WHEN IS A REAL ESTATE APPRAISER LICENSE REQUIRED?

A license is mandatory for any person in Michigan who issues an evaluation, opinion, conclusion or analysis relating to the value of real property. An appraiser license is not required for, nor are the following considered appraisals:

• A Market analysis performed by a person licensed as a real estate broker or salesperson solely for the purpose of assisting a customer or potential customer in determining the potential sale, purchase, or listing price of real property or the rental rate of real property as long as a fee or any other valuable consideration is not charged for that analysis.
• An assessment of the value of real property performed on behalf of a local unit of government authorized to impose property taxes when performed by a certified assessor, or an individual employed in an assessing capacity.
• A market analysis of real property for a fee when performed by a licensed broker or associated broker, which does not involve a federally related transaction.

Refer to the Occupational Code, Article 26, for specific definitions and requirements (MCL 339.2601-2637).

WHAT MAY A REAL ESTATE APPRAISER DO?

LIMITED REAL ESTATE APPRAISER LICENSE: Requirements are found in MCL 339.2611.  Licensees in this category may assist a State Licensed, Certified Residential or Certified General Appraiser in the development of appraisals relating to federally related transactions, and real estate related financial transactions but they may not sign the report. The Limited Real Estate Appraiser must be acknowledged in the report, in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) Standard 2-3 and include a statement similar to the following: "Jane Smith, Limited Real Estate Appraiser license number 12-01-999999, has provided significant professional assistance in the completion of the following..." Only the tasks actually performed should be acknowledged on the report, and the actual hours worked should be reported on the log when applying for licensure.  If the Limited Real Estate Appraiser signs a report for which the signature of a State Licensed, Certified Residential, or a Certified General Appraiser is not required, the license type and number must clearly be identified next to the licensee's signature, and the supervising appraiser must also sign the report and indicate his or her license type and number. [See MCL 339.2607(7) and 2633(d)]

STATE LICENSED APPRAISER LICENSE:   Requirements are found in MCL 339.2613.    Licensees in this category may appraise real property involving any non-federally related transaction for which they have expertise. They may also perform appraisals involving federally related transactions for 1-4 family residential property with a transaction value of less than $1,000,000 and any other appraisal required for a federally related transaction for which a state licensed real estate appraiser is authorized under sections 1113 and 1114 of the financial institutions reform, recovery, and enforcement act of 1989, Public Law 101-73, 12 U.S.C. 3342 and 3343. They may assist a Certified Residential or General Appraiser in appraising properties where the transaction value is over $1,000,000, but their reports must have the signature of the supervising appraiser on the report, certifying the report. The licensed appraisers contribution must also be acknowledged pursuant to Standard 2-3. They may not sign the report when the assignment is outside their scope of licensure.

  As defined in Rule 101(1)(g), transaction value is:

•  the amount of the loan for refinancing purposes; or
•  the market value of the real property for sales, leases, purchases,and investments: or
•  the amount of the loan or market value of the real property calculated with respect to each such loan or interest for the pooling of loans or interest in real property for resale or purchase. 
  

Therefore, in brief, a state licensed real estate appraiser may appraise a property for refinancing purposes with a market value of over $1,000,000 as long as the loan amount is less than $1,000,000.  However, if the appraisal is performed for a purchase or sale, the market value of the real property must be less than $1,000,000 in order for the state licensed real estate appraiser to perform the appraisal.

CERTIFIED RESIDENTIAL APPRAISER LICENSE: Requirements are found in MCL 339.2614   Certified Residential appraisers may appraise residential (1-4 family) real property of any value, or any other property for which they are authorized by the federal financial institutions' regulatory agencies.

CERTIFIED GENERAL APPRAISER LICENSE: Requirements are found in MCL 339.2615.  Certified General appraisers may appraise real property of any type or value. 

WHAT IS A FEDERALLY RELATED TRANSACTION, AND WHO ARE THE FEDERAL FINANCIAL AGENCIES?

FEDERALLY RELATED TRANSACTION" means any real property related financial transaction in which a federal financial institution regulatory agency or the resolution trust corporation engages in, contracts for, or regulates and which requires the services of a State Licensed, Certified Residential or Certified General Appraiser.

"FEDERAL FINANCIAL INSTITUTION REGULATORY AGENCIES are:

• The Federal Deposit Insurance Corporation (FDIC)
• The Board of Governors of the Federal Reserve System
• The National Credit Union Administration (NCUA)
• Office of the Comptroller of the Currently (OCC)
• The Office of the Thrift Supervision (OTS)
• The Resolution Trust Corporation (RTC)
  
  

  WHEN ARE TEMPORARY PERMITS REQUIRED?

State Licensed, Certified Residential, and Certified General appraisers in other states may apply for temporary practice in Michigan only when the assignment relates to a federally-related transaction. Otherwise, they must apply for a reciprocal license. Forms may be obtained from the department, or from the web   www.michigan.gov/appraisers.   There is a $125.00 fee for a 180 day permit, renewable one time.

WHERE CAN I GET COPIES OF THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE(USPAP)?

Copies of the UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE may be obtained by calling or writing the Appraisal Foundation: (202) 347-7722, 1029 Vermont Avenue, NW, Suite 900,Washington, D.C. 20005-3517. The Foundation will charge a fee for this publication which is updated annually. You may also visit their website at www.appraisalfoundation.org.

WHEN SHOULD I FILE MY APPLICATION FOR LICENSURE?

You may file your application after you have met the requirements as listed at our website of www.michigan.gov/appraisers. under the license requirements section.

 HOW LONG WILL MY APPLICATION TAKE TO PROCESS?

An application, accompanied by a payment, mailed to the Department takes approximately five days to be processed by the Accounting Office and sent to the Board office. Once an application has been received in the board office, it is normally reviewed within 30-90 days. Walk-in applications will not be processed while the applicant waits.

  HOW DO I VERIFY MY QUALIFICATIONS?

EDUCATION:  Education listed on the applications must be supported by certificates of course completion. Prelicensure courses must be a minimum of 15 hours, and the applicant must pass the examination at the end of the course. Check our web site for approved prelicensure course sponsors and courses:www.michigan.gov/appraisers or rquest a copy from the Department.

    EXPERIENCE: Submit a detailed log, which describes the appraisal experience claimed, including address, property type, tasks performed, number of hours and the date the appraisal or work was completed with the application. The applicant must be able to justify the hours claimed, but no more than a 6-8 hour average per residential appraisal will be accepted. A sample log is located on our website at   www.michigan.gov/appraisers.   This format must be used to develop the log. Also needed for review are two representative appraisals. The Department will randomly request additional copies of reports listed on the log. Samples must show experience in developing all three approaches to value: cost, sales, and income, and be true copies of what was submitted to the client. All applicants must document appraisal experience that conforms to Uniform Standards 1 and 2 or 3. Appraisal experience claimed after 1-1-92 will not be recognized for credit toward licensure unless the individual was properly licensed or properly exempt, pursuant to the Occupational Code.

Requirements are found in section MCL 339.2611, 2613, 2614, 2615, 2617, 2621, and 2633(c) Administrative Rules 339.23201 to 339.23207.

  WHEN DOES AN APPRAISAL REVIEW QUALIFY AS APPRAISAL EXPERIENCE?

  Appraisal review may count as appraisal experience only if it is performed as technical review performed for the purpose of forming an opinion as to the adequacy of an appraisal report, completeness, methods and techniques used, judgment on analysis and conclusions leading to an opinion of value that may differ from that the report under review. Technical review is bound by and must comply with USPAP Standard Rule 3 in all respects, including certifying, as set forth in 3-2(e).

     Technical review is distinguished from in-house administrative review performed by clients or users of appraisal services for the purpose of verifying completeness, accuracy of calculations, and compliance with USPAP without making judgment on the analysis, conclusions or estimate of value. This review is not bound by the requirements of Standard Rule 3 of USPAP, and may be performed by persons other than registered, licensed or certified appraisers. Administrative review does not qualify as appraisal experience.

 WHAT IS THE PROCESS FOR TAKING THE EXAM?

Applicants are eligible to take the State Licensed, Certified Residential or Certified General appraiser after all prelicensure education requirements have been met and an approval letter has been issued by the Department.  Upon receipt of the approval letter, applicants should call PSI Services, LLC. (PSI) at (800) 733-9267 to schedule for the exam or register on-line at  www.psiexams.com.  The Handbook will explain in detail the content of the examination, the locations, the phone number to call to schedule an appointment and other information.  Remember to be admitted to the examination; applicants must be pre-approved by the Department.

WHAT IS NECESSARY AFTER PASSING THE EXAMINATION?

Upon successful completion of the exam, an applicant will receive a fee payment card from PSI. If you are upgrading your license, return your current license and pocket card with the fee payment card. A fee of $175 is requested with the submittal of your fee payment card.

 WHAT IF MY CURRENT LICENSE EXPIRES MORE THAN ONE YEAR AFTER I WILL SUBMIT TO THE DEPARTMENT THE LICENSE FEE FOR UPGRADING?

If your license will expire more than 1 year from the date you submit your fee payment, DO NOT send the requested fee. However, if you are currently a limited real estate appraiser upgrading your license and your license will expire more than 1 year from the date you expect the Department to receive your fee payment, you must submit $50, due to the difference in licensure fees. Before the license can be issued, both the education and experience requirements must be met, and documented to the satisfaction of the department.

 WHAT ARE SOME OF THE REQUIREMENTS OF REAL ESTATE APPRAISERS? (For details refer to 339.2633, 339.2635, or R 339. 23405)

 The requirements include, but are not limited to, the following:

• Include in any appraisal or report provided to clients, the statement Appraisers are required to be licensed and are regulated by the Michigan Department of Labor & Economic Growth, P.O. Box 30018, Lansing, MI 48909.
• Maintain an actual place of business whose address shall be used as the licensee's address and in all advertising. A Post Office Box alone is not sufficient.
• Maintain a cross-referenced set of books and records which shall be available for inspection by the Department.
• Advertise only the services for which the appraiser is properly licensed and qualified to perform.
• Place his or her license number and license type on all reports and shall produce evidence of licensing upon request.

WHEN DO I NEED CONTINUING EDUCATION AND HOW MANY HOURS DO I NEED?

 Appraisers are required to complete 28 hours of continuing education for the two-year renewal cycle. Please make sure you retain records of your continuing education. Limited appraisers must complete 14 hours of continuing education during their 3rd and successive years. All others must complete continuing education after their first renewal. All licensees who are required to complete continuing education must complete the 7-hour National USPAP Update course for every renewal and the 2-hour Michigan Law & Rules course every other renewal. Those licensees who are required to complete continuing education and renew in 2004 may complete the 2-hour Michigan Law & Rules course for either their 2004 or 2006 renewal. Licenses required to complete continuing education and renew in 2005 MUST complete the 2-hour Michigan Law course in order to renew in 2005. To ensure that your renewal is processed timely, it is suggested that continuing education be completed and reported to the Department no later than May 30 of each renewal year, even though the deadline for continuing education is July 31 of each renewal year. All continuing education sponsors and courses should be preapproved. If you are considering taking a course, check with the Department or course sponsor to ensure that the course has been accepted for continuing education credit by the Department. The Department will maintain lists of approved continuing education courses, which are also maintained on our web site at  www.michigan.gov/appraisers.   Licensees may also check the continuing education course credits on record with the Department at the same website. Continuing education for a State Licensed real estate appraiser and certified residential appraiser shall focus primarily on residential real property appraisals. Continuing education for a State Certified real estate appraiser shall cover topics relating to both residential and nonresidential real property appraisals.

 MAY I COMPLETE THE 15-HOUR NATIONAL USPAP COURSE IN PLACE OF THE 7-HOUR NATIONAL USPAP UPDATE COURSE IN ORDER TO FULFILL MY USPAP CONTINUING EDUCATION REQUIREMENT?

 You may complete the 15-hour National USPAP course in place of the 7-hour National USPAP Update course in order to fulfill your continuing education requirement until December 31, 2004. Beginning January 1, 2005 licensees may only complete the 7-hour National USPAP Update Course in order to fulfill their USPAP requirement.

WHEN DOES MY LICENSE EXPIRE AND WHAT ARE RENEWAL REQUIREMENTS?

ALL LICENSES EXPIRE ON JULY 31 OF THE RENEWAL YEAR.  NEW LICENSES ISSUED AFTER THE FIRST WEEK IN APRIL WILL EXPIRE ON JULY 31 OF THE FOLLOWING YEAR. An initial license may be issued for less than a year. There is no proration of fees. After the initial issuance, all licensees will renew on a two-year cycle.

RENEWAL notification will be sent to each licensee, at the current business address on record, 30 to 45 days before the current license expires. The cost to renew a certified residential, certified general, or state license is $350.00. The cost to renew a limited real estate appraiser license is $250.00. Allow four (4) weeks for processing. All licensed, certified residential, and certified general licensees must also be reported to the National Registry to continue to appraise in connection with federally related transactions. Additional time should be allowed for this additional processing. Fifty dollars ($50.00) of each renewal fee is submitted to the Appraisal Subcommittee for registration on the National Registry.

LAPSED LICENSES may be renewed with a $20.00 late fee if renewed within 60 days from the expiration date. After that time, the appraiser may apply for relicensure by paying an application fee, late fee, license fee,and showing proof of meeting requirements for licensure, including continuing education, if applicable. A relicensure is issued for one year or less, depending on where in the renewal cycle the relicensure takes place. An applicant for a state licensed or state certified license which has been lapsed for more than three (3) years must meet the current licensing requirement, retake the appropriate examination, and complete any necessary continuing education to be relicensed.

CAN I CONTACT THE DEPARTMENT OR VERIFY A LICENSE VIA THE INTERNET?

Appraiser licensing and regulation information can be found at www.michigan.gov/appraisers .  You may also find out if someone is licensed at www.michigan.gov/appraisersand click on "Verify a License."

WHAT IS THE NATIONAL REGISTRY?

The National Registry is a national list of all certified general real estate appraiser, certified real estate appraiser, and state licensed real estate appraiser licensees. The list is compiled by the appraisal subcommittee of the federal financial institutions examination council. Twenty-five dollars ($25) of every annual license fee is submitted to maintain the National Registry to help maintain this list. You can verify licensees throughout the nation at their website of www.asc.gov and linking to National Registry.

WHERE CAN I OBTAIN A LIST OF APPRAISAL SCHOOLS?

A list of appraisal schools is located at www.michigan.gov/appraisers .  Or, call our office at (517) 241-9201, and a copy can be mailed to you.

WILL THE DEPARTMENT NOTIFY ME HOW MUCH CONTINUING EDUCATION I HAVE?

Licensees will NOT be notified that they need continuing education, nor will they receive confirmation of continuing education recorded by the department. If you need confirmation, you may check the number of credits recorded by the Department at www.michigan.gov/appraisers . or call the office at (517) 241-9228.

CAN I VERIFY MY CONTINUING EDUCATION ONLINE?

Yes, please visit www.michigan.gov/appraisers   to confirm the credit hours recorded by the Department.

ARE DISTANCE EDUCATION COURSES ACCEPTABLE?

Distance education courses are not acceptable for Prelicensure education. However, several online continuing education courses have been approved. To confirm Department approval of a continuing education course you are considering, please visit www.michigan.gov/appraisers .

CAN I CHANGE MY ADDRESS ONLINE?

Not at this time. Please mail your current license, change of address, and a check or money order for $10 to Board of Real Estate Appraisers, P.O. Box 30219, Lansing, MI 48909. Your check or money order must be made out to the State of Michigan.

HOW CAN I OBTAIN A CERTIFICATION OF MY LICENSE TO APPLY TO ANOTHER STATE FOR A RECIPROCAL LICENSE?

Submit $15.00 payable to the State of Michigan--Appraisers, a copy of your current license, and a written request, which provides information about where to send the certification to the department at P.O. Box 30018 Lansing, MI 48909. Allow 30 days for processing.

CAN THE PRELICENSURE EDUCATION I COMPLETED TO OBTAIN MY LIMITED  REAL ESTATE APPRAISER LICENSE BE APPLIED TOWARD MY STATE REAL ESTATE APPRAISER LICENSE?

Yes, your prelicensure education is cumulative and never expires toward upgrading your license to another license level.

CAN I APPLY MY PRELICENSURE EDUCATION TOWARD CONTINUING EDUCATION REQUIREMENTS AND VERSA?

Prelicensure education may be used toward continuing education requirements for the cycle in which the course was completed. However, continuing education courses may not be used for licensure requirements.

I HAVE HEARD THAT I WILL NEED A COLLEGE DEGREE TO OBTAIN A REAL ESTATE APPRAISER LICENSE IN THE FUTURE.   IS THIS TRUE?

The following real estate appraiser qualification criteria become effective January 1, 2008.

Criteria to obtain a limited real estate appraiser license:

• 75 appraisal prelicensure education hours in core curriculum
• Limited real estate appraisers must be supervised by a certified real estate appraiser (not a state licensed appraiser). 
• Supervising appraisers may only supervise three trainees at one time.

Criteria to obtain a state licensed real estate appraiser license:

• 150 appraisal prelicensure education hours in core curriculum
• 2000 hours of experience in not less than 12 months
  
  Criteria to obtain a certified residential real estate appraiser license:

• An Associates degree or 21 semester credit hours in English, economics, finance, algebra, statistics, computers and business
• 200 appraisal prelicensure education hours in core curriculum
• 2500 hours of experience in not less than 24 months
  
  Criteria to obtain a certified general real estate appraiser license:

• Bachelors degree or 30 semester credit hours in English, economics, finance, algebra, statistics, computers, and business 
• 300 appraisal prelicensure education hours in core curriculum
• 3000 hours of experience in not less than 30 months

WHAT IS THE CORE CURRICULUM FOR PRELICENSURE COURSES   BEGINNING J ANUARY 1, 2008?

 The REQUIRED CORE CURRICULUM effective January 1, 2008 is as follows:

Limited real estate appraiser license

• Basic appraisal principles--30 hours
• Basic appraisal procedures--30 hours
• 15-hour national USPAP course or 15 hours its equivalent--15 hours
  

State licensed real estate appraiser

• Basic appraisal principles--30 hours
• Basic appraisal procedures--30 hours
• 15-hour national USPAP course or 15 hours its equivalent--15 hours
• Residential market analysis and highest and best use--15 hours
• Residential appraiser site valuation and cost approach--15 hours
• Residential sales comparison and income approaches--30 hours
• Residential report writing and case studies--15 hours
  

Certified residential real estate appraiser

• Basic appraisal principles--30 hours
• Basic appraisal procedures--30 hours
• 15-hour national USPAP course or 15 hours its equivalent--15 hours
• Residential market analysis and highest and best use--15 hours
• Residential appraiser site valuation and cost approach--15 hours
• Residential sales comparison and income approaches--30 hours
• Residential report writing and case studies--15 hours
• Statistics, modeling and finance--15 hours
• Advanced residential applications and case studies--15 hours
• Appraisal subject matter electives--20 hours
  

Certified general real estate appraiser

• Basic appraisal principles--30 hours
• Basic appraisal procedures--30 hours
• 15-hour national USPAP course or 15 hours its equivalent--15 hours
• General appraiser market analysis and highest and best use--30 hour
• Statistics, modeling and finance--15 hours
• General appraiser site valuation and cost approach--30 hours
• General appraiser sales comparison approach--30 hours
• General appraiser income approach--60 hours
• General appraiser report writing and case studies--30 hours
• Appraisal subject matter electives--30 hours