Arkansas Appraiser Licensing and Certification Act

Arkansas Code Annotated
Title 17. Professions, Occupations, and Businesses
Subtitle 2. Nonmedical Professions (Chapters 10 to 79)
Chapter 14. Appraisers (Refs & Annos)
Subchapter 1. General Provisions (Refs & Annos)

§ 17-14-101. Title

Section 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq. shall be known and may be cited as the “Arkansas Appraiser Licensing and Certification Act”.

§ 17-14-102. Necessity for registration, license, or certificate

(a) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., is created in response to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 19891 and specifies three (3) classes of appraisers: state-licensed, state-certified residential, and state-certified general appraisers for federally related transactions. A fourth class is created for nonfederally related transactions, which shall be known as “state-registered appraisers”.
(b) It is the intent of the General Assembly that this law be no more restrictive than required under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

§ 17-14-103. Definitions

As used in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.:
(1) “Appraisal”:
(A) As a noun, means the act or process of estimating value or an estimate of value; and
(B) As an adjective, means of or pertaining to appraising and related functions, i.e., appraisal practice and appraisal services;
(2) “Appraisal Foundation” and “foundation” mean the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois;
(3) “Appraisal practice” and “appraisal services” mean the work or services performed by appraisers for clients;
(4) “Appraisal Standards Board” means the board created under Article XI, sections 11.01--11.13 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
(5) “Appraisal Subcommittee” means the subcommittee of the federal Financial Institutions Examination Council established under Title XI, the Real Estate Appraisal Reform Amendments of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, section 1102,1 by amendment to the Federal Financial Institutions Examination Council Act of 1978, 12 U.S.C. § 3301 et seq., through the addition of new section 1011, “Establishment of Appraisal Subcommittee”;
(6) “Appraiser” or “real estate fee appraiser” means any person who, for a fee or other consideration, develops and communicates a real estate appraisal or otherwise gives an opinion of the value of real estate or any interest in real estate;
(7) “Appraiser Qualifications Board” means the board created under Article XII, sections 12.01--12.08 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
(8) “Board” means the Arkansas Appraiser Licensing and Certification Board established under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
(9) “Client” means any person for whom an appraiser performs a service;
(10) “Federal financial institutions regulatory agencies” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration;
(11) “Federally related transaction” means any real estate-related financial transaction which:
(A) A financial institution, a federal financial institution's regulatory agency, or the Resolution Trust Corporation engages in, contracts for, or regulates; and
(B) In accordance with any federal law, rule, or regulation, as the same may be amended, requires the services of an appraiser;
(12) “Financial institution” means an insured depository institution as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813 (c) (2), or an insured credit union as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. 1751 et seq.;
(13) “Independent appraisal assignment” means any engagement for which an appraiser is employed or retained to act or to be perceived by third parties or the public as acting as a disinterested third party in rendering an unbiased analysis, opinion, evaluation, or conclusions relating to the nature, quality, value, or utility identified as real estate or real property;
(14) “Market analysis” or “broker's price opinion” means a proposed sale price opinion or recommended listing price given by a licensed real estate broker, sales person, or other to a potential seller, purchaser, or third party;
(15) “Personal property” means identifiable portable and tangible objects which are considered by the general public as being “personal”, e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate;
(16) “Real estate” means an identified parcel or tract of land, including improvements, if any;
(17)(A) “Real estate appraisal” means an unbiased estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and related personalty.
(B)(i) A real estate appraisal may be classified by subject matter into either a valuation or an evaluation.
(ii) Valuation is the process of estimating the market value, investment value, insurable value, or other properly defined value of an identified interest or interests in a specific parcel or parcels of real estate as of a given date.
(iii) Evaluation or analysis is the study of the nature, quality, or utility of a parcel of real estate, or interests in or aspects of real property, in which a value estimate is not necessarily required, i.e., a study of real estate or real property other than estimating value;
(18) “Real estate-related financial transaction” means any transaction involving:
(A) The sale, lease, purchase, investment in, or exchange of real property, including interests in property, or the financing thereof;
(B) The refinancing of real property or interests in real property; and
(C) The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities;
(19) “Real property” means interest, benefits, and rights inherent in the ownership of real estate;
(20) “Report” means:
(A) Any communication, written or oral, of an appraisal, review, or analysis;
(B) The document that is transmitted to the client upon completion of an assignment; or
(C) The tangible expression of an appraiser's service;
(21) “Review” means the act or process of critically studying a report prepared by another;
(22) “State-certified appraiser” means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all real property types of any monetary size and complexity;
(23) “State-certified residential appraiser” means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraisal Subcommittee and the federal financial institutions regulatory agencies;
(24) “State-licensed appraiser” means any individual who has satisfied the requirements for state licensing in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraisal Subcommittee, and the federal financial institutions regulatory agencies;
(25) “State-registered appraiser” means any person who has satisfied the requirements for registering as set forth in § 17-14-307or requirements as may have been determined by the board and who may perform appraisals on any type of property except when the purpose of the appraisal is for use in federally related transactions;
(26) “Uniform Standards of Professional Appraisal Practice” means the entire body of rules, definitions, binding requirements, guidelines, explanatory comments, and ethical conduct provisions, as promulgated by the Appraisal Standards Board of the Appraisal Foundation, which provide the basis for an individual to conduct the practice of professional appraisal with integrity, objectivity, and independent judgment and in an ethical manner; and
(27) “Written appraisal” means a written statement used in connection with a federally related transaction that is independently and impartially prepared by a licensed appraiser or certified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

§ 17-14-104. Exceptions to registration, licensing, or certification

(a)(1)(A) Except when an interstate transaction or a federally related transaction is involved, the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to a real estate broker or sales person licensed by this state who:
(i) In the ordinary course of his or her business, gives to a potential seller or third party a written report called a market analysis or a broker's price opinion as to the recommended listing price of real estate or an opinion to a potential purchaser or third party as to the recommended price of real estate; or
(ii) Provides testimony regarding an opinion of the value of real property under § 28-51-302.
(B) A broker's price opinion or a market analysis issued in this state in connection with an interstate transaction or a federally related transaction shall not contain the term “appraisal” or the term “market value”.
(C) The prohibition in subdivision (a)(1)(B) of this section does not apply to an intrastate, nonfederally related broker's price opinion or market analysis.
(2)(A) The listing price, purchase price, market analysis, or broker's price opinion may be treated as an appraisal solely for the purposes of § 28-51-302.
(B) A real estate broker who provides testimony regarding an opinion of the value of real property that may be treated as an appraisal for purposes of § 28-51-302 shall nonetheless be exempt from registration as an appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(b)(1)(A) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to any state, county, or municipal public officer or employee while the officer or employee is performing appraisal or appraisal-related duties as the officer or employee.
(B) Appraisals performed by state, county, or municipal officers or employees outside the scope of their employment are subject to the provisions of the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(2) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to:
(A) Persons performing appraisals as officers or staff of a bank, savings and loan, or credit union;
(B) Company foresters in the ordinary course of their duties; or
(C) Staff appraisers performing ad valorem tax appraisals for county assessors or employees of contractors performing county-wide reappraisals.
(c)(1) Except as provided in subsection (b) of this section, appraisers, when providing appraisal reports or appraisal services in nonfederally related transactions, who become licensed or certified by the Arkansas Appraiser Licensing and Certification Board are subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., in all matters involving appraisal services, including transactions below the federally established threshold.
(2) If an appraiser does not make appraisals for any federal agency, any federally insured lending institution, the Federal Housing Administration, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, the United States Bankruptcy Courts, the Federal Highway Administration, the Federal Aviation Administration, the United States Department of Veterans Affairs, the Internal Revenue Service, or any other federal or quasi-federal authority, including appraisal work that is distributed via interstate commerce or appraisals involving transactions above the threshold established by a federal financial institutions regulatory agency, the appraiser is only required to be a state-registered appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(d) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not preclude any person from testifying as an expert witness in any judicial proceeding in which the value of real estate is in issue unless that person holds himself or herself out as a practicing real estate fee appraiser.
(e) Nothing in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., prohibits any person who is licensed to practice in this state under any law from engaging in the practice for which he or she is licensed.

§ 17-14-105. Right and privileges of licensed or registered appraiser

(a) A state-registered or state-licensed appraiser as defined in § 17-14-103 may appraise real property for compensation if the use of a state-certified appraiser is not required under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., or by federal or state law, rule, or policy.
(b) An appraiser shall not sign an appraisal report or be cited within the report as having provided “significant real property appraisal assistance” in the development of the appraisal without having been state-registered, state-licensed, or state-certified.

§ 17-14-106. Absence of liability

(a) Financial institutions or affiliates hiring the services of appraisers registered, licensed, or certified by the Arkansas Appraiser Licensing and Certification Board in nonfederally related transactions, including transactions below the federally established threshold, shall not be liable to any party asserting damages due to the alleged actions of the appraiser, nor shall the financial institution or affiliate be subject to any requirements to report to the board regarding such transactions other than as may be required by the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and the rules promulgated by the board.
(b) This section does not limit the investigative or subpoena powers of the board.

Ark. Code Ann. § 17-14-101-106