Credentials of Appraiser

The validity of any appraisal is directly related to the credentials, the capability and ethics of the appraiser.

a. Types of Appraisers

Appraisers are licensed, certified and regulated by the Texas Appraiser Licensing and Certification Board. TEX.OCC.CODE §§ 1103.001-1103.5545. The

Texas Appraiser Licensing and Certification Board regulates several classifications of appraiser certification and licensure including (1) Certified General Real Estate Appraiser, (2) Certified Residential Real Estate Appraiser, and (3) State Licensed Real Estate Appraiser. An appraisal performed by a person subject to the Texas Appraiser Licensing and Certification Act must conform with the "Uniform Standards of Professional Appraisal Practice" (USPAP) of the Appraisal Foundation in effect at the time of the appraisal. 22 TEX. ADM IN.

CODE § 155.1(a).

To be eligible for a certificate, an applicant must: (1) pass an examination; (2) successfully complete the number and type of classroom hours or other educational qualifications required by the Appraisal Qualifications Board of The Appraisal

Foundation; (3) provide evidence satisfactory to the board that the applicant has at least the minimum number of hours of experience in performing appraisals over the specified number of calendar years as required by the Appraiser Qualifications Board; and (4) satisfy the board as to the applicant's honesty, trustworthiness, and integrity. TEX.OCC.CODE § 1103.202.

To be eligible for a license, an applicant must: (1) pass an examination; (2) successfully complete the number and type of classroom hours or other educational qualifications required by the guidelines of the Appraiser Qualifications Board of The Appraisal Foundation; (3) provide evidence satisfactory to the board that the applicant has at least the minimum number of hours of experience in performing appraisals over the specified number of calendar years as required by the guidelines of the Appraiser Qualifications Board; and (4) satisfy the board as to the applicant's honesty, trustworthiness, and integrity. TEX. OCC.

CODE § 1103.203.

b. Certified General Real Estate Appraiser

Certified General Real Estate Appraisers may appraise of all types of real property without regard to transaction value or complexity; and are bound by the Competency Rule and all other provisions of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect at the time of the appraisal. 22 TEX.

ADM IN.CODE § 153.8(a).

Applicants for General Real Estate Appraiser Certification whose application is received by the Texas Appraiser Licensing and Certification Board prior to November 1, 2007 must have successfully completed 180 classroom hours in courses which meet certain requirements set out in Title 22, Section 153.13 of the Texas Administrative Code. Of these 180 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. At least 30 classroom hours of the fundamental real estate appraisal course requirements must be in courses with emphasis on the appraisal of non-residential properties. Applicants for General Real Estate Appraiser Certification whose application is received by the Texas Appraiser Licensing and Certification Board after October 31, 2007 shall meet all educational requirements set forth by the Appraiser Qualifications Board. These requirements include the successful completion of 300 classroom hours in courses which meet certain requirements. Of these 300 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. In addition, the applicant must have a Bachelors Decree from an accredited

college or university, or 30 semester credit hours in the following courses: English Composition; Micro Economics; Macro Economics; Finance; Algebra, Geometry or higher math; Statistics; Computer Science; Business or Real Estate Law; and 2 elective courses in accounting, geography, agricultural economics, business management, or real estate. 22 TEX.ADM IN.CODE § 153.13(a).

An applicant for General Real Estate Appraiser Certification must provide evidence satisfactory to the Texas Appraiser Licensing and Certification Board that the applicant possesses the equivalent of 3,000 hours of real estate appraisal experience over a minimum of 30 months. At least 1,500 hours of experience must be in non-residential real estate appraisal work. Hours may be treated as cumulative in order to achieve the

necessary hours of appraisal experience. 22 TEX.

ADM IN.CODE § 153.15(a).

c. Certified Residential Real Estate Appraiser

Certified Residential Real Estate Appraisers may (1) appraise one-to-four residential units without regard to transaction value or complexity; (2) appraise vacant or unimproved land for which the highest and best use is for one-to-four family purposes; (3) not appraise subdivisions; and (4) associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties. In addition, Certified Residential Real Estate Appraisers are bound by the Competency Rule and all other provisions of the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal. 22 TEX.ADM IN.CODE § 153.8(b).

Applicants for Residential Real Estate Appraiser Certification whose application is received by the Texas Appraiser Licensing and Certification Board prior to November 1, 2007 must have successfully completed 120 classroom hours in courses which meet certain requirements set out in Title 22, Section 153.13 of the Texas Administrative Code. Of these 120 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. Applicants for Residential Real Estate Appraiser Certification whose application is received by the Texas Appraiser Licensing and Certification Board after October 31, 2007 shall meet all educational requirements set forth by the Appraiser Qualifications Board. These requirements include the successful completion of 200 classroom hours in courses which meet certain requirements. Of these 200 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. In addition, the applicant must have an

Associate Decree from an accredited college or university, or 21 semester credit hours in the following courses: English Composition; Principle of Economics (Micro or Macro); Finance; Algebra, Geometry or higher math; Statistics; Computer Science; and Business or Real Estate Law. 22 TEX.ADM IN.CODE §

153.13(b).

An applicant for Residential Real Estate Appraiser Certification must provide evidence satisfactory to the Texas Appraiser Licensing and Certification Board that the applicant possesses the equivalent of 2,500 hours of real estate appraisal experience over a minimum of 24 months. Hours may be treated as cumulative in order to achieve the

necessary hours of appraisal experience. 22 TEX.

ADM IN.CODE § 153.15(b).

d. State Licensed Real Estate Appraiser

State Licensed Real Estate Appraisers may (1) appraise non-complex one-to-four residential units having a transaction value less than $1 million and complex one-to-four residential units having a transaction value less than $250,000; (2) appraise vacant or unimproved land for which the highest and best use is for one to four family purposes; (3) not appraise subdivisions; and (4) associate with a state certified general real estate appraiser, who shall sign the appraisal report, to appraise non-residential properties. In addition, State Licensed Real Estate Appraisers are bound by the Competency Rule and all other provisions of the Uniform Standards of Professional Appraisal Practice in effect at the time of the appraisal. 22 TEX.ADM IN.CODE § 153.8(c).

Applicants for a Real Estate Appraiser License whose application is received by the Texas Appraiser Licensing and Certification Board prior to November 1, 2007 must have successfully completed 90 classroom hours which meet certain requirements set out in Title 22, Section 153.13 of the Texas Administrative Code. Of these 90 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. Applicants for Real Estate Appraiser License whose application is received by the Texas Appraiser Licensing and Certification Board after October 31, 2007 shall meet all educational requirements set forth by the Appraiser Qualifications Board. These requirements include the successful completion of 150 classroom hours in courses which meet certain requirements. Of these 150 classroom hours at least 15 classroom hours must be in a class devoted to the Uniform Standards of Professional Appraisal Practice completed within two years prior to submission of the application. 22 TEX.ADM IN.CODE §

153.13(c).

An applicant for a State Real Estate Appraiser License must provide evidence satisfactory to the Texas Appraiser Licensing and Certification Board that the applicant possesses at least 2,000 hours of real estate appraisal experience which was acquired over a minimum of twelve months. 22 TEX.ADM IN.CODE §

153.15(c).