Oklahama

Reviewer Requirements

  • Reviewers must be licensed Oklahoma appraisers

 

  • OK AMC Regulation Act Section 858-813:

Any employee of, or independent contractor to, the AMC that performs an appraisal review for a property located in Oklahoma shall be an appraiser credentialed in good standing in the State of Oklahoma.

  • OK AMC Regulation Act Section 858-803-(6):

6. “Appraisal review” means the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment related to the appraiser’s data collection, analysis, opinions, conclusions, estimate of value, or compliance with the Uniform Standards of Professional Appraisal Practice. This term does not include:

a. a general examination for grammatical, typographical or other similar errors, or

b. a general examination for completeness including regulatory and/or client requirements as specified in the agreement process that does not communicate an opinion;

Scope of Law

  • No clear distinction between commercial and residential real estate

 

  • OK AMC Regulation Act Section 858-803-(1):

1. “Appraisal” means the practice of developing and reporting an opinion of the value of real property in conformance with the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of The Appraisal Foundation;

Reviewing Provisions

  • Must conduct quality assurance reviews of a “statistically significant” number of reports on a periodic basis

 

  • OK AMC Regulation Act Section 858-804-(B)-(9):

B. The application for the registration required by subsection A of this section shall be on a form approved by the Board and shall, at a minimum, include the following information:

9. A certification that the entity has a system in place to review the work of a statistically significant number of appraisal reports submitted by each appraiser who is performing real estate appraisal services for the AMC within Oklahoma on a periodic basis to validate that the real estate appraisal services are being conducted in accordance with USPAP and the Oklahoma Certified Real Estate Appraisers Act and the rules promulgated thereunder;

  • OK AMC Regulation Act Section 858-816:

§ 858-816 Appraisal Management Company Certification of Appraisal Review System

Each AMC seeking to be registered or to renew a registration in this state shall certify to the Oklahoma Real Estate Appraiser Board on a form prescribed by the Board on an annual basis that it has a system in place to perform an appraisal review of the work product of a statistically significant number of appraisal reports submitted by each appraiser who is performing appraisals for the AMC on a periodic

basis to validate that the appraisals are being conducted in accordance with the USPAP and the Oklahoma Certified Real Estate Appraisers Act and the rules promulgated thereunder. An AMC shall report to the Board the results of any appraisal reviews in which an appraisal is found to be substantially noncompliant with USPAP.

Appraiser Requirements

Appraiser Competency

  • Can’t require an appraiser to perform an appraisal report for which they are incompetent

 

  • OK AMC Regulation Act Section 858-820-(2):

An AMC shall not perform or attempt to perform any one or more of the following acts:

2. 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 AMC and declined the assignment;

Record Keeping

  • OK AMC Regulation Act Section 858-804-(B)-(10)

B. The application for the registration required by subsection A of this section shall be on a form approved by the Board and shall, at a minimum, include the following information:

10. A certification that the entity maintains a detailed record of each service request that it receives and the appraiser that performs real estate appraisal services for the AMC, pursuant to Section 19 of this act;

  • Records must be kept for 5 years/ 5 years after any judicial proceeding

 

  • OK AMC Regulation Act Section 858-817-(A,B):

A. Each AMC seeking to be registered or to renew an existing registration in this state shall certify to the Oklahoma Real Estate Appraiser Board on a form prescribed by the Board on an annual basis that it maintains a detailed record of each service request that it receives for appraisal of real property located in Oklahoma.

B. An AMC registered under the provisions of the Oklahoma Appraisal Management Company Regulation Act shall retain for five (5) years all records required to be maintained under the Oklahoma Appraisal Management Company Regulation Act as described in the rules promulgated by the Board in accordance with the Oklahoma Appraisal Management Company Regulation Act. This five-year period shall commence on the date of the final action by the AMC for each individual transaction or, if the AMC is notified that the transaction is involved in litigation, the five-year period shall commence on the date that the litigation is finally disposed.

  • Specific requirements for records to be kept:

 

  • OK Title 600:30-1-10:

600:30-1-10. Recordkeeping

(a) Each registrant shall maintain records as follows:

(1) a detailed record of each service request that it receives for appraisal of real property located in Oklahoma, which shall include, but is not limited to, the following:

(A) a copy of the letter of engagement between the registrant and the appraiser,

(B) a copy of each appraisal report received from an appraiser, including the original report, any revised reports, and any addenda or other materials furnished subsequent to the delivery of the original report,

(C) copies of all correspondence between the appraiser and the registrant and any other entity involved in the transaction,

(D) a copy of the letter of engagement engaging another appraiser for the purpose of reviewing the appraisal,

(E) a copy of any review of the appraisal performed, including the original review report, subsequent correspondence between the reviewer and registrant, and each subsequent revised review report.

(F) a copy of the request received from the registrant’s client, all documentation supplied to that client, all correspondence between client and registrant, and

(G) a record of fees disbursed to contracted appraisers and the fee received by the registrant from the registrant’s client.

(2) copies of all appraiser fee schedules maintained and used by the registrant for the purpose of compliance with the provisions of TILA relating to reasonable and customary fees, which shall include evidence for such fees required by TILA. Such fee schedules shall include the beginning and ending effective dates for the document.

(3) copies of rosters of appraiser fee panels used for assignments in Oklahoma including the name of the appraiser, each appraiser’s Oklahoma credential number, the date the appraiser was placed on the panel and the date and reason an appraiser was removed from the panel.

(b) Registrants shall maintain the records set forth above for a period of five (5) years. This five (5) year period shall commence on the date of final action for each individual transaction, or if the registrant is notified that the transaction in involved in litigation or is the subject of administrative action by the Board, or on the date of final disposition of such action.

(c) Registrants shall produce for inspection and copying by the Board, any record herein required to be maintained on receipt of reasonable notice by registrant. Reasonable notice shall be taken to mean not later than seven (7) calendar days following receipt of any such request by a Designated Officer.

Licensing Disclosure

  • Must disclose license number on all relevant documents

 

  • OK AMC Regulation Act Section 858-823-(C):

C. An AMC registered in this state shall place its registration number on any instrument utilized by the AMC for procurement of appraisal services in this state.

Communications With Appraisers

  • Instructions for declining appraisal assignments must be included on each assignment

 

  • OK AMC Regulation Act Section 858-812:

§ 858-812 Verification of Appraisal Credentials – Declining Assignments

Prior to placing an assignment with an appraiser on the appraiser panel of an AMC, the AMC shall verify that the appraiser receiving the assignment holds a credential in good standing in this state pursuant to the Oklahoma Certified Real Estate Appraisers Act and the rules promulgated thereunder if a license or certification is required to perform such appraisal. Letters of engagement shall include instructions to the appraiser to decline the assignment in the event the appraiser is not geographically competent or the assignment falls outside the appraiser’s scope of practice restrictions as established by the Board rules.

Communication With Board

Billing/ Payment

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

 

  • OK AMC Regulation Act Section 858-818-(A):

A. An AMC registered under the Oklahoma Appraisal Management Company Regulation Act shall be required to have a system in place to disclose to its client the fees paid for appraisal management services and the fees paid to the appraiser for the completion for an appraisal assignment.

  • Payment to appraisers must be made within 60 days of transmission of appraisal report

 

  • OK AMC Regulation Act Section 858-821:

§ 858-821 Requirement of Appraisal Management Company’s Payment to Appraiser

Each AMC shall, except in bona fide cases of breach of contract or substandard performance of services, make payment to an appraiser for the completion of an appraisal or valuation assignment within sixty (60) days of the date on which the appraiser transmits or otherwise provides the completed appraisal or valuation study to the AMC or its assignee unless a mutually agreed upon alternate arrangement has been previously established.

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice to appraisers prior to removal from panel

 

  • OK AMC Regulation Act Section 858-819-(A)-(8):

A. It shall be unlawful and a violation of the Oklahoma Appraisal Management Company Regulation Act for any employee, partner, director, officer, or agent of an AMC to influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery or in any other manner, including but not limited to:

8. Allowing or directing the removal of an appraiser from an appraiser panel, or the addition of an appraiser to an exclusionary list of disapproved appraisers used by any entity, without prior written notice to such appraiser;

  • Specific guidelines for removal of appraisers from panel:

 

  • OK AMC Regulation Act Section 858-824-(A):

A. Except within the first thirty (30) days after an appraiser is first added to the appraiser panel of an AMC, an AMC shall not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an appraiser without:

1. Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the AMC;

2. Providing an opportunity for the appraiser to respond to the written notification of the AMC either personally or through legal counsel; and

3. If the appraiser is being removed from the panel for illegal conduct, violation of the USPAP, or a violation of the Oklahoma Certified Real Estate Appraisers Act or the rules promulgated thereunder, providing notice to the appraiser and to the Oklahoma Real Estate Appraiser Board detailing allegations of fact and alleged violations of standards or laws.

Misc

  • Time requirements on appraisals must be reasonable

 

  • OK AMC Regulation Act Section 858-820-(3):

An AMC shall not perform or attempt to perform any one or more of the following acts:

3. 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 and has notified the AMC and declined the assignment;