DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
May 2, 2013

CHAPTER 15:	SUPERVISION OF TRAINEE APPRAISERS

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Chapter 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to clarify the requirements of supervising and trainee appraisers. 

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 15:	SUPERVISION OF TRAINEE APPRAISERS

15.1 SUPERVISORY APPRAISERS SHALL BE RESPONSIBLE FOR THE TRAINING, GUIDANCE, AND DIRECT SUPERVISION OF THE TRAINEE APPRAISER BY:
A. ACCEPTING RESPONSIBILITY FOR THE APPRAISAL BY SIGNING AND CERTIFYING THE APPRAISAL COMPLIES WITH USPAP;
B.  REVIEWING AND SIGNING THE TRAINEE APPRAISER APPRAISAL REPORT(S); AND
C.  PERSONALLY INSPECTING EACH APPRAISED PROPERTY WITH THE TRAINEE APPRAISER UNTIL THE SUPERVISORY APPRAISER DETERMINES THE TRAINEE APPRAISER IS COMPETENT TO INSPECT THE PROPERTY, IN ACCORDANCE WTIHT THE COMPETENCY RULE OF USPAP FOR THE PROPERTY TYPE.

15.2 SUPERVISORY APPRAISERS MUST COMPLY WITH THE COMPETENCY RULES OF USPAP FOR THE PROPERTY TYPE AND GEOGRAPHIC LOCATION THE TRAINEE IS BEING SUPERVISED.

15.3 SUPERVISORY APPRAISERS MAY NOT SUPERVISE MORE THAN THREE (3) TRAINEE APPRAISERS AT ONE TIME.  

15.4 AN APPRAISAL EXPERIENCE LOG SHALL BE MAINTAINED JOINTLY BY THE SUPERVISORY APPRAISER AND THE TRAINEE APPRAISER.  IT IS THE RESPONSIBILITY OF BOTH THE SUPERVISORY APPRAISER AND TRAINEE APPRAISER TO ENSURE THE EXPERIENCE LOG IS ACCURATE, CURRENT AND COMPLIES WITH THE REQUIREMENTS OF THE TRAINEE APPRAISER’S CREDENTIALING JURISDICTION.  AT A MINIMUM, THE APPRAISAL LOG REQUIREMENTS MUST INCLUDE:
	A.  TYPE OF PROPERTY;
	B.  DATE OF REPORT;
	C.  ADDRESS OF APPRAISED PROPERTY;
D. DESCRIPTION OF WORK PERFORMED BY THE TRAINEE APPRAISER AND THE SCOPE OF THE REVIEW AND SUPERVISION OF THE SUPERVISORY APPRAISER;
E. NUMBER OF ACTUAL WORK HOURS BY THE TRAINEE APPRAISER ON THE ASSIGNMENT; AND
F. THE SIGNATURE AND STATE CERTIFICATION NUMBER OF THE SUPERVISORY APPRAISER.  SEPARATE APPRAISAL LOGS SHALL BE MAINTAINED FOR EACH SUPERVISORY APPRAISER, IF APPLICABLE;

15.5 SUPERVISORY APPRAISERS SHALL BE REQUIRED TO COMPLETE A COURSE THAT, AT A MINIMUM, COMPLIES WITH THE SPECIFICATIONS FOR COURSE CONTENT ESTABLISHED BY THE APPRAISAL QUALIFICATIONS BOARD, WHICH IS SPECIFICALLY ORIENTED TO THE REQUIREMENTS AND RESPONSIBILITIES OF SUPERVISORY APPRAISERS AND TRAINEE APPRAISERS.  THE COURSE IS TO BE COMPLETED BY THE SUPERVISORY APPRAISER PRIOR TO SUPERVISING A TRAINEE APPRAISER.

A hearing on the above subject matter will be held on Thursday, May 2, 2013, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.