Kentucky

Reviewer Requirements

  • Reviewers must be Kentucky licensed appraisers

 

  • 201 KAR 30:360 Section 1-(9):

(9) A registrant shall require that if an appraisal report prepared by a Kentucky licensed or certified real property appraiser is reviewed by a state licensed or certified real property appraiser, the review appraiser shall also be certified by the Kentucky Real Estate Appraisers Board.

Scope of Law

  • No clear distinction between commercial and residential real estate

 

  • Kentucky HB 288 Section 1-(3):

(3) “Appraisal services” means the practice of developing an opinion of the value of real estate in conformity with the minimum USPAP standards;

 

Reviewing Provisions

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

 

  • Kentucky HB 288 Section 2-(2)-(e)-(2):

(2) To be registered by the board, a person shall make written application to the board, submit to a criminal history check as provided in subsection (3) of this section, pay a fee established by the board, and post a surety bond as provided in Section 3 of this Act. The written application shall include the following information:

(e) A certification that the registrant:

2. Has a system and process in place to review the work of all appraisers that are performing appraisal services for the appraisal management company on a periodic basis to ensure that the appraisal services are being conducted in accordance with the minimum USPAP standards; and

 

Appraiser Requirements

Appraiser Competency

Record Keeping

  • Kentucky HB 288 Section 2-(2)-(e)-(3):

(2) To be registered by the board, a person shall make written application to the board, submit to a criminal history check as provided in subsection (3) of this section, pay a fee established by the board, and post a surety bond as provided in Section 3 of this Act. The written application shall include the following information:

(e) A certification that the registrant:

3. Maintains a detailed record of each request for appraisal services that it receives and the appraiser that performs the appraisal services for the appraisal management company;

 

  • Kentucky HB 288 Section 4-(2):

(2) A registrant shall maintain, or cause to be maintained, complete records of requests for appraisal services referred to an appraiser licensed or certified by the board, including without limitation records pertaining to the acceptance of fees from clients and payments to appraisers. The board may inspect records, without prior notice, periodically, or if the board determines that the records are pertinent to an investigation of a complaint against a registrant.

 

  • Records to be kept for five years

 

  • Kentucky HB 288 Section 4-(5):

(5) A registrant shall make and keep its accounts, correspondence, memoranda, papers, books, and other records in accordance with administrative regulations promulgated by the board. All records shall be retained for five (5) years unless the board establishes a different, longer retention period for particular types of records.

 

Licensing Disclosure

  • Must verify to each appraiser our AMC registration

 

  • 201 KAR 30:360 Section 1-(2):

(2) A registrant shall disclose to each appraiser that it engages for appraisal services verification of its State Registration.

Communications With Appraisers

Communication With Board

Billing/ Payment

  • Specific items to be included on all invoices and pertinent payment documents

 

  • Kentucky HB 288 Section 4-(6):

(6) The registrant shall disclose, on all invoices, purchase orders, or other documents establishing work to be performed for or compensation due from its clients, itemized actual fees paid to any third party for services performed, including appraisal services, for the client through contract with or arrangement through the registrant. The disclosure shall include:

(a) The name of the third party performing the service, including a licensed appraiser performing appraisal services;

(b) The nature of the service and itemized fees paid to the third party for appraisal services or any other services performed; and

(c) Itemized fees or charges received by the registrant for appraisal management services.

 

  • Fees paid to appraisers and AMC fees must be stated separately to clients

 

  • 201 KAR 30:360 Section 1-(1):

(1) A registrant shall disclose to its client the actual fees paid to an appraiser for appraisal services, separately from any other fees or charges for appraisal management services and, upon written request, shall make that information available to the Board.

 

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice to appraisers prior to removing them from panel

 

  • Kentucky HB 288 Section 5-(2)-(d):

(2) The registrant shall not:

(d) Remove an appraiser from an appraiser panel without prior written notice to the appraiser. An appraiser may only be removed from an appraiser panel with written notice for:

1. A violation of the minimum USPAP standards or other applicable statutes or administrative regulations resulting in a suspension or revocation of the appraiser’s license in Kentucky; or

2. Other substandard or otherwise improper performance as may be determined by administrative regulations promulgated by the board;

  • 201 KAR 30:360 Section 1-(8):

(8) A registrant may not remove an appraiser from its appraiser panel without prior written notice to the appraiser as required by KRS 324A.158(2)(d). An appraiser may file a complaint with the Kentucky Real Estate Appraisers Board to review the decision of the registrant for removal from its appraiser panel for reasons other than those allowed by KRS 324A.158(2)(d).

Misc

  • Can’t require appraisers to sign noncompete agreements

 

  • 201 KAR 30:360 Section 1-(11):

(11) A registrant shall not require a Kentucky licensed or certified real property appraiser that is an independent contractor under Kentucky law to sign a noncompete agreement