[THIS PAGE NOT FOR PUBLICATION IN THE CODE OF COLORADO REGULATIONS]
DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

CHAPTER 5:	Standards for Real Estate Appraisal Experience

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Part 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to amend or repeal existing rules with respect to appraiser license experience. 
 
Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 5:	Standards for Real Estate Appraisal Experience
	
5.8	Real estate appraisal experience gained by an unlicensed person shall be gained under the following conditions:
A.  The unlicensed person shall be under the active, diligent and personal supervision of a Certified Residential Appraiser as defined by Board Rule 1.14, or a Certified General Appraiser as defined by Board Rule 1.15;
B.  The Certified Residential Appraiser or Certified General Appraiser acting as supervisor shall be in good standing with the Board, as defined by Board Rule 1.36;
C.  The Certified Residential Appraiser or Certified General Appraiser acting as supervisor shall not supervise more than three (3) unlicensed persons at one time and will be required to:
	1.   Review the Trainee appraisal reports;
2.  Accept responsibility for the appraisal by signing and certifying the appraisal complies with the Uniform Standards of Professional Appraisal Practice; and 
3.  Personally inspect each appraised property with the Trainee appraiser until the supervisory appraiser determines the Trainee appraiser is competent to inspect the property, in accordance with the Competency Rule of the Uniform Standards of Professional Appraisal Practice for the property type; and
4.  Jointly maintain an appraisal experience log with the Trainee appraiser.  It will be the responsibility of both the supervisory appraiser and the Trainee appraiser to ensure that the experience log is accurate, current and complies with the requirements of the Board.  At a minimum, the appraisal log requirements are:
	A)  Type of property;
	B)  Date of report;
	C)  Address of appraised property;
D) Description of work performed by the Trainee appraiser and scope of the review and supervision of the supervisory appraiser;
E)  Number of actual work hours by the Trainee appraiser on the assignment; 
F)  The signature and state certification number of the supervisory appraiser;   and
G) Separate appraisal logs shall be maintained by each supervisory appraiser, if applicable;
D.  Experience shall build upon itself and need not include the entire appraisal process including arriving at an opinion of value.  Experience may include one or all of the steps taken in the appraisal process as defined by Board Rule 1.29; and
E.   Appraisal experience gained without a traditional client (i.e. a client hiring an appraiser for a business purpose) may be counted as experience for up to 50% of an applicant’s total experience requirement.  A non-traditional client may include practicum courses defined by the Real Property Appraiser Qualification Criteria published by the AQB or demonstration type reports.