[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4CCR 725-2

CHAPTER 1: DEFINITIONS

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.  The General Assembly passed Senate Bill 90-34, effective July 1, 1990, which created the Board and mandated the licensing of real estate appraisers under the statutory terms and conditions.  The General Assembly has variously amended the statutes by passing House Bill 92-1177, House Bill 96-1080, Senate Bill 97-90, House Bill 97-1056, House Bill 00-1137 and House Bill 02-1130.

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 amend or repeal existing rules with respect to definitions. 

Proposed New, Amended and Repealed Rules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 1:	DEFINITIONS
1.1	The Appraisal Foundation (TAF):  TAF is the organization that is the source of appraisal standards, qualifications and ethical conduct in all valuation disciplines to assure public trust in the valuation profession. 
1.2	Appraisal Qualifications Board (AQB) of The Appraisal Foundation:  The AQB establishes the minimum education, experience and examination requirements for real property appraisers to obtain state certifications.  In addition, the AQB performs a number of ancillary duties related to real property and personal property appraiser qualifications.
1.3	Appraiser Standards Board (ASB) of The Appraisal Foundation:  The ASB develops, interprets and amends the Uniform Standards of Professional Appraisal Practice (USPAP).
1.6	Board:  The Colorado Board of Real Estate Appraisers created and further defined pursuant to §12-61-703, C.R.S.
1.8	Initial License:  The first license granted by the Board to an applicant pursuant to §12-61-706, C.R.S.  An applicant may apply for an initial license at any credential level as long as all requirements for such credential level have been met pursuant to Chapter 3 of these Rules.  An initial license is valid through December 31 of the year of issue.
1.10	Uniform Standards of Professional Appraisal Practice (USPAP):  Those standards of professional practice promulgated by the Appraisal Standards Board of The Appraisal Foundation and adopted in Chapter 11 of these Rules through incorporation by reference. 
1.12	Registered (Trainee) Appraiser:  A Registered Appraiser is a trainee who has been granted a license pursuant to §12-61-706(1)(b)(IV), C.R.S. as a Registered Appraiser by the Board as a result of meeting the real estate appraisal education and examination requirements established by Board Rule 2.1, The AQB, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules. The scope of practice for the Registered or Trainee Appraiser shall be those properties that the supervising appraiser is permitted and competent to appraise, or as allowed by §12-61-706(5), C.R.S.
1.13	Licensed Appraiser:  A person who has been granted a license pursuant to §12-61-706(1)(b)(III), C.R.S. as a Licensed Appraiser by the Board as a result of meeting the real estate appraisal education, experience, and examination requirements established by Board Rule 2.2, the AQB, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules.  The usual scope of practice for the Licensed Appraiser shall be, if competent for the assignment, appraisal of non-complex one to four unit residential properties having a transaction value of less than $1,000,000 and complex one to four unit residential properties having a transaction value of less than $250,000, or as allowed by §12-61-706(5), C.R.S.
1.14	Certified Residential Appraiser:  A person who has been granted a license pursuant to §12-61-706(1)(b)(II), C.R.S. as a Certified Residential Appraiser by the Board as a result of meeting the real estate appraisal education, experience, and examination requirements established by Board Rule 2.3, the AQB, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules.  The usual scope of practice for the Certified Residential Appraiser shall be, if competent for the assignment, appraisal of one to four unit residential properties without regard to transaction value or complexity, or as allowed by §12-61-706(5), C.R.S.  Such scope of practice includes vacant or unimproved land that is to be used for development for a one to four unit residential property, or vacant or unimproved land for which the highest and best use is a one to four unit residential property.  The scope of practice for a Certified Residential Appraiser does not include vacant or unimproved land that has the potential for subdivision development for which the subdivision development analysis method of land valuation is necessary and applicable.
1.15	Certified General Appraiser:  A person who has been granted a license pursuant to §12-61-706(1)(b)(I), C.R.S. as a Certified General Appraiser by the Board as a result of meeting the real estate appraisal education, experience, and examination requirements established by Board Rule 2.4, the AQB, or as a result of licensure through endorsement from another state as provided by Chapter 9 of these Rules.  The scope of practice for the Certified General Appraiser shall be, if competent for the assignment, appraisal of all types of real property.  
1.20	Contingent Fee:  Compensation paid to a person who is licensed as a registered, licensed or certified appraiser, as a result of reporting a predetermined value or direction of value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the appraiser’s opinion and specific to the assignment’s purpose.  A person licensed as a registered, licensed or certified appraiser employed by a business entity which is compensated by a contingent fee is considered to be compensated by a contingent fee.
1.22	Distance Education:  Educational methodologies and presentation techniques other than traditional classroom formats, including and without limitation, live teleconferencing, written or electronic correspondence courses, internet on-line learning, video and audio tapes.
1.25	Supervisory Appraiser:  Any active licensee who acts in a supervisory role in the development and reporting of appraisals, appraisal reports, and other appraisal work products.  Includes, without limitation, any licensee who signs a report in a manner indicating they exert control over the action of any Trainee or Licensee, or who acts to guide or manage the work of any Trainee or Licensee.  A supervisory appraiser is required to be in good standing with the Board, with no disciplinary actions taken against the supervising licensee’s license during the three years preceding the period of supervision.
1.26	Qualifying Education:  Real estate appraisal education courses completed for credit toward the licensing requirements set forth in Chapter 2 of these Rules and meeting the requirements of Chapter 3 of these Rules.  Qualifying education courses must be at least 15 classroom hours in length and must include an examination.
1.27	Continuing Education:  Real estate and real estate appraisal related courses completed for credit toward meeting the continuing education requirements set forth in Chapter 7 of these Rules. 
1.29	Appraisal (Valuation) Process:  The analysis of economic factors that create value to develop an opinion of value.  Steps in the analytical process are:  defining the problem; determining an appropriate scope of work; gathering and analyzing general and specific data; applying the appropriate analyses, procedures and methodology; the application of reconciliation criteria to reach a final defined value opinion; and correctly reporting that opinion in compliance with the uniform standards of professional appraisal practice.
1.31	REPEALED.
1.33	Credential Upgrade:  A licensee, who has been granted a license pursuant to §12-61-706, C.R.S., may submit an application to the Board requesting an upgrade of the licensee’s credential if the licensee has completed the real estate appraisal education, experience, and examination requirements as defined in Chapter 2 of these Rules for the credential for which the licensee is applying.  If the Board grants the requested credential, the upgraded license will expire on the same date of the licensee’s current license cycle, prior to the upgrade.
1.36	Good Standing:  Not having been subject to a stipulation and final agency order, or a final agency order for a period of five years, or had a license revoked or permanently surrendered for any of the violations enumerated under §§12-61-710 or 12-61-712, C.R.S. A license will be considered to be in good standing five years following the execution of the stipulation and final order, or the final agency order, and upon successful completion of all terms.  If a licensee has an executed stipulation for diversion, the license will not be in good standing with the Board until all terms of the stipulated agreement have been successfully completed.