N.D. Admin. Code Title 101 — Real Estate Appraiser Qualifications and Ethics Board

Article 101-01 General Administration

Chapter 101-01-01 Organization of the Board

N.D. Admin. Code 101-01-01-01 Organization and history of the board

1.History and functions. The 1991 legislative assembly passed real estate appraiser legislation codified as North Dakota Century Code chapter 43-23.3. This legislation requires the governor to appoint a board identified as the North Dakota real estate appraiser qualifications and ethics board. The board is responsible for licensing and certifying applicants based on specific minimum requirements. The board must specifically define the minimum levels of experience, education, and testing which an applicant must meet prior to being an apprentice, licensed, or certified. The appraiser qualifications board of the appraisal foundation has identified the minimum requirements for apprentices and licensed and certified appraisers needed to meet the requirements of the federal law, and the board adopts those minimums as its requirements. The board must issue permits to qualified apprentices and licensed and certified applicants, maintain a registry of names and addresses of apprenticed, licensed, and certified permittees, discipline permittees when necessary, hold meetings, hearings, and examinations in places and at times as it designates, maintain records of board activities, and adopt rules necessary to comply with federal and state laws.

The 2017 legislative assembly passed appraisal management legislation codified as North Dakota Century Code chapter 43-23.5, giving the board the responsibility to register appraisal management companies.

2.Board membership. The board consists of five members appointed by the governor. One member must represent the public, one member must represent the financial industry, and three members must be qualified real estate appraisers, with at least two appraisers being certified appraisers. One of the appraiser members must be experienced in the appraisal of agricultural property. Board members serve five year terms, with one term expiring each year.

3.Administration - Executive director. The board may contract for services necessary to carry out requirements imposed by state and federal law. This could include administrative affiliation with existing entities or contracting with independent individuals or entities. The executive director must be appointed by the board and is responsible for administering the activities of the board and providing other duties and services as authorized by the board.

4.Inquiries. Inquiries regarding the board may be addressed to the executive director at:

North Dakota Real Estate Appraiser Board P.O. Box 1336 Bismarck, ND 58502-1336 www.ndappraiserboard.org

History

• History: Effective October 1, 1992; amended effective July 1, 2019.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-07

Article 101-02 Appraiser Apprentice, Licensure, and Certification

Chapter 101-02-01 Application and Fees for Apprentice, Licensure, and Certification

N.D. Admin. Code 101-02-01-01 Application to take the examination

Any person who wishes to file an application to take the examination to qualify as a licensed or certified appraiser may contact the board office.

History

• History: Effective October 1, 1992; amended effective January 1, 2008; July 1, 2019.
• Law Implemented: NDCC 43-23.3-07

N.D. Admin. Code 101-02-01-02 Application for apprentice, licensure, or certification

A person who wishes to file an application for a permit to be an apprentice appraiser, a licensed appraiser, or a certified appraiser may contact the board office.

If an application is denied, the board will notify the applicant of the denial and specify the basis for the denial.

History

• History: Effective October 1, 1992; amended effective October 1, 1998; January 1, 2008; July 1, 2019.
• Law Implemented: NDCC 43-23.3-05 101-02-01-02.1. Denial of application.
• History: Effective July 1, 2012.
• Law Implemented: NDCC 43-23.3-03

N.D. Admin. Code 101-02-01-03 Filing fees

Fees will not be prorated.

1.The following application fees will be charged:

a.Apprentice appraiser permit$300

b.Licensed appraiser permit$400

c.Certified residential appraiser permit$400

d.Certified general appraiser permit$400

2.The following annual renewal fees will be charged:

a.Apprentice appraiser permit$350

b.Licensed appraiser permit$350 + national registry fee

c.Certified residential permit$350 + national registry fee

d.Certified general permit$350 + national registry fee

e.Inactive status$100

f.Late filing fee (per month)$100

3.Other fees:

a.Temporary practice permit-per contract $250

b.Education review for nonpermitted appraisiers$300

c.Approval of prelicensing or precertification educational courses$150

d.Approval of continuing educational courses:

(1)Courses two to eight hours in length$50 (2)Courses over eight hours in length$150

History

• History: Effective October 1, 1992; amended effective January 1, 1995; October 1, 1998; February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019.
• General Authority: NDCC 43-23.3-20
• Law Implemented: NDCC 43-23.3-05

N.D. Admin. Code 101-02-01-04 Payment of permit fees

Unpaid fees may be considered cause for denial, suspension, or revocation.

History

• History: Effective October 1, 1992; amended effective January 1, 2008; July 1, 2019.
• Law Implemented: NDCC 43-23.3-03, 43-23.3-20

N.D. Admin. Code 101-02-01-05 Replacement license or certificate fee

Repealed effective February 1, 2003.

Chapter 101-02-02 Definitions, Criteria, and Qualifications

N.D. Admin. Code 101-02-02-01 Statutory definitions

Unless otherwise defined, or made inappropriate by context, all terms defined in North Dakota Century Code chapter 43-23.3 have the same meanings in this chapter.

History

• History: Effective October 1, 1992.
• Law Implemented: NDCC 43-23.3-03

N.D. Admin. Code 101-02-02-02 Appraiser permit definitions, criteria, and qualifications

To apply for and maintain any appraiser permit an individual must meet all of the following requirements:

1.Be at least eighteen years of age.

2.Have a high school education or its equivalent.

3.Possess good character.

4.All applicants for permits of apprentice appraiser, licensed appraiser, certified residential appraiser, and certified general appraiser agree to follow the uniform standards of professional appraisal practice and must satisfy the qualification requirements listed in chapter 101-02-02.

History

• History: Effective October 1, 1992; amended effective October 1, 1998; January 1, 2008; July 1, 2019.
• Law Implemented: NDCC 43-23.3-08, 43-23.3-18

N.D. Admin. Code 101-02-02-03 Apprentice appraiser

1.Permit. An apprentice appraiser permit must be issued to an individual who successfully meets all of the requirements for such a permit. An apprentice is the equivalent to a trainee under the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria", appraiser qualifications board, appraisal foundation.

Education, experience, and examination requirements for apprentice are all set by the appraisal foundation, appraiser qualifications board. The board adopts these as its requirements for apprentices. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal foundation.

2.Scope of practice. The apprentice appraiser shall assist a certified appraiser in appraisal work, provided the certified appraiser accepts full responsibility for the appraisal performed.

The scope of practice for the apprentice appraiser is the appraisal of those properties that the supervising appraiser is permitted and qualified to appraise. The apprentice appraiser shall be subject to the uniform standards of professional appraisal practice.

3.Examination. An applicant for an apprentice permit shall pass an open-book examination covering North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

4.Education. An applicant for the apprentice appraiser permit shall meet all of the education requirements set by the appraiser qualifications board of the appraisal foundation. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal In addition to the requirements set by the appraiser qualifications board of the appraisal foundation, an applicant for the apprentice appraiser permit must be familiar with North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

5.Apprentice appraiser responsibilities. Prior to issuance of an apprentice appraiser permit the applicant for the apprentice level is required to register the name, office, and address of each supervising appraiser with the board on a form prescribed by the board. Registration of a supervising appraiser is effective the day the registration forms from both the supervising appraiser and apprentice appraiser are received and approved. These forms can be obtained by contacting the board office.

The apprentice and supervising appraiser shall notify the board in writing within ten days of terminating supervision.

6.Supervisor responsibilities. A supervising appraiser must meet the requirements set by the appraiser qualifications board of the appraisal foundation. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal foundation.

A certified appraiser who wishes to supervise an apprentice must register with the board on a form prescribed by the board. Registration of a supervising appraiser is effective the day the registration forms from both the supervising appraiser and from the apprentice appraiser are received and approved. These forms can be obtained by contacting the board office.

a.The apprentice and supervising appraiser shall notify the board in writing within ten days of terminating supervision.

b.The supervising appraiser must either have or must complete an open-book examination covering North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

History

• History: Effective October 1, 1992; amended effective October 1, 1998; February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019; October 1, 2020.
• Law Implemented: NDCC 43-23.3-03, 43-23.3-06, 43-23.3-08, 43-23.3-09, 43-23.3-17, 43-23.3-18

N.D. Admin. Code 101-02-02-04 Transitionally licensed real property appraiser

Repealed effective October 1, 1998.

N.D. Admin. Code 101-02-02-05 Licensed appraiser

1.Permit. A licensed appraiser permit must be issued to an individual who successfully meets all of the requirements for such a permit.

Education, experience, and examination requirements for licensure are all set by the appraiser qualifications board. The board adopts these as its requirements for licensure. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal

2.Scope of practice. The licensed appraiser is allowed to appraise noncomplex, one-to-four family residential properties that have a transaction value of up to one million dollars and complex one-to-four family residential properties that have a transaction value of up to two hundred fifty thousand dollars. In addition, a licensed appraiser is allowed to appraise noncomplex, nonresidential properties, that have a transaction value of up to two hundred fifty thousand dollars. The licensed appraiser is bound by the competency provisions of the uniform standards of professional appraisal practice.

3.Education. An applicant for a licensed appraiser permit shall meet all of the following education requirements set by the appraiser qualifications board of the appraisal foundation.

These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal In addition to the requirements set by the appraiser qualifications board of the appraisal foundation, an applicant for a licensed appraiser permit must be familiar with North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

4.Experience. The applicant for licensure must submit a log from which a selection of reports will be reviewed. The reports must meet the current uniform standards of professional appraisal practice as of the effective date of the appraisal and must reflect that the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the licensed level.

a.Adequate experience will be determined by the actual hours spent on an assignment, (1)Maximum hours are based on the types of appraisals performed and the types of properties appraised.

(2)The number of allowable hours assigned for each appraisal type are assigned by the board as detailed in the following table:

Licensed and Certified Residential Type of Property Appraised Full Appraisals (With Field Review and (Without Field Review and Condemnation Single family84212 Multifamily (two to four units) 168324 Vacant lot (one to four units)

Farm (homestead 168324 Licensed and Certified Residential - less than one hundred acres)

Certified General Type of Property Appraised Full Appraisals (With Field Review and (Without Field Review and Condemnation Land point value may be doubled if all three approaches to value are used 2412536 Residential multifamily (five to twelve units) 48241072 Residential multifamily (add sixteen hours for proposed project) 64321396 Commercial - Single tenant 48241072 Commercial - Multitenant (add twenty-four hours for proposed project) 804032120 Industrial or institutional 64321396 (3)The board may grant exceptions for good cause.

b.After accumulating a minimum of fifty percent of the required appraisal experience, an applicant for licensure may voluntarily submit work product to the board to be reviewed by a board reviewer for educational purposes only. One report may be submitted for review. The board will not initiate a complaint for violations identified in this review.

If the board determines the reviewed report meets the minimum requirements set forth in the uniform standards of professional appraisal practice and the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the licensed level, the board may allow the applicant to use the educational review as part of the application process for licensure.

1.Permit. A certified residential appraiser permit must be issued to an individual who successfully meets all of the requirements set by the appraiser qualifications board of the appraisal foundation for such a permit.

Education, experience, and examination requirements for certified residential are all set by the appraiser qualifications board. The board adopts these as its requirements for certified residential. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal foundation.

2.Scope of practice. The certified residential appraiser may appraise one-family to four-family family residential properties without regard to value or complexity. In addition, a certified residential appraiser may appraise noncomplex, nonresidential properties, that have a transaction value of up to two hundred fifty thousand dollars. The certified residential appraiser is bound by the competency provision of the uniform standards of professional appraisal practice.

3.Education. An applicant for a certified residential appraiser permit shall meet all of the education requirements set by the appraiser qualifications board of the appraisal foundation.

These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal In addition to the requirements set by the appraiser qualifications board of the appraisal foundation, an applicant for a certified residential appraiser permit must be familiar with North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

4.Experience. The applicant for certified residential appraiser must submit a log from which a selection of reports will be reviewed. Collectively the reports must include and demonstrate competence and a working knowledge of all three approaches to value. The reports submitted must meet the current uniform standards of professional appraisal practice as of the effective date of the appraisal and must reflect that the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the certified residential level.

a.Adequate experience will be determined by the actual hours spent on an assignment, (1)Maximum hours awarded are based on the types of appraisals performed and the types of properties appraised.

(2)The number of allowable hours assigned for each appraisal type are assigned by the board and referenced in paragraph 2 of subsection a of subsection 4 of section 101-02-02-05.

b.After accumulating a minimum of fifty percent of the required appraisal experience, an applicant for certified residential may voluntarily submit work product to the board to be reviewed by a board reviewer for educational purposes only. One report may be submitted for review. The board will not initiate a complaint for violations identified in this review.

If the board determines the reviewed report meets the minimum requirements set forth in the uniform standards of professional appraisal practice and the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the certified residential level, the board may allow the applicant to use the educational review as part of the application process for certified residential.

History

• History: Effective October 1, 1992; amended effective January 1, 1995; October 1, 1998; February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019.
• General Authority: NDCC 43-23.3-03, 43-23.3-09
• Law Implemented: NDCC 43-23.3-03, 43-23.3-06, 43-23.3-07, 43-23.3-08, 43-23.3-09, 43-23.3-17, 101-02-02-05.1. Certified residential appraiser.
• History: Effective January 1, 2008; amended effective July 1, 2012; January 1, 2015; July 1, 2019.
• Law Implemented: NDCC 43-23.3-03, 43-23.3-06, 43-23.3-07, 43-23.3-08, 43.23.3-09, 43-23.3-17,

N.D. Admin. Code 101-02-02-06 Certified general appraiser

1.Permit. A certified general appraiser permit must be issued to an individual who successfully meets all of the requirements for such a permit.

Education, experience, and examination requirements for certified general are all set by the appraiser qualifications board. The board adopts these as its requirements for certified general. These requirements may be found in the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal foundation.

2.Scope of practice. The certified general appraiser may appraise all types of properties. The certified general appraiser is bound by the competency provision of the uniform standards of professional appraisal practice.

3.Education. An applicant for a certified general appraiser permit shall meet all of the education requirements set by the appraiser qualifications board of the appraisal foundation.

In addition to the requirements set by the appraiser qualifications board of the appraisal foundation, an applicant for a certified general appraiser permit must be familiar with North Dakota Century Code chapter 43-23.3 and North Dakota Administrative Code title 101.

4.Experience. The applicant for certification must submit a log from which a selection of reports will be reviewed. Collectively the reports must include and demonstrate competence and a working knowledge of all three approaches to value. The reports submitted must meet the current uniform standards of professional appraisal practice as of the effective date of the appraisal and must reflect that the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the certified general level.

a.Adequate experience will be determined by the actual hours spent on an assignment, (1)Maximum hours awarded are based on the types of appraisals performed and the types of properties appraised.

(2)The number of allowable hours assigned for each appraisal type are assigned by the board and referenced in paragraph 2 of subdivision a of subsection 4 of section 101-02-02-05.

b.After accumulating a minimum of fifty percent of the required appraisal experience, an applicant for certified general may voluntarily submit work product to the board to be reviewed by a board reviewer for educational purposes only. One report may be submitted for review during the experience portion of the certification process. The board will not initiate a complaint for violations identified in this review.

If the board determines the reviewed report meets the minimum requirements set forth in the uniform standards of professional appraisal practice and the applicant has an acceptable level of competency and understanding of the principles, practices, and procedures consistent with the body of knowledge for the certified general level, the board may allow the applicant to use the educational review as part of the application process for certified general.

History

• History: Effective October 1, 1992; amended effective January 1, 1995; October 1, 1998; February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019.
• General Authority: NDCC 43-23.3-03, 43-23.3-09
• Law Implemented: NDCC 43-23.3-03, 43-23.3-06, 43-23.3-07, 43-23.3-08, 43-23.3-09, 43-23.3-17,

N.D. Admin. Code 101-02-02-07 Inactive status

1.A licensed or certified appraiser may be assigned to inactive status upon written request.

2.A licensed or certified appraiser on inactive status may not directly or indirectly engage in, advertise, conduct the business of, or act in any capacity as a licensed or certified appraiser.

3.A licensed or certified appraiser on inactive status must renew a permit as required by North Dakota Century Code section 43-23.3-12 and section 101-02-04-01, except a licensed or certified appraiser on inactive status is not required to complete the continuing education required by North Dakota Century Code sections 43-23.3-12 and 43-23.3-19 and North Dakota Administrative Code section 101-04-01-01.

4.A licensed or certified appraiser on inactive status may be removed from inactive status upon written request and proof of completion of all the continuing education that would have been required if the licensed or certified appraiser was not on inactive status, including the most recent edition of the seven-hour national uniform standards of professional appraisal practice update course or its equivalent.

History

• History: Effective October 1, 1992; amended effective January 1, 2008; July 1, 2012.
• General Authority: NDCC 43-23.3-03, 43-23.3-12
• Law Implemented: NDCC 43-23.3-12, 43-23.3-19, 43-23.3-20

Chapter 101-02-02.1 Nonresident and Temporary Permits

N.D. Admin. Code 101-02-02.1 Nonresident and Temporary Permits

CHAPTER 101-02-02.1

NONRESIDENT AND TEMPORARY PERMITS

Section 101-02-02.1-01Issuance of Permits to Applicants Licensed or Certified by Another State 101-02-02.1-02Temporary Permit 101-02-02.1-03Nonresident Consent to Service of Process [Repealed] 101-02-02.1-04Denial of an Application 101-02-02.1-01. Issuance of permits to applicants licensed or certified by another state.

1.The board shall issue a permit to an applicant who is licensed or certified in good standing by another state if the other state's current requirements to be licensed or certified are at least substantially equivalent to the current requirements imposed by this state, and if grounds for denial of the applications under North Dakota Century Code section 43-23.3-18 do not exist.

2.To qualify, the applicant must meet all of the following requirements:

a.Submit an application on a form provided by the board.

b.Certify that the applicant is licensed or certified in good standing in another state.

c.Certify that disciplinary proceedings are not pending against the applicant in any jurisdiction.

d.Provide documentation of the current requirements of the state in which the applicant was originally licensed or certified.

e.Pay the application fee.

3.The board may request work product from an applicant if the applicant has a history of disciplinary action.

History: Effective January 1, 1995; amended effective October 1, 1998; January 1, 2008; July 1, 2012;

January 1, 2015.

General Authority: NDCC 43-23.3-03, 43-23.3-11

Law Implemented: NDCC 43-23.3-04.1 101-02-02.1-02. Temporary permit.

1.A nonresident of this state who has submitted an irrevocable consent to service of process may obtain a temporary permit to perform a contract relating to the appraisal of real estate in this state.

2.To qualify, the applicant must meet all of the following requirements:

a.Submit an application on a form provided by the board.

b.Certify that the applicant is licensed or certified in good standing in another state.

c.Certify that disciplinary proceedings are not pending against the applicant in any jurisdiction.

d.Submit a copy of the contract for appraisal services.

e.Sign an irrevocable consent to service of process form.

f.Pay the application fee.

3.A temporary permit issued under this section is expressly limited to the grant of authority to perform the appraisal work required by the contract for appraisal services.

4.An applicant may not complete more than six assignments per calendar year.

5.Each temporary permit expires upon the completion of the appraisal work required by the contract for appraisal services.

History: Effective January 1, 1995; amended effective October 1, 1998; January 1, 2008; July 1, 2012.

General Authority: NDCC 43-23.3-03, 43-23.3-11

Law Implemented: NDCC 43-23.3-11 101-02-02.1-03. Nonresident consent to service of process.

Repealed effective January 1, 2008. 101-02-02.1-04. Denial of an application.

If an application is denied, the board will notify the applicant of the denial and specify the basis for the denial.

History: Effective July 1, 2012.

General Authority: NDCC 43-23-03

Law Implemented: NDCC 43-23-03

Chapter 101-02-03 Character [Repealed]

N.D. Admin. Code 101-02-03 Character [Repealed]

CHAPTER 101-02-03

CHARACTER [Repealed effective January 1, 2008]

Chapter 101-02-04 Renewal

N.D. Admin. Code 101-02-04-01 Permit renewal

1.All permits expire on December thirty-first of each year.

2.A holder of an appraiser permit desiring the renewal of such permit shall, during the month preceding the expiration date of such permit, make application and pay the required fee.

3.Permits may be renewed up to ninety days after the date of expiration, with payment of late fee. The applicant who does not file a renewal application by the ninety-day deadline is subject to all requirements governing new applicants.

4.A person who, in any way, acts as an apprentice, licensed, or certified appraiser while that individual's permit is expired will be subject to disciplinary action and penalties as described in North Dakota Century Code chapter 43-23.3.

History

• History: Effective October 1, 1992; amended effective February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-12, 43-23.3-23

N.D. Admin. Code 101-02-04-02 Denial of an application

If an application is denied, the board will notify the applicant of the denial and specify the basis for the denial.

History

• History: Effective July 1, 2012.
• General Authority: NDCC 43-23-03
• Law Implemented: NDCC 43-23-03

Article 101-03 Standards of Appraisal Practice

Chapter 101-03-01 Standards of Professional Practice Requirements

N.D. Admin. Code 101-03-01-01 Copies of uniform standards of professional appraisal practice

Copies of the uniform standards of professional appraisal practice are available for purchase through the appraisal foundation.

History

• History: Effective October 1, 1992; amended effective January 1, 1995; July 1, 2012.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-18

N.D. Admin. Code 101-03-01-02 Standards of appraisal practice requirements

The board adopts as its standards of appraisal practice requirements the standards of professional appraisal practice and ethical rules specified by the uniform standards of professional appraisal practice and all other standards and ethical requirements adopted by the appraisal foundation, effective January 1, 2020.

History

• History: Effective January 1, 1995; amended effective July 1, 2019; October 1, 2020.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-18

Chapter 101-03-02 Permit Display

N.D. Admin. Code 101-03-02-01 Permit disclosure requirement

All permittees are required to place their permit number and permit type adjacent to the permittees' signature on all appraisal-related activities.

History

• History: Effective October 1, 1992.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-14

N.D. Admin. Code 101-03-02-02 Display of permit

Repealed effective January 1, 2008.

Chapter 101-03-03 Name or Address Change

N.D. Admin. Code 101-03-03-01 Change of name or address

All apprentice, licensed, and certified permittees shall notify the board in writing of each change of business address, residence address, or trade name within twenty days of said change. The address must be sufficiently descriptive to enable the board to correspond with and locate the apprentice, licensed, or certified permittee.

History

• History: Effective October 1, 1992; amended effective February 1, 2003; January 1, 2008; October 1, 2020.
• General Authority: NDCC 43-23.3-03
• Law Implemented: NDCC 43-23.3-13

Article 101-03.1 Disciplinary Matters

Chapter 101-03.1-01 Unprofessional Conduct

N.D. Admin. Code 101-03.1-01 Unprofessional Conduct

ARTICLE 101-03.1

DISCIPLINARY MATTERS

Chapter 101-03.1-01Unprofessional Conduct 101-03.1-02Disciplinary Actions 101-03.1-03Complaint Procedure

CHAPTER 101-03.1-01

UNPROFESSIONAL CONDUCT

Section 101-03.1-01-01Unprofessional Conduct 101-03.1-01-02Reporting Requirements 101-03.1-01-03Conflict of Interest 101-03.1-01-04Application of Standards 101-03.1-01-01. Unprofessional conduct.

Any of the following acts and omissions constitute a violation of the standards of professional appraisal practice and are grounds for disciplinary action or denial of an application:

1.Violation or attempted violation of North Dakota Century Code chapter 43-23.3 or the rules adopted by the board.

2.Failure to comply with the standards of professional appraisal practice and ethical rules specified by the uniform standards of professional appraisal practice and all other standards and ethical requirements adopted by the appraisal foundation.

3.Engaging in the business of real estate appraising under an assumed or fictitious name.

4.Paying a finder's fee or referral fee to any person in connection with the appraisal of real estate, but an intracompany payment for business development is not unethical.

5.Making a false or misleading statement in that portion of a written appraisal report that deals with professional qualifications or in any testimony concerning professional qualification.

6.Violation of the confidential nature of individual, business, or governmental records to which a permittee gained accesses through employment or engagement as an appraiser.

7.Performance of appraisal services beyond the permittee's level of competence.

8.Having been disciplined in another state, territory, or country relating to a permit or the authorization to practice as an appraiser.

9.Negligence, refusal, or incompetence in developing an appraisal, preparing an appraisal report, or communicating an appraisal.

10.Failing as a licensed or certified appraiser to actively and personally supervise an apprentice appraiser or any person not licensed or certified under the provisions of North Dakota Century Code chapter 43-23.3 who assists the licensed or certified appraiser in performing real estate appraisals.

11.Having become permanently or temporarily unfit to engage in appraisal activity because of physical, mental, emotional, or other causes. Suspension of a permit in cases where the permittee is temporarily unfit to conduct appraisal activity shall only be for the period of unfitness.

12.Commission of any act involving moral turpitude or dishonesty, whether the act is committed in the course of the individual's activities as an appraiser or otherwise.

13.Engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation.

14.Filing a frivolous complaint against a permitted appraiser.

History: Effective January 1, 1995; amended effective February 1, 2003; January 1, 2008; July 1, 2012.

General Authority: NDCC 43-23.3-03, 43-23.3-22 101-03.1-01-02. Reporting requirements.

1.A permittee having direct knowledge that any permittee has violated any provision of North Dakota Century Code chapter 43-23.3 or the rules adopted by the board shall report such knowledge to the board.

2.Upon being convicted of any act which is or would be punishable as a felony in this state, or upon being disciplined by the authority that regulates apprentice, licensed, or certified appraisers in another jurisdiction, an apprentice, licensed, or certified appraiser in this state shall notify the board of that fact within thirty days.

History: Effective January 1, 1995; amended effective January 1, 2008.

General Authority: NDCC 43-23.3-03 101-03.1-01-03. Conflict of interest.

Any board member having an immediate personal, private, or financial interest in any matter pending before the board shall disclose the fact to the board and shall not vote upon such matter.

History: Effective January 1, 1995.

General Authority: NDCC 43-23.3-03 101-03.1-01-04. Application of standards.

The requirements of the uniform standards of professional appraisal practices shall not apply to the board, its agents, and employees when reviewing appraisals as part of the application or disciplinary processes.

History: Effective July 1, 2012.

General Authority: NDCC 43-23-03

Law Implemented: NDCC 43-23-22

Chapter 101-03.1-02 Disciplinary Action

N.D. Admin. Code 101-03.1-02 Disciplinary Action

CHAPTER 101-03.1-02

DISCIPLINARY ACTION

Section 101-03.1-02-01Types of Disciplinary Action 101-03.1-02-02Consideration [Repealed] 101-03.1-02-03Modification of Disciplinary Action 101-03.1-02-04Notice of Disciplinary Action 101-03.1-02-05Notice of Status 101-03.1-02-01. Types of disciplinary action.

Disciplinary action by the board may consist of the following:

1.Revocation. Revocation terminates an individual's status as an apprentice, licensed, or certified appraiser. When a permit has been revoked the permittee shall surrender the permit immediately to the board. When a permit has been revoked the permittee may not directly or indirectly engage in, advertise, conduct the business of, or act in any capacity as an apprentice, licensed, or certified appraiser.

2.Suspension. Suspension is the removal of a permittee's privilege to act as an apprentice, licensed, or certified appraiser for a specified minimum period of time. When a permit has been suspended the permittee shall surrender the permit to the board for the period of suspension. When a permit has been suspended the permittee may not directly or indirectly engage in, advertise, conduct the business of, or act in any capacity as an apprentice, licensed, or certified appraiser, but must maintain the permit by properly renewing it and complying with continuing education requirements.

3.Monetary fine. A monetary fine must be reasonable in light of the conduct of the permittee. A monetary fine may include an amount sufficient to reimburse the board for the cost of a disciplinary action, or to prevent the permittee from obtaining a financial benefit as a result of the permittee's unprofessional or improper conduct.

4.Issuance of letter of reprimand. Reprimand is a form of discipline which declares the conduct of the permittee improper, but does not limit the permittee's right to act as an apprentice, licensed, or certified appraiser. Letters of reprimand shall be sent to the permittee.

The letter of reprimand shall be placed in the permittee's file.

5.Probation.

General Authority: NDCC 43-23.3-03, 43-23.3-22

Law Implemented: NDCC 43-23.3-18, 43-23.3-22 101-03.1-02-02. Consideration.

Repealed effective January 1, 2008. 101-03.1-02-03. Modification of disciplinary action.

The board, on its own motion or upon application, at any time after the imposition of any discipline may reconsider its prior action and reinstate or restore such permit or reduce the severity of its prior disciplinary action. The taking of any such further action or the holding of a hearing with respect thereto shall rest in the sole discretion of the board. 101-03.1-02-04. Notice of disciplinary action.

The board shall notify the disciplinary enforcement agency of other jurisdictions in which the permittee is admitted about any disciplinary action. The board may cause a notice of disciplinary action to be published in the board's newsletter. The notice may clearly identify the permittee affected by the disciplinary action and contain a summary of the circumstances which resulted in the action taken, including a reference to the appropriate rule or statute. 101-03.1-02-05. Notice of status.

Within ten days after the date of the order by which a permittee's license or certificate is revoked or suspended, the permittee may be required to cause notice to be given by registered or certified mail, return receipt requested, to all current clients.

The board may direct the issuance of notice to such financial institutions or others as may be necessary to protect the interest of clients and other members of the public.

Chapter 101-03.1-03 Complaint Procedure

N.D. Admin. Code 101-03.1-03 Complaint Procedure

CHAPTER 101-03.1-03

COMPLAINT PROCEDURE

Section 101-03.1-03-01Complaint Procedure 101-03.1-03-02Informal Disposition 101-03.1-03-01. Complaint procedure.

Any person may file an allegation with the board seeking disciplinary action against the holder of a permit issued by the board. The complainant shall submit a written statement describing the nature of the allegation and the facts supporting the allegation. The allegation must be signed and include the address or telephone number at which the complainant can be contacted. The board may initiate the allegation process and investigate an allegation on its own motion, or may review and reject or initiate the allegation process based on an anonymous allegation.

History: Effective January 1, 1995; amended effective February 1, 2003; November 19, 2003;

January 1, 2008; July 1, 2019.

General Authority: NDCC 43-23.3-03

Law Implemented: NDCC 43-23.3-03, 43-23.3-22 101-03.1-03-02. Informal disposition.

At any time prior to or after formal disciplinary proceedings have been instituted against an apprentice, licensed, or certified appraiser, the appraiser may submit to the board an offer of settlement whereby the appraiser agrees to accept sanctions in lieu of formal disciplinary action. Sanctions may include voluntarily surrendering the permit, suspension of the permit, probation, imposition of a monetary fine, a letter of reprimand, licensing or certification education courses, or a requirement that the appraiser submit work product for board review. If the board determines that the proposed settlement will adequately protect the public, the board may accept the offer and enter a decision consented to by the appraiser incorporating the proposed settlement.

History: Effective January 1, 1995; amended effective January 1, 2008.

General Authority: NDCC 43-23.3-03

Law Implemented: NDCC 28-32-05.1

Article 101-04 Continuing Education

Chapter 101-04-01 Continuing Education

N.D. Admin. Code 101-04-01-01 Continuing education requirements

1.Requirements. Continuing education shall be established by the "Real Property Appraiser Qualification Criteria and Interpretation of the Criteria, Effective May 1, 2018", appraiser qualifications board, appraisal foundation, with the exception that the board has set the minimum level at twenty-eight hours over a two-year education renewal period. Of the twenty-eight hours, appraisers must complete the seven-hour national uniform standards of professional appraisal practice update course, or its equivalent, every two years. Equivalency must be determined through the appraisal qualifications board course approval program or by an alternate method approved by the appraisal qualifications board. Fourteen hours of the twenty-eight hours must include appraisal-specific education related to the valuation of real estate, and seven hours may be comprised of appraisal-related subject matter, approved as such by the board.

a.The necessary twenty-eight hours may be obtained at any time during the two-year renewal period, except for the required national uniform standards of professional appraisal practice requirement.

b.Verification of the necessary twenty-eight hours must be submitted by the end of the two-year renewal period.

c.All continuing education courses taken in this state must be approved by the board.

d.Courses taken out of this state may be approved for credit, provided the state in which the course was taken has approved the course for appraiser education.

e.A course which has not had prior approval may be approved on an individual basis.

f.Four hours of continuing education credit, per continuing education cycle, may be granted for attendance at a face-to-face meeting of the board of at least four hours. The attendee must attend the meeting in its entirety.

g.Courses that have received approval by the appraiser qualifications board of the appraisal foundation through the appraiser qualifications course approval program may be accepted by the board without additional state review.

History

• History: Effective October 1, 1992; amended effective October 1, 1998; February 1, 2003; January 1, 2008; July 1, 2012; January 1, 2015; July 1, 2019.
• General Authority: NDCC 43-23.3-12, 43-23.3-19
• Law Implemented: NDCC 43-23.3

Article 101-05 Appraisal Management Companies

Chapter 101-05-01 Appraisal Management Companies

N.D. Admin. Code 101-05-01-01 Statutory definitions

Unless otherwise defined, or made inappropriate by context, all terms are defined in North Dakota Century Code chapters 43-23.3 and 43-23.5.

History

• Law Implemented: NDCC 43-23.5-02

N.D. Admin. Code 101-05-01-02 Registration application requirements

1.An applicant for registration as an appraisal management company and an entity that is exempt from the state registration requirements, but is subject to the federal registry if the federal government requires, must submit a written application on the prescribed form. The application shall include the following information and certifications in addition to the requirements found in North Dakota Century Code chapter 43-23.5:

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 or more of the appraisal management company.

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

f.Name and contact information of each individual authorized by the appraisal management company to contract with clients or independent appraisers for performance of appraisals.

g.Certification that the controlling person had never been convicted of a criminal act involving moral turpitude nor had a license or certificate to act as an appraiser refused, revoked, or surrendered in lieu of disciplinary action in any state, unless such license or certificate was not declined, revoked, or suspended, for a substantive cause and has been reinstated by the state or states in which the individual was licensed or certified, substantive cause to be determine by the board.

h.Certification that the appraisal management company is not owned in whole or in part, directly or indirectly, by an individual who has had an appraiser license or certificate denied, revoked, or suspended subject to a disciplinary proceeding in any state.

2.An application for registration must be accompanied by the registration fee plus the applicable national registry fee.

History

• Law Implemented: NDCC 43-23.5-03, 43-23.5-04, 43-23.5-05, 43-23.5-06, 43-23.5-08, 43-23.5-09, 43-23.5-10; 12 USC 3353, 12 CFR 1102.403

N.D. Admin. Code 101-05-01-03 Term of registration

The board shall issue a certificate of registration to an applicant who qualifies in accordance with this article. Any registration issued under this article expires on September thirtieth of each year, unless otherwise revoked or suspended during said term.

History

• Law Implemented: NDCC 43-23.5-06

N.D. Admin. Code 101-05-01-04 Surety bond

The applicant shall provide evidence of a surety bond with one or more corporate sureties authorized to do business in this state or an irrevocable letter of credit issued by an insured institution in the amount of twenty-five thousand dollars at the time of application.

1.The surety bond, subject to investigation or review by a court of record, must be conditioned that the applicant pays:

a.All amounts owing to persons who perform real estate appraisal services for the appraisal management company.

b.All amounts adjudged against the appraisal management company by reason of negligent or improper real estate appraisal services or appraisal management services or breach of contract in performing real estate appraisal services or appraisal management services.

c.Amounts owed to the board for national registry fees, initial registration and annual renewal fees, late filing fees, and change of information fees.

2.The surety bond must require the surety company to provide written notice to the board by registered or certified mail at least thirty days before the surety company cancels or revokes the bond, and within thirty days after the surety company pays for a loss under the bond.

3.The surety bond required by this section must be continuously on file with the board in the amount of twenty-five thousand dollars and is for the exclusive purpose of payment of the obligations listed in subsection 1. Upon termination or cancellation of the bond or reduction of the bond amount to less than twenty-five thousand dollars, a registered appraisal management company alternatively shall:

a.File a replacement bond within the time period established by the board by rule; or

b.Surrender the company's registration to the board and cease operating as an appraisal management company.

4.Any person damaged by an appraisal management company's failure to pay an obligation listed in subsection 1 of this section has a right of action against the bond.

5.Termination or cancellation of the surety bond does not terminate, cancel, or limit the liability of the issuer of the surety bond or letter of credit for any and all claims against the surety bond to satisfy a final order of a court of competent jurisdiction in an action that was commenced prior to the cancellation of the surety bond.

History

• Law Implemented: NDCC 43-23.5-19; 12 CFR 1102.403

N.D. Admin. Code 101-05-01-05 Roster of appraisal management companies

The board shall maintain a roster of appraisal management companies registered under the provisions of this article. The board shall transmit the roster to the appraisal subcommittee. The roster shall include investigations initiated and disciplinary actions taken.

History

• Law Implemented: NDCC 43-23.5-18; 12 USC 3338

N.D. Admin. Code 101-05-01-06 Notice of change of address

Each appraisal management company registered under the provisions of this article shall, within thirty calendar days, give written notice of any change of physical and mailing address, change of company name, telephone number, website, facsimile, or email address to the board office.

History

• Law Implemented: NDCC 43-23.5-18

N.D. Admin. Code 101-05-01-07 Notice of change of designated officer

Each appraisal management company registered under the provisions of this article shall, within fifteen days, give written notice of change of designated officer of the appraisal management company, as required under subsection 6 of section 101-05-01-15, to the board office.

History

• Law Implemented: NDCC 43-23.5-05, 43-23.5-09

N.D. Admin. Code 101-05-01-08 Notice of change of controlling person

Each appraisal management company registered under the provisions of this article shall, within thirty calendar days, give written notice of change of controlling person of the appraisal management company to the board office.

History

• Law Implemented: NDCC 43-23.5-09

N.D. Admin. Code 101-05-01-09 Denial of registration

1.An appraisal management company denied registration shall be notified in writing by the board of such denial and the reasons therefore.

2.Such applicant may request an informal meeting with the board to reconsider such denial at its next scheduled meeting. Such request must be sent to the board office within thirty calendar days of the date of the notice of denial.

History

• Law Implemented: NDCC 28-32-21, 28-32-22, 43-23.5-03, 43-23.5-04, 43-23.5-22

N.D. Admin. Code 101-05-01-10 Registration renewal

1.To obtain renewal of a registration, the holder of a current, valid registration must make application on the prescribed form no later than sixty calendar days prior to the expiration of the registration.

2.An application for renewal must be accompanied by the registration renewal fee plus the applicable national registry fee.

3.Failure to renew a registration prior to expiration will result in the loss of authority to operate as an appraisal management company in North Dakota until a request for reinstatement has been approved by the board. A late filing fee will be assessed for each month, or portion thereof, that elapses between expiration and reinstatement. Late filing fees and any national registry fee assessed by the board must be paid prior to reinstatement in addition to the annual renewal fees.

4.A registered appraisal management company may renew an expired registration at any time prior to three months after its date of expiration by satisfying all of the requirements for renewal, including paying the annual renewal and late filing fees prescribed in section 101-05-01-12.

5.Payment of annual renewal or late filing fees does not excuse a registrant from disciplinary action or criminal penalties for operating in violation of North Dakota Century Code section 43-23.5-03.

History

• Law Implemented: NDCC 43-23.5-04, 43-23.5-06; 12 CFR 1102.403

N.D. Admin. Code 101-05-01-11 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 board accompanied by the fee established for that purpose by the appropriate federal agency or instrumentality.

History

• Law Implemented: NDCC 43-23.5-07, 43-23.5-18; 12 USC 3341, 12 USC 3346, 12 USC 3353, 12 CFR 1102.403

N.D. Admin. Code 101-05-01-12 Filing fees

Fees will not be prorated.

1.The following application fees, and the national registry fee if the federal government requires, will be charged for an appraisal management company that is subject to registration under North Dakota Century Code chapter 43-23.5:

a.Initial registration fee$2,500 + national registry fee

b.Annual renewal fee$2,000 + national registry fee

c.Late filing fee$100 per month

d.Change of information$25

2.If required by federal law, the board may collect the following fees, as well as any information the state is required to collect and submit to the appraisal subcommittee, from each appraisal management company that is exempt from registration under North Dakota Century Code

chapter 43-23.5:

a.Administrative fee$500 + national registry fee

b.Late filing fee$100 per month

c.Change of information fee$25 The administrative fee may be waived if the federal government provides funding to the board for this function.

History

• Law Implemented: NDCC 43-23.5-04, 43-23.5-19; 12 USC 3346, 12 CFR 1102.403

N.D. Admin. Code 101-05-01-13 Refund of fees

Each fee is nonrefundable.

History

• Law Implemented: NDCC 43-23.5-04, 43-23.5-19

N.D. Admin. Code 101-05-01-14 Payment of fees

Checks given to the board in payment of fees which are returned unpaid may be considered cause for denial, suspension, or revocation.

History

• Law Implemented: NDCC 43-23.5-04, 43-23.5-19, 43-23.5-22

N.D. Admin. Code 101-05-01-15 Responsibilities and duties

An appraisal management company registered under the provisions of this article shall:

1.Have a system in place to verify that utilized appraisers are licensed or certified and in good standing by this state.

2.Require each utilized appraiser who performs appraisals in this state to be independent from the transaction and certify in writing the area of geographic competency and the specific appraisal assignments competent to appraise.

3.Have a system in place to review the work of utilized appraisers who perform appraisal services to validate that the services were conducted in conformity with the uniform standards of professional appraisal practice.

4.Have a system in place to verify that any employee or independent contractor the appraisal management company utilizes to perform an appraisal review on a completed appraisal on property located in North Dakota, be licensed or certified with the same or higher qualifications required to perform the appraisal being reviewed, and holding a permit in good standing in North Dakota.

5.File a referral with the board if there is evidence that a utilized appraiser is in violation of the laws, rules, or uniform standards of professional appraisal practice, including grounds for disciplinary action as prescribed in North Dakota Century Code section 43-23.5-22.

6.Authorize a designated officer, who will be responsible for accepting the responsibilities for compliance with North Dakota Century Code chapter 43-23.5 and the provisions of this article, and notify the board office, within fifteen calendar days, of any change in its designated officer.

7.Maintain with the board the name and address of a registered agent for service of process, and notify the board office, within fifteen calendar days, of any change to the information.

8.Disclose to its client the actual fees paid to an appraiser for appraisal services, separate from any other fees or charges for appraisal management services, and make the information available to the board office upon request.

9.Disclose its registration number within its engagement document with each utilized appraiser.

History

• Law Implemented: NDCC 43-23.5-11, 43-23.5-12, 43-23.5-13, 43-23.5-14, 43-23.5-16, 43-23.5-17, 43-23.5-18, 43-23.5-20; 12 USC 3353, 12 CFR 1102.403

N.D. Admin. Code 101-05-01-16 Retention of records

An appraisal management company registered under the provisions of this article shall retain the following records:

1.A detailed record of each service request that it receives for appraisals of real property located in North Dakota, which shall include, the following:

a.Letter of engagement with the utilized appraiser.

b.Appraisal report received from the utilized appraiser, including the original report, any revised reports, and any addenda or other material furnished subsequent to the delivery of the original report.

c.Any and all material assignment-related correspondence sent to and received from the utilized appraiser.

d.Letter of engagement with the utilized reviewing appraiser for the purpose of reviewing the requested appraisal, if applicable.

e.Records related to the review of the requested appraisal, if applicable, including the original review report, any and all correspondence sent to and received from the utilized reviewing appraiser, and each subsequent revised review report.

f.Requests received from the client, all documentation supplied to that client, and any and all material correspondence sent to and received from the client.

g.Fees paid to utilized appraisers and the fees received from the client.

2.Records must be retained for the period required by North Dakota Century Code section 43-23.5-15. Records may be retained as a photocopy or electronic copy type of media.

History

• Law Implemented: NDCC 43-23.5-15

N.D. Admin. Code 101-05-01-17 Inspection and copying

An appraisal management company registered under the provisions of this article shall make all records required to be maintained or records deemed to be pertinent to an investigation of a complaint under this article available for inspection and copying upon request of the board. It is the duty of the registrant to provide requested records at no expense to the board.

History

• Law Implemented: NDCC 43-23.5-15

N.D. Admin. Code 101-05-01-18 Complaints and investigations

The board shall, upon written and signed complaint or referral, or may, upon the board's own motion, initiate an investigation of any registration holder or applicant for registration.

History

• Law Implemented: NDCC 43-23.5-21, 43-23.5-22; 12 USC 3347