Minnesota

Reviewer Requirements

  • Reviewers must be licensed appraisers

 

  • MN Statute 82C Section 82C.10:

82C.10 EMPLOYEE REQUIREMENTS.

An employee of the appraisal management company that has the responsibility to review

the work of employed and independent appraisers where the subject properties are located

within this state, which include the reviewer’s opinion of value or concurrence with the original

appraiser’s value, must be licensed according to chapter 82B and perform the review assignments

in compliance with USPAP and chapter 82B. This requirement does not apply to employees who

review appraisals for completeness and compliance in connection with an appraisal management

company’s internal quality control processes, but who do not perform appraisal reviews that

are subject to Standard 3 of USPAP.

  • Definition of review

 

  • MN Statute 82c Section 82C.02- Subd. 8:

Subd. 8. Appraisal review. “Appraisal review” means the act of developing and

communicating an opinion about the quality of another appraiser’s work that was performed as

part of an appraisal assignment, except that an examination of an appraisal for grammatical,

typographical, or other similar errors that do not make a substantive valuation change shall

not be an appraisal review.

Scope of Law

  • Applicable specifically to only residential real estate

 

  • MN Statute 82C Section 82C.02-Subd. 2:

Subd. 2. Appraisal. In conformance with the Uniform Standards of Professional Appraisal Practice (USPAP), “appraisal” is defined as: (noun) the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. For purposes of this chapter, all appraisals or assignments that are referred to involve one to four unit single-family properties.

 

Reviewing Provisions

  • Must conduct internal quality assurance reviews on a periodic basis

 

  • MN Statute 82C Section 82C.03-Subd. 5-(8):

Subd. 5. Minimum information. The application must, at a minimum, include the

following information:

(8) a certification that the entity has a system in place to review the work of all employed

and independent appraisers that are performing real estate appraisal services for the appraisal

management company on a periodic basis to verify that the real estate appraisal assignments are

being conducted in accordance with USPAP and chapter 82B;

  • MN Statute 82c Section 82C.12:

82C.12 ADHERENCE TO STANDARDS.

An appraisal management company must have a system in place to review the work of all

employed and independent appraisers that are performing real estate appraisal assignments for the appraisal management company on a periodic basis to verify that the real estate appraisal services are being conducted in accordance with USPAP and chapter 82B. An appraisal management company is required to make referrals directly to state appraiser regulatory authorities when a state licensed or certified appraiser violates USPAP, applicable state law, or engages in other unethical or unprofessional conduct.

 

Appraiser Requirements

Appraiser Competency

Record Keeping

  • Records must be kept for 5 years

 

  • MN Statute 82c Section 82C.13:

82C.13 RECORD KEEPING.

An appraisal management company must maintain a detailed record of each service request

that it receives and the employee appraiser or independent appraiser that performs the appraisal

assignment for the appraisal management company. Records must be kept for a period of at least five years after the appraisal assignment request is sent to the independent appraiser or completion of the appraisal report, whichever period expires later.

 

Licensing Disclosure

Communications With Appraisers

Communication With Board

  • Mandatory Reporting Requirement

 

  • MN Statute 82c Section 82C.12:

82C.12 ADHERENCE TO STANDARDS.

An appraisal management company must have a system in place to review the work of all

employed and independent appraisers that are performing real estate appraisal assignments for the appraisal management company on a periodic basis to verify that the real estate appraisal services are being conducted in accordance with USPAP and chapter 82B. An appraisal management company is required to make referrals directly to state appraiser regulatory authorities when a state licensed or certified appraiser violates USPAP, applicable state law, or engages in other unethical or unprofessional conduct.

 

Billing/ Payment

Employee Training

  • Employees must be “appropriately trained”

 

  • MN Statute 82C Section 82C.03-Subd. 5-(10):

Subd. 5. Minimum information. The application must, at a minimum, include the

following information:

(10) a certification that the employees of the appraisal management company will be

appropriately trained and familiar with the appraisal process;

Removal of Appraisers from Panel

  • Specific guidelines for removal of appraisers from panel

 

  • MN Statute 82c Section 82C.15

Except within the first 30 days after an independent appraiser is first added to the appraiser

panel of an appraisal management company, an appraisal management company may not remove

an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate

appraisal services to an independent appraiser without:

(1) notifying the appraiser in writing of the reasons why the appraiser is being removed from

the appraiser panel or is not receiving appraisal requests from the appraisal management company;

(2) if the appraiser is being removed from the panel for illegal conduct, having determined

that the appraiser has violated USPAP, or chapter 82B, taking into account the nature of the

alleged conduct or violation; and

(3) providing an opportunity for the appraiser to respond and appeal the notification of the appraisal management company.

Misc

  • Licenses always expire on August 31 no matter what

 

  • MN Statute 82C Section 82C.04:

82C.04 TERM OF LICENSE.

Initial licenses issued under this chapter are valid for a period not to exceed one year. Each

initial license must expire on August 31 of the expiration year assigned by the commissioner.