a career school registered by the state board of career colleges and schools, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education. Fifteen of the three hundred hours shall include the successful completion of the national uniform standards of professional appraisal practice course or its equivalent. Equivalency shall be determined by the appraiser qualifications board approval program or by an alternate method established by the appraiser qualifications board. The required core curriculum for certification as a general real estate appraiser shall also include thirty hours of instruction in basic appraisal principles, thirty hours of instruction in basic appraisal procedures, thirty hours of instruction in general appraiser market analysis and highest and best use, fifteen hours of instruction in statistics, modeling and finance, thirty hours of instruction in general appraiser sales comparison approach, thirty hours of instruction in general appraiser site valuation and cost approach, sixty hours of instruction in general appraiser income approach, thirty hours of instruction in general appraiser report writing and case studies, and thirty hours of instruction in appraisal subject matter electives.
(I) An applicant for licensing or certification shall only receive credit for classroom hours of instruction in subjects related to real estate appraisal as required by paragraphs (A), (B), (C) (F), (G) and (H) of this rule when those hours have been approved by the appraisal qualifications board of the appraisal foundation, or obtained from an institution of higher education, a nationally recognized appraisal organization, a proprietary school registered by the state board of proprietary school registration, a state or federal commission or agency, or any other organization that represents the interests of financial institutions or real estate brokers, appraisers, or agents and that provides appraisal education.
(J) For this rule, a “classroom hour” is defined as fifty minutes out of each sixty minute segment. With the exception of the course devoted exclusively to federal, state, and municipal fair housing law, classroom hours may be obtained only where the minimum length of the course offering is fifteen hours, and the individual shall successfully complete an examination pertinent to that course offering in order to receive credit for any class or classroom hour required as a prerequisite for a registration, license or certification in accordance with this rule.
(K) To establish successful completion of the education requirements prescribed in this rule, an applicant shall submit to the division of real estate a certificate, transcript, letter or other similar documentation properly issued from the entity at which the course or courses of education was completed. The superintendent of real estate may request supporting documentation to determine the acceptability of a particular course or courses.
(L) An applicant must meet the education requirements in this rule prior to being seated for the examination.
(M) The division shall not issue an initial license or certificate on or after January 1, 2009 unless the applicant has demonstrated compliance with paragraph (F), (G) or (H) of this rule.
(N) The division may approve an applicant to sit for an examination for a license or certificate if the applicant’s completed application for licensing or certification has been received at the Columbus office of the division before January 1, 2009 along with the required fee and associated documents who meets the requirements for licensing or certification as of the date of the division’s receipt of their application.
Replaces: Replaces 1301:11-3-03
Effective: 01/01/2007
R.C. 119.032 review dates: 06/30/2011
Promulgated Under: 119.03
Statutory Authority: 4763.03
Rule Amplifies: 4763.05
Prior Effective Dates: 12/1/1990, 11/15/1991, 5/7/1993, 9/10/1996, 3/20/1999, 6/21/2002
(A) Applicants seeking a state-licensed residential real estate appraiser license shall:
(1) Certify under oath that he or she has acquired two thousand hours of experience in real estate appraisal, and
(2) Furnish, under oath, a detailed listing of the appraisal reports or file memoranda for each year for which experience is claimed and, upon request of the superintendent or the board, make available samples of the appraisal reports prepared the applicant in the course of the applicant’s practice.
(3) The two thousand hours of experience required in (A)(1) of this section must be achieved over a period of not less than twenty-four months immediately preceding the initial filing of the application.
(4) The two thousand hours of experience required in paragraph (A)(1) of this rule must be achieved while registered as a state registered real estate appraiser assistant.
(5) Except as provided in paragraph (G) of this rule, the two thousand hours of experience required in paragraph (A)(1) of this rule must be achieved under the supervision of a state licensed or certified appraiser. The supervising appraiser must be in good standing with the board at all times during the supervisory period and for a period of two years prior to the commencement of the supervisory period.
(6) A state registered real estate appraiser assistant may have more than one but not more than three supervising appraisers.
(7) A licensed or certified appraiser may supervise not more than three state registered real estate appraiser assistants at any one time.
(8) An appraisal log shall be maintained by the state registered appraiser assistant and each supervising appraiser jointly. At a minimum the appraisal log must include the following information for each appraisal:
(a) Date of report;
(b) Type of assignment;
(c) Address of subject property;
(d) Property type, residential or general;
(e) Capacity, field or review;
(f) Number of actual work hours by the state registered appraiser assistant on the assignment; and
(g) The signature and state license or certification number of the supervising appraiser.
(9) The requirements of paragraphs (A)(4) and (A)(5) of this rule do not apply to experience hours achieved prior to March 1, 2005.
(10) The Board may, upon a finding that an applicant has achieved equivalent experience acceptable to the board, waive the requirements of paragraphs (A)(4) or (A)(5) of this rule.
(B) An applicant seeking a state-certified residential real estate appraiser certificate shall:
(1) Certify under oath that the applicant has acquired two thousand five hundred hours of experience in real estate appraisal, and
(2) Furnish, under oath, a detailed listing of the appraisal reports or file memoranda for each year for which experience is claimed and, upon request of the superintendent or the board, make available samples of the appraisal reports prepared by the applicant in the course of the applicant’s practice.
(3) The two thousand five hundred hours of experience required in paragraph (B)(1) of this rule must be achieved over a period of not less than twenty-four months immediately preceding the initial filing of the application.
(4) The two-thousand five hundred hours of experience required by paragraph (B)(1) of this section must be achieved while registered as a state registered real estate appraiser assistant or as a licensed appraiser.
(5) Experience obtained while a state registered real estate appraiser assistant must comply with paragraphs (A)(6), (A)(7) and (A)(8) of this rule.
(6) The requirements of paragraphs (B)(4) and (B)(5) of this rule to not apply to experience obtained prior to March 1, 2005.
(7) The board may, upon a finding that an applicant has obtained equivalent experience may waive the requirements of paragraphs (B)(4) or (B)(5) of this rule.
(C) An applicant seeking a state-certified general real estate appraiser certificate shall:
(1) Certify under oath that the applicant has acquired three thousand hours of experience in real estate appraisal, of which at least fifty per cent (one thousand five hundred hours) must have been acquired in connection with the appraisal of real estate other than the appraisal of residential real estate consisting of one to four units, and
(2) Furnish, under oath, a detailed listing of the appraisal reports or file memoranda for each year for which experience is claimed and, upon request of the superintendent or the board, make available a sample of the appraisal reports prepared by the applicant in the course of the applicant’s practice.
(3) The three thousand hours of experience required in (C)(1) of this section must be achieved over a period of not less than thirty months immediately preceding the initial filing of the application.
(4) The three-thousand hours of experience required in paragraph (C)(1) of this rule must be achieved while registered as a state registered real estate appraiser assistant, a state licensed appraiser or state certified appraiser.
(5) Experience obtained while a state registered real estate appraiser assistant must comply with paragraphs (A)(6), (A)(7) and (A)(8) of this rule.
(6) The requirements of paragraphs (C)(4) and (C)(5) of this rule do not apply to experience obtained prior to March 1, 2005.
(7) The board may, upon a finding that an applicant has obtained equivalent experience, waive the requirements of paragraphs (C)(4) or (C)(5) of this rule.
(D) For purposes of paragraphs (A) and (B) of this rule, acceptable appraisal experience shall include, but is not limited to, the following:
(1) Fee and staff appraisal,
(2) Ad valorem tax appraisal,
(3) Review appraisal,
(4) Appraisal analysis,
(5) Real estate value counseling when done in conjunction with written appraisal,
(6) Highest and best use analysis, and
(7) Feasibility analysis/study;
(E) For purposes of paragraphs (A)(2) and (B)(2) of this rule, listed appraisal reports and file memoranda must contain the following, where applicable:
(1) An adequate description of the property,
(2) Highest and best use,
(3) Physical, functional and economic factors affecting the value conclusion,
(4) Purpose, function, date of value, date of report,
(5) Definition of value,
(6) Direct sales comparison approach or market approach (must be addressed even if not used),
(7) Income approach (must be addressed even if not used),
(8) Cost approach or cost depreciation approach (must be addressed even if not used),
(9) Estimated land value,
(10) Final reconciliation,
(11) Special and limiting conditions, and
(12) Certification.
(F) All appraisal reports submitted relating to appraisals performed after January 1, 1993, must have been completed in compliance with the uniform standards of professional appraisal practice, as adopted by the appraisal standards board of the appraisal foundation to be considered as acceptable appraisal experience.
(G) Up to twenty-five percent of the experience hours required pursuant to this rule may be obtained for the actual number of hours worked on non-client appraisals, provided:
(1) The experience is obtained as part of a case study or practicum course that has been approved through the appraisal qualifications board course approval program and the course provider certifies the actual number of hours worked on appraisal development and reporting for actual subject properties, or
(2) The experience is obtained as part of a mentorship program that has been approved by the board and the mentor certifies the actual number of hours worked on appraisal development and reporting for actual subject properties.
(H) Upon request of the superintendent or board, all applicants must provide documentation in the form of reports, certifications, work files or other evidence to support experience claimed.
(I) An applicant must meet the experience requirement set forth in this rule prior to being seated for the examination.
HISTORY: Eff 12-1-90; 5-7-93; 9-10-96; 3-20-99; 3-1-05
Rule promulgated under: RC Chapter 119.
Rule authorized by: RC 4763.03
Rule amplifies: RC 4763.05
RC 119.032 review date: 6-29-01; 6-29-06
(A) On or after January 1, 2008, but before January 1, 2009, an applicant for a residential real estate appraiser license, a residential real estate appraiser certificate, or a general real estate appraiser certificate shall meet the education requirements as are required by rule 1301:11-3-03 of the Administrative Code at the time the applicant completes the education requirements, or on December 31, 2007, whichever is later; shall meet the experience requirements as are required by rule 1301:11-3-04 of the Administrative Code at the time the applicant completes the experience requirements, or on December 31, 2007, whichever is later; and shall successfully complete an examination in conformity with this rule in order to qualify for the license or certificate for which an application has been made.
(1) An applicant for a residential real estate appraiser license shall achieve a passing score, as designated by the real estate appraiser board, on an examination authorized for residential real estate appraiser license testing by the real estate appraiser board;
(2) An applicant for a residential real estate appraiser certificate shall achieve a passing score, as designated by the real estate appraiser board, on an examination authorized for residential real estate appraiser certificate testing by the real estate appraiser board; and
(3) An applicant for a general real estate appraiser certificate shall achieve a passing score, as designated by the real estate appraiser board, on an examination authorized for general real estate appraiser certificate testing by the real estate appraiser board.
(B) The superintendent of real estate, with the consent of the real estate appraiser board, may enter into agreements with recognized national testing services to administer the residential real estate appraiser licensure examination, the residential real estate appraisal certification examination and general real estate appraiser certification examination under the superintendent’s supervision and control, consistent with the requirements of Chapter 4763. of the Revised Code as to the contents of such examinations.
(C) An applicant must take the examination in accordance with the instructions provided by the testing vendor. The applicant shall have twelve months from the date of notification of testing eligibility, provided by the testing vendor, to pass the examination. The applicant must notify the division of any change in application status that occurs during the twelve month eligibility period that would affect the fitness of the applicant to take the examination, including but not limited to a criminal conviction, change of name or address.
(D) The examination for state certification as a general real estate appraiser and state-certification or licensure as a residential real estate appraiser shall include, but not be limited to, the following content areas:
(1) Influences on real estate value,
(2) Legal considerations in appraisal,
(3) Types of value,
(4) Economic principles,
(5) Real estate markets and analysis,
(6) Valuation process,
(7) Property description,
(8) Highest and best use analysis,
(9) Appraisal math and statistics,
(10) Sales comparison approach,
(11) Site value,
(12) Cost approach,
(13) Income approach,
(14) Valuation of partial interests,
(15) Appraisal standards and ethics, and
(16) Ohio real estate and appraisal laws and rules.
(E) An applicant will have only the twelve month eligibility period to successfully pass the examination. If the applicant fails to successfully pass the examination within the twelve month eligibility period, the applicant’s application file shall be closed and a new application, together with a new examination fee and initial certification or licensure fee, shall be required.
(F) Each applicant shall bring to the examination and submit to the examiner prior to being seated for the examination at least one form of government issued photo identification.
(G) The superintendent of real estate may waive the requirement of examination if an applicant can establish that he or she has achieved a passing score as specified in this rule in an appraiser license or certification examination approved by the appraiser qualifications board to qualify for an appraiser license or certification in another state and that the applicant is in good standing in that state.
Effective: 01/01/2007
R.C. 119.032 review dates: 06/30/2010
Promulgated Under: 119.03
Statutory Authority: 4763.03
Rule Amplifies: 4763.05
Prior Effective Dates: 12/7/1990, 5/7/1993, 2/6/1996, 9/10/1995, 12/15/1999
(A) Each temporary appraiser registration issued in accordance with division (E) of section 4763.05 of the Revised Code shall expire upon the completion of the work required by the appraisal assignment or specialized service.
(B) A temporary registration issued shall be expressly limited to a grant of authority to perform the appraisal assignment or specialized service required by the contract for appraisal services.
(C) The registration required in division (E) of section 4763.05 of the Revised Code shall be on a form prescribed by the superintendent of real estate and shall be accompanied by a fee specified in rule 1301:11-1-03 of the Administrative Code. The registration form shall include, but not be limited to, the following information:
(1) The applicant’s name, business address and such other information as may be necessary to identify the applicant,
(2) A statement issued by the appraiser licensing or certifying agency in the state upon which the applicant bases the application setting forth:
(a) The applicant’s name, business name and address;
(b) The type of license or certificate held by the applicants and the license or certificate number;
(c) The dates of licensure or certification and the expiration date of the applicant’s current license or certificate;
(d) A complete record of any disciplinary actions taken, and complaints or disciplinary proceedings pending against the applicant.
(3) Consent to service of process in Ohio.
(4) A statement that the applicant has read and agrees to abide by all appraiser laws and rules in this state and agrees to cooperate with any investigation initiated by the division of real estate or the appraisal board including supplying relevant documents and personally appearing before the board or the division’s investigators; and
(5) Information sufficient to identify the appraisal assignment of specialized service to be performed under the temporary practice registration, including the projected beginning and ending dates for performing such appraisal assignment or specialized service, but shall not require the applicant to divulge any information concerning the appraisal assignment which would breach the applicant’s duty of confidentiality to his client under the provisions of the uniform standards of professional appraisal practice.
(D) Persons granted a temporary registration under this rule shall not advertise or otherwise hold themselves out as being an Ohio state certified or state-licensed appraiser.
Effective: 01/01/2007
R.C. 119.032 review dates: 06/30/2010
Promulgated Under: 119.03
Statutory Authority: 4763.03
Rule Amplifies: 4763.05
Prior Effective Dates: 3/18/1993 (Emer.), 5/7/1993
Rescinded eff 1-1-07
(A) Within ten days of the date of filing an application for registration, licensure, or certification, an applicant shall submit fingerprints to the Ohio bureau of criminal identification and investigation [BCI&I] using a method authorized by BCI&I for a criminal records check pursuant to division (A)(1)(b) of section 4763.05 of the Revised Code and submit the results to the division of real estate and professional licensing within thirty days of the date of filing the application for registration, licensure, or certification. The applicant or licensee shall pay any required fee for the criminal records check and direct that the results be transmitted to the division of real estate and professional licensing.
(B) Failure to timely comply with the superintendent’s request may constitute just cause for the superintendent to close the applicant’s file and impose a forfeiture of any application fee.
Effective: 05/14/2007
R.C. 119.032 review dates: 06/30/2011
Promulgated Under: 119.03
Statutory Authority: 4735.03
Rule Amplifies: 4735.05