Tenn. Comp. R. & Regs. 1255 — Real Estate Appraiser

Chapter 1255-01 General Provisions

Tenn. Comp. R. & Regs. 1255-01-.01 PURPOSE

The Tennessee Real Estate Appraiser Commission’s purpose in promulgating these rules is to implement the provisions of the State Licensing and Certified Real Estate Appraisers Law (the “Act”), T.C.A., Title 62, Chapter 39, as amended by 1991 Public Acts, Chapter 366, in a manner consistent with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Title 12 United States Code, §§ 93, et seq. The Commission is authorized by T.C.A. § 62-39- 333(a), to promulgate such rules as may be necessary to ensure compliance with FIRREA and other applicable law.

History

Authority: T.C.A. §§ 62-39-203 and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991.

Tenn. Comp. R. & Regs. 1255-01-.02 DEFINITIONS

(1) “Act” means the State Licensing and Certified Real Estate Appraisers Law, Tennessee Code Annotated, Title 62, Chapter 39.

(2) “Appraisal Qualifications Board” or “AQB” means the Appraisal Qualifications Board of The Appraisal Foundation.

(3) “Commission” means the Tennessee Real Estate Appraiser Commission.

(4) “FIRREA” means Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Title 12, United States Code §§ 93, et seq.

(5) “Rules” means the rules promulgated by the Commission.

(6) “State Certified General Appraiser” means a person who has been issued a general real estate appraiser certificate by the Commission.

(7) “State Certified Residential Appraiser” means a person who has been issued a residential real estate appraiser certificate by the Commission.

(8) “State Licensed Appraiser” means a person who has been issued a real estate appraiser license by the Commission.

(9) “Registered Trainee” means a person who has been issued a registration number as a registered real estate appraiser trainee in the State of Tennessee.

(10) “Good Standing” means a person has not been subject to any disciplinary action within any jurisdiction within the last three (3) years that affects the appraiser’s legal eligibility to engage in appraisal practice. An appraiser subject to a disciplinary action would be considered to be in “good standing” three (3) years after the successful completion/termination of the sanction imposed against the appraiser.

History

Authority: T.C.A. §§ 62-39-203 and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 16, 1997; effective March 1, 1998. Emergency rule filed December 30, 2015; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018.

Tenn. Comp. R. & Regs. 1255-01-.03 RESTRICTIONS ON APPRAISER PRACTICE

(1) An appraiser shall be required to comply with the transaction limits set forth in Tennessee Code Annotated, Title 62, Chapter 39. Violation of these limits shall be grounds for disciplinary action.

(2) For the purposes of this rule, “transaction value” means:

(a) For loans or other extensions of credit, the amount of the loan or extension of credit;

(b) For sales, leases, purchases, and investments in or exchanges of real property, the market value of the real property interest involved; and (c) For the pooling of loans or interests in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each such loan or interest in real property.

(d) For condemnation appraisals the value will be the total market value of the property before any acquisition of property occurs.

(e) For non-federally related transaction appraisals, transaction value shall mean market value.

The classification includes the appraisal of vacant or unimproved land that is utilized for one-to-four residential units, or for which the highest and best use is for one-to-four residential units.
The classification does not include the appraisal of subdivisions for which a development analysis/appraisal is necessary.

(3) No language in any Commission rule shall authorize an appraiser to appraise any property that would cause the appraiser to violate the competency provision of the edition of the Uniform Standards of Professional Appraisal Practice effective when the work was performed.

History

Authority: T.C.A. §§ 62-39-203, 62-39-302, and 62-39-333, as amended by 1991 Public Acts, Chapter 366.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed July 20, 2015; effective October 18, 2015.

Tenn. Comp. R. & Regs. 1255-01-.04 APPLICATION FOR APPRAISER LICENSE OR CERTIFICATE

(1) All new applicants for a real property appraiser credential who are not currently licensed or certified and in good standing in another jurisdiction must undergo a State and national background check. Applicants shall submit fingerprints of the individual applying for the credential, in digital form if practicable, and any appropriate identifying information for submission to the Federal Bureau of Investigation and/or any governmental agency or entity authorized to perform such background checks.

(2) A person who wishes to file an application for a real estate appraiser trainee registration, license or certificate may obtain the required form upon request to the Commission.

(3) At the time of filing an application for trainee registration, licensure, or certification, each applicant shall sign a pledge to comply with the standards set forth in the Act and the Commission’s rules and state that the applicant understands the types of misconduct for which disciplinary proceedings may be initiated against a registered trainee or a state licensed or certified appraiser, as set forth in the Act.

(4) Each applicant shall complete all application and examination requirements within one (1) year of the date the Commission grants approval for the applicant to take the required examination. An applicant may not take the required examination more than four (4) times within the one (1)-year period following approval; thereafter, an applicant wishing to take the required examination shall reapply and submit a new application fee. The Commission may grant exceptions to the requirements set forth in this paragraph upon appropriate individual request.

(5) Any person may apply for upgrade of an unexpired license or certificate by filing an application for the same on a form which may be obtained from the Commission. The appropriate application fee must be filed with the application.

(6) Filing and Fees. Properly completed applications must be accompanied by the appropriate fees. Once the application has been filed and processed, the application fee may not be refunded. The following fees shall be charged:

(a) License or certificate issuance fee ......................................................................$325.00 (b) Letter of good standing ..........................................................................................$25.00 (7) Payment of application fees shall be made by certified check, bank check, credit or debit cards, or money order made payable to the State of Tennessee.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-205, 62-39-307, 62-39-312, 62-39-315, and 62-39- 333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Emergency rule filed December 30, 2015; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018. Amendments filed May 2, 2025; effective July 31, 2025.

Tenn. Comp. R. & Regs. 1255-01-.05 QUALIFICATIONS FOR STATE LICENSED APPRAISER

(1) An applicant for a state licensed real estate appraiser license who has satisfied the prerequisites for certification provided in rule 1255-01-.07 or rule 1255-01-.08 will also satisfy the requirements of this rule. All other applicants for a state licensed real estate appraiser license shall first register as a registered trainee with the Commission and complete the training requirements established in rule 1255-01-.12. An applicant shall then satisfy all of the following education, experience, and examination requirements:

(a) General Education. An applicant shall satisfy the Appraiser Qualifications Board (“AQB”) general education requirements as a prerequisite for licensure as a state licensed real estate appraiser.

(b) Appraisal Education. An applicant shall satisfy the following appraisal education requirements as a prerequisite to sit for the state licensed appraiser examination:

One hundred fifty (150) hours of courses in subjects related to real estate appraisal (hereinafter, “qualifying education requirement”) which shall include:

(i) Successful completion of fifteen (15) hours of the National Uniform Standards of Professional Appraisal Practice Course or its equivalent.

Equivalency shall be determined by the Appraiser Qualifications Board Course Approval Program or by an alternate method established by the Appraiser Qualifications Board;

(I) The Commission shall grant an applicant credit toward the qualifying education requirement for the National Uniform Standards of Professional Appraisal Practice Course only when at least one of the course instructors is an AQB Certified USPAP Instructor who is also a state certified residential real estate appraiser or state certified general real estate appraiser and in good standing.

(ii) Successful completion of a thirty (30) hour course in Appraisal Principles;

(iii) Successful completion of a thirty (30) hour course in Appraisal Practice or Procedures;

(iv) Successful completion of a fifteen (15) hour course in Residential Market Analysis and Highest and Best Use;

(v) Successful completion of a fifteen (15) hour course in Residential Appraiser Site Valuation and Cost Approach;

(vi) Successful completion of a thirty (30) hour course in Sales Comparison and Income Approaches; and (vii) Successful completion of a fifteen (15) hour course in Residential Report Writing and Case Studies.

All courses listed in subparagraph (b) may be taken via distance education.
A course hour is defined as fifty (50) minutes of teaching out of each sixty (60) minute segment.
The Commission may grant credit toward the qualifying education requirement only if the length of the educational offering is at least fifteen (15) hours and the individual successfully completes an examination pertinent to that educational offering.
An applicant may obtain credit for the qualifying education requirement from any of the following educational providers:

(i) Colleges or universities;

(ii) Community or junior colleges;

(iii) Real estate appraisal or real estate related organizations;

(iv) State or federal agencies or commissions;

(v) Proprietary schools;

(vi) Other providers approved by the Commission; and (vii) The Appraisal Foundation or its Boards.

An applicant may refer to Chapter 1255-02 Evaluation of Appraiser Education for further delineation of qualifying educational requirements.
In the event of a denial, an applicant for a license may file a written request for reconsideration with the Commission. The Commission shall consider the request for reconsideration and reevaluate the applicant’s education. In the event that the application is denied after reconsideration, the denial shall not create a contested case as defined by the Uniform Administrative Procedures Act, T.C.A. § 4-5-102. The applicant may reapply for a license.

An applicant shall satisfy the AQB experience requirements as a prerequisite for licensure as a state licensed real estate appraiser.
The applicant may also obtain equivalent experience. The Commission shall determine what is considered equivalent experience, which demonstrates the applicant’s competence in the Uniform Standards of Professional Appraisal Practice. Equivalent experience shall be limited to the following:

(i) A minimum of six (6) months of experience as a licensed or certified real estate appraiser in another state, territory, or possession of the United States, or in any country; provided, that the applicant has otherwise met all other requirements of Title 62, Chapter 39, and the rules established by the Commission.

An applicant shall provide to the Commission a detailed listing of the types of real estate appraisal reports or file memoranda completed by the applicant for the six (6)-month period that the applicant claims that he or she has gained experience.

Separate appraisal logs shall be maintained for each supervisory appraiser, if applicable. The applicant shall provide verification for experience credit claimed on forms prescribed by the Commission, which shall include the following information:

(i) Type of property;

(ii) Date of report;

(iii) Address of appraised property;

(iv) Description of work performed by the trainee/applicant and scope of the review and supervision of the supervising appraiser;

(v) Number of actual work hours by the trainee/applicant on the assignment;

(vi) Client name and address; and (vii) Signature and State certification number of the supervising appraiser, if applicable.

No experience credit will be granted that was obtained prior to January 30, 1989.

An applicant shall submit sufficient recent experience to demonstrate the ability to apply the current Uniform Standards of Professional Appraisal Practice provisions.

(d) Examination. An applicant shall successfully complete the Appraiser Qualifications Board endorsed Uniform State Licensed Real Property Appraiser Examination. An applicant must obtain licensure or certification designation within twenty-four (24) months from the date of obtaining a passing score on the exam.

(e) Once the applicant has completed all of the required qualifying education and experience, then the applicant may submit his or her application for licensure. The Commission office shall not process an applicant’s application if the required qualifying education and experience have not been satisfied or if the application is incomplete.

The Commission office shall keep an incomplete application active for six (6) months, unless the applicant requests an extension in writing to the Commission.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-303, 62-39-329, 62-39-333, and 62-39-335.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 16, 1997; effective March 1, 1998. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Emergency rule filed December 30, 2015; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018. Amendments filed April 23, 2020; effective July 22, 2020. Amendments filed May 7, 2021; effective August 5, 2021. Amendments filed May 10, 2024; effective August 8, 2024. Amendments filed May 2, 2025; effective July 31, 2025.

Tenn. Comp. R. & Regs. 1255-01-.06 REPEALED

History

Authority: T.C.A. §§ 62-39-203 and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Repeal filed December 16, 1997; effective March 1, 1998.

Tenn. Comp. R. & Regs. 1255-01-.07 QUALIFICATIONS FOR STATE CERTIFIED RESIDENTIAL APPRAISER

(1) An applicant applying for a state certified residential real estate appraiser certification shall first register as a real estate appraiser trainee, or be a licensed or certified general real estate appraiser. The applicant shall then satisfy all of the following education, experience, and examination requirements:

(a) General Education. An applicant shall satisfy one (1) of the AQB general education requirements as a prerequisite for certification as a state certified residential real estate appraiser.

(b) Appraisal Education. An applicant shall satisfy the following appraisal education requirements as a prerequisite to sit for the state certified residential real estate appraiser examination:

Two hundred (200) hours of courses, in subjects related to real estate appraisal (hereinafter “qualifying education requirement”), which shall include:

(i) Successful completion of fifteen (15) hours of the National Uniform Standards of Professional Appraisal Practice Course or its equivalent.

Equivalency shall be determined through the Appraiser Qualifications Board Course Approval Program or by an alternate method established by the Appraiser Qualifications Board;

(ii) Successful completion of a thirty (30) hour course in Appraisal Principles;

(iii) Successful completion of a thirty (30) hour course in Appraisal Practice or Procedures;

(iv) Successful completion of a fifteen (15) hour course in Residential Market Analysis and Highest and Best Use;

(v) Successful completion of a fifteen (15) hour course in Residential Appraiser Site Valuation and Cost Approach;

(vi) Successful completion of a thirty (30) hour course in Sales Comparison and Income Approaches;

(vii) Successful completion of a fifteen (15) hour course in Residential Report Writing and Case Studies;

(viii) Successful completion of a fifteen (15) hour course in Statistics, Modeling and Finance;

(ix) Successful completion of a fifteen (15) hour course in Advanced Residential Applications and Case Studies; and (x) Successful completion of twenty (20) hours of appraisal subject matter electives, which may include any hours over the minimum listed in (i) through (ix).

All courses listed in subparagraph (b) may be taken via distance education.
A course hour is defined as fifty (50) minutes of teaching out of each sixty (60) minute segment.
The Commission may grant credit toward the qualifying education requirement only if the length of the educational offering is at least fifteen (15) hours and an applicant successfully completes an examination pertinent to that educational offering.
The qualifying education requirement may include the one hundred fifty (150) hour qualifying education requirement for the state licensed real estate appraiser classification.
An applicant may obtain credit for the qualifying education requirement from any of the following:

(i) Colleges or universities;

(ii) Community or junior colleges;

(iii) Real estate appraisal or real estate related organizations;

(iv) State or federal agencies or commissions;

(v) Proprietary schools;

(vi) Other providers approved by the Commission; and (vii) The Appraisal Foundation or its Boards.

An applicant may refer to Chapter 1255-02 Evaluation of Appraiser Education for further delineation of qualifying education requirements.
In the event of a denial, an applicant for certification may file a written request for reconsideration with the Commission. The Commission shall consider the request for reconsideration and reevaluate the applicant’s education. In the event that the application is denied after reconsideration, the denial shall not create a contested case as defined by the Uniform Administrative Procedures Act, T.C.A. § 4-5-102. The applicant may reapply for a certificate.

(c) Foreign Education. An applicant seeking to satisfy the general education requirements for a State Certified Residential Appraiser credential with college-level education from a foreign institution shall have their education evaluated for equivalency by an accredited, degree-granting domestic college or university, The American Association of Collegiate Registrars and Admissions Officers (AACRAO), a foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES), or 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.

(d) Experience.

An applicant shall satisfy the AQB experience requirements as a prerequisite for certification as a state certified residential real estate appraiser.
The applicant may also obtain equivalent experience. The Commission shall determine what is considered equivalent experience, which demonstrates the applicant’s competence in the Uniform Standards of Professional Appraisal Practice. Equivalent experience shall be limited to the following:

(i) A minimum of twelve (12) months of experience as a licensed or certified real estate appraiser in another state, territory or possession of the United States, or in any country; provided, that the applicant has otherwise met all other requirements of Title 62, Chapter 39, and the rules promulgated by the Commission.

An applicant shall provide to the Commission a detailed listing of the types of real estate appraisal reports or file memoranda completed by the applicant for each twelve (12)-month period during which the applicant claims that he or she has gained experience. Separate appraisal logs shall be maintained for each supervisory appraiser, if applicable. The applicant shall provide verification for experience credit claimed on forms prescribed by the Commission which shall include the following information:

(i) Type of property;

(ii) Date of report;

(iii) Address of appraised property;

(iv) Description of work performed by the trainee/applicant and scope of the review and supervision of the supervising appraiser;

(v) Number of actual work hours by the trainee/applicant on the assignment;

(vi) Client name and address; and, (vii) Signature and State certification number of the supervising appraiser, if applicable.

No experience credit will be granted that was obtained prior to January 30, 1989.

An applicant shall submit sufficient recent experience to demonstrate the ability to apply the current Uniform Standards of Professional Appraisal Practice provisions.

(e) Examination. An applicant shall successfully complete the Appraiser Qualifications Board endorsed Uniform State Certified Residential Real Property Appraiser Examination. An applicant must obtain certification designation within twenty-four (24) months from the date of obtaining a passing score on the exam.

(f) Once the applicant has completed all of the required qualifying education and experience, then the applicant may submit his or her application for certification. The Commission office shall not process an applicant’s application if the required qualifying education and experience have not been satisfied or if the application is incomplete.

The Commission office shall keep an incomplete application active for six (6) months, unless the applicant requests an extension in writing to the Commission.

(g) An applicant applying for a State Certified Residential Appraiser certification who holds a current State Licensed Appraiser credential may satisfy the educational requirements for the State Certified Residential Real Estate Appraiser credential by completing the following additional educational hours:

Successful completion of a fifteen (15) hour course in Statistics, Modeling and Finance;
Successful completion of a fifteen (15) hour course in Advanced Residential Applications and Case Studies; and 3. Successful completion of twenty (20) hours of appraisal subject matter electives.

These may include hours over the minimum shown above in other modules.

(h) An applicant applying for a State Certified Residential Appraiser certification pursuant to subparagraph (g) must also satisfy the college-level educational requirements as specified in 1255-01-.07(1)(a).

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-311, 62-39-312, 62-39-313, 62-39-329, 62-39-333, and 62-39-335.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 16, 1997; effective March 1, 1998. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Emergency rule filed December 30, 2015; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018. Amendments filed April 23, 2020; effective July 22, 2020. Amendments filed May 7, 2021; effective August 5, 2021. Amendments filed May 10, 2024; effective August 8, 2024.

Tenn. Comp. R. & Regs. 1255-01-.08 QUALIFICATIONS FOR GENERAL CERTIFICATION

(1) An applicant applying for a state certified general real estate appraiser license shall first register as a real estate appraiser trainee, or be a licensed or certified residential real estate appraiser, and complete the experience requirements established in rule 1255-01-.12 and shall then satisfy the following education, experience, and examination requirements as a prerequisite for certification:

(a) General Education. An applicant shall satisfy the following general education requirements as a prerequisite for certification as a state certified general real estate appraiser:

Bachelor’s degree or higher.

(b) Appraisal Education. An applicant shall satisfy the following appraisal education requirements as a prerequisite to sit for the state certified general real estate appraiser examination:

Three hundred (300) hours of courses, in subjects related to real estate appraisal (hereinafter “qualifying education requirement”), which shall include:

(i) Successful completion of fifteen (15) hours of the National Uniform Standards of Professional Appraisal Practice Course or its equivalent.

Equivalency shall be determined through the Appraiser Qualifications Board Course Approval Program or by an alternate method established by the Appraiser Qualifications Board;

(ii) Successful completion of a thirty (30) hour course in Appraisal Principles;

(iii) Successful completion of a thirty (30) hour course in Appraisal Practice or Procedures;

(iv) Successful completion of a thirty (30) hour course in General Appraiser Market Analysis and Highest and Best Use;

(v) Successful completion of a fifteen (15) hour course in Statistics, Modeling and Finance;

(vi) Successful completion of a thirty (30) hour course in General Appraiser Sales Comparison Approach;

(vii) Successful completion of a thirty (30) hour course in General Appraiser Site Valuation and Cost Approach;

(viii) Successful completion of a sixty (60) hour course in General Appraiser Income Approach;

(ix) Successful completion of a thirty (30) hour course in General Appraiser Report Writing and Case Studies; and (x) Successful completion of thirty (30) hours of appraisal subject matter electives which may include any hours over the minimum listed above in (i) through (ix).

All courses listed in subparagraph (b) may be taken via distance education.
A course hour is defined as fifty (50) minutes of teaching out of each sixty (60) minute segment.
The Commission may grant an applicant credit toward the qualifying education requirement only if the length of the educational offering is at least fifteen (15) hours and the applicant successfully completes an examination pertinent to that educational offering.
An applicant’s qualifying education requirement may include the one hundred fifty (150) classroom hour requirement for the licensed real estate appraiser classification or the two hundred (200) hour requirement for the certified residential real estate appraiser classification.
An applicant may obtain credit for the qualifying education requirement from the following:

(i) Colleges or universities;

(ii) Community or junior colleges;

(iii) Real estate appraisal or real estate related organizations;

(iv) State or federal agencies or commissions;

(v) Proprietary schools;

(vi) Other providers approved by the Commission; and (vii) The Appraisal Foundation or its Boards.

An applicant may refer to Chapter 1255-02 Evaluation of Appraiser Education for further delineation of qualifying educational requirements.
In the event of a denial, an applicant for certification may file a written request for reconsideration with the Commission. The Commission shall consider the request for reconsideration and reevaluate the applicant’s education. In the event that the applicant is denied after reconsideration, the denial shall not create a contest case as defined by the Uniform Administrative Procedures Act, T.C.A. § 4-5-102. The applicant may reapply for a certificate.

(c) Foreign Education. An applicant seeking to satisfy the general education requirements for a state certified general appraiser credential with college-level education from a foreign institution shall have their education evaluated for equivalency by an accredited, degree-granting domestic college or university, The American Association of Collegiate Registrars and Admissions Officers (AACRAO), a foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES) or 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.

(d) Experience.

An applicant must satisfy the AQB experience requirements as a prerequisite for certification as a state certified general real estate appraiser.
An applicant may obtain equivalent experience. The Commission shall determine what is considered equivalent experience, which demonstrates the applicant’s competence in the Uniform Standards of Professional Appraisal Practice.

Equivalent experience shall be limited to the following:

(i) A minimum of eighteen (18) months of experience as a licensed or certified real estate appraiser in another state, territory or possession of the United States, or in any country; provided, that the applicant has otherwise met all requirements of Title 62, Chapter 39, and the rules promulgated by the Commission.

An applicant shall complete at least one thousand five hundred (1,500) hours of the total three thousand (3,000) hours in non-residential appraisal work.

Residential means one (1) to four (4) residential units. An applicant shall ensure that his or her experience shall satisfactorily demonstrate competence in the cost, income capitalization and direct sales comparison approaches to value.

An applicant shall provide to the Commission a detailed listing of the types of real estate appraisal reports or file memoranda completed by the applicant for each twelve (12)-month period during which the applicant claims that he or she has gained experience. Separate appraisal logs shall be maintained for each supervisory appraiser, if applicable. The applicant shall provide verification for experience credit claimed on forms prescribed by the Commission, which shall include the following information:

(i) Type of property;

(ii) Date of report;

(iii) Address of appraised property;

(iv) Description of work performed by the trainee/applicant and scope of the review and supervision of the supervising appraiser;

(v) Number of actual work hours by the trainee/applicant on the assignment;

(vi) Client name and address; and (vii) Signature and State certification number of the supervising appraiser, if applicable.

No experience credit will be granted that was obtained prior to January 30, 1989.

An applicant shall submit sufficient recent experience to demonstrate the ability to apply the current Uniform Standards of Professional Appraisal Practice provisions.

There is no minimum number of hours that must have been obtained in any one (1) twelve (12)-month period.

(e) Examination. An applicant shall successfully complete the Appraiser Qualifications Board endorsed Uniform State Certified General Real Property Appraiser Examination.

An applicant must obtain licensure or certification designation within twenty-four (24) months from the date of obtaining a passing score on the exam.

The Commission office shall keep an incomplete application active for six (6) months, unless the applicant requests an extension in writing to the Commission.

(g) An applicant applying for a State Certified General Appraiser certification who holds a current State Licensed Appraiser credential may satisfy the educational requirements for the State Certified General Appraiser credential by completing the following additional educational hours:

Successful completion of a thirty (30) hour General Appraiser Market Analysis and Highest and Best Use course;
Successful completion of a thirty (30) hour General Appraiser Site Valuation and Cost Approach course;
Successful completion of a thirty (30) hour General Appraiser Sales Comparison Approach course;
Successful completion of a thirty (30) hour General Report Writing and Case Studies course;
Successful completion of a fifteen (15) hour Statistics, Modeling and Finance course; and 6. Successful completion of a sixty (60) hour General Appraiser Income Approach course.

(h) An applicant applying for a State Certified General Appraiser certification who holds a current State Certified Residential Appraiser credential may satisfy the educational requirements for the State Certified General Appraiser credential by completing the following additional educational hours:

Successful completion of a thirty (30) hour General Appraiser Market Analysis and Highest and Best Use course;
Successful completion of a thirty (30) hour General Appraiser Sales Comparison Approach course;
Successful completion of a thirty (30) hour Site Valuation and Cost Approach course;
Successful completion of a sixty (60) hour General Appraiser Income Approach course; and 5. Successful completion of a thirty (30) hour General Appraiser Report Writing and Case Studies course.

(i) An applicant applying for a State Certified General Appraiser certification pursuant to subparagraphs (g) or (h) must also satisfy the college-level educational requirements as specified in 1255-01-.08(1)(a).

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-305, 62-39-311, 62-39-312, 62-39-313, 62-39-314, 62-39-329, 62-39-333, and 62-39-335.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018. Amendments filed April 23, 2020; effective July 22, 2020. Amendments filed May 7, 2021; effective August 5, 2021. Amendments filed May 2, 2025; effective July 31, 2025.

Tenn. Comp. R. & Regs. 1255-01-.09 DENIAL OF LICENSE OR CERTIFICATE

(1) An applicant for registration as a trainee, licensure or certification shall not possess a background that could call into question public trust. Applicants shall not be eligible for a real estate appraiser registration, license, or certification if:

(a) The applicant has had an appraiser license or certification revoked in any governmental jurisdiction within the five (5)-year period immediately preceding the date of application.

(b) The applicant has been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, or foreign court:

During the five (5)-year period immediately preceding the date of the application for licensing or certification; or 2. At any time preceding the date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering.

(c) The applicant has failed to demonstrate character and general fitness such as to command the confidence of the community and to warrant a determination that the appraiser will operate honestly, fairly, and ethically within the purposes of the Real Property Appraiser Qualification Criteria issued by the AQB.

(2) The Commission may deny an application for registration, license, or certification if the background information for the applicant includes:

(a) Conviction of any felony;

(b) Convictions of any criminal offense involving dishonesty, breach of trust, or money laundering against the individual or organizations controlled by the individual, or agreements to enter into a pretrial diversion or similar program in connection with the prosecution for such offense(s);

(c) Civil judicial actions against the individual in connection with financial services-related activities, dismissals with settlements, or judicial findings that the individual violated financial services-related statutes or regulations, except for actions dismissed without a settlement agreement;

(d) Actions or orders by a State or Federal regulatory agency or foreign financial regulatory

authority that:

Found the individual to have made a false statement or omission or been dishonest, unfair, or unethical; to have been involved in a violation of a financial services-related regulation or statute; or to have been a cause of a financial services-related business having its authorization to do business denied, suspended, revoked, or restricted;
Are entered against the individual in connection with a financial services-related activity;
Denied, suspended, or revoked the individual’s registration or license to engage in a financial services-related activity; disciplined the individual or otherwise by order prevented the individual from associating with a financial services-related business or restricted the individual activities; or 4. Barred the individual from association with an entity or its officers regulated by the agency or authority or from engaging in a financial services-related business;

(e) Final orders issued by a State or Federal regulatory agency or foreign financial regulatory authority based on violations of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct;

(f) Revocation or suspension of the individual’s authorization to act as an attorney, accountant, or State or Federal contractor;

(g) Customer-initiated financial services-related arbitration or civil action against the individual that required action, including settlements, or which resulted in a judgment; or (h) Any false or misleading information is reported on an application submitted to the board.

(3) An applicant denied a license or certificate shall be notified in writing by the Commission of such denial and the reasons therefor. Such applicant may request an informal conference with the Commission to reconsider such denial at its next scheduled meeting. Such request must be sent to the Commission office within thirty (30) days of the date of the notice of denial.

(4) Nothing in this rule shall be construed as creating the right to a contested case proceeding (as defined by the Tennessee Administrative Procedures Act, T.C.A. Title 4, Chapter 5) if a license or certificate is denied an applicant.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed July 20, 2015; effective October 18, 2015.

Tenn. Comp. R. & Regs. 1255-01-.10 LICENSE OR CERTIFICATE EXPIRATION

(1) A license shall expire two (2) years following the date of issuance.

(2) The term of a certificate shall be two (2) years from the date of issuance.

(3) The expiration date of a license or certificate shall appear on the face of the document and no other notice of its expiration need be given to its holder.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-305, and 62-39-314.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-01-.11 LICENSE AND CERTIFICATE RENEWAL

(1) To obtain renewal of a license or certificate, the holder of a current, valid license or certificate must make application on a form available from the Commission not earlier than one hundred twenty (120) days prior to the expiration of the license or certificate then held.

(2) An application for renewal must be accompanied by the following renewal fee, plus the applicable federal registry fee:

(a) Renewal of real estate appraiser license . . . . . . . . . . . . . . . . . . . . . . . . . . $325.00 (b) Renewal of real estate appraiser certificate . . . . . . . . . . . . . . . . . . . . . . . . $325.00 (3) Each application for renewal of a license or certificate shall be accompanied by sufficient evidence of having completed the continuing education requirement for renewal specified in the Act and the rules and presented in the form prescribed in Chapter 1255-04 Continuing Education.

(4) If a license or certificate holder fails to file his or her application to renew a license or certificate with the Commission prior to the expiration thereof, the license or certificate holder may, upon payment of a one hundred dollar ($100.00) penalty, apply for renewal.

(5) No late renewal will be granted if a completed application is not received by the Commission within twelve (12) months since the expiration of the license or certificate.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-206, 62-39-301, 62-39-307, 62-39-315, and 62-39- 333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993, effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed September 7, 2018; effective December 6, 2018.

Tenn. Comp. R. & Regs. 1255-01-.12 REGISTERED TRAINEE

(1) Application. An applicant for registration as a real estate appraiser trainee shall successfully complete the following requirements prior to obtaining registration:

(a) Obtain and complete the required application form from the Commission.

(b) Provide proof on the application form showing that he or she has obtained a high school diploma or its equivalent.

(c) Provide on the application form the name and certificate number of the certified real estate appraiser under whose direct supervision the applicant will serve.

(d) Provide the business address of his or her supervisory appraiser and use that address as his or her business address. If an applicant has more than one (1) supervisory appraiser, then the applicant shall use the business address of at least one (1) of his or her supervisory appraisers.

(e) Complete a thirty (30) hour course in Appraisal Principles, a thirty (30) hour course in Practices and Procedures, and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Course, or its equivalent as determined through the AQB. These courses may be taken via distance education.

(f) Registered trainees shall be required to complete a four (4) hour course on the requirements and responsibilities of supervisory appraisers and trainee appraisers.

The course shall be completed by the registered trainee prior to application.

(g) An applicant should refer to Chapter 1255-02 Evaluation of Appraiser Education for further delineation of qualifying education requirements.

(h) Submit with the application a nonrefundable application and registration fee of one hundred twenty-five dollars ($125.00).

(2) Upon receipt of a properly completed application form with the required aforementioned documentation and the required fee, the Commission shall review the application to determine whether to issue the applicant a real estate appraiser trainee registration certificate and number.

(3) Education. Before registration, an applicant for trainee registration shall complete seventyfive (75) hours of courses in subjects related to real estate appraisal, which shall include, but shall not be limited to coverage of the Uniform Standards of Professional Appraisal Practice (hereinafter, “course credit”). An applicant shall complete the required course credit as a prerequisite to applying for registration as a registered trainee. All applicants shall submit evidence of completion of a minimum of an approved thirty (30) hour course in Appraisal Principles, an approved thirty (30) hour course in Practices and Procedures, and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Course. An applicant shall also ensure that his or her course credit complies with the following:

(a) A course hour is defined as fifty (50) minutes of teaching out of each sixty (60) minute segment.

(b) An applicant may obtain course credit only where the minimum length of the education offering is fifteen (15) hours and the individual successfully completes the examination pertinent to that educational offering.

Colleges or universities;
Community or junior colleges;
Real estate appraisal or real estate related organizations;
Proprietary schools; and 5. Other providers approved by the Commission.

(d) An applicant shall obtain course credit within the five (5)-year period immediately preceding an applicant’s submission of his or her application for registration as a registered trainee.

(e) The content for courses shall include, but is not limited to, coverage of the following real estate appraisal related topics:

Influences on real estate value;
Legal considerations in appraisals;
Types of value;
Economic principles;
Real estate markets and analysis;
Valuation process;
Property description;
Highest and best use analysis;
Appraisal statistical concepts;
Sales comparison approach;
Site value;
Cost approach;
Income approach;
Valuation of partial interests; and 15. Appraisal standards and ethics.

(4) Experience.

(a) There is no experience prerequisite for an applicant to become a registered trainee.

(b) A registered trainee may have more than one (1) supervisory appraiser.

(c) A registered trainee shall be subject to direct supervision by a supervisory appraiser who shall be a state certified residential real estate appraiser or a state certified general real estate appraiser in good standing.

(d) A registered trainee shall only appraise those properties which the supervisory appraiser is permitted to appraise.

(e) If a trainee’s registration has expired or the trainee is no longer under the supervision of a state certified residential or state certified general real estate appraiser, then the registered trainee shall not perform the duties as a registered trainee until he or she submits an affidavit on a form provided by the Commission which states that he or she has a supervisory appraiser. The registered trainee’s supervisory appraiser shall sign the affidavit stating that he or she is the supervisory appraiser responsible for the registered trainee.

(f) A registered trainee shall maintain an appraisal log of his or her experience, shall maintain a separate appraisal log for each supervisory appraiser, and shall, at a minimum, include the following in the appraisal log:

Type of property;
Date of report;
Address of appraised property;
Description of work performed by the trainee/applicant and scope of the review and supervision of the supervisory appraiser;
Number of actual work hours by the trainee/applicant on the assignment, up to the maximum allotted by property type;
Client name and address; and 7. Signature and State certification number of the supervisory appraiser.

(g) A registered trainee may conduct property inspections alone (without being accompanied by the supervisory appraiser) only after completing five hundred (500) hours of acceptable experience, or until the supervisory appraiser determines the registered trainee is competent to inspect the property, in accordance with the competency rule of the Uniform Standards of Professional Appraisal Practice (USPAP) for the type property. In order to conduct property inspections pursuant to this paragraph, the registered trainee shall submit a form to the Commission on which both the registered trainee and the supervisory appraiser shall certify the experience.

(h) A registered trainee shall comply with the Uniform Standards of Professional Appraisal Practice.

(5) Examination.

(a) There is no examination prerequisite for an applicant to become a registered trainee.

(b) Once the registered trainee has completed all of the required qualifying education and experience, then the trainee may submit his or her application for license or certificate.

The Commission office shall not process an applicant’s application if the required qualifying education and experience have not been satisfied or if the application is incomplete. The Commission office shall keep an incomplete application active for six (6) months, unless the applicant requests an extension in writing to the Commission.

(6) Renewal.

(a) A registered trainee’s registration shall expire two (2) years after the date of issuance.

(b) A registered trainee must renew his or her registration, at least thirty (30) days prior to its expiration, by filing the prescribed form with the Commission and paying a renewal fee of one hundred twenty-five dollars ($125.00).

(c) If a registered trainee fails to file the prescribed form and pay the renewal fee within thirty (30) days prior to its expiration, the registered trainee may, upon payment of a one hundred dollar ($100.00) late renewal penalty in addition to the renewal fee, apply for renewal. No late renewal will be granted if more than six (6) months have passed since the expiration of the registered trainee’s registration. The registered trainee may then reapply to be a registered trainee.

(7) Continuing Education.

(a) Any person in the classification of registered trainee shall be required to obtain a minimum of twenty-eight (28) course hours of instruction in courses, seminars, workshops, or conferences approved by the Commission prior to each renewal period (hereinafter, “continuing education”).

(b) As part of a registered trainee’s continuing education, a registered trainee shall complete the seven (7) hour National Uniform Standards of Professional Appraisal Practice Course at least once every two (2) years as defined and required by rule 1255-04-.01(2).

(d) The Commission may grant continuing education credit only if the length of the educational offering is at least two (2) hours.

(e) An applicant may obtain continuing education credit from the following:

Colleges or universities;
Community or junior colleges;
Real estate appraisal or real estate related organizations;
State or federal agencies or commissions;
Proprietary schools; and 6. Other providers approved by the Commission.

(f) The Commission may grant continuing education credit for educational offerings which are consistent with the purpose of continuing education stated in subparagraph (g) below and cover real estate appraisal topics such as the following:

Ad valorem taxation;
Arbitration;
Business courses related to practice of real estate appraisal;
Construction estimating;
Ethics and standards of professional practice;
Land use planning, zoning and taxation;
Management, leasing, brokerage, and timesharing;
Property development;
Real estate appraisal (valuations/evaluations);
Real estate law;
Real estate litigation;
Real estate financing and investment;
Real estate appraisal related computer applications;
Real estate securities and syndication; and 15. Real property exchange.

(g) The purpose of continuing education is to ensure that a registered trainee participates in a program that maintains and increases his or her skill, knowledge, and competency in real estate appraisals.

(h) A registered trainee may complete the individual’s required education credits via distance education.

(8) Each registered trainee shall notify the Commission of such registered trainee’s current residence and principal place of business, all mailing and other addresses at which the registered trainee is currently engaged in the business of assisting in the preparation of real estate appraisal reports, and the name of the registered trainee’s supervisory appraiser(s).

When a registered trainee changes any of the above addresses or supervisory appraiser(s), the registered trainee shall notify the Commission, in writing, of such change within thirty (30) days thereafter.

(9) No registered trainee may represent him or herself as a licensed or certified appraiser or use the appellation “State Licensed Real Estate Appraiser,” “State Certified Residential Real Estate Appraiser,” “State Certified General Real Estate Appraiser,” or any form thereof, or do any other act which gives or is designed to give the impression that the registered trainee is a licensed or certified real estate appraiser.

(10) Supervisory Appraisers for Registered Trainees.

(a) Supervisory appraisers shall be state-certified and in “good standing” in the jurisdiction in which the trainee appraiser practices for a period of at least three (3) years.

Supervisory appraisers shall not have been subject to any disciplinary action within any jurisdiction within the last three (3) years that affects the supervisory appraiser’s legal eligibility to engage in appraisal practice. A supervisory appraiser subject to a disciplinary action would be considered to be in “good standing” three (3) years after the successful completion/termination of the sanction imposed against the appraiser.

(b) The supervisory appraiser shall sign each written appraisal report, relating to real property in this state, which was prepared by a registered trainee under the supervisory appraiser’s direct supervision.

(c) A supervisory appraiser shall ensure that the appraisal reports prepared by the registered trainee are prepared under the supervisory appraiser’s direct supervision.

“Direct supervision” of a registered trainee means that a supervisory appraiser shall:

Accompany the registered trainee and personally inspect each subject property with the registered trainee on all assignments until the trainee has completed five hundred (500) hours of acceptable appraisal experience, or until the supervisory appraiser determines the registered trainee is competent to inspect the property, in accordance with the competency rule of the Uniform Standards of Professional Appraisal Practice (USPAP) for the type property;
Review the registered trainee’s appraisal report(s) to ensure the registered trainee’s research of general and specific data has been adequately conducted and properly reported, that the registered trainee’s application of appraisal principles and methodologies has been properly applied, that the registered trainee’s analysis is sound and adequately reported, and that any analyses, opinions, or conclusions of the registered trainee are adequately developed and reported so that the appraisal report is not misleading;
Review the registered trainee’s work product and discuss with the registered trainee any edits, corrections, or modifications that need to be made to such work product, and make such edits, corrections, or modifications as are required to such work product; and 4. Accept responsibility for the appraisal report by signing the appraisal report and certifying that the appraisal report has been prepared in compliance with the current edition of the Uniform Standards of Professional Appraisal Practice by:

(i) Making a clear and prominent disclosure that the registered trainee has provided significant real property appraisal assistance in each appraisal report in accordance with Uniform Standards of Profession Appraisal Practice Standards Rule 2-2 and Standards Rule 2-3;

(ii) Prohibiting the registered trainee from signing any appraisal report or other document involved in the appraisal which states or implies that said trainee is “licensed” or “certified” in any manner, and by prohibiting the registered trainee from engaging in any activity which is limited to licensed or certified appraisers, or which is designed to give third parties the impression that the registered trainee is a licensed or certified appraiser;

(iii) Ensuring that the registered trainee gains sufficient knowledge, skills, and abilities that will enable such trainee to accomplish all of the following:

(I) Define the appraisal problem, which requires the trainee to:

I. Identify and locate the real estate;

II. Identify the property rights to be valued;

III. Identify the use of the appraisal;

IV. Define value(s) to be estimated;

V. Establish date(s) of value estimate(s);

VI. Identify and describe the scope of the appraisal; and VII. Identify and describe limiting conditions.

(II) Conduct preliminary analysis, and select and collect applicable data, which requires the trainee to:

I. Identify general data (regional, city, and neighborhood) including social, economic, governmental and environmental factors;

II. Identify specific data (subject and comparables), including site and improvement, cost and depreciation, income/expense and capitalization rate, history of ownership and use of property; and III. Identify competitive supply and demand in the subject market, which requires a comprehensive review of inventory of competitive properties, sales and listings, vacancies and offerings, absorption rates, demand studies.

(III) Conduct an analysis of the subject property, which requires a trainee to analyze:

I. Site improvements;

II. Size;

III. Costs;

IV. Elements of comparison; and V. Units of comparison;

(IV) Conduct a highest and best use analysis (specified in terms of use, time, and market participants), which requires a trainee to analyze:

I. Land as if vacant and available; and II. Property as improved (existing or proposed).

(V) Estimate land value, including on-site improvements.

(VI) Estimate value of the property using each of the three approaches to value-cost, sales comparison and income capitalization.

(VII) Reconcile each value indication and reconcile the final value estimate.

(VIII) Report estimate(s) of value(s) as defined.

(d) A supervisory appraiser may supervise a maximum of three (3) registered trainees at one time.

(e) A supervisory appraiser shall keep copies of appraisal reports for a period of at least five (5) years or at least two (2) years after final disposition of any judicial proceeding in which testimony was given, whichever period expires last. The supervisory appraiser shall allow the registered trainee to have reasonable access to the appraisal reports to which the registered trainee contributed.

(f) A supervisory appraiser shall notify the board in writing if he or she is no longer the supervising appraiser for a registered trainee within thirty (30) days thereafter. If the disassociation is for cause, the cause shall be communicated to the Commission.

(g) Supervisory appraisers shall be required to complete a four (4) hour course on responsibilities of supervisory appraisers and trainee appraisers. The course shall be completed by the supervisory appraiser prior to supervising a trainee appraiser. This course may be completed via distance education.

(h) In any appraisal in which a registered trainee has inspected a subject property, the supervisory appraiser is also required to disclose in the appraisal report whether the supervisory appraiser has inspected the subject property both inside and out, and whether the supervising appraiser has made an exterior inspection of all comparable sales relied upon in the appraisal.

History

Authority: T.C.A. §§ 62-39-105, 62-39-203, 62-39-204, 62-39-301, 62-39-303, 62-39-304, 62-39-317, 62-39-321, 62-39-324, 62-39-329, 62-39-333, and 62-39-335.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993, effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Amendments filed August 27, 2009; effective November 25, 2009. Emergency rule filed December 30, 2015; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed March 21, 2018; effective June 19, 2018. Amendments filed April 13, 2020; effective July 12, 2020. Amendments filed April 23, 2020; effective July 22, 2020. Amendments filed May 7, 2021; effective August 5, 2021. Amendments filed May 2, 2025; effective July 31, 2025.

Tenn. Comp. R. & Regs. 1255-01-.13 REPLACEMENT LICENSE OR CERTIFICATE

A license or certificate holder may, by filing the prescribed form with the Commission, obtain a duplicate license or certificate to replace an original license or certificate which has been lost, damaged or destroyed or if the name of the licensee or certificate holder has been lawfully changed.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-206, and 62-39-333, as amended by 1991 Public Acts, Chapter 366.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008. Amendments filed September 7, 2018; effective December 6, 2018.

Tenn. Comp. R. & Regs. 1255-01-.14 FEDERAL APPRAISER REGISTRY

Licensees and certificate holders who are qualified for enrollment in the federal roster or registry of state-licensed and state-certified real estate appraisers must apply for enrollment or reinstatement of such enrollment in same upon a form approved by the Commission accompanied by the fee established for that purpose by the appropriate federal agency or instrumentality.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333, as amended by 1991 Public Acts, Chapter 366.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-01-.15 NOTICE TO COMMISSION OF ADDRESSES AND CHANGES OF ADDRESS

(1) Each state licensed or certified real estate appraiser shall notify the Commission in writing of the address of such appraiser’s principal place of business, such appraiser’s current residential address, and all such other mailing addresses and addresses at which the appraiser is currently engaging in the business of preparing real property appraisal reports.

Whenever a state licensed or certified appraiser changes a principal place of business, residence, mailing address, or other address at which the appraiser is engaged in the practice of real estate appraising, such appraiser shall, within thirty (30) days after such change, notify the Commission of such change in writing.

(Rule 1255-01-.15 continued)

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-317.
Administrative History: Original rule filed August 27, 2009; effective November 25, 2009.

Tenn. Comp. R. & Regs. 1255-01-.16 FINGERPRINTING

(1) Any applicant for initial registration, licensure, or certification who is required to submit a complete and legible set of fingerprints for the purpose of obtaining a criminal background check pursuant to T.C.A. § 62-39-301 shall submit said fingerprints in an electronic format.

(a) An applicant for initial registration, licensure, or certification shall be deemed to have supplied the required set of fingerprints if that applicant causes a private company contracted by the State to electronically transmit that applicant’s classifiable prints directly to the TBI and FBI to forward an electronic report based on that applicant’s fingerprints to the Commission.

(b) All sets of classifiable fingerprints required by this rule shall be furnished at the expense of the applicant for initial registration, licensure, or certification.

(c) The applicant for initial registration, licensure, or certification shall make the arrangements for the processing of his or her fingerprints with the company contracted by the State to provide electronic fingerprinting services directly and shall be responsible for the payment of any fees associated with processing of fingerprints to the respective agent authorized by the TBI and FBI.

(d) All applicants for initial registration, licensure, or certification shall in all cases be responsible for paying application fees for registration, licensure, or certification as established by the Commission in addition to any fees required to submit a complete and legible set of fingerprints pursuant to T.C.A. § 62-39-102.

(2) In the event that an applicant for initial registration, licensure, or certification furnishes unclassifiable fingerprints or fingerprints which are unclassifiable in nature, the Commission shall refuse to issue the requested registration, license, or certification.

(a) For the purposes of this rule “unclassifiable fingerprints” means that the electronic scan or the print of the person’s fingerprints cannot be read and, therefore, cannot be used to identify the person.

(b) Should an applicant for initial registration, licensure, or certification’s fingerprints be rejected by the TBI or FBI, the applicant shall pay any fees assessed by the TBI or FBI for resubmission.

(3) The provisions of this rule shall apply to any applicant applying for initial registration, licensure, or certification on or after January 1, 2015.

History

Authority: T.C.A. §§ 62-39-102, 62-39-203, and 62-39-301 and 2014 Public Acts, Chapter 621.
Administrative History: Emergency rule filed December 30, 2014; effective through June 28, 2015. Emergency rule expired effective June 29, 2015, and the rule reverted to its previous status. Amendment filed July 20, 2015; effective October 18, 2015.

Chapter 1255-02 Evaluation of Appraiser Education

Tenn. Comp. R. & Regs. 1255-02-.01 EDUCATIONAL LOGGING

Each applicant for a license or certificate will be required to prepare an educational log.

(1) The educational log shall provide the following information:

(a) Date of course (b) Name of course (c) Content of course (d) Provider (e) Total classroom hours (f) Location of course (2) An applicant may be required to provide additional information on education if deemed necessary by the Commission.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-303, 62-39-312, and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed May 23, 2014; effective August 21, 2014. Amendment filed July 20, 2015; effective October 18, 2015.

Tenn. Comp. R. & Regs. 1255-02-.02 REPEATED COURSES

(1) If a course has been taken more than once the hourly educational credit for that course will only be counted once for the purpose of satisfying the educational requirements for appraiser licensure or certification.

(2) If a course is repeated, credit will only be granted for that course with the larger number of classroom hours.

(3) If the course was taken for the same number of hours, the number of hours in either course will be credited toward the educational requirement.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-303, 62-39-312, and 62-39-333, as amended by 1991 Public Acts, Chapter 366.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.03 COURSE PROVIDER APPLICATIONS

(1) All applicants shall obtain qualifying education credit by successfully completing courses that are approved by the Commission. The Commission shall approve qualifying education courses and course providers based on the qualifications of the providers and the content of the courses. The Commission shall consider the following providers for approval:

(a) Colleges or universities (b) Community or junior colleges (c) Real estate appraisal or real estate related organizations (d) State or federal agencies or commissions (e) Proprietary schools (f) Other providers approved by the Commission.

(g) The Appraisal Foundation or its Boards.

(2) The Commission may approve any qualifying education courses:

(a) Individually; or (b) As a group if multiple courses are being reviewed from the same provider.

(3) Anyone seeking approval as a real estate appraisal course provider, and any real estate appraisal course provider seeking approval of a course or courses, shall submit the following with an application provided by the Commission:

(a) A resume outlining the education and experience of the instructor(s) of such course(s);

(b) A detailed description of the content of each course and the appropriate module(s) for education credit;

(d) Notwithstanding approval prior to July 1, 1991, all providers seeking approval of courses shall submit course outlines to the Commission for approval of each course; and (e) Such other information as the Commission may reasonably request.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed May 23, 2014; effective August 21, 2014. Amendment filed July 20, 2015; effective October 18, 2015.

Tenn. Comp. R. & Regs. 1255-02-.04 COURSE GUIDELINES

(1) The following definitions are provided for the terms qualifying education, continuing education, distance education, and interaction.

(a) “Qualifying education” means education that is creditable toward the education requirements for trainee registration or initial licensure or certification under one (1) or more of the three (3) real estate appraiser classifications (Licensed Real Estate Appraiser, Certified Residential Real Estate Appraiser, and Certified General Real Estate Appraiser).

(b) “Continuing education” means education that is creditable toward the education requirements that must be satisfied to renew registration as a trainee or licensure or certification as a Licensed Real Estate Appraiser, Certified Residential Real Estate Appraiser, and Certified General Real Estate Appraiser.

(c) “Distance Education” means the educational process in which instruction does not take place in a traditional classroom setting but rather through other media or nonconventional methods in which teacher and student are separated by distance and sometimes by time and the course provides interaction.

(d) “Interaction” means a reciprocal environment where the student has verbal or written communication with the instructor.

(2) An applicant to be a course provider shall demonstrate to the satisfaction of the Commission that each traditional classroom based course submitted for approval shall:

(a) Cover subjects which are reasonably related to the practice of real estate appraisal and suitably advanced to benefit and enrich the students enrolled;

(b) Be conducted in a facility that meets the requirements of the Americans with Disabilities Act and contains adequate space, seating, and equipment;

(c) Consist of no fewer than two (2) classroom hours for continuing education and fifteen (15) hours with an examination for licensure/certification requirements; and (d) Incorporate appropriate methods for determining whether a student has successfully completed such course. Such methods shall include, but not be limited to:

Provisions to make up for classes or hours missed by a student; and 2. For qualifying education and the fifteen (15) hour course in the Uniform Standards of Professional Appraisal Practice, a minimum passing requirement of seventy percent (70%) and a comprehensive final examination (or equivalent measure of achievement).

(3) Internet Education/Distance Education for Continuing Education.

(a) Courses given for continuing education via internet or distance education may be acceptable to meet the requirements of continuing education if:

The course provides interaction.
Content approval is obtained from the AQB, a state licensing jurisdiction, or an accredited college, community college, or university that offers distance education programs and is approved or accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education. Non-academic credit college courses provided by a college shall be approved by the AQB or the state licensing jurisdiction.
Course delivery mechanism approval is obtained from one of the following sources:

(i) AQB approved organizations providing approval of course design and delivery;

(ii) A college that qualifies for content approval in part (2) above that awards academic credit for the distance education course; or (iii) Qualifying college for content approval with a distance education delivery program that approves the course design and delivery that incorporate interactivity.

(4) Continuing educational requirements may be satisfied through the completion of Commission approved distance educational offerings.

(a) Persons or entities seeking Commission approval for a distance educational offering shall submit an outline and description of the entire course and provide documentation which demonstrates the course complies with the following criteria:

The educational offering is either:

(i) Presented by an approved or accredited college, community or junior college, or university that offers distance educational programs and credit in other disciplines; or (ii) The educational offering is presented by a proprietary school that has been approved by the Tennessee Real Estate Appraiser Commission and the course design and delivery mechanism has been approved by the International Distance Education Certification Center (IDECC) and the Appraisal Qualifications Board.

That the course teaches to the mastery of the subject and at a minimum meets the following criteria:

(i) Divides the material into major units as approved by the board;

(ii) Divides each of the major units of content into modules of instruction for delivery on a computer or other approved interactive audio or audio visual programs;

(iii) Divides the learning objectives for each module of instruction;

(iv) Specifies an objective, quantitative criterion for mastery used for each learning objective;

(v) Provides a means of diagnostic assessment of each student’s performance on an ongoing basis during each module of instruction;

(vi) Requires the student to demonstrate mastery of all material covered by the learning objectives for the module before the module is completed;

(vii) That the course offering is designed in such a way that the material is presented under an approved instructor who shall be available to answer student questions or provide assistance on a timely basis as necessary;

(viii) The instructor will provide reasonable oversight of a student’s work to ensure that the student who completes the work is the student who enrolled in the course; and (ix) The course provider must provide documentation of an acceptable method that ensures that the student achieves the classroom hourly equivalent as approved by the Commission. Any form of delivery that provides the student the opportunity to circumvent instructional design strategies that require them to read the material and spend the appropriate amount of time in the course will not be approved.

(5) Approval by the Commission of any continuing or qualification education course shall be valid for a period of two (2) years. However, notwithstanding previous approval by the Commission, any course that has had a substantive change in course content shall be considered a new course and shall be approved by the Commission prior to presenting.

(a) Approval of any continuing or qualifying education course may be extended by the Commission for an additional two years upon written request by the provider.

(b) Failure to timely request an extension prior to the expiration of the Commission’s approval shall result in automatic termination of the educational offering’s approval status.

(6) The Commission may, at any time, audit any offering that has been approved for qualifying or continuing education by the Commission to ensure compliance with all requirements of the laws and rules governing such education. Any provider of continuing or qualifying education shall provide any requested documentation regarding a continuing or qualifying education course within ten (10) days of a request by the Commission.

(7) Each hour of course instruction shall consist of fifty (50) minutes of actual instruction for every sixty (60) minute segment.

(8) The courses listed in rules 1255-02-.05 and 1255-02-.06 are additions to those outlined in other paragraphs and those lists of courses supplement those courses identified in other rules.

(9) In addition to distance education requirements, distance education courses intended for use as qualifying education must provide a written, closed-book final examination (proctored by an official as approved by the college or university, or by the sponsoring organization). The term “written” refers to an examination that might be written on paper, or administered electronically, on a computer workstation or other device. Oral exams are not acceptable.

The testing must be in compliance with AQB examination requirements for qualifying education.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed May 7, 2021; effective August 5, 2021. Amendments filed July 26, 2022; effective October 24, 2022.

Tenn. Comp. R. & Regs. 1255-02-.05 COURSE CONTENT GUIDELINES - QUALIFYING EDUCATION

(1) Acceptable Courses. An applicant applying for licensure as a state licensed real estate appraiser or for certification as a state certified residential or state certified general real estate appraiser shall meet his or her respective qualifying education requirements outlined in rules

Tenn. Comp. R. & Regs. 1255-02-.06 COURSE CONTENT GUIDELINES - CONTINUING EDUCATION

(1) The course must involve a minimum of two (2) classroom hours of instruction on acceptable real estate appraisal or related topics.

(2) The course must contribute to the goal of maintaining or increasing the knowledge, skill and competence of real estate appraisers with regard to the performance of real estate appraisals in a manner that best serves the public interest. Courses are not acceptable if they would contribute only generally to the appraiser’s knowledge of the business field, rather than specifically to operating an appraisal business.

(3) Courses that satisfy the qualification education course content are acceptable as continuing education. The Uniform Standards of Professional Appraisal Practice (USPAP) course may be approved as both qualifying education and repeated for continuing education credit.

(4) These guidelines provide examples of topics that are considered to be either acceptable or unacceptable. These lists are not all-inclusive and are included for illustrative purposes to assist education providers in understanding the course content requirements under this program.

(a) Acceptable real estate appraisal topics include, but are not limited to, the following:

Ad valorem taxation 2. Appraisal arbitration, dispute resolution 3. Courses related to the practice of real estate appraisal or consulting 4. Development cost estimating 5. Ethics and standards of professional practice, USPAP 6. Land use planning, zoning 7. Management, leasing, timesharing 8. Property development, partial interests 9. Real estate law, easements, and legal interests 10. Real estate litigation, damages, condemnation 11. Real estate financing and investment 12. Real estate appraisal related computer applications 13. Real estate securities and syndication (b) Unacceptable real estate topics include the following:
Real estate fundamentals 2. Real estate sales (and related topics)
Real estate license law 4. Agency law 5. Business topics:

(i) Advertising/marketing (ii) Bookkeeping (iii) Business administration (iv) Business law (v) Computer principles/programming systems (vi) Office management/systems (vii) Personnel management (viii) Principles of management (ix) Typing/word processing 6. Personal development topics:

(i) Communications (oral or written)

(ii) Interpersonal communications (iii) Memory improvement (iv) Public speaking (v) Speed reading (vi) Stress management (vii) Time management 7. Other topics:

(i) Appraiser examination preparation (5) Qualifications of Instructors for Continuing Education.

(a) The course owner/affiliated entity must have a written policy regarding instructor qualifications that requires the use of instructors who satisfy at least one of the following qualification requirements at a minimum:

The instructor must not have been disciplined by any licensing or certifying body in any manner. For purposes of this rule “disciplined” shall be defined as any letter, order or any other document or hearing which resulted in a finding of improper conduct by the instructor. An instructor may make written request to have this requirement waived. The Commission shall consider these requests on an individual basis. However, nothing in this rule shall create the right to a contested case hearing as defined by the Administrative Procedures Act.
Instructors must either:

(i) Possess three (3) years of experience directly related to the subject matter to be taught; or (ii) Possess a baccalaureate or higher degree in a field directly related to the subject matter to be taught; or (iii) Possess three (3) years of experience teaching the subject matter to be taught.

(iv) A combination of education and experience equivalent to (i), (ii), or (iii) above.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendments filed December 13, 2004; effective February 26, 2005. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.07 RECORDS

The provider of any course(s) approved by the Commission shall maintain accurate and permanent records on all students enrolled in such course(s). The records shall include all information and ratings considered in determining whether students successfully complete such course(s). Such records shall be made available upon request to the Commission or its authorized representative.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1998. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-01-.05 , 1255-01-.07 and 1255-01-.08 by successfully completing courses in the following areas:

(a) Courses on basic real estate appraisal principles, which include, but are not limited to the following course topics:

Real property concepts and characteristics:

(i) Basic real property concepts (ii) Real property characteristics (iii) Legal description 2. Legal considerations in real estate appraisal:

(i) Forms of ownership (ii) Public and private controls (iii) Real estate contracts (iv) Leases 3. Influences on real estate values:

(i) Governmental (ii) Economic (iii) Social (iv) Environmental, geographic and physical 4. Economic principles:

(i) Classic economic principles (ii) Application and illustrations of the economic principles 5. Overview of real estate markets and analysis:

(i) Market fundamentals, characteristics, and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis 6. Ethics and how they apply in appraisal theory and practice (b) Courses on basic real estate appraisal practices/procedures, which include, but are not limited to the following course topics:

Overview of approaches to value 2. Valuation procedures:

(i) Defining the problem (ii) Collecting and selecting data (iii) Analyzing (iv) Reconciling and final value opinion (v) Communicating the appraisal 3. Property description:

(i) Geographic characteristics of the land/site (ii) Geologic characteristics of the land/site (iii) Location and neighborhood characteristics (iv) Land/site considerations for highest and best use (v) Improvements – architectural styles and types of construction 4. Residential applications (c) Courses on residential market analysis and highest and best use, which include but are not limited to the following course topics:

Residential markets and analysis:

(i) Market fundamentals, characteristics, and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis 2. Highest and best use:

(i) Test constraints (ii) Application of highest and best use (iii) Special considerations (iv) Market analysis (v) Case studies (d) Courses on residential appraiser site valuation and cost approach, which include, but are not limited to the following course topics:

Site valuation:

(i) Methods (ii) Case studies 2. Cost approach:

(i) Concepts and definitions (ii) Replacement/reproduction cost new (iii) Accrued depreciation (iv) Methods of estimating accrued depreciation (v) Case studies (e) Courses on residential sales comparison and income approaches, which include, but are not limited to the following course topics:

Valuation principles and procedures – sales comparison approach 2. Valuation principles and procedures – income approach 3. Finance and cash equivalency 4. Financial calculator introduction 5. Identification, derivation and measurement of adjustments 6. Gross rent multipliers 7. Partial interests 8. Reconciliation 9. Case studies and applications (f) Courses on residential report writing and case studies, which include, but are not limited to the following course topics:
Writing and reasoning skills 2. Common writing problems 3. Form reports 4. Report options and USPAP compliance (g) Courses on statistics modeling and finance, which include, but are not limited to the following course topics:
Statistics 2. Valuation models (AVM’s and mass appraisal)
Real estate finance (h) Courses on advanced residential applications and case studies, which include, but are not limited to the following course topics:
Complex property, ownership and market conditions 2. Deriving and supporting adjustments 3. Residential market analysis 4. Advanced case studies (i) Courses on general appraiser market analysis and highest and best use, which include, but are not limited to the following course topics:
Real estate markets and analysis:

(i) Market fundamentals, characteristics and definitions (ii) Supply analysis (iii) Demand analysis (iv) Use of market analysis 2. Highest and best use:

(i) Test constraints (ii) Application of highest and best use (iii) Special considerations (iv) Market analysis (v) Case studies (j) Courses on general appraiser sales comparison approaches, which include, but are not limited to the following course topics:

Value principles 2. Procedure 3. Identification and measurement of adjustments 4. Reconciliation 5. Case studies (k) Courses on general appraiser site valuation and cost approach, which include, but are not limited to the following course topics:
Site valuation:

(i) Methods (ii) Case studies 2. Cost approach:

(i) Concepts and definitions (ii) Replacement/reproduction cost new (iii) Accrued depreciation (iv) Methods of estimating accrued depreciation (v) Case studies (l) Courses on general appraiser income approach, which include, but are not limited to the following course topics:

Overview 2. Compound interest 3. Lease analysis 4. Vacancy and collection loss 5. Estimating operating expenses and reserves 6. Reconstructed income and expense statement 7. Tabilized net operating income estimate 8. Direct capitalization 9. Discounted cash flow 10. Yield capitalization 11. Partial interests 12. Case studies (m) Courses on general appraiser report writing and case studies, which include, but are not limited to the following course topics:
Writing and reasoning skills 2. Common writing problems 3. Report options and USPAP compliance 4. Case studies (n) The fifteen (15) hour National USPAP course or its equivalent, which includes, but is not limited to the following course topics:
Preamble and Ethics Rules 2. Standard 1 3. Standard 2 4. Standards 3 to 10 5. Statements and Advisory Opinions (2) If appropriate, the Commission may grant partial credit for courses that cover one (1) or more modules.

(3) Unacceptable Courses. Examples of some courses that are not eligible for approval of qualifying education, but could be acceptable for continuing education are listed below. The following list does not represent all of the courses which are not acceptable for qualifying education:

(a) Courses which focus all or a majority of their instruction on only one (1) comparatively narrow aspect of real estate appraising and which examine that one (1) aspect in depth. Examples are:

Estimating building costs 2. Estimating accrued depreciation 3. Cash equivalency 4. Use of financial calculators in appraising 5. Subdivision analysis 6. Valuation of partial interests (b) Courses which focus primarily on advanced concepts/methods, a specialized aspect of real estate appraising, or appraising one specific type of property. Example of these types of courses are those which focus primarily on the following topics:
Real estate investment analysis 2. Feasibility analysis 3. Condemnation appraising/right of way appraising 4. Review appraising 5. Mass appraisal 6. Litigation/testifying as an expert witness 7. Appraising condominiums 8. Appraising manufactured housing 9. Appraising office buildings 10. Appraising farms 11. Appraising land 12. Appraising machinery and equipment (c) Courses intended specifically to prepare students for a real estate appraisal licensure/certification examination.

(4) Qualifications of Instructors for Qualifying Education.

(a) At least one of the course instructors for the National Uniform Standards of Professional Appraisal Practice Course shall be an Appraiser Qualifications Board Certified instructor who is also a state certified residential real estate appraiser or state certified general real estate appraiser.

(b) The instructor shall not have been disciplined by any licensing or certifying body in any manner. For purposes of this rule “disciplined” means any order containing a finding of improper conduct by the instructor. An instructor may make a written request to the Commission to have this restriction waived. The Commission shall consider the request and the Commission may grant or deny the request based on the discretion of the Commission.

(c) An instructor must satisfy at least one (1) of the following qualification requirements in order to be approved by the Commission:

A baccalaureate degree in any field and three (3) years of experience directly related to the subject matter taught, 2. A master’s degree in any field and one (1) year of experience directly related to the subject matter taught, 3. A master’s or higher degree in a field that is directly related to the subject matter taught, 4. Five (5) years of real estate appraisal teaching experience directly related to the subject matter taught, or 5. Seven (7) years of real estate appraisal experience directly related to the subject matter taught.
Except for the seven (7) hour and fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Courses, the instructor must have authored, developed or taken the course or its equivalent prior to teaching and shall provide the Commission with evidence thereof. For the purposes of the seven (7) hour and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Courses, the instructor must be certified by the Appraiser Qualifications Board and be a state certified real estate appraiser in good standing.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Amendments filed May 10, 2024; effective August 8, 2024.

Tenn. Comp. R. & Regs. 1255-02-.08 INSPECTIONS

By applying for the Commission’s approval of any course in real estate appraisal, the provider applicant agrees to permit periodic inspections and monitoring by the Commission or its authorized representative for the purpose of evaluating facilities, course content, instructor performance, or any other relevant aspect of the administration and conduct of such course. The provider applicant also agrees to provide the Commission, on a quarterly basis, with a list of all scheduled courses for the quarter, including the time, date and location of such courses, in order to facilitate such inspection.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1998. Amendment filed January 19, 2001; effective April 5, 2001. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.09 CHANGES IN APPLICATIONS

Any material change in any information furnished in connection with any application for approval of a course (including, but not limited to, information concerning course content, instructors, and facilities) shall be submitted to and approved by the Commission before taking effect.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.10 WITHDRAWAL OF APPROVAL

(1) Approval of any course(s) may be withdrawn by the Commission if:

(a) The conduct of a provider, an instructor, or any other school representative in either the establishment or conduct of a course violates, or fails to meet the requirements of, the provisions of this chapter or other applicable law;

(b) The information contained in the application for approval is materially inaccurate or misleading;

(c) The provider, an instructor, or any other school representative disseminates false or misleading information concerning any course;

(d) The provider, an instructor, or any other school representative possesses, claims to possess, reveals, or distributes any questions utilized in examinations given by the Commission; or (e) The performance of the instructor is so deficient as to impair significantly the value of a course; provided, however, that the instructor shall receive adequate notice of the discovered deficiency and opportunity to demonstrate satisfactory correction thereof.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.11 PROMOTIONAL MATERIAL

Material used for advertising or promoting any course must not be misleading. Any statements or claims made in such materials must be factually supported. The use of misleading materials for advertising or promoting any course constitutes grounds for withdrawal of approval of the course.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.12 REPETITION OF COURSE CONTENT

(1) The Commission will not award credit for completion of required qualifying real estate appraisal education if the content of any course for which credit is claimed duplicates or repeats the content of a course for which credit has been previously received.

(2) A license or certificate holder may obtain continuing education credit for any course taken more than once if the course has undergone a significant update or if the license or certificate holder has not taken the course within the previous five (5) years. This paragraph does not apply to courses in the Uniform Standards of Professional Appraisal Practice.

(3) In general, an applicant for trainee registration, licensure, certification or renewal thereof may not claim credit for the same course as both qualifying and continuing education during the same renewal period; however, an applicant for upgrade may claim as qualifying education a course the applicant has taken for continuing education, but only if the applicant successfully completed the course examination.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed January 19, 2001; effective April 5, 2001. Amendment filed December 6, 2007; effective February 19, 2008.

Tenn. Comp. R. & Regs. 1255-02-.13 FEES

(1) The required fee from a course provider for approval of courses fifteen (15) hours or longer shall be two hundred dollars ($200.00) for each course. Once the application has been filed and processed, the application fee may not be refunded.

(2) The required fee from a course provider for approval of courses less than fifteen (15) hours shall be one hundred dollars ($100.00) for each course. Once the application has been filed and processed, the application fee may not be refunded.

(3) Course approval shall be valid for a two year (2)-year period from the date of approval and shall be renewed biennially thereafter.

(a) The provider of an approved course who wishes to renew such approval shall submit an application, on a form approved by the Commission, along with a renewal fee of two hundred dollars ($200.00) for each course fifteen (15) hours and over or one hundred dollars ($100.00) for each course less than fifteen (15) hours, within thirty (30) days prior to the approval’s expiration.

(b) In order to renew course approval and in addition to the payment of the appropriate fee, the provider shall also submit with the application a notarized statement certifying that the provider has not significantly changed the content of the course since its original approval.

(c) If a provider fails to renew course approval within thirty (30) days or the approval’s expiration date, the provider may, upon payment of a fifty dollar ($50.00) penalty, apply for a late renewal. No late renewals or course approval will be granted if over six (6) months have passed since expiration.

(4) The Commission will not require a fee from state supported universities, colleges and junior colleges which provide courses for qualifying or continuing education.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-206, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Amendment filed December 6, 2007; effective February 19, 2008. Amendment filed May 23, 2014; effective August 21, 2014. Amendment filed July 20, 2015; effective October 18, 2015.

Tenn. Comp. R. & Regs. 1255-02-.14 INDIVIDUAL REVIEW

A license or certificate holder can apply on an individual basis for continuing education credit for a course or courses provided by the same provider which is not approved by the Commission. To be considered for credit, the proper form must be received along with a fee of twenty-five dollars ($25.00).

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed December 6, 2007; effective February 19, 2008.

Chapter 1255-03 Evaluation of Appraiser Experience

Tenn. Comp. R. & Regs. 1255-03-.01 REPEALED

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-313, 62-39-329, 62-39-333, and 62-39-337.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Repeal filed May 23, 2014; effective August 21, 2014.

Tenn. Comp. R. & Regs. 1255-03-.02 CRITERIA FOR STANDARD AND REVIEW APPRAISAL EXPERIENCE

(1) Acceptable Experience.

(a) If the applicant performed at least fifty percent (50%) of the appraisal report, then the Commission shall grant full credit for that appraisal, even if this work was reviewed by a supervising appraiser who signed the appraisal report. Except as provided below for “review appraisals,” credit will not be granted for appraisals where an applicant performed less than fifty percent (50%) of the work.

(b) Review Appraisals: If the applicant performed a “review” of an appraisal performed by another person and the applicant prepared a separate written review appraisal report, in conformance with Standard 3 of the Uniform Standards of Appraisal Practice, the applicant will receive credit for the actual work hours performed on the assignment.

(c) Mass Appraisals. The Commission shall grant experience credit to appraisers who perform mass appraisals in compliance with Standard Six of Uniform Standards of Professional Appraisal Practice and who demonstrate that they:

use techniques to value properties similar to those used by appraisers practicing under Uniform Standards of Professional Appraisal Practice Standard One; and 2. effectively use the appraisal process as referenced in the Guidelines of Standard Six of the Uniform Standards of Professional Appraisal Practice.
Properties which conform to the preceding definitions should be credited for the actual work hours performed on the assignment. Mass appraisals shall comprise no more than twenty-five percent (25%) of the total experience hours required to become licensed or certified.

(2) Requests for Reconsideration: If an applicant wishes to appeal the evaluation of his experience he may file a written request for individual review by the Commission. Nothing in this rule shall create the right to a formal contested proceeding (as defined by the Tennessee Administrative Procedures Act).

(3) An applicant should also refer to Chapter 1255-1 General Provisions for further delineation of experience requirements.

(4) No experience credit shall be given for evaluations.

(5) In appropriate circumstances, the Commission may grant partial or whole credit for demonstration reports. No more than twenty-five percent (25%) of the experience requirement may be obtained through demonstration reports from AQB approved case study courses or practicum courses or demonstration reports approved by the Commission.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-303, 62-39-312, 62-39-313, 62-39-329, 62-39-333, and 62-39-337, as amended by 1991 Public Acts, Chapter 366.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993; effective January 11, 1994. Amendment filed January 19, 2001; effective April 5, 2001. Amendments filed December 13, 2004; effective February 26, 2005. Amendments filed December 6, 2007; effective February 19, 2008. Amendment filed May 23, 2014; effective August 21, 2014.

Chapter 1255-04 Continuing Education

Tenn. Comp. R. & Regs. 1255-04-.01 CONTINUING EDUCATION REQUIREMENTS

(1) As a prerequisite to renewal of a real estate appraiser license or certificate, the licensee or certificate holder shall complete at least twenty-eight (28) hours of continuing education courses approved by the Commission during each renewal period, which is every two (2) years (hereinafter “continuing education”).

(a) A course hour is defined as fifty (50) minutes of teaching out of each sixty (60)-minute segment.

(b) The Commission will grant credit toward the continuing education requirement only if the length of the educational offering is at least two (2) hours.

(c) A state licensed, state certified residential or a state certified general real estate appraiser may obtain credit for the continuing education requirement from the following:

Colleges or universities;
Community or junior colleges;
Real estate appraisal or real estate related organizations;
State or federal agencies or commissions;
Proprietary schools;
Other providers approved by the Commission; and 7. The Appraisal Foundation or its Boards.

(d) The Commission may grant credit for educational offerings which are consistent with the purpose of continuing education stated in paragraph (6) and cover real estate appraisal topics such as:

Ad valorem taxation;
Arbitration, dispute resolution;
Courses related to practice of real estate appraisal or consulting;
Development cost estimating;
Ethics and standards of professional practice, USPAP;
Land use planning, zoning, taxation;

(Rule 1255-04-.01 continued)

Management, leasing, timesharing;
Property development, partial interests;
Real estate law, easements, and legal interests;
Real estate litigation, damages, condemnation;
Real estate financing and investment;
Real estate appraisal related computer applications;
Real estate securities and syndication;
Developing opinions of real property value in appraisals that also include personal property and/or business value;
Seller concessions and impact on value; and/or 16. Energy efficient items and “green building” appraisals.

(2) All licensees and certificate holders shall successfully complete the seven (7)-hour National Uniform Standards of Professional Appraisal Practice Update Course, or its equivalent, a minimum of once every two (2) years. Equivalency shall be determined through the Appraisal Qualifications Board Course Approval Program. The seven (7)-hour National Instructor Recertification Course for Uniform Standards of Professional Appraisal Practice shall fulfill the seven (7)-hour continuing education requirement for AQB approved instructors of the National Uniform Standards of Professional Appraisal Practice.

(3) The Commission shall grant continuing education credit for the National Uniform Standards of Professional Appraisal Practice Update Course only when at least one of the instructors is an Appraiser Qualifications Board Certified Instructor and a state certified general or residential real estate appraiser.

(4) The Commission shall grant continuing education credit for any course that a licensee has taken more than once if the course has undergone a significant update or if the licensee has not taken the course in the last five (5) years.

(5) Seminars.

(a) The Commission may offer seminars to the licensees for which fees, as appropriate, may be collected to cover costs.

(b) These seminars may be used by the licensees for continuing education credit.

(c) These seminars may include, but are not limited to the following subjects: laws and rules, policies and Uniform Standards of Professional Appraisal Practice.

(6) The purpose of continuing education is to ensure that the appraiser participates in a program that maintains and increases his or her skill, knowledge and competency in real estate appraisal.

(Rule 1255-04-.01 continued)

(7) The Commission may grant up to one-half (1/2) of an individual’s continuing education credit for participation, other than as a student, in appraisal educational processes and programs.

Examples of activities for which credit may be granted are teaching, program development, authorship of textbooks, or similar activities which the Commission determines are equivalent to obtaining continuing education. Credit for instructing any given course or seminar can only be awarded once during a continuing education cycle.

(8) A licensee or certificate holder may complete the individual’s required continuing education credits via distance education.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-205, 62-39-306, 62-32-315, 62-39-325, 62-39-329, and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed October 26, 1993; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Amendment filed May 23, 2014; effective August 21, 2014. Amendment filed July 20, 2015; effective October 18, 2015. Amendments filed April 23, 2020; effective July 22, 2020. Amendments filed July 26, 2022; effective October 24, 2022.

Chapter 1255-05 Standards of Professional Practice

Tenn. Comp. R. & Regs. 1255-05-.01 UNIFORM STANDARDS OF APPRAISAL PRACTICE

(1) The Tennessee Real Estate Appraiser Commission adopts by reference the most current edition of the “Uniform Standards of Professional Appraisal Practice” as published and modified from time to time by the Appraisal Standards Board of The Appraisal Foundation.

(a) Unless otherwise provided by applicable law or rule, the provisions of this chapter shall apply to any person holding a license or certificate as a licensed real estate appraiser, certified residential real estate appraiser, or certified general real estate appraiser in this state.

(b) In addition, rule 1255-05-.02 Civil Penalties, paragraphs (2) through (4), shall apply to any person required to hold a license or certificate to engage in the practice of real estate appraisal in this state, regardless of whether such person has actually obtained such license or certificate.

(2) Unless otherwise provided by applicable law or rule, the holder of a license or certificate as a licensed real estate appraiser, certified residential real estate appraiser or certified general real estate appraiser shall at all times comply with the “Uniform Standards of Professional Appraisal Practice” that are in effect at the time the services are performed.

(3) An appraiser shall state and prominently place on the face of the appraisal report the type of report format.

(4) An appraiser shall identify all persons providing material assistance in the appraisal report in compliance with the Uniform Standards of Professional Appraisal Practice.

(5) An appraiser shall sign each written appraisal report relating to real property in this state that he or she prepares, in accordance with the Uniform Standards of Professional Appraisal Practice. The appraiser shall not affix his or her signature to any written appraisal report relating to real property in this state which was not prepared under the appraiser’s direct supervision.

(6) Failure to take the seven (7) hour National Uniform Standards of Professional Appraisal Practice Update Course at least once in every period of two (2) calendar years as defined and required by rule 1255-04-.01(2) constitutes grounds for revocation, suspension or restriction of any license or certificate issued by the Commission. Teaching this course will be considered compliance with this requirement. Taking the AQB certified Uniform Standards of Professional Appraisal Practice instructor recertification course shall not fulfill this requirement.

(7) Failure to comply with the Uniform Standards of Professional Appraisal Practice constitutes grounds for the revocation, suspension or restriction of any license or certificate issued by the commission and/or imposition of civil penalties pursuant to T.C.A. § 62-39-326.

History

Authority: T.C.A. §§ 56-1-308, 62-39-203, 62-39-204, 62-39-308, 62-39-326, 62-39-329, and 62-39-333.
Administrative History: Original rule filed August 1, 1991; effective September 15, 1991. Amendment filed December 16, 1997; effective March 1, 1998. Amendment filed January 19, 2001; effective April 5, 2001. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008. Amendments filed April 9, 2020; effective July 8, 2020.

Tenn. Comp. R. & Regs. 1255-05-.02 CIVIL PENALTIES

(1) With respect to any license or certificate holder, the Commission, may in addition to or in lieu of any other lawful disciplinary action, assess a civil penalty against such license or certificate holder for each separate violation of a statute, rule or order pertaining to the Commission in accordance with the following schedule:

Violation Penalty (a) Tenn. Code Ann. § 62-39-302 $ 50 - $1,000 (b) Tenn. Code Ann. § 62-39-317 $ 50 - $1,000 (c) Tenn. Code Ann. § 62-39-323 $ 50 - $1,000 (d) Tenn. Code Ann. § 62-39-324 $ 50 - $1,000 (e) Tenn. Code Ann. § 62-39-326 $ 50 - $1,000 (f) Tenn. Code Ann. § 62-39-329 $ 50 - $1,000 (g) Tenn. Code Ann. § 62-39-338(c) $ 50 - $1,000 (h) Rule 1255-05-.01 $ 50 - $1,000 (i) Rule 1255-06-.02 $ 50 - $1,000 (j) Rule 1255-07-.01 $ 50 - $1,000 (k) Commission Order $ 50 - $1,000 (2) With respect to any person required to be licensed or certified in this state as a state licensed real estate appraiser, state certified residential real estate appraiser or state certified general real estate appraiser (regardless of whether the person is actually licensed or certified), the Commission may assess a civil penalty against such person for each separate violation of a statute in accordance with the following schedule:

Violation Penalty (a) T.C.A. § 62-39-103 $100 - $1,000 (b) T.C.A. § 62-39-105 $100 - $1,000 (3) Each day of continued violation may constitute a separate violation.

(4) In determining the amount of civil penalty to be assessed pursuant to these rules, the Commission may consider such factors as the following:

(a) Whether the amount imposed will be substantial economic deterrent to the violation;

(b) The circumstances leading to the violation;

(d) The economic benefits gained by the violator as a result of noncompliance; and (e) The interest of the public.

History

Authority: T.C.A. §§ 56-1-308, 62-39-203, 62-39-204, 62-39-308, and 62-39-326.
Administrative History: Original rule filed December 16, 1997; effective March 1, 1998. Amendments filed December 13, 2004; effective February 26, 2005.

Chapter 1255-06 Reciprocity

Tenn. Comp. R. & Regs. 1255-06-.01 .

(2) An applicant for registration as a trainee meeting the requirements of T.C.A. § 4-3-1304(d)(1) may be issued a temporary authorization upon completion of such application as may be required by the Commission if the Commission determines that the applicant’s registration in another state does not meet the requirements for substantial equivalency, but that the applicant could perform additional acts, including—but not limited to—education, training or experience, in order to meet the requirements for the registration to be substantially equivalent.

(a) A temporary authorization shall be issued in six (6) month increments and the fee shall be $31.25 for each such increment.

(b) In no case shall an original temporary authorization be issued for a period of longer than two (2) years.

(c) A temporary authorization shall expire upon the date set by the Commission and shall not be subject to renewal except through completion of the requirements for substantial equivalence as required by the Commission or by an extension of time granted for good cause by the Commission. A temporary authorization shall only be extended for good cause by one (1) six (6) month increment at a time.

(d) No temporary authorization shall be granted if the applicant does not hold a registration in “good standing” from another jurisdiction.

(e) Upon completion of all requirements for substantial equivalency as required by the Commission for the issuance of the temporary authorization, the applicant may apply for a registration from the Commission, including payment of the nonrefundable application and registration fee for the issuance of such registration.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-205, 62-39-306, 62-39-325, and 62-39-333.
Administrative History: Original rule filed July 20, 2015; effective October 18, 2015. Amendments filed May 2, 2025; effective July 31, 2025.

Tenn. Comp. R. & Regs. 1255-06-.02 TEMPORARY PRACTICE PERMITS

(1) For purposes of this rule only, “assignment” shall mean one or more real estate appraisals and written appraisal reports which are covered by a contract to provide real estate appraisal services.

(2) A nonresident of this state who shows proof of such nonresident’s proper licensure or certification in another state, territory or possession of the United States, or any country, may apply to the Commission for a temporary practice permit to perform a single assignment.

(3) An applicant for a temporary practice permit must submit an application to the Commission on a form approved by the Commission.

(4) An applicant for a temporary practice permit shall submit with the application a nonrefundable fee of one hundred fifty dollars ($150.00) for each assignment in this state. The applicant shall provide with the application a list of each specific parcel of real property included in the assignment. Such permit shall expire six (6) months after its issuance.

(5) Upon appropriate written request, the Commission may grant an extension of any temporary practice permit it has issued. In no event may a temporary practice permit be valid for more than one (1) year from the date of its issuance.

(6) An individual nonresident may obtain no more than six (6) temporary practice permits in a single calendar year.

(7) If a temporary practice permit holder’s out-of-state license has been revoked, suspended, denied renewal or restricted, then the Commission may revoke, suspend, refuse to renew or restrict a permit holder’s temporary practice permit.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, 62-39-322, 62-39-326, 62-39-333, and 62-39-338 and Chapter 81, Public Acts of 2001.
Administrative History: Original rule filed December 16, 1997; effective March 1, 1998. Amendment filed December 6, 2001; effective February 19, 2002. Amendment filed December 13, 2004; effective February 26, 2005.

Tenn. Comp. R. & Regs. 1255-06-.03 EXPEDITED REGISTRATION FOR CERTAIN MILITARY PERSONNEL AND SPOUSES

(1) An applicant for licensure or certification meeting the requirements of T.C.A. § 4-3-1304(d)(1) may be issued a reciprocal license or certification by the Commission by complying with Rule

Chapter 1255-07 Inactive Status

Tenn. Comp. R. & Regs. 1255-07-.01 INACTIVE STATUS

(1) A licensee or certificate holder shall submit an application obtained from the Commission office accompanied by a twenty-five dollar ($25.00) fee for a change of status to place his or her license or certificate in inactive status. A license or certificate holder in inactive status shall continue to pay the one hundred dollar ($100.00) biennial renewal fee. A licensee or certificate holder shall also submit an application to place his or her license or certificate back in active status.

(2) An inactive license or certificate holder may not engage in any real estate appraisal activity or make any misrepresentation of his or her status. Any violation of this paragraph constitutes grounds for discipline pursuant to Tenn. Code Ann. §62-39-326.

(3) In order for a licensee or certificate holder to reactivate his or her license or certificate from an inactive status to an active status, he or she shall pay a fee of twenty-five dollars ($25.00) plus all applicable fees and shall also present proof of having completed a minimum of the seven (7) hour National Uniform Standards of Professional Appraisal Practice Course within the preceding two (2) years, in addition to the required cumulative continuing education for the entire lapsed period.

History

Authority: T.C.A. §62-39-203, 62-39-204 and 62-39-206.
Administrative History: Original rule filed October 26, 1994; effective January 11, 1994. Amendment filed December 16, 1997; effective March 1, 1998. Repeal and new rule filed December 13, 2004; effective February 26, 2005. Repeal and new rule filed December 6, 2007; effective February 19, 2008.

Chapter 1255-08 Appraisal Management Company Registration and Regulation

Tenn. Comp. R. & Regs. 1255-08-.01 REGISTRATION APPLICATION REQUIREMENTS

(1) An applicant for registration as an Appraisal Management Company or an entity that is exempt from the registration requirements pursuant to T.C.A. § 62-39-404(1) must submit a written application on the prescribed form. The application shall include the following information and certifications:

(a) The name, business address, telephone number and email address of the person or entity seeking registration.

(b) Designation of an agent for service of process within the state and an irrevocable Uniform Consent to Service of Process.

(c) If the entity is not a corporation that is domiciled in this state, the name and contact information for the company’s agent for service of process in this state.

(d) The name, address and contact information for any individual or entity owning ten percent (10%) or more of the Appraisal Management Company.

(e) The name, address and contact information for an individual designated as the controlling person.

(f) Certification that any person owning the entity, in whole or in part, directly or indirectly, has never had a license or certificate to act as an appraiser refused, revoked or surrendered in lieu of disciplinary action in any state.

(g) Certification that the Appraisal Management Company is not owned by any person who has been convicted of any felony or a misdemeanor involving the theft of services, money or property, or has had an appraiser license, certification or registration denied, revoked or suspended subject to a disciplinary proceeding in any state.

(2) A registration fee of two thousand dollars ($2,000.00) is required at the time of application.

(3) The applicant shall post with the Commission at the time of application a surety bond in the amount of twenty thousand dollars ($20,000.00).

(a) The bond shall accrue to the State for the benefit of a claimant against the registrant to secure the performance of the registrant’s obligation.

(b) Any claims reducing the face amount of the bond must be restored at the time of the biennial renewal.

(4) Upon completion of the registration application and payment of all fees, the Commission shall issue the registrant a unique registration number and shall publish a list of all registered Appraisal Management Companies.

(5) For purposes of Chapter 1255-08 and the Tennessee Appraisal Management Company Registration and Regulation Act, unless context otherwise requires:

(a) “Good Moral Character” means a person has not been convicted of or pled nolo contendere to any felony or a misdemeanor involving theft of services, money or property, and has never had an appraiser license, certification or registration denied, revoked or suspended in any state.

History

Authority: T.C.A. §§ 62-39-203, 62-39-403, 62-39-407, 62-39-408, 62-39-409, 62-39-410, and 62-39- 423.
Administrative History: Original rule filed May 24, 2011; effective August 22, 2011. Amendments filed March 21, 2018; effective June 19, 2018. Amendments filed May 10, 2024; effective August 8, 2024.

Tenn. Comp. R. & Regs. 1255-08-.02 BACKGROUND CHECKS

Any person owning more than ten percent (10%) of the Appraisal Management Company shall submit a background check at time of application.

History

Authority: T.C.A. §§ 62-39-409 and 62-39-410.
Administrative History: Original rule filed May 24, 2011; effective August 22, 2011. Amendments filed March 21, 2018; effective June 19, 2018.

Tenn. Comp. R. & Regs. 1255-08-.03 DENIAL OF REGISTRATION

(1) An Appraisal Management Company denied registration shall be notified in writing by the Commission of such denial and the reasons therefor. Such applicant may request an informal conference with the Commission to reconsider such denial at its next scheduled meeting.

Such request must be sent to the Commission office within thirty (30) days of the date of the notice of denial.

(2) Nothing in this rule shall be construed as creating the right to a contested case proceeding (as defined by the Tennessee Administrative Procedures Act, T.C.A. Title 4, Chapter 5) if a registration is denied an applicant.

History

Authority: T.C.A. §§ 62-39-203, 62-39-204, and 62-39-333.
Administrative History: Original rule filed May 24, 2011; effective August 22, 2011.

Tenn. Comp. R. & Regs. 1255-08-.04 REGISTRATION RENEWAL

(1) A registration shall expire two (2) years following the date of issuance.

(2) To obtain renewal of a registration, the holder of a current, valid registration must make application on the prescribed form no later than thirty (30) days prior to the expiration of the registration then held.

(3) An application for renewal must be accompanied by the two thousand dollar ($2,000.00) registration renewal fee plus the applicable federal registry fee.

(4) Failure to renew the registration prior to expiration will result in the loss of authority to operate as an Appraisal Management Company in Tennessee until a request for reinstatement has been processed by the Commission. A late penalty fee of one hundred dollars ($100.00) per month, or portion thereof, of delinquency must be paid prior to reinstatement in addition to the registration renewal fees.

History

Authority: T.C.A. §§ 62-39-403 and 62-39-408.
Administrative History: Original rule filed May 24, 2011; effective August 24, 2011. 1255-08-05 FEDERAL APPRAISER REGISTRY. Registrants who are qualified for enrollment in the federal roster or registry of Appraisal Management Companies must apply for enrollment or reinstatement of such enrollment in same upon a form approved by the Commission accompanied by the fee established for that purpose by the appropriate federal agency or instrumentality. Authority: T.C.A. § 62-39-333.

Tenn. Comp. R. & Regs. 1255-08-.06 FILING OF DOCUMENTS

(1) Registrants must file the biannual certification required pursuant to T.C.A. §§ 62-39-414, 62- 39-415, 62-39-416 and 62-39-417 every one hundred and eighty (180) days beginning on the date of registration issuance.

(2) When documents are remitted to the office of the Tennessee Real Estate Appraiser Commission by mail for filing, the date of filing shall be determined by the official postmark on such mail.

History

Authority: T.C.A. §§ 62-39-414, 62-39-415, 62-39-416, and 62-39-417.
Administrative History: Original rule filed May 24, 2011; effective August 22, 2011.

Tenn. Comp. R. & Regs. 1255-08-.07 ADMINISTRATIVE PENALTIES

(1) With respect to any registrant, the Commission may in addition to or in lieu of any other lawful disciplinary action, assess an administrative penalty against such registrant for each separate violation of a statute, rule or order pertaining to the Commission in accordance with the following schedule:

Violation Penalty (a) T.C.A. § 62-39-411 ....................... $50 - $1,000 (b) T.C.A. § 62-39-412 ...................... $50 - $1,000 (c) T.C.A. § 62-39-413 ...................... $50 - $1,000 (d) T.C.A. § 62-39-414 ...................... $50 - $1,000 (e) T.C.A. § 62-39-415 ...................... $50 - $1,000 (f) T.C.A. § 62-39-416 ...................... $50 - $1,000 (g) T.C.A. § 62-39-417 ....................... $50 - $1,000 (h) T.C.A. § 62-39-418 ...................... $50 - $1,000 (i) T.C.A. § 62-39-419 ...................... $50 - $1,000 (j) T.C.A. § 62-39-420 ...................... $50 - $1,000 (k) T.C.A. § 62-39-421 ...................... $50 - $1,000 (l) T.C.A. § 62-39-422 ...................... $50 - $1,000 (m) T.C.A. § 62-39-424 ...................... $50 - $1,000 (n) T.C.A. § 62-39-425 ...................... $50 - $1,000 (o) T.C.A. § 62-39-427....................$50 - $1,000 (p) Rule 1255-08-.01 ......................... $50 - $1,000 (q) Commission Order ....................... $50 - $1,000 (2) With respect to any person or entity required to be registered in this state as an Appraisal Management Company (regardless of whether the person or entity is actually licensed or certified), the Commission may assess an administrative penalty against such person or entity for each separate violation of a statute in accordance with the following schedule:

Violation Penalty (a) T.C.A. § 62-39-403 .................... $100 - $1,000 (3) Each day of continued violation may constitute a separate violation.

(4) In determining the amount of administrative penalty to be assessed pursuant to this rule, the Commission may consider such factors as the following:

(a) Whether the amount imposed will be substantial economic deterrent to the violation;

(b) The circumstances leading to the violation;

(d) The economic benefits gained by the violator as a result of noncompliance; and (e) The interest of the public.

History

Authority: T.C.A. §§ 56-1-308, 62-39-411, 62-39-412, 62-39-413, 62-39-418, 62-39-419, 62-39-420, 62- 39-421, 62-39-422, 62-39-424, and 62-39-425.
Administrative History: Original rule filed May 24, 2011; effective August 22, 2011. Amendments filed March 21, 2018; effective June 19, 2018.

Tenn. Comp. R. & Regs. 1255 — Real Estate Appraiser

Chapter 1255-01 General Provisions

Tenn. Comp. R. & Regs. 1255-01-.01 PURPOSE

Tenn. Comp. R. & Regs. 1255-01-.02 DEFINITIONS

Tenn. Comp. R. & Regs. 1255-01-.03 RESTRICTIONS ON APPRAISER PRACTICE

Tenn. Comp. R. & Regs. 1255-01-.04 APPLICATION FOR APPRAISER LICENSE OR CERTIFICATE

Tenn. Comp. R. & Regs. 1255-01-.05 QUALIFICATIONS FOR STATE LICENSED APPRAISER

Tenn. Comp. R. & Regs. 1255-01-.06 REPEALED

Tenn. Comp. R. & Regs. 1255-01-.07 QUALIFICATIONS FOR STATE CERTIFIED RESIDENTIAL APPRAISER

Tenn. Comp. R. & Regs. 1255-01-.08 QUALIFICATIONS FOR GENERAL CERTIFICATION

Tenn. Comp. R. & Regs. 1255-01-.09 DENIAL OF LICENSE OR CERTIFICATE

Tenn. Comp. R. & Regs. 1255-01-.10 LICENSE OR CERTIFICATE EXPIRATION

Tenn. Comp. R. & Regs. 1255-01-.11 LICENSE AND CERTIFICATE RENEWAL

Tenn. Comp. R. & Regs. 1255-01-.12 REGISTERED TRAINEE

Tenn. Comp. R. & Regs. 1255-01-.13 REPLACEMENT LICENSE OR CERTIFICATE

Tenn. Comp. R. & Regs. 1255-01-.14 FEDERAL APPRAISER REGISTRY

Tenn. Comp. R. & Regs. 1255-01-.15 NOTICE TO COMMISSION OF ADDRESSES AND CHANGES OF ADDRESS

Tenn. Comp. R. & Regs. 1255-01-.16 FINGERPRINTING

Chapter 1255-02 Evaluation of Appraiser Education

Tenn. Comp. R. & Regs. 1255-02-.01 EDUCATIONAL LOGGING

Tenn. Comp. R. & Regs. 1255-02-.02 REPEATED COURSES

Tenn. Comp. R. & Regs. 1255-02-.03 COURSE PROVIDER APPLICATIONS

Tenn. Comp. R. & Regs. 1255-02-.04 COURSE GUIDELINES

Tenn. Comp. R. & Regs. 1255-02-.05 COURSE CONTENT GUIDELINES - QUALIFYING EDUCATION

Tenn. Comp. R. & Regs. 1255-02-.06 COURSE CONTENT GUIDELINES - CONTINUING EDUCATION

Tenn. Comp. R. & Regs. 1255-02-.07 RECORDS

Tenn. Comp. R. & Regs. 1255-01-.05 , 1255-01-.07 and 1255-01-.08 by successfully completing courses in the following areas:

Tenn. Comp. R. & Regs. 1255-02-.08 INSPECTIONS

Tenn. Comp. R. & Regs. 1255-02-.09 CHANGES IN APPLICATIONS

Tenn. Comp. R. & Regs. 1255-02-.10 WITHDRAWAL OF APPROVAL

Tenn. Comp. R. & Regs. 1255-02-.11 PROMOTIONAL MATERIAL

Tenn. Comp. R. & Regs. 1255-02-.12 REPETITION OF COURSE CONTENT

Tenn. Comp. R. & Regs. 1255-02-.13 FEES

Tenn. Comp. R. & Regs. 1255-02-.14 INDIVIDUAL REVIEW

Chapter 1255-03 Evaluation of Appraiser Experience

Tenn. Comp. R. & Regs. 1255-03-.01 REPEALED

Tenn. Comp. R. & Regs. 1255-03-.02 CRITERIA FOR STANDARD AND REVIEW APPRAISAL EXPERIENCE

Chapter 1255-04 Continuing Education

Tenn. Comp. R. & Regs. 1255-04-.01 CONTINUING EDUCATION REQUIREMENTS

Chapter 1255-05 Standards of Professional Practice

Tenn. Comp. R. & Regs. 1255-05-.01 UNIFORM STANDARDS OF APPRAISAL PRACTICE

Tenn. Comp. R. & Regs. 1255-05-.02 CIVIL PENALTIES

Chapter 1255-06 Reciprocity

Tenn. Comp. R. & Regs. 1255-06-.01 .

Tenn. Comp. R. & Regs. 1255-06-.02 TEMPORARY PRACTICE PERMITS

Tenn. Comp. R. & Regs. 1255-06-.03 EXPEDITED REGISTRATION FOR CERTAIN MILITARY PERSONNEL AND SPOUSES

Chapter 1255-07 Inactive Status

Tenn. Comp. R. & Regs. 1255-07-.01 INACTIVE STATUS

Chapter 1255-08 Appraisal Management Company Registration and Regulation

Tenn. Comp. R. & Regs. 1255-08-.01 REGISTRATION APPLICATION REQUIREMENTS

Tenn. Comp. R. & Regs. 1255-08-.02 BACKGROUND CHECKS

Tenn. Comp. R. & Regs. 1255-08-.03 DENIAL OF REGISTRATION

Tenn. Comp. R. & Regs. 1255-08-.04 REGISTRATION RENEWAL

Tenn. Comp. R. & Regs. 1255-08-.06 FILING OF DOCUMENTS

Tenn. Comp. R. & Regs. 1255-08-.07 ADMINISTRATIVE PENALTIES

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