Department of Labor

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Department of Labor Economic GrowthBureau of
Commercial ServicesLicensing Division

• Real Estate Appraiser Licensing

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Contents

• Application Submission Review Process
• Current AQB Qualification CriteriaMichigan
  Requirements
• 2008 AQB Qualification CriteriaMI Requirements
  in 2008
• Continuing Education Requirements
• Renewing a License/Relicensure
• Use of Limited Real Estate Appraisers
• Miscellaneous Updates

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Application Submission Review Process

• Application Submission
• Complete and submit application to the department
  with application fee along with the following
• Course completion certificates
• Experience log
• Sample appraisal reports

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Application Submission Review Process (cont)

• Review Process
• Up to 30 days for first review
• After first review completed, random appraisal
  reports selected and requested
• After random reports reviewed and approved, AMP
  notified of approval and exam approval letter
  mailed to applicant

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Current AQB Qualification CriteriaMichigan REA
Requirements

• All levels of licensure
• 18 years of age
• Good moral character--having the ability, and
  likely to, serve the public in a fair, honest and
  open manner
• Limited Real Estate Appraiser
• 75 hours of appraisal prelicensure education
  including the 15-hour National USPAP course

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Current AQB Qualification CriteriaMichigan REA
Requirements (cont)

• State Licensed Real Estate Appraiser
• 90 hours of appraisal prelicensure education
  including the 15-hour National USPAP
• 2000 hours of appraisal experience including 1500
  hours of residential experience
• Successful completion of the state exam

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Current AQB Qualification CriteriaMichigan REA
Requirements (cont)

• Certified Residential Real Estate Appraiser
• 120 hours of appraisal prelicensure education
  including the 15 hour National USPAP and a course
  covering narrative report writing
• 2,500 hours of appraisal experience including
  2000 hours of residential experience obtained
  over a minimum of 24 months
• Successful completion of the state exam

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Current AQB Qualification CriteriaMichigan REA
Requirements (cont)

• Certified General Real Estate Appraiser
• 180 hours of appraisal prelicensure education
  including the 15-hour National USPAP, a course
  covering narrative report writing and at least 90
  hours of non-residential coursework
• 3000 hours of appraisal experience including at
  least 1500 hours of non-residential experience
  obtained over a minimum of 30 months
• Successful completion of the state exam

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2008 AQB Qualification CriteriaMI Requirements
in 2008

• ImplementationFirm Date 1/1/08
• In order to meet current (prior to 1/1/08)
  experience requirements, experience must have
  commenced by
• Certified GeneralJuly 2005
• Certified ResidentialJanuary 2006
• State LicensedJanuary 2007

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2008 AQB Qualification CriteriaMI Requirements
in 2008 (cont)

• Applications received by December 31, 2007
• Meet current education and experience
  requirements
• Successfully complete current exam if completing
  exam prior to 2008 or
• Successfully complete 2008 National exam if
  completing exam after January 1, 2008
• If exam is not completed within one year of
  approval, applicant must reapply and then meet
  2008 criteria.

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2008 AQB Qualification CriteriaMI Requirements
in 2008 (cont)

• Applications received after December 31, 2007
  must meet all 2008 requirements including
• Education
• Experience
• Appraisal experience may accrue for limited real
  estate appraisers experience gained under state
  licensed appraisers by December 31, 2007.
  However, beginning January 1, 2008, any balance
  of experience required must be under certified
  residential or certified general appraisers.
• National Exam

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Michigan Real Estate Appraisers

• Limited
• 2046 active licensees
• State Licensed
• 2182 active licensees
• Certified Residential
• 443 active licensees
• Certified General
• 1019 active licensees

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In lieu of an associate degree, an applicant for
Certified Residential must successfully pass the
following collegiate subject matter courses from
an accredited college, junior college, community
college or university for a total of 21 semester
credit hours

1. English Composition
2. Principles of Economics (Micro or Macro)
3. Finance
4. Algebra, Geometry, or higher mathematics
5. Statistics
6. Introduction to ComputersWord Processing/spreadsh
   eets and
7. Business or Real Estate Law.

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In lieu of a bachelor degree, an applicant for
Certified General must successfully pass the
following collegiate subject matter courses from
an accredited college, junior college, community
college or university for a total of 30 semester
credit hours

• English Composition
• Micro Economics
• Macro Economics
• Finance
• Algebra, Geometry, or higher mathematics
• Statistics
• Introduction to ComputersWord Processing/spreadsh
  eets
• Business or Real Estate Law and
• Two elective courses in accounting, geography,
  ag-economics, business management, or real
  estate.
•  

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Continuing Education Requirements

• When con ed is not required
• Limited Licensees until after 2nd renewal (This
  changes January 1, 2008, requiring 14 hours of
  con ed beginning with the third year of
  licensure.)
• Licensees upgrading1st renewal after upgrade
• 28 hours total, including
• 7-hour National USPAP every cycle (2 years)
• 2-hour Michigan Law every other cycle (4 years)

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Continuing Education Requirements (cont)

• Information available on website
  www.michigan.gov/appraisers
• Check course approval status
• Check continuing education credit received
• Reporting continuing education
• Education Sponsors Responsibility
• FAX ATTN Peggy Waugh [phone]
• MAIL TO DLEG, BCS, Licensing Division, Attn
  Testing Education Services, P.O. Box 30018,
  Lansing, MI 48909

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Renewing a License/Relicensure

• Renewal Fees (250 limited/350 SL, CR, CG)
• Deadline/Grace Period (8/1 to 9/29)
• Must meet continuing education requirements
• Relicensure Requirements
• Fees (180 limited/230 SL, CR, CG)
• 14 hours of continuing education within last 12
  months
• Relicensure (for licenses expired more than 60
  days) after January 1, 2008 must meet all 2008
  AQB Criteria

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Use of Limited Real Estate Appraisers

• Administrative Rule 403(1)(a)A limited real
  estate appraiser may perform appraisal services
  appraise properties that are not federally
  related transactions or real estate related
  financial transactions  
• Section 2607(7) of the Michigan Occupational
  CodeAn appraisal performed by a limited real
  estate appraiser (non-real estate related
  financial transaction) must be co-signed by the
  supervisor (state licensed, certified
  residential, or certified general)

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Use of Limited Real Estate Appraisers (cont)

• Standards Rule 2-3USPAP Certification--The names
  of individuals providing significant real
  property appraisal assistance who do not sign a
  certification must be stated in the certification.

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Miscellaneous Updates

• Increased board meetings to four per year
• March 27, 2007
• June 19, 2007
• September 18, 2007
• December 4, 2007