Arizona

Reviewer Requirements

  • Reviewers must be “adequately trained and qualified”

 

  • AZ SB 1351, 32-3670:

32-3670. Employee requirements

Any employee of an appraisal management company, or any person working on behalf of an appraisal management company, who has the responsibility of selecting independent appraisers for the performance of real property appraisal services for the appraisal management company or the responsibility of reviewing completed appraisals shall be appropriately trained and qualified in the performance of real property appraisals as determined by the board by rule.

 

  • Reviewers must be certified Arizona appraisers with geographic competency

 

  • AZ Board of Appraisal, R4-46-702-6-b:

(6) On applications for registration and annually thereafter, applicants and registrants shall make the following certifications:

b. That the applicant/registrant has a system in place to periodically review the work of all independent appraisers performing appraisal services for the Appraisal Management Company and that the services are conducted in conformity with the Uniform Standards of Professional Appraisal Practice. These reviews shall be completed as Standard 3 Reviews by certified Arizona appraisers with geographic competency. The Board reserves the right to inspect the policy, review log and the appraiser panel records upon written request.

 

Scope of Law

  • No specific distinction between residential and commercial real estate

 

  • AZ SB 1351, 32-3661-1:

1. “Appraisal” means the act or process of developing an opinion of the value of real property in conformance with the uniform standards of professional appraisal practice published by the appraisal foundation, or any other definition used in state or federal laws.

  • AZ SB 1351, 32-3661-3:

3. “Appraisal management services” means the process of receiving a request for the performance of real property appraisal services from a client, and for a fee paid by the client, entering into an agreement with one or more independent appraisers to perform the real property appraisal services contained in the request.

Reviewing Provisions

  • Must conduct internal quality control reviews on a periodic basis to assure compliance with USPAP

 

  • AZ SB 1351, 32-3662-B-6:

B. A person who wishes to be registered as an appraisal management company in this state must file a written application with the board on a form prepared and furnished by the board and pay a fee in an amount to be determined by the board. The registration required by subsection A shall include:

6. A certification that the entity seeking registration has a system in place to review the work of all independent appraisers that are performing real property appraisal services for the appraisal management company on a periodic basis to ensure that the real property appraisal services are being conducted in accordance with uniform standards of professional appraisal practice.

  • AZ SB 1351, 32-3672-B:

B. Each appraisal management company seeking to be registered in this state shall certify to the board on an annual basis that it has a system in place to review the quality of appraisals of all independent appraisers that are performing real property appraisal services for the appraisal management company on a periodic basis to ensure that the real property appraisal services are being conducted in accordance with uniform standards of professional appraisal practice.

 

Appraiser Requirements

Appraiser Competency

  • Cannot require an appraiser to accept assignment for which they feel incompetent to complete

 

  • AZ Board of Appraisal, R4-46-702-C-9:

9. The registrant shall not attempt to coerce, directly or indirectly the appraiser to accept an assignment if the appraiser states that he/she lacks competency or lacks geographic competency to complete the appraisal assignment and the registrant shall in no way penalize the appraiser by reducing the number of assignments made to that appraiser, refusing to pay fees owed or imposing any other penalty.

Record Keeping

  • AZ SB 1351, 32-3662-B-7:

B. A person who wishes to be registered as an appraisal management company in this state must file a written application with the board on a form prepared and furnished by the board and pay a fee in an amount to be determined by the board. The registration required by subsection A shall include:

7. A certification that the entity maintains a detailed record of each service request that it receives and the independent appraiser that performs the real property appraisal services for the appraisal management company.

  • AZ Board of Appraisal, R4-46-702-A-6-c:

(6) On applications for registration and annually thereafter, applicants and registrants shall make the following certifications:

c. That the applicant/registrant shall maintain a record of each request for appraisal services applicable to Arizona properties as well as the name of the appraiser performing the appraisal service and the fee paid to the appraiser. Such records shall be made available to the Arizona Board of Appraisal upon written request by the Board.

  • AZ Board of Appraisal, R4-46-702-C-2,3:

2. An Appraisal Management Company shall maintain a complete record of all requests for appraisal services referred to state licensed and certified appraisers, the amount of fees collected from clients, as well as payments made to the appraisers and shall make such information available to the Board upon written request.

3. The applicant/registrant shall make available to the Board any and all records that are required to be kept or records deemed by the Board to be pertinent to an investigation of a complaint against an applicant/ registrant.

  • Must keep records for same period of time that appraiser is required to

 

  • AZ SB 1351, 32-3672-C:

C. Each appraisal management company seeking to be registered shall certify to the board on an annual basis that it maintains a detailed record of each service request that it receives and the name of the independent appraiser that performs the real property appraisal services for the appraisal management company. An appraisal management company shall maintain a detailed record for the same time period that an appraiser is required to maintain an appraisal record for the same real property appraisal activity.

  • Must keep records for 5 years/ 2 years after conclusion of any judicial proceeding

 

  • AZ Board of Appraisal, R4-46-702-C-6:

6. All records required to be maintained under these rules shall be retained for five years and for two additional years after the conclusion of any judicial proceeding or litigation involving the matter.

  • Must maintain list of appraisal panel

 

  • AZ Board of Appraisal, R4-46-702-C-10:

10. A registrant shall, at all times, maintain a current list of their appraisal panel and shall provide a copy of that list to the Board upon written request.

Licensing Disclosure

  • Must put license # on all relevant communication documents with appraisers
    • AZ Board of Appraisal, R4-46-702-C-8:

8. The registrant shall disclose to an appraiser within their engagement documents verification of the State Registration number of the appraisal management company.

Communications With Appraisers

Communication With Board

Billing/ Payment

  • Must disclose fees paid to appraisers

 

  • AZ SB 1351, 32-3673:

32-3673. Disclosure of fees

The appraisal management company must verify that the fee paid to the appraiser is properly disclosed in the certification of the appraisal.

 

  • Fees must be based on complexity of appraisal

 

  • AZ SB 1351, 32-3674-B:

 

B. Appraisal fees must be based on the complexity of the appraisal performed. An appraisal fee offered or paid may not be based on the predetermined value or range of value of the subject property or the amount of the transaction price. At its discretion, the board may review any appraiser fee schedule developed by an appraisal management company registered in this state.

 

  • Must pay appraisers within 30 days of appraiser sending assignment*

 

  • AZ SB 1351, 32-3675:

 

32-3675. Payment

Except in cases of breach of contract or substandard performance of services, each appraisal management company shall make payment to an independent appraiser for the completion of an appraisal or valuation assignment within thirty days after the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee.

  • Cannot let accts. Payable to AZ appraisers run past 45 days overdue

 

  • AZ Board of Appraisal R4-46-702-A-6-f:

 

(6) On applications for registration and annually thereafter, applicants and registrants shall make the following certifications:

f. That there are no unpaid invoices or accounts payable to Arizona licensed or certified appraisers for services received that are over 45 days past due at the time of certification.

 

  • AZ Board of Appraisal R4-46-710-A:*

 

A. Except in cases of breach of contract or substandard performance of services, each appraisal management company shall make timely payment to an independent appraiser for the completion of an appraisal or valuation assignment within forty-five days after the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee. Failure to remit timely payment timely may be grounds for disciplinary action by the Board up to and including the assessment of civil penalties, suspension or revocation of the Appraisal Management Company’s registration.

 

 

Employee Training

  • Must implement training program for appraisal coordinators

 

  • AZ Board of Appraisal R4-46-702-A-6-e:

(6) On applications for registration and annually thereafter, applicants and registrants shall make the following certifications:

e. That the applicant/registrant has a system in place to train those who select individual appraisers for real property services in this state, to ensure that the selectors have appropriate training in placing appraisal assignments.

  • Specific training requirements for employees

 

  • AZ Board of Appraisal R4-46-707:

R4-46-707 Employee Requirements

An Appraisal Management Company shall require that all employees of an Appraisal Management Company, or any person working on behalf of an appraisal management company, who have the responsibility of selecting independent appraisers for the performance of real property appraisal services for the appraisal management company or providing administrative appraisal review services on a completed appraisal, be appropriately trained and qualified in compliance with the statutes and rules. The training may consist of courses prepared by qualified and recognized educators or may be written by the Appraisal Management Company and shall be repeated and updated as deemed necessary by the Appraisal Management Company. The class may consist of courses prepared by qualified and recognized educators or may be written by the entity itself but in either case, shall be developed, implemented and delivered within 6 months of an appraisal management company’s registration approval. Criterion for the training shall include:

1) USPAP overview

2) The Appraisal Process

3) Scope of Work

4) Complexity of various assignments

5) Competency in product type and geographic location

6) Understanding scope of work for each license or certification level

Removal of Appraisers from Panel

  • Specific procedures for removing appraisers from panel

 

  • AZ SB 1351, 32-3677-A:

A. Except within the first sixty days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company shall not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real property appraisal services to an independent appraiser, without notifying the appraiser in writing of the reasons for the appraiser being removed from the appraiser panel of the appraisal management company. An appraisal management company may not remove from the panel or remove from receiving assignments an appraiser for uniform standards of professional appraisal practice or quality issues, unless the appraisal management company has first obtained a uniform standards of professional appraisal practice compliant review performed by an appraiser certified pursuant to this chapter and the review clearly states the uniform standards of professional appraisal practice violation that significantly undermines the credibility of the appraisal or its opinion of value. The appraisal management company may suspend assignments to the appraiser until this review process is complete. If the appraiser is being removed from the panel for illegal conduct, violation of the uniform standards of professional appraisal practice or a violation of state licensing standards, the appraisal management company shall provide the independent appraiser the nature of the alleged conduct or violation and provide an opportunity for the appraiser to respond.