North Carolina

North Carolina AMC Laws and Regulations

Reviewer Requirements

Scope of Law

Reviewing Provisions

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

 

  • NC Chapter 93E-2-4(b)-(9):

(b) The registration required by subsection (a) of this section shall include the following

information:

(9) A certification that the entity has a system in place to review the work of all independent appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to validate that the real estate appraisal services are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice.

 

Appraiser Requirements

Appraiser Competency

  • Must require appraisers to disclose their areas of competency

 

  • NC Chatper 93E-2-4-(b)-(8):

(b) The registration required by subsection (a) of this section shall include the following

information:

(8) A certification that the entity has a system in place to require that appraisers inform the appraisal management company of their areas of geographic competency, the types of properties the appraiser is competent to appraise, and the methodologies the appraiser is competent to perform.

 

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

 

  • NC Chapter 93E-2-7-(a)-(15):

 

§ 93E-2-7. Prohibited acts.

(a) No employee, director, officer, or agent of a registered appraisal management company or

any other third party acting as joint venture partner or independent contractor shall influence or

attempt to influence the development, reporting, result, or review of a real estate appraisal

through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in

any other manner, including:

(15) Requiring or attempting to require an appraiser to prepare an appraisal if the appraiser, in the appraiser’s own independent professional judgment, believes the appraiser does not have the necessary expertise for the assignment or for the specific geographic area and has notified the appraisal management company and declined the assignment.

 

Record Keeping

  • NC Chapter 93E-2-4-(b)-(10):

(b) The registration required by subsection (a) of this section shall include the following

information:

(10) A certification that the entity maintains a detailed record of each service request

that it receives and the independent appraiser that performs the residential real

estate appraisal services for the appraisal management company.

  • Records must be kept for 5 years

 

  • NC Chapter 93E-2-9-(c):

(c) Every registered appraisal management company shall maintain the accounts, correspondence, memoranda, papers, books, and other records related to services provided by the appraisal management company as prescribed in rules adopted by the Board, including in electronic form. All records shall be preserved for five years unless the Board, by rule, prescribes otherwise for particular types of records.

 

Licensing Disclosure

Communications With Appraisers

Communication With Board

  • Mandatory reporting clause

 

  • NC Chapter 93E-2-4-(c):

(c) Any registrant having a good faith belief that a real estate appraiser licensed in this State

has violated applicable law or the Uniform Standards of Professional Appraisal Practice or engaged in unethical conduct shall promptly file a complaint with the Board.

 

Billing/ Payment

  • Must pay appraisers within 30 days of transmission of appraisal report

 

  • NC Chapter 93E-2-4-(d):

(d) Registered appraisal management companies shall pay fees to an appraiser within 30 days

of the date the appraisal is transmitted by the real estate appraiser to the registrant, except in

cases of noncompliance with the conditions of the engagement. In such cases, the registrant shall

notify the real estate appraiser in writing that the fees will not be paid.

Employee Training

Removal of Appraisers from Panel

  • Must notify appraiser prior to removal from panel

 

  • NC Chapter 93E-2-7-(a)-(8):

§ 93E-2-7. Prohibited acts.

(a) No employee, director, officer, or agent of a registered appraisal management company or

any other third party acting as joint venture partner or independent contractor shall influence or

attempt to influence the development, reporting, result, or review of a real estate appraisal

through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in

any other manner, including:

(8) Allowing the removal of a real estate appraiser from a list of qualified appraisers

used by any entity without prior written notice to the appraiser. The notice

shall include written evidence of the appraiser’s illegal conduct, substandard

performance, or otherwise improper or unprofessional behavior or any

violation of the Uniform Standards of Professional Appraisal Practice or State

licensing standards.

Misc

  • Position of “compliance manager” must be held by someone with an appraisers license
  • Responsible for ensuring compliance with regulations

 

  • NC Chapter 93E-2-5:

§ 93E-2-5. Compliance manager.

Each appraisal management company registered under this Article shall designate a

compliance manager who is responsible for ensuring the company operates in compliance with

this Article. The compliance manager shall be a certified real estate appraiser on active status and

in good standing, certified under Article 1 of this Chapter or under the comparable laws of

another state. The appraisal management company shall file a form with the Board indicating the

appraisal management company’s designation of compliance manager and the individual’s

acceptance of the responsibility. An appraisal management company shall notify the Board of

any change in the appraisal management company’s compliance manager. Any appraisal

management company that does not comply with this section shall have the appraisal

management company’s registration suspended pursuant to G.S. 93E-2-8 until the appraisal

management company complies with this section. An individual operating an appraisal

management company as a sole proprietorship shall be considered the compliance manager for

purposes of this Article. (2010-141, s. 1.)

 

  • Registrations expire on June 30 each year

 

  • NC Chapter 93E-2-6-(a):

§ 93E-2-6. Fees and renewals.

(a) Each application for registration as an appraisal management company under this Article

shall be accompanied by a registration fee in an amount set by the Board not to exceed three

thousand five hundred dollars ($3,500). Registration issued under this Article shall expire on

June 30, 2012, and on June 30 of each year thereafter. The registration shall become invalid after

that date unless renewed before the expiration date by filing an application with and paying to

the Board a fee in an amount set by the Board not to exceed two thousand dollars ($2,000).

 

  • Time frames for appraisers to complete assignments must be reasonable

 

  • NC Chapter 93E-2-7-(a)-(16):

§ 93E-2-7. Prohibited acts.

(a) No employee, director, officer, or agent of a registered appraisal management company or

any other third party acting as joint venture partner or independent contractor shall influence or

attempt to influence the development, reporting, result, or review of a real estate appraisal

through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in

any other manner, including:

(16) Requiring or attempting to require an appraiser to prepare an appraisal under a time frame that the appraiser, in the appraiser’s own professional judgment, believes does not afford the appraiser the ability to meet all the relevant legal and professional obligations if the appraiser has notified the appraisal management company and declined the assignment.