Florida Appraisal Laws and Regulations

FREAB
Florida Real Estate Appraisal Board
9 members, 4 appraisers (2 Res and 2 Gen), 2 from AMC, 1 User of Appraisal, and 2 at large citizens. The 4 appraisers must have 5 years appraisal experience immediately preceding her or his appointment. Appointments are for 4 years and may not be appointed for more than two consecutive terms.
Board must meet at least once quarterly
Appraiser may receive 5 hours for attending an entire board meeting, with a max of 7 hours in a renewal period.
Appraisal
Services provided by certified or licensed appraisers or registered trainee appraisers and includes: Appraisal assignment, Analysis assignment, and Appraisal review Assignment.
Appraisal Report
any communication written or oral, of an appraisal, appraisal review, or appraisal consulting service, analysis, opinion, or conclusion relating to the nature, quality, value, or utility of a specified interest in, or aspect of, or conclusion of value, regardless of title. A federally funded transaction must be written.
Appraiser
any person who is a registered trainee real estate appraiser, licensed real estate appraiser, or a certified real estate appraiser
Appraiser Panel
A group of appraisers selected by an appraisal management company to perform appraisal for clients on behalf of the company.
Appraisal Management Company
a person who performs appraisal management services
Appraisal Management Services
the coordination or management of appraisal services for compensation by: Employing, contracting with, or otherwise retaining one or more appraisers to perform appraisal services for a client; or acting as a broker or intermediary between a client and one or more appraisers to facilitate the client’s employing, contracting with, or otherwise retaining the appraisers.
Appraisal Review
the act or process of developing and communicating an opinion about the quality of another appraiser’s appraisal, appraisal work, or report
Client
a person who contracts with an appraiser or appraisal management company for the performance of appraisal services.
Subsidiary
an organization that is owned and controlled by a financial institution that is regulated by a federal financial institution regulatory agency.
Trainee Appraisers
1. Can only be supervised by a certified appraiser.
2. Can only be compensated by her or his supervisory appraiser.
Administrative Rules
Florida State Statutes gives the FREAB the power to establish administrative rules, fees, and fines
AMC
Appraisal Management Company – must be registered with the department. However, employees are not required to be registered
Registration applies to:
1. each officer and director
2. each general partner
3. each manager or managing member
4. owner
5. each person who, directly or indirectly, controls 10% or more ownership interest in the AMC
Does not apply to a financial institution or and AMC that is a subsidiary of a financial institution
Change in name or address
Must notify the department within 10 days of such a change
AMC Disciplinary Sanctions
The Board may reprimand, suspend, or revoke any registration, or impose fines not to exceed $5,000 for each count or separate offense
AMC may not instruct an appraiser to develop or communicate an appraisal that is not USPAP compliant
AMC may not ask for comparable sales prior to the completion of the report
AMC may not use any form of coercion
Notification of Felony
Appraisers or AMCs must notify the Board, in writing, within 30 days after being convicted of, pleading guilty or nolo contendere, to any felony.
Violations
1. Not operate without the appropriate license or certification
2. Violate any rules or regulations of the Board
3. Any conduct that violates 475.624
4. Any AMC conduct violating 475.6245
5.False affidavit or testimony to the board
6. Failure to appear before the board at the time and date set
7. Obstruct or hinder the enforcement of the board or authorized agent
8. Knowingly conceal information relating to violations
9* AMC may now be subject to discipline for requiring or attempting to require an appraiser to sign an agreement that would insulate the AMC from liability from claims arising from it services.
Records Retention
Appraisers must retain information for 5 years or what is required from USPAP, whichever is longer, or 2 years after the final disposition of a trial in which the appraisal was utilized as evidence.
Direct Supervision
The degree of supervision required of a supervisory appraiser overseeing the work of a registered trainee appraiser by which the supervisory appraiser has control over and detailed professional knowledge of the work being done.
Inactive Status
Inactive status for more than 4 years will automatically expire and cannot be renewed. After 2 years of inactive status, the board will mail a letter to that last known address for the licensee or certificate holder.
There is an additional fee to the renewal amount for renewing a license.
The fee for each year of the inactive period shall be collected and any additional education or training must also be completed.
Registered Trainee
100 hours of qualifying education is required.
30 of Basic Appraisal Principles
30 of Basic Appraisal Procedures
15 of National USPAP Course
25 of appraisal subject matter electives, including 6 hours on Florida Appraisal Laws and Rules
Trainee may only be supervised by a certified appraiser
Display and Disclosure
Each appraiser registered, licensed or certified shall place her or his registration adjacent to or immediately beneath the designation
State-Registered Trainee Real Estate Appraiser
State-Licensed Real Estate Appraiser
State-Certified Residential Real Estate Appraiser
State-Certified General Real Estate Appraiser
The primary or secondary supervisory appraiser must sign any report signed by the registered trainee.
* A Registered Trainee may not sign a report certification until after he or she has been registered as a trainee appraiser for a period of 12 months
USPAP
The FREAB has adopted, by rule, USPAP as the minimum standards for appraisers in Florida.
Reciprocity
Florida has adopted an open door policy to be consistent with the Dodd-Frank mandated reciprocity provisions. Reciprocity in Florida requires:
1. Verification the applicant is on the ASC’s Registry
2. Passing the exam on Florida laws and rules
3. clear fingerprint and background check
Classroom Hours
An hour, to receive credit, must consist of at least 50 minutes of class time.
Education and Experience Requirements
75% or higher text scores
70% of exam questions must be application oriented
10% max of exam questions dealing with recall of facts
20% max of exam can be duplicative questions
30 hrs or less will have 50 questions
30 hrs + will have 100 questions

Inactive Status education requirements
Inactive for 6 months or less – 30 hours of CE
Inactive for >6 but <12 - 45 hours of CE Inactive for >12 but <24 30 hrs of Pre-license and 30 hrs CE Inactive for >24 but <48 are: Trainee and License appraisers 100 hrs pre with end of course exam plus 7 hr Update Cert Residential 100 hrs pre ABI, 30 hrs ABII and 7 hr update Cert General 30 hrs ABII and 60 hrs ABIII and 7 hr update

Continuing Education
30 hours every two years, including 7 hour USPAP update and 3 hour Update of the Florida Real Estate Appraisal Law and Board Rules
No courses can be duplicated in the same renewal period
Display and Disclosure of Registration, License or Certification Designation
Appraiser must display her or his designation in writing in all appraisal reports signed by the appraiser, even if outside of the scope of registration, licensure, or certification.

The following designations or abbreviations shall be used:
State-Registered Trainee Real Estate Appraiser or Trainee RI####
State-Licensed Real Estate Appraiser or Licensed RH####
State-Certified Residential Real Estate Appraiser or Cert Res RD####
State-Certified General Real Estate Appraiser or Cert Gen RZ####