March 31, 2015 at 12:00 am

Appraising Real Estate in Maine – Important Regulatory Information

The Maine Board of Real Estate Appraisers (MBREA) was established to protect the public through examination and licensure of persons who wish to conduct real estate appraisals for a fee in the State of Maine as mandated by the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The primary responsibilities of the Board are to identify qualified applicants for licensure, to issue licenses and renewals to applicants who have met licensure requirements and to promulgate rules as necessary to ensure protection of the public to enforce the Uniform Standards of Professional Appraisal Practice (USPAP). Annual license fees are currently $380 and also require 14 hours of approved continuing education per year. The following briefly outlines appraiser license types, scope of practice, and requirements for obtaining a license. 

Certified General Real Property Appraiser means a person licensed by the Department of Professional and Financial Regulation to appraise real property of all types.

License Requirements:

1. Hold a valid appraiser license (certified trainee real property appraiser, licensed residential real property appraiser or certified residential real property appraiser) AND
2. Complete a cumulative total of three thousand (3,000) hours of experience satisfactory to the Board, 1,500 hours of which must be non-residential appraisal work in no fewer than 30 months; AND
3. Hold a bachelor's degree or 30 semester hours of AQB required course hours AND complete a cumulative total of 300 hours of appraiser specific education, 15 hours of which must be for Uniform Standards of Practice; AND
4. Pass the National Uniform Licensing and Certification Examination.

A Certified Residential Real Property Appraiser license entitles the holder to appraise residential real estate or real property of one to 4 residential units, without regard to value or complexity and to appraise vacant or unimproved land that is to be used for one to 4 family units or for which the highest and best use is for one to 4 family units. A certified residential real property appraiser license does not entitle the holder to appraise subdivisions for which a development analysis and appraisal is necessary.

License Requirements:

1. Hold a valid appraiser license (trainee real property appraiser or licensed residential real property appraiser) AND
2. Complete a cumulative total of two thousand five hundred (2,500) hours of experience satisfactory to the Board obtained in no fewer than 24 months AND
3. Hold an Associate’s degree or 21 semester hours of AQB required course hours AND complete a cumulative total of 200 hours of appraiser specific education, 15 hours of which must be for Uniform Standards of Practice; AND
4. Pass the National Uniform Licensing and Certification Exam.

Licensed Residential Real Property Appraiser – For federally related transactions, a residential real property appraiser license entitles the holder to appraise noncomplex residential property of one to 4 units having a transaction value of less than $1,000,000 and complex residential property of one to 4 units having a transaction value of less than $250,000. For purposes of this section, "complex residential property of one to 4 units" means property that is atypical based on the nature of the property, the form of ownership or the market conditions. For non-federally related transaction appraisals, "transaction value" means market value. A residential real property appraiser license entitles the holder to appraise vacant or unimproved land that is used for one to 4 family purposes or for which the highest and best use is for one to 4 family purposes. A residential real property appraiser license does not entitle the holder to appraise subdivisions for which a development analysis and appraisal is necessary.

License Requirements:

1. Hold a valid license; AND
2. Complete a cumulative total of two thousand (2,000) hours of experience in no fewer than twelve months (satisfactory to the Board); AND
3. Complete a cumulative total of 150 hours of appraiser specific education, 15 hours of which must be for Uniform Standards of Practice; AND
4. Pass the National Uniform Licensing and Certification Examination.

As of January 2015, according to the national Appraisal Subcommittee website which maintains a registry of all Appraiser Qualifications Board approved appraisers, there were 134 active Certified General Appraisers who live in Maine; 143 active Certified Residential Appraisers who live in Maine; and, 134 active Licensed Residential Appraisers who live in Maine. For more information you can visit the MBREA website at http://maine.gov/pfr/professionallicensing/professions/appraisers/index.html.  Additional on-line resources can be found at www.appraisalinstitute.org and also at www.asc.gov

Mark L. Plourde, MAI is the Managing Partner of Maine Valuation Company and a MEREDA member since 1997.  Maine Valuation Company provides unbiased professional opinions of value on commercial real estate along with appraisal review services throughout Maine.  www.mainevaluation.com

 

Categories: Maine Real Estate Insider