Ohio

Reviewer Requirements

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • OH HB 546 Section 4768.01-(A):

(A) “Real estate appraisal” or “appraisal” means the act or process of developing an opinion of value of real property in conformity with the uniform standards of professional appraisal practice.

 

Reviewing Provisions

  • Must conduct internal quality control reviews to assure compliance with USPAP

 

  • OH HB 546 Section 4768.06-(A)-(10):

Sec. 4768.06. (A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:

(10) A statement that the applicant acknowledges that a system or process must be in place to review the work of appraisers who are performing real estate appraisal services for compliance with the uniform standards of professional appraisal practice;

 

Appraiser Requirements

Appraiser Competency

  • Can’t require an appraiser to complete an appraisal for which they feel incompetent

 

  • OH HB 546 Section 4768.11-(A)-12:

Sec. 4768.11. (A) No employee, director, officer, or agent of an appraisal management company licensed under this chapter shall influence or attempt to influence the development, reporting, or

review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner, including the following:

(12) Requiring an appraiser to prepare an appraisal report if the appraiser has indicated to the appraisal management company that the appraiser does not have the necessary expertise for the

specific geographic area;

 

Record Keeping

  • Specific documents which must be kept for 5 years

 

  • OH HB 546 Section 4768.10-(A,B):

Sec. 4768.10. (A) Each appraisal management company licensed under this chapter shall maintain all of the following items for a period of at least five years from the date the appraisal report is submitted to the client:

(1) The original or true copy of every request relating to the report that the appraisal management company receives from the client;

(2) The original or true copy of each request sent to an appraiser who is considered for the assignment;

(3) Copies of the appraisal report and all versions of that report.

(B) An appraisal management company shall include all of the following information in each appraisal work file:

(1) The name and contact information of both the appraisal management company and the individual from the appraisal management company involved in ordering the appraisal;

(2) The amount of any fee paid to the appraiser for each assignment included in the work file and the time and method of payment;

(3) Details of all communications between the appraisal management company, the appraiser, and the client for each appraisal assignment included in the work file.

 

Licensing Disclosure

  • Must disclose registration number on engagement letters

 

  • OH HB 546 Section 4768.06-(A)-(13):

Sec. 4768.06. (A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:

(13) A statement that the applicant acknowledges that a system or process must be in place to disclose the license, certificate, or registration number of the appraisal management company on each engagement letter used in assigning an appraisal request for real estate appraisal assignments within the state.

 

Communications With Appraisers

Communication With Board

Billing/ Payment

  • Must separately state fees paid to appraisers and AMC fees to client

 

  • OH HB 546 Section 4768.06-(A)-(12):

Sec. 4768.06. (A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:

(12) A statement that the applicant acknowledges that a system or process must be in place to 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;

 

  • Must pay appraisers within 60 days after transmission of appraisal report by appraiser

 

  • OH HB 546 Section 4768.12-(A):

 

Sec. 4768.12. (A) An appraisal management company licensed under this chapter shall pay an appraiser for the completion of an appraisal within sixty days of the date on which the appraiser

transmits or otherwise provides the completed appraisal to the appraisal management company or its assignees, except in cases of breach of contract or substandard performance of services.

 

  • Fees paid to appraisers must be “customary and reasonable”

 

  • OH HB Section 4768.12-(B)(1):

 

(B)(1) An appraisal management company licensed under this chapter shall compensate each appraiser who performs appraisal services for the appraisal management company at a rate that is

customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for the customary and reasonable rate may be established by objective

third-party information, including government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known

appraisal management companies.

 

Employee Training

Removal of Appraisers from Panel

  • Specific instructions for removal of appraisers from board

 

  • OH HB 546 Section 4768.09:

Sec. 4768.09. Except within the first thirty days after an appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company shall not remove the appraiser from its appraiser panel or otherwise refuse to assign requests for real estate appraisal services to the appraiser without first doing both of the following:

(A) Notifying the appraiser in writing, by certified mail, return receipt requested, of the reasons the appraiser is being removed from the appraiser panel;

(B) Providing the appraiser with an opportunity to respond to that notification, in writing, within thirty days after the appraisal management company mails the removal notification.

 

Misc

  • Education requirements for controlling person

 

  • OH HB 546 Section 4768.06-(A)-(11):

Sec. 4768.06. (A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:

(12) A statement that the applicant acknowledges that a system or process must be in place to 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;

 

  • Time frames for appraisers to complete appraisal reports must be reasonable

 

  • OH HB 546 Section 4768.11-(A)-(13):

Sec. 4768.11. (A) No employee, director, officer, or agent of an appraisal management company licensed under this chapter shall influence or attempt to influence the development, reporting, or

review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner, including the following:

(13) Requiring an appraiser who has notified the appraisal management company and declined the assignment 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.

 

  • Must provide board with letter of good standing from each state in which we are licensed to operate

 

  • OH HB 546 Section 4768.06-(A)-(8):

 

Sec. 4768.06. (A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:

 

(8) A letter of good standing from each state in which the appraisal management company holds an appraisal management company license, certificate, or registration;