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

EMERGENCY RULES

Chapter 2:  REQUIREMENTS FOR LICENSURE AS A REAL ESTATE APPRAISER

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of emergency 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.

Section 1.	Statement of Basis and Authority
Section 2. 	Scope and Purpose
Section 3.	Applicability
Section 4. 	Chapter 2 Requirements for Licensure as a Real Estate Appraiser
Section 5. 	Effective Date

Section 1. 	Statement of Basis and Authority

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

Section 2.	Scope and Purpose

The Colorado Board of Real Estate Appraisers finds that immediate adoption of these emergency rules is imperatively necessary to comply with state law (§12-61-701, C.R.S., et seq., the Real Estate Appraiser Licensing Act) and for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of § 24-4-103, C.R.S., applicable to non-emergency rules, would be contrary to the public interest.

As a result of the adoption of new Real Property Appraiser Qualification Criteria by the Appraisal Qualifications Board of The Appraisal Foundation, it is imperative that the Board of Real Estate Appraisers revise the existing rules to be in compliance with these qualification criteria and applicable statutes.  These qualification criteria changes go into effect on May 1, 2018.  

The purpose of these emergency rules is to ensure compliance with Section 12-61-701, C.R.S., et. seq.  The purpose of these emergency rules is also to effectuate the legislative directive to promulgate necessary and appropriate rules for the implementation of part 7 of Title 12, Article 61.

The specific purpose of the emergency rules is to amend or repeal the existing rules regarding the licensure requirements and standards for real estate appraisers in Colorado.  

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Without the immediate adoption of the emergency rules, the public’s interest is not served.  Wherefore, the Board of Real Estate Appraisers, pursuant to § 24-4-103(6), C.R.S., has an obvious and stated need to adopt these emergency rules.

Section 3.	Applicability

The emergency rules govern real estate appraisers who are subject to the requirements of Part 7 of Title 12, Article 61 of the Colorado Revised Statutes.

Section 4.	

CHAPTER 2:	REQUIREMENTS FOR LICENSURE AS A REAL ESTATE APPRAISER

2.2	An Applicant for licensure as a Colorado Licensed Appraiser must successfully complete the following requirements or the substantial equivalent thereof, as set forth in the Real Property Appraiser Qualification Criteria as defined and incorporated by reference in Board Rule 1.32:
A.	Real estate appraisal education:
1.	Basic Appraisal Principles: 30 hours;
2.	Basic Appraisal Procedures: 30 hours;
3.	15-Hour National USPAP Course: 15 hours;
4.	Residential Market Analysis and Highest and Best Use: 15 hours;
5.	Residential Appraiser Site Valuation and Cost Approach: 15 hours;
6.	Residential Sales Comparison and Income Approaches: 30 hours; and
	7.	Residential Report Writing and Case Studies: 15 hours.
B.	Real estate appraisal experience: An Applicant must demonstrate to the satisfaction of the Board that the Applicant completed at least one thousand (1,000) hours of appraisal experience in no fewer than six (6) months, in conformance with the provisions of Chapter 5 of these Rules and all of the Applicant’s experience was obtained after January 30, 1989 and in compliance with the USPAP. 
C.	Real estate appraisal examination:
1.	The prerequisites to taking the Licensed Appraiser examination are:
a.	One hundred fifty (150) creditable class hours as specified in Board Rule 2.2(A); and
b.	One thousand (1,000) hours of qualifying experience completed in no fewer than six (6) months.
2.	After receiving approval from the Board, an Applicant, who is not currently licensed or certified and in good standing in another jurisdiction, has up to twenty-four (24) months to take and pass the Licensed Appraiser examination.
3.	An Applicant must successfully complete the Licensed Appraiser examination as provided in Chapter 4 of these Rules. The only alternative to successful completion of the Licensed Appraiser examination is the successful completion of the Certified Residential Appraiser or Certified General Appraiser examination.
2.3 	An Applicant for licensure as a Colorado Certified Residential Appraiser must successfully complete the following requirements or the substantial equivalent thereof, as set forth in the Real Property Appraiser Qualification Criteria as defined and incorporated by reference in Board Rule 1.32:
A.	Real estate appraisal education:
1.	Basic Appraisal Principles: 30 hours;
2.	Basic Appraisal Procedures: 30 hours;
3.	15-hour National USPAP Course: 15 hours;
4.	Residential Market Analysis and Highest and Best Use: 15 hours;
5.	Residential Appraiser Site Valuation and Cost Approach: 15 hours;
6.	Residential Sales Comparison and Income Approaches: 30 hours;
7.	Residential Report Writing and Case Studies: 15 hours;
8.	Statistics, Modeling and Finance: 15 hours;
9.	Advanced Residential Applications and Case Studies: 15 hours; and
10.	Appraisal Subject Matter Elective: 20 hours.
B.	College-level or in lieu of education options:
	1.	An Applicant for the Certified Residential Appraiser credential must satisfy at least one (1) of the following six (6) options:
		a.	Hold a Bachelor’s Degree in any field of study from an accredited college or university as defined by Board Rule 1.30;
		b.	Hold an Associate’s Degree from an accredited college or university as defined by Board Rule 1.30, in a field of study related to: 
			i.	Business Administration; 
			ii.	Accounting; 
			iii.	Finance; 
			iv.	Economics; or 
			v.	Real Estate.
		c.	Successful completion of thirty (30) semester hours of college-level courses that cover each of the following specific topic areas and hours:
			i.	English Composition (3 semester hours);
			ii.	Macroeconomics (3 semester hours);
			iii.	Microeconomics (3 semester hours);
			iv.	Finance (3 semester hours);
			v.	Algebra, Geometry, or higher mathematics (3 semester hours);
			vi.	Statistics (3 semester hours);
			vii.	Computer Science (3 semester hours);
			viii.	Business Law or Real Estate Law (3 semester hours); and
			ix.	Two (2) elective courses in any of the topics listed above or in Accounting, Geography, Agricultural Economics, Business Management, or Real Estate (3 semester hours each).
		d.	Successful completion of at least thirty (30) semester hours of 
			examinations created and administered by the CLEP, as defined in 
			Board Rule 1.43, from each of the following specific subject matter areas 
			and hours:
			i. 	College Algebra (3 semester hours);
			ii.	College Composition (6 semester hours);
			iii.	College Composition Modular (3 semester hours);
			iv.	College Mathematics (6 semester hours);
			v.	Principles of Macroeconomics (3 semester hours);
			vi.	Principles of Microeconomics (3 semester hours);
			vii.	Introductory Business Law (3 semester hours); and
			viii.	Information Systems (3 semester hours).
		e.	Any combination of Board Rule 2.3(B)(1)(c) and Board Rule (B)(1)(d) 
			above that ensures coverage of all topics and hours identified in Board 
			Rule (B)(1)(c).
		f.	As an alternative to the college-level education requirements in Board 
			Rule (B)(1)(a through e) above, an Applicant that has held a Licensed 
			Appraiser credential for a minimum of five (5) years may qualify for a 
			Certified Residential Appraiser credential if the Applicant has had no 
			record of any adverse, final, and non-appealable disciplinary action 
			affecting the Licensed Appraiser’s legal eligibility to engage in appraisal 
			practice within the five (5) years immediately preceding the date of 
			application for a Certified Residential Appraiser credential.
	2.	All college-level education must be obtained from a degree-granting
		institution by the Commission on Colleges, a national or regional 
		accreditation association, or by an accrediting agency that is recognized by 
		the US Secretary of Education.
3.	An Applicant with a college degree from a foreign country may have their education evaluated for “equivalency” by one of the following:
a.	An accredited, degree-granting domestic college or university;
b.	A foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES); or
c.	A foreign degree credential evaluation service company that provides equivalency evaluation reports accepted by an accredited degree- granting domestic college or university or by a state licensing board that issues credentials in another discipline.
C.	Real estate appraisal experience: An Applicant for licensure as a Certified Residential Appraiser must demonstrate to the satisfaction of the Board that the Applicant completed at least one thousand five hundred (1,500) hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the Applicant’s experience was obtained after January 30, 1989 and in compliance with the USPAP. Real estate appraisal experience must have been gained across a period of not less than twelve (12) months.
D.	Real estate appraisal examination:
1.	The prerequisites to taking the Certified Residential Appraiser examination are:
a.	Two hundred (200) creditable class hours as specified in Board Rule 2.3(A);
b.	Completion of the college-level education option requirements as specified in Board Rule 2.3(B); and
c.	One thousand five hundred (1,500) hours of qualifying experience completed in no fewer than twelve (12) months.
2.	After receiving approval from the Board, an Applicant, who is not currently licensed or certified and in good standing in another jurisdiction, has up to twenty-four (24) months to take and pass the Certified Residential Appraiser examination.
	3.	An Applicant must successfully complete the Certified Residential Appraiser examination as provided in Chapter 4 of these Rules. The only alternative to successful completion of the Certified Residential Appraiser examination is the successful completion of the Certified General Appraiser examination.
2.4	An Applicant for licensure as a Colorado Certified General Appraiser must successfully complete the following requirements or the substantial equivalent thereof, as set forth in the Real Property Appraiser Qualification Criteria as defined and incorporated by reference in Board Rule 1.32:
A.	Real estate appraisal education:
1.	Basic Appraisal Principles: 30 hours;
2.	Basic Appraisal Procedures: 30 hours;
3.	15-Hour National USPAP Course: 15 hours;
4.	General Appraiser Market Analysis and Highest and Best Use: 30 hours;
5.	Statistics, Modeling and Finance: 15 hours;
6.	General Appraiser Sales Comparison Approach: 30 hours;
7.	General Appraiser Site Valuation and Cost Approach: 30 hours;
8.	General Appraiser Income Approach: 60 hours;
9.	General Appraiser Report Writing and Case Studies: 30 hours; and
10.	Appraisal Subject Matter Electives: 30 hours.
B.	College-level education:
	1.	An Applicant for the Certified General Appraiser credential must hold a Bachelor’s degree, or higher, from an accredited college or university as defined by Board Rule 1.30.
2.	An Applicant with a college degree from a foreign country may have their education evaluated for “equivalency” by one of the following:
		a.	An accredited, degree-granting domestic college or university;
b.	A foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES); or
c.	A foreign degree credential evaluation service company that provides equivalency evaluation reports accepted by an accredited degree-granting domestic college or university or by a state licensing board that issues credentials in another discipline.
C.	Real estate appraisal experience: An Applicant for licensure as a Certified General Appraiser must demonstrate to the satisfaction of the Board that the Applicant completed at least three thousand (3,000) hours of appraisal experience, of which one thousand five hundred (1,500) hours must be in non-residential appraisal work, in conformance with the provisions of Chapter 5 of these Rules and all of the Applicant’s experience was obtained after January 30, 1989 and in compliance with the USPAP. Real estate appraisal experience must have been gained across a period of not less than eighteen (18) months.
D.	Real estate appraisal examination:
1.	The prerequisites to taking the Certified General Appraiser examination are:
a.	Three hundred (300) creditable class hours as specified in Board Rule 2.4(A);
b.	Completion of the college-level education requirements as specified in Board Rule 2.4(B); and
c.	Three thousand (3,000) hours of qualifying experience, of which no less than one thousand five hundred (1,500) hours must be in non-residential appraisal work, completed in no fewer than eighteen (18) months.
2.	After receiving approval from the Board, an Applicant, who is not currently licensed or certified and in good standing in another jurisdiction, has up to twenty-four (24) months to take and pass the Certified General Appraiser examination.
3.	An Applicant must successfully complete the Certified General Appraiser examination as provided in Chapter 4 of these Rules.

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Section 5.	Effective Date

These emergency rules are effective May 1, 2018.