DEPARTMENT OF LABOR & ECONOMIC GROWTH

                             DIRECTOR'S OFFICE

               BOARD OF REAL ESTATE APPRAISERS - GENERAL RULES

(By authority conferred on the  director  of  the  department  of  labor  and 
economic growth by sections 205, 308, 2605, and 2617  of  1980  PA  299,  MCL 
339.205, 339.308, 339.2605, and 339.2607, and Executive Reorganization  Order 
Nos. 1996-2, MCL 445.2001, and 2003-18, MCL 445.2011)


                         PART 1. GENERAL PROVISIONS

R 339.23101  Definitions.
  Rule 101. (1) As used in these rules:
  (a) "Act" means 1980 PA  299,  MCL  339.101  et  seq.,  and  known  as  the 
occupational code.
  (b) "Appraiser Qualifications Board Criteria" or "AQB Criteria"  means  the 
standards for education, experience  and  examination  to  become  a  limited 
appraiser,  state  licensed  appraiser,  certified   residential   appraiser, 
certified general appraiser or an instructor  of  the  Uniform  Standards  of 
Professional Appraisal Practice (USPAP) pursuant to MCL 339.2601(b).  A  copy 
of   the   criteria   is   available   for   download   at   no   charge   at 
www.appraisalfoundation.org.  The  criteria  can  also  be  viewed   at   the 
department of labor and economic growth's bureau of commercial services, 2501 
Woodlake Circle, Okemos, Michigan 48864.
  (c) "Board" means the board of real estate appraisers.
  (d) "Licensee" means an individual who is licensed under article 26 of  the 
act, including a limited real estate appraiser, a state-licensed real  estate 
appraiser, a certified residential real  estate  appraiser,  or  a  certified 
general real estate appraiser.
  (e) "Market analysis as performed by a  real  estate  licensee"  means  the 
activity defined in section  2601(a)(i)  and  (ii)  of  the  act,  and  means 
analysis solely for the purpose of establishing potential sale, purchase,  or 
listing price of real property or the rental rate of real property and is not 
for the purpose of evaluating a property for mortgage lenders in the  primary 
or secondary mortgage market.
  (f) "Transaction value" means any of the following:
  (i) For loans or other extensions of credit, the amount of the loan or  the 
extension of credit.
  (ii) For sales, leases, purchases, and investments, or in exchanges of real 
property, the market value of the real property interest involved.
  (iii) For the pooling of loans or interests in real property for resale  or 
purchase, the amount of the  loan  or  market  value  of  the  real  property 
calculated with respect to each such loan or interest in real property.
  (g) "Uniform standards of professional appraisal practice" or "USPAP" means 
the uniform standards of professional appraisal practice,  published  by  the 
appraisal foundation, effective January 1, 2008.  Copies of the  edition  are 
available at a cost at the time of adoption of these  rules  of  $50.00  plus 
$11.00 for shipping from the Appraisal Foundation, 1155 15th Street NW, Suite 
1111, Washington DC, 20005. Mail Orders: P.O. Box 381, Annapolis Junction, MD 
20101-0381, phone toll-free  800/805-7857  or  240/864-0100.  Copies  of  the 
current USPAP and previous editions may be downloaded without charge from the 
following Internet address: www.appraisalfoundation.org.  The  current  USPAP 
and previous editions may be reviewed or purchased  from  the  department  of 
labor and economic growth by mailing to the Bureau  of  Commercial  Services, 
2501 Woodlake Circle, Okemos Michigan 48864, mailing address, P.O. Box 30018, 
Lansing MI 48909, phone: 517/241-9201, at a cost as of the time  of  adoption 
of these rules of $50.00 plus $11.00 shipping and handling costs.
  (2) Terms defined in articles 1 to 6 and  26  of  the  act  have  the  same 
meanings when used in these rules.

  History: 1996 AACS; 2002 AACS; 2003 AACS; 2004 AACS; 2006 AACS; 2007 AACS.


R 339.23102  AQB Criteria.
  Rule 102. The Board adopts the  AQB  criteria  for  education,  experience, 
examination and instructors of USPAP pursuant to MCL 339.2601(b). 

  History: 2007 AACS.


R 339.23103   Board meetings.
  Rule 103. All board meetings are conducted in accordance with    1976    PA 
267, MCL 15.261 et seq., known as the open meetings  act,  and  are  open  to
 the public.

  History: 1996 AACS; 2002 AACS.


                          PART 2. LICENSING


R 339.23201  Acceptable appraisal experience generally.
  Rule 201. (1) Credit for appraisal experience shall be based on the  actual 
performance of appraisals. The department shall not grant  experience  credit 
to an applicant solely on the basis  of  total  hours  of  employment  in  an 
appraisal firm or other entity. The actual performance of appraisals includes 
time spent in such professional  activities  as  personally  inspecting  real 
property,  conducting  research  and  developing  materials  supporting   the 
appraisal, preparing the content of appraisal  reports,  and  presenting  the 
appraisal to the client. It does not include time spent in  the  solicitation 
of business, negotiation  and  development  of  client  agreements,  clerical 
tasks, or business accounting and collections, even though such tasks may  be 
appropriately billed to a client  as  a  necessary  part  of  performing  the 
appraisal.
  (2) Credit shall not be given for performing more than 40 hours per week of 
professional experience unless specific experience, which is  verified  by  a 
supervisor, can be provided to demonstrate that  an  individual  worked  more 
hours in that week. However, experience in excess of 40 hours a week that  is 
obtained before January 1, 1992, may be verified by a supervisor's affidavit.
  (3) Hours credited per appraisal shall be credited based upon the number of 
hours spent on each assignment, not to exceed the  number  of  hours  in  the 
following table: Requests for exceptions shall be approved or denied  by  the 
department.

PROPERTY TYPES				MAX. 
					ALLOWABLE HOURS
SINGLE 	
FAMILY RESIDENTIAL 				8

RESIDENTIAL MULTI FAMILY 
(2 to 4 UNITS)					20

RESIDENTIAL MULTI FAMILY 
(5 to 12 UNITS)					36

RESIDENTIAL MULTI FAMILY 
(13 OR MORE UNITS)				40

RESIDENTIAL LOT					6

SUBDIVISIONS					40

RURAL RESIDENTIAL LAND 
(IMPROVED 20 ACRES OR LESS)			16

RURAL RESIDENTIAL LAND 
(VACANT 20 ACRES OR LESS)			12

AGRICULTURAL FARM OR FOREST LAND		40
INDUSTRIAL (INDUSTRIAL PARK, 
BUSINESS CAMPUS, WAREHOUSING, 
MANUFACTURING PLANT, ETC.)			40 

INDUSTRIAL PARK OR BUSINESS 
CAMPUS LAND (VACANT)				24 

MULTI FAMILY LAND (VACANT)			24

COMMERCIAL PROPERTIES: SINGLE 			40
TENANT

MULTI TENANT(IMPROVED 				80
OFFICE BLDG, RETAIL STORE, 
RESTAURANT, SERVICE STATION, 
BANK, DAY CARE CENTER, NURSING 
HOME, ETC.) 									 

COMMERCIAL LAND (VACANT)			24

  (4) Qualifying experience in performing real estate appraisals on or  after 
January 1, 1992, shall be obtained while the  individual  is  licensed  as  a 
limited real estate appraiser, certified residential real  estate  appraiser, 
or state licensed real estate appraiser or is properly exempt from licensing.
  (5) A limited real estate appraiser shall be subject to direct  supervision 
by a supervising appraiser who shall be a certified residential appraiser  or 
a certified general appraiser. The supervising appraiser shall be responsible 
for the training and direct supervision of the limited real estate  appraiser 
by  accepting  responsibility  for  the  appraisal  report  by  signing   and 
certifying that the report is in compliance with  the  uniform  standards  of 
professional appraisal practice by doing both of the following:
  (a) Reviewing the limited appraiser's appraisal report or reports.
  (b) Personally inspecting each appraised property  with  the  limited  real 
estate appraiser until  the  supervising  appraiser  determines  the  limited 
appraiser is competent in accordance with the  competency  provision  of  the 
uniform standards of professional appraisal practice (USPAP) for the property 
type. Separate logs shall be maintained for each supervising  appraiser,  and 
each log shall contain the signature, the license  or  certification  number, 
and the level of licensure of the supervising appraiser.

  History: 1996 AACS; 2002 AACS; 2006 ; 2007 AACS.


R 339.23203  Appraisal experience; satisfactory evidence.
  Rule 203. (1) For an applicant's  experience  hours  to  be  accepted,  the 
experience shall be in compliance with both of the following requirements, as 
applicable:
  (a) Appraisal experience shall be demonstrated by  copies  of  reports  and 
file memoranda.  A detailed log which includes the  date,  property  address, 
property type, and a clear indication of the time devoted to  each  appraisal 
shall be submitted to the department. The information in  the  log  shall  be 
capable of being documented by work samples, and shall include  an  affidavit 
of a supervisor, if requested by the department.   If  a  supervisor  is  not 
available, if the applicant was the  supervisor,  or  if  the  applicant  was 
self-employed,  then  the  department  may  require  an  affidavit   from   a 
professional colleague or from an institution for whom the work was performed 
to support the documentation of the applicant.
  (b) An affidavit referenced in subrule (1)(a) of this rule may be  utilized 
only for the purpose of documenting the reasons for appraisal  experience  to 
exceed more than 40 hours per week, pursuant to R 339.23201(2).
  (2) An applicant for a license shall demonstrate experience gained in  each 
of the following areas of the appraisal process:
  (a) Defining the appraisal problem.
  (b) Gathering and analyzing data.
  (c) Applying appropriate value approaches and methodology.
  (d) Arriving at an opinion of value.
  (e) Reporting the opinion of value.
  (3) Documents  that  support  the  information  that  is  contained  in  an 
application, an applicant's experience log, or an affidavit as required in  R 
339.23201(2) shall be maintained for not less than 6 years from the  date  of 
application.

  History: 1996 AACS; 2002 AACS; 2007 AACS.


R 339.23205   Prior licensing or exemptions; Michigan experience.
  Rule 205. As required in the act, experience shall  be  valid  only  if  an 
individual was properly licensed or exempt from licensure. In Michigan, to be 
properly licensed before January 1, 1992, an individual  shall  have  held  a 
real estate license in this state. Under  the  standards  applicable  to  the 
licensing of appraisal services in  Michigan  before  January  1,  1992,  the 
following positions were considered exempt from real estate licensing:
  (a) An employee of a financial institution whose services as  an  appraiser 
were performed for the financial institution and not offered to the public.
  (b) An employee of an appraisal firm who performed appraisal tasks but  did 
not sign reports.
  (c) An employee of a firm whose appraisals were performed for the  internal 
use of the firm and only on property owned or to be purchased by the firm for 
its own use.
  (d) A governmental employee who appraised property for  government  use  or 
purchase or whose appraisal was required for the operation of a  governmental 
program.

  History: 1996 AACS.


R 339.23207   Market  analysis  by  real   estate    licensees;    acceptable 
experience.
  Rule 207.  Market analysis as performed by a  real  estate   licensee   may 
be included in the experience required in  R  339.23203,  if  both   of   the 
following conditions are met:
  (a) The applicant provides proof that he or she was properly  licensed   as 
a real estate broker, associate broker, or  salesperson   when    the    real 
estate market analysis was performed.
  (b) The analysis is prepared in conformity with standards  1  and   2    of 
USPAP, and the individual can demonstrate that he or  she  is  using  similar 
techniques as appraisers to value properties  and  effectively  utilizes  the
 appraisal process.

  History: 1996 AACS; 2002 AACS.


                           PART 3.   APPRAISER EDUCATION

R 339.23301  Definitions.
  Rule 301. As used in this part:
  (a) "Continuing education course" means a course that complies with the AQB 
criteria for continuing education courses and is approved by the department.
  (b) "Coordinator" means an individual who assumes, on behalf  of  a  course 
sponsor, the responsibility pursuant to  these  rules  for  offering  courses 
relating to the activities of real estate appraisers.
  (c) "Instructor" means an individual who is deemed qualified by the sponsor 
to instruct students in prelicensure or continuing education courses and  who 
provides instruction directly and interactively in contact with students.  An 
instructor may utilize guest speakers, but shall bear ultimate responsibility 
to the sponsor for the quality of information imparted to students.
  (d) "Prelicensure course"  means  a  course  that  complies  with  the  AQB 
criteria for prelicensure education courses and is approved by the department.
  (e) "Sponsor" means an entity  which  meets  the  requirements  of  section 
2617(2) of the act and which offers or proposes to offer either  prelicensure 
appraiser education or continuing education.

  History: 1996 AACS; 2002 AACS; 2007 AACS.


R 339.23303  Education; submission of documentation by license applicants.
  Rule  303.  (1)  In  submitting  documentation  of  prelicensure  education 
obtained before the effective date of the act or from  course  sponsors  that 
are not approved pursuant to these rules, the applicant shall show  that  the 
course was designed to teach individuals to perform appraisals or to  augment 
a basic knowledge of appraisal with general information that  the  instructor 
then relates to the performance of appraisals.
  (2) General educational courses, such as business,  economics,  statistics, 
or law, or general courses in real estate or real  estate  law  will  not  be 
considered  equivalent  to   approved   prelicensure   education   unless   a 
relationship to appraisal is shown in the course  description,  syllabus,  or 
curriculum outline to the extent that not fewer than 15 classroom hours  were 
specifically related to appraisal. Classroom hours of credit  shall  only  be 
granted for hours that are specifically related to appraisal.
  (3) An applicant's submission of documentation  of  prelicensure  education 
shall include all of the following information:
  (a) The date and place the course was taken.
  (b) The name of the sponsor  and  the  sponsor's  current  address  or  and 
telephone number if available.
  (c) A copy of the course outline, syllabus, detailed curriculum, or similar 
information.
  (d) A copy of the certificate of completion.
  (e) The number of classroom  hours  spent  in  the  course.   To  have  the 
education hours approved  by  the  department,  continuing  education  course 
sponsors utilizing distance-learning systems shall have an acceptable  method 
of ensuring that the student achieves an equivalent to classroom hours.
  (4) In submitting documentation of education from  institutions  of  higher 
education that are authorized to grant  degrees  which  confer  credit  hours 
rather than classroom hours, 1 credit hour shall be equivalent to10 classroom 
hours of actual instruction for  term  credits  and  15  classroom  hours  of 
instruction for semester credits.
  (5) Documentation to support information  on  the  application  for  course 
approval shall be maintained for not less than 6 years from the date  of  the 
application.
  (6) To assist applicants, the department shall maintain a list  of  courses 
that are acceptable to the department.

  History: 1996 AACS; 2002 AACS; 2007 AACS.


R 339.23305   Assessor education.
  Rule 305. A state assessor certification examination shall be deemed to  be 
the  course  completion  examination  for  courses  designed  to  prepare  an 
individual for certification  as  an  assessor  under  the  programs  of  the 
department  of  treasury's  assessor  certification  division.  An   assessor 
training class that does not include  an  examination  within  the  classroom 
hours  is  acceptable  education  if  documentation   is   submitted   by   a 
state-certified assessor who was certified on the basis of completion of  the 
classes and the subsequent  certification  examination.  An  applicant  whose 
assessor education includes course credit  that  was  obtained  by  challenge 
examination may be given course credit for challenge examinations  that  were 
completed before July 1, 1990, in the same fashion as set  forth  in  section 
2617(4) of the act for appraisal courses. Upon  completion  of  the  required 
education and experience, the applicant shall be permitted  to  sit  for  the 
real estate appraiser licensing examination.

  History: 1996 AACS.


R 339.23307  Conduct of courses; changes in courses.
  Rule 307. (1) A course sponsor shall  comply  with  all  of  the  following 
requirements:
  (a) A course shall not be represented to licensees  or  to  the  public  as 
meeting the requirements of the  act  and  these  rules  until  it  has  been 
approved by the department.
  (b)   Solicitation   of   organizational   membership,    employment,    or 
business-related products and services is prohibited during qualifying course 
classroom hours.
  (c) A sponsor shall appoint an individual as coordinator for the  sponsor's 
courses. The coordinator shall be responsible for supervising the program  of 
courses  and  assuring  compliance  with  the  code  and  these  rules.   The 
coordinator need not be a licensee.
  (d) An instructor who meets the requirements of R  339.23309  (3)  and  (4) 
shall teach the course.
  (e) Each student shall be provided with a written syllabus  that  contains, 
at a minimum, all of the following information:
  (i) The course title.
  (ii) The times and dates of the course offering.
  (iii) The name, business  address,  and  telephone  number  of  the  course 
coordinator and the name of the instructor.
  (iv) A detailed outline of  the  subject  matter  to  be  covered  and  the 
estimated time to be devoted to each subject.
  (f) A course shall not be credited for more  than  10  classroom  hours  of 
instruction in 1 calendar day. Calculations of classroom hours for  a  course 
shall not include any of the following:
  (i) Meals.
  (ii) Breaks.
  (iii) Registration.
  (iv) Required reading.
  (v) Outside assignments.
  (g) Each course shall reflect the most current version of state and federal 
laws and regulations.
  (h) A sponsor shall permit the department to review a course at any time or 
to inspect the records of a course sponsor during normal business hours.
  (i) A sponsor whose  programs  are  transferred  to  another  entity  shall 
arrange for student records to be maintained  permanently  by  the  successor 
entity. The successor entity shall assure that course completion  information 
is available to students who need to verify their education.
  (2) The department shall accept or reject a change in, or addition to,  the 
information provided to the  department  on  an  original  application.   The 
department may determine that a proposed change cannot be  made  without  the 
submission of additional supporting  documentation  or  that  the  extent  or 
number of changes requested require the sponsor to complete a new application 
for approval.
  (3) The  department  may  request  a  sponsor  to  provide  any  additional 
supporting documentation that is necessary for the department to approve  the 
course.
  (4) Department approved courses shall expire 3 years from the date  of  the 
course approval, at which time  the  course  approval  shall  be  subject  to 
renewal.  A sponsor shall notify the department of its  intent  to  renew  or 
discontinue  previously  approved  course  or   courses   by   satisfactorily 
completing and submitting a course renewal form provided by the department.   
Course renewal forms shall be received by the department  at  least  60  days 
before the expiration date.  If a satisfactorily completed  renewal  form  is 
not received by the department by the expiration date, the course shall cease 
to be departmentally approved beyond  the  expiration  date.  Course  renewal 
forms are not valid and shall not be accepted by  the  department  after  the 
expiration date. Sponsors requesting approval for course  renewal  after  the 
expiration date shall complete and submit an application for original  course 
approval.
  (5) A proprietary real estate appraiser sponsor licensed under 1943 PA  148 
shall continuously comply with the act.
  (6) If a sponsor desires to change  a  course's  content/curriculum  and/or 
hours of credit, the sponsor shall reapply for departmental approval  of  the 
changes to the course by  completing  an  application  for  course  approval, 
obtained from the  department.   The  department  shall  notify  the  sponsor 
whether the proposed course change is approved or not. The sponsor shall  not 
offer the course with the proposed changes without departmental approval.

  History: 1996 AACS; 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23309  Sponsors; duties; instructors.
  Rule 309. (1) Each sponsor shall be responsible for all of the following:
  (a) Compliance with all laws and rules relating to appraiser education.
  (b) Providing students with current and accurate information.
  (c) Maintaining  an  atmosphere  that  is  conducive  to  learning  in  the 
classroom.
  (d) Assuring and certifying the attendance of students who are enrolled  in 
courses.
  (e) Providing assistance to students and responding to  questions  relating 
to course materials.
  (f) Supervising all guest lecturers and relating all  information  that  is 
presented to the practice of real estate appraisal.
  (2) Distance education sponsors shall ensure  that  all  of  the  following 
qualifications for their courses are complied with:
  (a) The course shall be presented with an instructor  available  to  answer 
questions, provide information, and monitor student attendance.
  (b) The course meets 1 of the following criteria:
  (i) The course has been presented by an accredited  college  or  university 
(through the commission on colleges or a regional accreditation  association) 
that offers distance education programs in other disciplines.
  (ii) The  course  has  received  approval  of  the  international  distance 
education certification center (IDECC) for the  course  design  and  delivery 
mechanism and either of the following:
  (A) The approval of the  appraiser  qualification  board  through  the  AQB 
course approval program.
  (B) The approval of the licensing  or  certifying  jurisdiction  where  the 
course is being offered for the content of the course.
  (C) The course meets all of the following requirements:
  (i) The course is equivalent to 15 classroom hours for prelicensure courses 
and 2 classroom hours for continuing education courses.
  (ii) A student successfully completes a written examination proctored by an 
official  approved  by  the  presenting  college  or  university  or  by  the 
sponsoring organization  consistent  with  the  requirements  of  the  course 
accreditation. If a written examination is not required for accreditation,  a 
student successfully completes course mechanisms required  for  accreditation 
which demonstrate mastery and fluency.
  (iii) The sponsor ensures that students completing the  distance  education 
courses will achieve the equivalent of the stated classroom hours per course.
  (3) A  sponsor  shall  select  as  instructors  only  individuals  who  can 
demonstrate mastery of the material being taught and who  possess  1  of  the 
following qualifications:
  (a) Experience as a faculty member of an institution  of  higher  education 
that is authorized to grant degrees.
  (b) A state licensed, certified residential, or certified general appraiser 
with 3 years of appraisal experience.
  (c) Other experience acceptable to  the  sponsor  for  courses  other  than 
prelicensure courses.
  (4) Instructors of the USPAP shall have complied with  the  AQB  instructor 
certification  program  as  required   by   the   real   property   appraiser 
qualification criteria.

  History: 1996 AACS; 2002 AACS; 2004 AACS; 2007 AACS.


R 339.23311 Courses not acceptable for prelicensure or continuing education.
  Rule 311. The department shall not approve  a  prelicensure  or  continuing 
education course, nor shall it grant credit  to  a  licensee  for  the  USPAP 
course for any of the following:
  (a) Courses that do not provide student access to an instructor during  the 
course.
  (b) Courses that deal with employment-related topics such  as  explanations 
of rights, benefits,  and  responsibilities;  organizational  structure;  and 
on-the-job methods, processes, or procedures.
  (c) Membership in or  service  in  an  office,  or  on  a  committee  of  a 
professional, occupational, trade, or industry society or organization.
  (d) Conferences, delegate assemblies, or similar meetings  of  professional 
organizations for policy-making purposes.
  (e) Meetings  and  conventions  of  societies  and  associations;  however, 
educational activities which are provided independently by an approved course 
sponsor and which are held concurrently  with  such  meetings  may  be  given 
credit.
  (f) Attendance at lecture series, cultural performances, entertainment,  or 
recreational meetings or activities or participation in travel groups, unless 
these activities are an integral part of a course that is  approved  pursuant 
to these rules.
  (g) On-the-job training, apprenticeships, and other work experiences.
  (h) Courses in sales promotion,  motivation,  marketing,  psychology,  time 
management, or  mechanical  office  or  business  skills,  including  typing, 
speed-reading, or  the  use  of  office  machines  or  equipment  other  than 
calculators or computers.

  History: 1996 AACS; 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23313    Misleading information.
  Rule 313. A person, including  a  sponsor,  shall  not  provide  misleading 
information about courses or  any  component  of  a  course.  Information  is 
misleading when, taken as a whole,  there  is  a  probability  that  it  will 
deceive the class of persons that it is  intended  to  influence.  A  sponsor 
shall not  represent  that  the  department's  approval  of  a  course  is  a 
recommendation or endorsement of the sponsor or the content of the  sponsor's 
courses.

  History: 1996 AACS.


R 339.23315  Denial, suspension, or rescission of approval to offer  courses; 
violation of code or rules.
  Rule 315. A real estate  sponsor  or  instructor  may  be  subject  to  the 
penalties of section 602 of the code, including disciplinary action against a 
course approval, for any of the following reasons:
  (a) Failure to comply with the provisions of the code or these rules.
  (b) Having a high rate of failure on a licensing examination as a result of 
a lack of competent instruction.
  (c) Making a substantial misrepresentation regarding an appraisal education 
sponsor or course of study.
  (d) Making a false promise of a character likely to influence, persuade, or 
induce regarding an appraiser education sponsor or course of study.
  (e) Pursuing a continued and flagrant course of  misrepresentation  or  the 
making  of  false  promises  through  agents,  salespersons,  advertising  or 
otherwise.

  History: 1996 AACS; 2007 AACS.


                   PART 3A.   PRELICENSURE EDUCATION

R 339.23316 Prelicensure Education
  Rule 316.  Prelicensure education courses may be used to obtain credit  for 
both  prelicensure  education  and   continuing   education.   However,   the 
prelicensure exam shall not be  used  toward  continuing  education  approved 
hours.

  History: 2007 AACS.


R 339.23317  Prelicensure education; application for course approval;  forms; 
requirements; unacceptable courses.
  Rule 317. (1) An application for approval of  a  prelicensure  real  estate 
appraiser education course shall be made on forms provided by the department. 
The department shall accept or reject the application. 
  (2) The application shall include all of the following information:
  (a) The course title.
  (b) The number of classroom hours to be given for completion of the course. 
  (c) The name, business address, and telephone number of the sponsor.
  (d) The  name,  business  address,  and  telephone  number  of  the  course 
coordinator.
  (e) The name, license number, and qualifications of instructors.
  (f) A detailed outline of the subject matter to be covered and  the  number 
of classroom hours to be devoted to each topic, as  it  will  appear  in  the 
student syllabus.
  (g) A summary of the required topics for prelicensure that are  covered  in 
the course completed on the subject matter matrix provided by the department.
  (h) The methodology for verifying and monitoring attendance, including  the 
class makeup policy. A  sponsor  shall  have  a  written  makeup  policy  for 
students who are absent from all or  a  part  of  regularly  scheduled  class 
sessions. If there are no opportunities to  make  up  missed  sessions,  that 
policy shall be so stated.
  (i) The standards a student must meet to  complete  the  course,  including 
assignments, projects, examinations, and the passing score on the examination 
that is required to be given at the completion of the course for a student to 
demonstrate mastery of the material covered.
  (j) Proof that the sponsor is an entity that may  offer  prelicensure  real 
estate appraisal education courses  in  accordance  with  the  provisions  of 
section 2617(2) of the act.

  History: 1996 AACS; 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23319   Prelicensure  education;  student  records;  permanent  record; 
course completion certificate.
  Rule 319. (1) A course sponsor shall establish and permanently  maintain  a 
record for each student. The  record  shall  contain  all  of  the  following 
information:
  (a) The student's name and address.
  (b) The student's date of birth.
  (c) The number of classroom hours attended.
  (d) The title of the course and the department's course completion number.
  (e) The date of course completion.
  (f) The student's grade.
  (g) The student's real estate appraiser license number, if applicable.
  (2) A course sponsor shall issue a certificate of completion to  a  student 
or licensee who completes the entire course and receives a passing grade in a 
prelicensure education course.  The certificate  shall  include  all  of  the 
following information:
  (a) The name of the student.
  (b) The name of the sponsor.
  (c) The name of the course attended.
  (d) The number of classroom hours completed by the student.
  (e) The date of course completion.
  (f) The signature of the course coordinator or instructor.
  (g) The sponsor number assigned by the department.
  (h) The course approval number assigned by the department.
  (3) Within 15 business days after the conclusion of  a  course,  a  sponsor 
shall certify to the  department  the  names  of  students  who  complete  an 
approved course in a manner approved by the department.

  History: 1996 AACS; 2002 AACS; 2007 AACS.


R 339.23320  Prelicensure requirements for uniform standards of  professional 
appraisal practice (USPAP).
  Rule 320. (1) Applicants for  licensure  shall  successfully  complete  the 
15-hour national USPAP course required by the appraiser  qualification  board 
(AQB). Equivalency shall  be  determined  through  the  AQB  course  approval 
program or by an alternate method established by the AQB.
  (2) USPAP qualifying education credit shall only be awarded when the  class 
is instructed by both of the following:
  (a) An AQB certified instructor or instructors.
  (b) At  least  1  certified  residential  appraiser  or  certified  general 
appraiser.

  History: 2006 AACS; 2007 AACS.


                  PART 3B.  CONTINUING EDUCATION


R 339.23321 Continuing education; application  for  course  approval;  forms; 
requirements.
  Rule 321. (1) An application for approval of a continuing education  course 
shall be made on forms provided  by  the  department.  The  department  shall 
accept or reject the application. 
  (2) The application shall include, but  not  be  limited  to,  all  of  the 
following information:
  (a) The course title.
  (b) The number of classroom hours to be given for completion of the course.
  (c) The name, business address, and telephone number of the sponsor.
  (d) The  name,  business  address,  and  telephone  number  of  the  course 
coordinator.
  (e) The name, license number, and qualifications of instructors.
  (f) A detailed outline of the subject matter to be covered and  the  number 
of classroom hours to be devoted to each topic, as  it  will  appear  in  the 
student syllabus.
  (g) The methodology for verifying and  monitoring  attendance.   A  student 
shall attend the entire course in order to obtain credit  for  the  course.   
Credit for a distance learning  course  requires  completion  of  the  entire 
course.  A licensee shall not receive credit for attending  the  same  course 
more than 1 time during the same license renewal cycle.
  (h) The standards a student must meet to  complete  the  course,  including 
assignments, projects, or examinations. The sponsor  at  its  discretion  may 
give course examinations, but examinations are not required  by  the  act  or 
these rules for continuing education courses.
  (i) Proof that the sponsor is an entity that may offer continuing education 
courses in accordance with the provisions of section 2617(2) of the act.
  (j) Information to demonstrate that the course meets  the  requirements  of 
the AQB criteria and is designed to improve and maintain the capability of  a 
licensee to perform activities regulated by the act.

  History: 1996 AACS; 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23323   Continuing  education;  student  records;  permanent  record; 
course completion certificate.
  Rule 323. (1) A course sponsor shall establish  and  permanently   maintain 
a record for each student.   The  record   shall   contain   all    of    the 
following information:
  (a) The student's name, address, and license number.
  (b) The number of classroom hours attended.
  (c) The title of the course and the date of course completion.
  (2) A course sponsor shall issue  a  certificate  of  completion    to    a 
licensee who successfully completes a continuing education    course.     The 
certificate shall include all of the following information:
  (a) The name of the student.
  (b) The student's license number.
  (c) The name of the sponsor.
  (d) The name of the course attended.
  (e) The number of classroom hours completed by the student.
  (f) The date of course completion.
  (g) The signature of the course coordinator or instructor.
  (3) Within 15 business days after a course ends, a sponsor  shall   certify 
to the department the names of students who complete an  approved  course  by
 a method or on forms approved by the department.

  History: 1996 AACS; 2002 AACS.


R 339.23325   Continuing education; course credit for instructors.
  Rule 325. Instructors may earn continuing education credit for  teaching  a 
course. Credit shall not be given if the instructor has  previously  obtained 
credit for the same course either as a student or as an instructor.

  History: 1996 AACS.


R 339.23326 Continuing education requirements for licensees.
  Rule 326. (1) Appraisers shall successfully complete  the  7-hour  national 
USPAP update course, or its equivalent, at least every 2 years.   Equivalency 
shall be determined  through  the  AQB  course  approval  program  or  by  an 
alternate method established by the AQB. 
  (2) USPAP qualifying education credit shall only be awarded when the  class 
is instructed by both of the following:
  (a) An AQB certified instructor or instructors.
  (b) At  least  1  certified  residential  appraiser  or  certified  general 
appraiser.
  (3) Every 4 years, appraisers shall successfully complete at least 2  hours 
of continuing education devoted to Michigan appraiser license law and rules.

  History: 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23327   Continuing  education;  real  estate  appraiser  licensee  not 
required  to  complete  continuing  education  requirements   under   certain 
circumstances.
  Rule 327. A real estate appraiser licensee who becomes licensed in  another 
category of  appraisal  licensure  shall  not  have  to  complete  continuing 
education requirements for the first renewal of  the  new  license.  The  new 
license is deemed to be an  original  license  to  which  the  provisions  of 
section 2629(3) of the act apply.

  History: 1996 AACS.


                   PART 4. STANDARDS OF CONDUCT


R 339.23401   Licensee relationship to others participating  in  preparation 
of appraisals.
  Rule 401.  A state licensed  or  certified   residential    or    certified 
general real estate appraiser shall not sign an  appraisal  report   for    a 
federally related transaction unless that  licensee   has    performed    the 
appraisal  in accordance with uniform  standards  of  professional  appraisal 
practice  and  is properly licensed to perform the assignment. The   material 
participation  of any other individual in preparing the  report   shall    be 
acknowledged  in  the report as  required  by  the  uniform   standards    of 
professional  appraisal practice regardless of the licensure status  of   the 
other  individual.   The signature  of  a   state-licensed,    a    certified 
residential,   or   a   certified  general  appraiser  as  a  supervisory  or 
co-signing appraiser shall not be  used to mask the preparation of  a  report 
by an individual who is not authorized to sign the report.

  History: 1996 AACS; 2002 AACS; 2006 AACS.


R 339.23403  Limited  real  estate  appraiser;  state  licensed  real  estate 
appraiser; certified residential real  estate  appraiser;  certified  general 
real estate appraiser; authorized functions.
  Rule 403. (1) If a limited real estate appraiser is properly  qualified  to 
undertake an assignment, a limited real estate appraiser may  perform  either 
of the following appraisal services, if the report is signed by a supervisory 
certified residential or certified general  real  estate  appraiser,  who  by 
virtue of signing the report, assumes full responsibility for the accuracy of 
the report content and conclusions:
  (a) Appraise properties that are not federally related transactions or real 
estate related financial transactions.
  (b) Assist a state-licensed, certified residential,  or  certified  general 
real estate appraiser in the development of  an  appraisal  for  a  federally 
related transaction or a real  estate  related  financial  transaction.   The 
limited real estate appraiser shall not sign the report; however,  the  state 
licensed, certified residential, or certified general real  estate  appraiser 
shall acknowledge the specific  contributions  of  the  limited  real  estate 
appraiser within the appraisal report.
  (2) If a state licensed real estate  appraiser  is  properly  qualified  to 
undertake an assignment, a state-licensed real estate appraiser  may  perform 
any of the following appraisal services:
  (a) Appraise properties that are not federally related transactions.
  (b) Appraise 1 to 4-family residential properties, unless  the  transaction 
value is $1,000,000.00 or more or the property is deemed to  be  complex  and 
therefore required to be appraised by a certified  residential  or  certified 
general real estate appraiser.
  (c) Appraise nonresidential properties for federally  related  transactions 
and real estate related financial transactions where the transaction value is 
less than $250,000.00.
  (d) Assist  a  certified  residential  or  certified  general  real  estate 
appraiser in the  development  of  an  appraisal  of  a  complex  residential 
property or a nonresidential property that is  the  subject  of  a  federally 
related  transaction,  as  appropriate.   The  state  licensed  real   estate 
appraiser shall not sign the report; however, the  certified  residential  or 
certified general  real  estate  appraiser  shall  acknowledge  the  specific 
contributions  of  the  state-licensed  real  estate  appraiser  within   the 
appraisal report.
  (3) A certified residential real estate appraiser, if properly qualified to 
undertake  an  assignment,  may  perform  any  of  the  following   appraisal 
assignments:
  (a) Appraise properties that are not federally related transactions.
  (b) Appraise  1  to  4-family  residential  properties  without  regard  to 
complexity or value.
  (c) Appraise nonresidential properties for federally  related  transactions 
and real estate related financial transactions where the transaction value is 
less than $250,000.00.
  (d) Assist a certified general real estate appraiser in the development  of 
an appraisal of a nonresidential property that is the subject of a  federally 
related transaction, as appropriate. The certified  residential  real  estate 
appraiser shall not sign the report.  However,  the  certified  general  real 
estate appraiser shall identify the specific contributions of  the  certified 
residential real estate appraiser  within  the  appraisal  report.   (4)  The 
licensee authorized to sign  the  report  shall  identify  all  participating 
licensees and their contributions to the report.  Signatures are required  on 
appraisal reports according to the following chart: 


  

    

    

    Signatures Required: 
    

    By License Level And
    

    Transaction Categories 
    

    

    Non-Federally Related Transactions & 
    Non-Real Estate- Related Financial Transactions
    

    

    Federally Related Transactions 1-4 Family 
    Properties Less Than $1 Million In Transaction Value
    

    

    Federally Related Transactions 1-4 Family 
    Properties More Than $1 Million Or Complex Properties More Than  $250,000 
In 
    Transaction Value
    

    

    Federally Related Transactions 
    Nonresiden-tial Properties Less Than $250,000 In Transaction  Value

    

    

    Federally Related Transactions 
    Nonresiden-tial More Than $250,000 In Transaction Value
  
  

    

    

    Limited Appraiser
    

    

    YES
    

    

    NO 
    

    

    NO
    

    

    NO
    

    

    NO
  
  

    

    

    State-Licensed
    

    Appraiser
    

    

    YES
    

    

    YES
    

    

    NO
    

    

    YES
    

    

    NO
  
  

    

    

     
    

    Certified Residential
    

    Appraiser
    

    

    YES
    

    

    YES
    

    

    YES 
    

    

    YES 
    

    

    NO
  
  

    

    

    Certified General
    

    Appraiser
    

    

    YES
    

    

    YES
    

    

    YES
    

    

    YES
    

    

    YES
  




  History: 1996 AACS; 2002 AACS; 2006 AACS; 2007 AACS.


R 339.23405   Advertising.
  Rule 405. (1) A licensee shall state the  level  of  license  held  in  all 
advertising.  Merely stating that the person is licensed does not satisfy the 
provisions  of  this  subrule.   However,  a  directory  listing  or  similar 
situation where space is limited, it shall be  sufficient  disclosure  for  a 
licensee  to  use  the  words  certified  general,   certified   residential, 
state-licensed, or limited appraiser,   as  appropriate,  without  additional 
wording.
  (2) A licensee shall place his or her license number and license  level  on 
all reports and shall produce evidence of licensing upon request by a  member 
of the public or a representative of the department.  A license number  shall 
not be required in advertising material.

  History: 1996 AACS; 2002 AACS; 2006 AACS.