BUREAU OF REAL ESTATE APPRAISERS

1102 Q Street, Suite 4100, Sacramento, CA 95811 Tel: (916) 552-9000 / Fax: (916) 440-7406 / http://www.orea.ca.gov/

BUREAU STAFF

FACTS AT A GLANCE

Bureau Chief Deputy Bureau Chief Legislative Contact

Jim Martin Loretta Dillon Jim Martin

LAWS AND REGULATIONS

California: Business and Professions Codes §§ 11300 – 11423 Title 10, Chapter 6.5, California Code of Regulations §§ 3500 – 3780 Federal: Title 11, United States Code §§ 1101 – 1126 Title 15, United States Code § 1639e Title 12, Code of Federal Regulations §§ 225.61 – 225.67 Title 12, Code of Federal Regulations §§ 1222.20-1222.26

BUDGET ACT OF 2015: FY 2015-16

Appropriation: $5,731,000 Authorized positions: 32

BOARD MEMBERS

The Bureau does not have any board members

SUNSET REVIEW

Last review: 2011 Next review: 2016

LICENSEE STATISTICS Category

Certified Residential Certified General Licensed Residential Trainee

TOTAL LICENSEE POPULATION

Appraisal Management Companies

FEES**

Real Estate Appraiser Trainee Level Actual Fee Statutory Cap

Initial Renewal $380 $310

Number of Licensees

5,986 3,247 1,340 605

11,178

277

$450 $450

Real Estate Appraiser Residential Level

Initial Renewal Separate Federal Fee

Actual Fee

$455 $385 $50

Statutory Cap

$450 $450 Not applicable

Real Estate Appraiser Certified Level Actual Fee Statutory Cap

Initial $505 $525

Renewal $435 $525

Separate Federal Fee $50 Not applicable

** The Bureau licenses additional categories that are not included in this list. Those fees can be found in Business and Professions Code §§ 11400-11409 and 16 California Code of Regulations §§ 3582 and 3583.

LICENSING REQUIREMENTS

Degree/Professional Schooling Examination

Continuing Education/Competency Fingerprinting Requirement YES YES YES YES

DETAILS

PROGRAM BACKGROUND

Established in response to the savings and loan crisis of the 1980s, the Office of Real Estate Appraisers (Office) has regulatory oversight of real estate appraisers and appraisal management companies licensed by the State of California. Title XI of the Federal Financial Institutions Reform Recovery and Enforcement Act of 1989 was adopted by Congress mandating states to license and certify real estate appraisers who appraise property for federally related transactions. As a result of this federal mandate, the Real Estate Appraisers Licensing and Certification Law was enacted by the California Legislature in 1990 (AB 527, Chapter 491).

The Office was established within the Business, Transportation and Housing Agency, and charged with developing and implementing a real estate appraiser licensing and certification program compliant with the federal mandate. Under Governor Brown’s 2012 Reorganization Plan, the Office became the Bureau of Real Estate Appraisers (Bureau) under the Department of Consumer Affairs (Department) on July 1, 2013.

LICENSE REQUIREMENTS – Business and Professions Code §§ 11300-11423 Real Estate Appraiser – Trainee

A licensed trainee can appraise any property that the supervising appraiser is permitted to appraise.

Minimum Education and Experience Requirements  Complete 150 hours of education covering specific modules including 15 hours of the National Uniform Standards of Professional Appraisal Practice course module. Education may not be more than five years old.  Complete an approved Supervisory/Trainee Appraisers course.

Real Estate Appraiser – Residential Level

A residential level licensee can appraise non-complex 1-4 family property with a transaction value up to $1 million, and any non-residential property with a transaction value up to $250,000.

Minimum Education and Experience Requirements:  150 hours of education covering specific modules including 15 hours of the National Uniform Standards of Professional Appraisal Practice course and an Associate Degree or 30 semester hours of college level education.  A minimum of 2,000 hours encompassing 12 months of acceptable experience.

Real Estate Appraiser – Certified Residential

A certified residential licensee can appraise any 1-4 family property regardless of transaction value or complexity, and non-residential property with a transaction value up to $250,000.

Minimum Education and Experience Requirements:  200 hours of education covering specific modules, including 15 hours of the National Uniform Standards of Professional Appraisal Practice Course and a Bachelor’s degree.  A minimum of 2,500 hours encompassing at least 30 months of acceptable experience.

Real Estate Appraiser – Certified General

A certified general licensee can appraise any real estate without regard to transaction value or complexity.

Minimum Education and Experience Requirements:  300 hours of education covering 10 modules, including 15 hours of the National Uniform Standards of Professional Appraisal Practice Course and a Bachelor’s degree.  A minimum of 3,000 hours encompassing at least 30 months of acceptable experience, of which at least 1,500 hours is non-residential.

RECIPROCITY – 16 California Code of Regulations § 3569

The Bureau offers reciprocity when an appraiser has a valid license from a compliant state whose own requirements meet or exceed those of California at the time of application. Licenses are issued without additional examination, but the licensing fee is still required.

COMMITTEES

The following entities are not part of the Bureau, but they have influence over the Bureau and its operations at the federal level. Their title and general role with the Bureau follows.

Appraisal Subcommittee

The Appraisal Subcommittee (Subcommittee) was created in 1989 pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The Subcommittee’s role as an independent federal institution is to generally oversee the real estate appraisal process as it relates to federally regulated transactions, which make up the majority of real estate transactions. More specifically, the Subcommittee reviews each state’s compliance with federal requirements for licensed appraisers and appraisal management companies and can take action in the case of non-compliance; maintains a national registry of approved appraisers; and oversees the Appraisal Foundation.

Appraisal Foundation, Appraisal Standards Board, and Appraisal Qualifications Board

The Appraisal Foundation (Foundation) is a non-profit organization that works to advance professionalism for appraisers. The Foundation is responsible for establishing and improving the Uniform Standards of Professional Appraisal Practice and establishing educational experience requirements and exam qualification criteria for the licensing of appraisers. The Appraisal Standards Board within the Foundation determines and maintains the Uniform Standards of Professional Appraisal Practice which all states must enforce to be compliant with federal requirements and allow state licensed appraisers to participate in federally regulated transactions. The Appraisal Qualifications Board establishes the minimum education and experience requirements as well as the examination requirements.

LEGISLATIVE HISTORY AB 2742 (Committee on Banking and Finance, Chapter 64, Statutes of 2014)

makes technical corrections and updates cross-references in the Business and Professions Code, Civil Code, Corporations Code and Financial Code. These changes are clean-up amendments related to SB 664 (Committee on Banking and Financial Institutions, Chapter 243, Statutes of 2011) and revised federal regulations.

GRP 2 (Governor Brown, effective July 3, 2012) establishes the Office as a Bureau within the Department, operative July 1, 2013.

AB 2519 (Berryhill, Chapter 683, Statutes of 2012) expands the Office’s ability to take disciplinary actions against its licensees and makes other technical and conforming changes to the law governing real estate appraisers and appraisal management companies.

SB 706 (Price, Chapter 712, Statutes of 2011) makes numerous enforcement changes to the Department of Real Estate and the Office, requiring specified licensing boards to post information about licensees on the Internet.

SB 6 (Calderon, Chapter 716, Statues of 2011) updates California’s Real Estate Law, Appraisal Law, and Civil Code, to reflect recent changes enacted at the federal level, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.