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

CHAPTER 1:	DEFINITIONS

1.1	The Appraisal Foundation (TAF): An 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 TAF: 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 TAF: The ASB develops, interprets, and amends the USPAP.

1.4	Examination: The examination(s) developed by or contracted for the Board and issued or approved by the AQB, if applicable.

1.5	FIRREA: The Financial Institutions Reform, Recovery and Enforcement Act of 1989 as amended.

1.6	Board: The Colorado Board of Real Estate Appraisers created and further defined pursuant to section 12-61-703, C.R.S.

1.7	Applicant: Any person applying for a license or Temporary Practice Permit.

1.8	Initial License: The first license granted by the Board to an applicant pursuant to section 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 these Rules. An initial license is valid through December 31 of the year of issuance.

1.9	Colorado Real Estate Appraiser Licensing Act: That portion of Colorado statutes known as sections 12-61-701 through 723, et seq., C.R.S. as amended.

1.10	Uniform Standards of Professional Appraisal Practice (USPAP): Those standards of professional practice promulgated by the ASB of TAF. Pursuant to section 12-61-713(1)(g), C.R.S. as amended, the Board adopts, and incorporates by reference in compliance with section 24-4-103(12.5), C.R.S., as the generally accepted standards of professional appraisal practice the Definitions, Preamble, Rules, Standards, and Standards Rules of the USPAP as promulgated by the ASB of TAF on January 30, 1989 and amended through February 6, 2015 and known as the 2016-2017 edition. Amendments to the USPAP subsequent to February 6, 2015 are not included in this Board Rule 1.10. A certified copy of the USPAP is on file and available for public inspection at the Office of the Board at 1560 Broadway, Suite 925, Denver, Colorado 80202. Copies of the USPAP adopted under this Rule may be examined at any state publications depository library. The 2016-2017 edition of the USPAP may be examined at the Internet website of TAF at www.appraisalfoundation.org, and copies may be ordered through that mechanism. TAF may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or by telefax at (202) 347-7727.

1.11	Board Rules or Rules: Those rules adopted by the Board pursuant to the Colorado Real Estate Appraiser Licensing Act.

1.13	Licensed Appraiser: A person who has been granted a license pursuant to section 12-61-706(1)(b)(IV), 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 jurisdiction as provided by Chapter 9 of these Rules. The scope of practice for the Licensed Appraiser is limited to, 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 section12-61-706(4), C.R.S. For non-federally related transactions, the scope of practice may include 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. In compliance with Board Rule 1.16, the scope of practice 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.

1.14	Certified Residential Appraiser: A person who has been granted a license pursuant to section 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 jurisdiction as provided by Chapter 9 of these Rules. The scope of practice for the Certified Residential Appraiser is limited to, if competent for the assignment, appraisal of one to four unit residential properties without regard to transaction value or complexity, or as allowed by section 12-61-706(4), 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 section 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 jurisdiction as provided by Chapter 9 of these Rules. The scope of practice for the Certified General Appraiser will be, if competent for the assignment, appraisal of all types of real property.

1.17	Non Residential Property: Properties other than those comprised of one to four residential units and building sites suitable for development to one to four residential units. Non-residential property includes, without limitation, properties comprised of five or more dwelling units, farm and ranch, retail, manufacturing, warehousing, office properties, large vacant land parcels, and other properties not within the definition of residential property.

1.18	Temporary Practice Permit: A permit issued pursuant to section 12-61-711(3), C.R.S. as amended and Chapter 10 of these Rules allowing an appraiser licensed or certified in another jurisdiction to appraise property in Colorado under certain conditions without obtaining Colorado licensure.

1.21	Licensee: A collective term used to refer to a person who has been licensed by the Board as a Licensed Ad Valorem Appraiser, Licensed Appraiser, Certified Residential Appraiser, or Certified General Appraiser.

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.

1.24	Signature: As defined in the USPAP incorporated by reference in Board Rule 1.10, and including all methods of indicating a signature, such as, without limitation, a handwritten mark, digitized image, coded authentication number, stamped impression, embossed or applied seal, or other means.

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 fifteen (15) classroom hours in length and must include an examination.

1.28	Transaction value: For purposes of these Rules transaction value means:

A.	For appraisal assignments carried out as part of a loan transaction, the amount of the loan; or

B.	For appraisal assignments carried out for other than a loan transaction, the market value of the real property interest.

1.29	Appraisal (Valuation) Process: The analysis of 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 USPAP.

1.32	Real Property Appraiser Qualification Criteria: Pursuant to section 12-61-706 (1) and (2), C.R.S. as amended, the Board incorporates by reference in compliance with section 24-4-103(12.5), C.R.S., the 2015 Real Property Appraiser Qualification Criteria adopted by the AQB of TAF on December 9, 2011, including the Required Core Curricula, Guide Notes, Interpretations thereof, and section VI, background checks of the criteria applicable to all real property appraiser classifications. A certified copy of the 2015 Real Property Appraiser Qualification Criteria is on file and available for public inspection at the Office of the Board at 1560 Broadway, Suite 925, Denver, Colorado 80202. Copies of the 2015 Real Property Appraiser Qualification Criteria may be examined at the Internet website of TAF at www.appraisalfoundation.org, and copies may be ordered through that mechanism. TAF may also be contacted at 1155 15th Street, NW, Suite 1111, Washington, DC 20005, or by telephone at (202) 347-7722 or telefax at (202) 347-7727. The 2015 Real Property Appraiser Qualification Criteria went into effect on January 1, 2015 with the exception of section IV which went into effect on January 1, 2017.

1.33	Credential Upgrade: A licensee, who has been granted a license pursuant to section 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.

1.37	Ad Valorem Appraiser: A person who has been granted a license pursuant to section 12-61-706(1)(b)(III), C.R.S. as a licensed Ad Valorem Appraiser by the Board as a result of meeting the real estate appraisal education and examination requirements established by Board Rule 2.9. A licensed Ad Valorem Appraiser cannot conduct appraisal assignments outside the scope of the appraiser’s official duties as a County Assessor, an employee of a County Assessor’s Office, or as an employee with the Division of Property Taxation within the Department of Local Affairs.

1.38	Review Appraiser: An appraiser, who is actively credentialed in a jurisdiction in compliance with Title XI, FIRREA, who performs a review of another appraiser’s work subject to USPAP Standard 3. A review appraiser is not required to obtain a Colorado appraiser’s license unless the review appraiser arrives at his or her own opinion of value for real property located in Colorado.

1.39	The Course Approval Program (CAP) of TAF: A voluntary program established by the AQB to provide a minimum level of acceptance for real property appraisal education courses satisfying the Real Property Appraiser Qualification Criteria as defined in Board Rule 1.32.

1.40	Division of Real Estate (Division):  Has the same meaning as set forth in section 12-61-702(8), C.R.S.

1.41. 	Director of the Division (Director):  Has the same meaning as set forth in section 12-61-702(7), C.R.S.