Utah

Reviewer Requirements

  • Reviewers OR anyone who selects appraisers for appraisal assignments must be “trained and qualified”

 

  • UT AMC Registration and Regulation Act Section 61-2e-305:

61-2e-305. Employee requirements.

(1) Subsection (2) applies to an individual who:

(a) (i) is an employee of an appraisal management company; or

(ii) works on behalf of an appraisal management company; and

(b) (i) selects an appraiser for the performance of a real estate appraisal activity

for the appraisal management company; or

(ii) reviews a completed appraisal.

(2) (a) An individual described in Subsection (1) is required to be appropriately trained and qualified in the performance of an appraisal, as determined by the board by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

 

  • UT AMC Registration and Regulation Act Section 162-2e-305:

 

R162-2e-305. Employee Requirements.

(1) An AMC seeking registration shall demonstrate to the division that each person who selects an appraiser or reviews an appraiser’s work for the AMC:

(a) is a licensed or certified appraiser in good standing; or

(b) has taken and passed the 15-hour national USPAP course.

(2) An AMC seeking renewal of the company’s registration shall demonstrate to the division that each person who selects an appraiser or reviews an appraiser’s work for the AMC:

(a) is a licensed or certified appraiser in good standing; or

(b) has completed the seven-hour national USPAP update course.

 

Scope of Law

Reviewing Provisions

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

 

  • UT AMC Registration and Regulation Act Section 61-2e-302:

(1) An appraisal management company required to be registered under this

chapter shall have a system in place to review the work of an appraiser who performs a

real estate appraisal activity for the appraisal management company on a periodic basis

to ensure that a real estate appraisal activity is conducted in accordance with applicable

appraisal standards.

Appraiser Requirements

Appraiser Competency

  • Must obtain competency statement from appraiser regarding appraisal assignment

 

  • UT AMC Administrative Rules Section R162-2e-304-(2):

In addition to the disclosures required by Section 61-2e-304, an AMC shall:

(2) at or before the time the appraiser accepts an assignment, obtain the appraiser’s acknowledgment as to the AMC’s competency statement;

 

Record Keeping

  • UT AMC Registration and Regulation Act Section 61-2e-303:

61-2e-303. Recordkeeping.

(1) An appraisal management company required to be registered under this

chapter shall maintain a detailed record of the following for the same time period an

appraiser is required to maintain an appraisal record for the same real estate appraisal

activity:

(a) a real estate appraisal activity request that the appraisal management

company receives; and

(b) the appraiser that performs the real estate appraisal activity described in

Subsection (1) for the appraisal management company.

(2) As part of the registration process under Part 2, Registration, an appraisal

management company shall biennially provide an explanation of its recordkeeping

described in Subsection (1) in the form prescribed by the division.

  • Must provide statement describing system of recordkeeping of certain documents

 

  • UT AMC Administrative Rules Section R162-2e-303:

R162-2e-303. Recordkeeping.

An AMC’s statement of recordkeeping required upon registration with the division and biennially thereafter shall be signed by its designated controlling person and shall describe:

(1) its system for maintaining a record of:

(a)(i) the name of the appraiser who accepts each assignment and signs the corresponding appraisal report; and

(ii) if an assignment is accepted by an appraisal entity, the name of the entity that accepts the assignment; and

(b) the client that requested the appraisal report;

(2) the format in which the records required to be kept under Section 61-2e-303(1) are maintained;

(3) an explanation of the system through which the AMC backs up any records kept as required by Section 61-2e-303(1) that are maintained in an electronic format;

(4) the location where the records are kept; and

(5) the name of the records custodian.

 

Licensing Disclosure

Communications With Appraisers

  • Must provide detailed information to appraisers regarding the assignment

 

  • UT AMC Administrative rules Section R162-2e-304-(1):

In addition to the disclosures required by Section 61-2e-304, an AMC shall:

(1) at the time an assignment is offered, disclose to the appraiser:

(a) the total amount that the appraiser may expect to earn from the assignment:

(i) disclosed as a dollar amount; and

(ii) delineating any fees or costs that will be charged by the AMC to the appraiser;

(b)(i) the property address;

(ii) the legal description; or

(iii) equivalent information that would allow the appraiser to determine whether the appraiser has been involved with any service regarding the subject property within the three years preceding the date on which the assignment is offered;

(c) the assignment conditions and scope of work requirements in sufficient detail to allow the appraiser to determine whether the appraiser is competent to complete the assignment; and

(d) any known deadlines within which the assignment must be completed;

  • Must provide detailed information to appraisers regarding compensation

 

  • UT AMC Administrative Rules Section R162-2e-304-(3):

In addition to the disclosures required by Section 61-2e-304, an AMC shall:

(3) before requiring the appraiser to submit a completed report, disclose to the appraiser:

(a) the total fee that will be collected by the AMC for the assignment; and

(b) the total amount that the AMC will retain from the fee charged, disclosed as a dollar amount; and

 

  • Must provide detailed instructions to appraiser regarding disclosures in appraisal reports

 

  • UT AMC Administrative Rules Section R162-2e-304-(4):

In addition to the disclosures required by Section 61-2e-304, an AMC shall:

(4) direct the appraiser who performs the real estate appraisal activity to disclose in the body of the appraisal report:

(a) the total compensation, stated as a dollar amount, paid to the appraiser or, if the appraiser is employed by an appraisal company, to the appraiser’s employer; and

(b) the total compensation retained by the AMC in connection with the real estate appraisal activity, stated as a dollar amount.

 

 

 

Communication With Board

  • Must provide statement explaining process for verifying qualifications of appraisers and appraisal reviewers

 

  • UT AMC Administrative Rules Section R162-2e-302:

R162-2e-302. Adherence to Standards.

Beginning upon registration with the division and continuing biennially thereafter, an AMC shall provide a statement to the division, signed by its designated controlling person, certifying that the AMC verifies that each appraisal assignment offered to an appraiser acting as an independent contractor is:

(1) signed by an appraiser who is included in the AMC’s panel at the time the assignment is offered; and

(2) includes the information outlined in Subsection 304(1)(b)-(c).

 

Billing/ Payment

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

 

  • UT AMC Registration and Regulation Act Section 61-2e-304:

61-2e-304. Required disclosure.

(1) Before an appraisal management company may receive money from a client

for a real estate appraisal activity requested by the client, the appraisal management

company shall disclose to the client the total compensation that the appraisal

management company pays to the appraiser who performs the real estate appraisal

activity.

Employee Training

Removal of Appraisers from Panel

  • Specific guidelines for removal of appraisers from panel

 

  • UT AMC Registration and Regulation Act Section 61-2e-306:

61-2e-306. Removal of appraiser from appraisal panel.

Except within the first 30 days after the day on which an appraiser is first added

to the appraiser panel of an appraisal management company, an appraisal

management company may not remove the appraiser from its appraiser panel, or

otherwise refuse to assign a request for a real estate appraisal activity to an appraiser

without:

(1) notifying the appraiser in writing of:

(a) the reason why the appraiser is being removed from the appraiser panel of

the appraisal management company; and

(b) the nature of the alleged conduct or violation if the appraiser is being

removed from the appraiser panel for:

(i) illegal conduct; or

(ii) a violation of the applicable appraisal standards; and

(2) providing an opportunity for the appraiser to respond to the notification of the

appraisal management company.

Misc

  • Registration valid for two years

 

  • UT AMC Registration and Regulation Act Section 61-2e-204-(1)-(a):

(1) (a) A registration under this chapter expires two years from the day on which

the registration is filed.