As Passed by the House 1
123rd General Assembly 4
Regular Session H. B. No. 338 5
1999-2000 6
REPRESENTATIVES BRITTON-ALLEN-BEATTY-BOYD-DePIERO-FORD- 8
HARTLEY-HARTNETT-JONES-R. MILLER-OLMAN-PADGETT-PATTON-SCHULER- 9
SULLIVAN-TERWILLEGER-D. MILLER-WILLIAMS-DISTEL-KRUPINSKI-VERICH- 10
ROBERTS-BARRETT-SYKES-SMITH 11
_________________________________________________________________ 12
A B I L L
To amend section 4763.05 of the Revised Code to 14
require real estate appraisers initially to 15
complete a course on federal, state, and 16
municipal fair housing law in order to be 17
eligible for certification or licensure as a real 18
estate appraiser. 19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That section 4763.05 of the Revised Code be 23
amended to read as follows: 24
Sec. 4763.05. (A)(1) A person shall make application for 33
an initial state-certified general real estate appraiser 34
certificate, an initial state-certified residential real estate 36
appraiser certificate, an initial state-licensed residential real 37
estate appraiser license, or an initial state-registered real 38
estate appraiser assistant registration in writing to the 39
superintendent of real estate on a form the superintendent 41
prescribes. The application shall include the address of the 42
applicant's principal place of business and all other addresses 43
at which the applicant currently engages in the business of 45
preparing real estate appraisals and the address of the 46
applicant's current residence. The superintendent shall retain 47
the applicant's current residence address in a separate record 48
which shall not constitute a public record for purposes of
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section 149.03 of the Revised Code. The application shall 49
indicate whether the applicant seeks certification as a general 50
real estate appraiser or as a residential real estate appraiser, 51
licensure as a residential real estate appraiser, or registration 53
as a real estate appraiser assistant and be accompanied by the 54
prescribed examination and certification, registration, or 55
licensure fees set forth in section 4763.09 of the Revised Code. 57
The application also shall include a pledge, signed by the 58
applicant, that the applicant will comply with the standards set 60
forth in this chapter and a statement that the applicant
understands the types of misconduct for which disciplinary 62
proceedings may be initiated against the applicant pursuant to 63
this chapter.
(2) For purposes of providing funding for the real estate 65
appraiser recovery fund established by section 4763.16 of the 66
Revised Code, the real estate appraiser board shall levy an 67
assessment against each person issued an initial certificate, 68
registration, or license and against current licensees, 70
registrants, and certificate holders, as required by board rule. 72
The assessment is in addition to the application and examination 73
fees for initial applicants required by division (A)(1) of this 74
section and the renewal fees required for current certificate 75
holders, registrants, and licensees. The superintendent shall 77
deposit the assessment into the state treasury to the credit of 78
the real estate appraiser recovery fund. The assessment for 79
initial certificate holders, registrants, and licensees shall be 81
paid prior to the issuance of a certificate, registration, or 82
license, and for current certificate holders, registrants, and 84
licensees, at the time of renewal. 85
(B) An applicant for an initial general real estate 87
appraiser certificate shall possess at least thirty months of 88
experience in real estate appraisal, or any equivalent experience 89
the board prescribes. An applicant for a residential real estate 91
appraiser certificate or residential real estate appraiser 92
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license shall possess at least two years OF experience in real 93
estate appraisal, or any equivalent experience the board 94
prescribes. In addition to any other information required by the 95
board, the applicant shall furnish, under oath, a detailed 96
listing of the appraisal reports or file memoranda for each year 97
for which experience is claimed and, upon request of the 98
superintendent or the board, shall make available for examination 99
a sample of the appraisal reports prepared by the applicant in 100
the course of the applicant's practice. 101
(C)(1) Except as provided in division (C)(2) of this 103
section, an applicant for an initial certificate, registration, 104
or license shall be at least eighteen years of age, honest, 106
truthful, and of good reputation and shall present satisfactory 107
evidence to the superintendent of the following, as appropriate: 109
(a) If the applicant is seeking a state-certified general 111
real estate appraiser certificate, that the applicant has 112
successfully completed at least one hundred sixty-five classroom 114
hours of courses in subjects related to real estate appraisal, 116
INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 117
STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 119
recognized appraisal organization, an institution of higher 120
education, a proprietary school registered by the state board of 121
proprietary school registration, a state or federal commission or 122
agency, or any other organization that represents the interests 123
of financial institutions or real estate brokers, appraisers, or 124
agents and that provides appraisal education, plus fifteen 125
classroom hours related to standards of professional practice and 126
the provisions of this chapter;
(b) If the applicant is seeking a state-certified 128
residential real estate appraiser certificate, that the applicant 129
has successfully completed at least one hundred five classroom 131
hours of courses in subjects related to real estate appraisal, 132
INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 133
STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 134
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recognized appraisal organization, an institution of higher 135
education, a proprietary school registered by the state board of
proprietary school registration, or any other organization that 136
represents the interests of financial institutions or real estate 137
brokers, appraisers, or agents and that provides appraisal 138
education, plus fifteen classroom hours related to standards of 139
professional practice and the provisions of this chapter; 140
(c) If the applicant is seeking a state-licensed 142
residential real estate appraiser license, that the applicant has 143
successfully completed at least seventy-five classroom hours of 145
courses in subjects related to real estate appraisal, INCLUDING 146
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 148
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 150
appraisal organization, an institution of higher education, a 151
proprietary school registered by the state board of proprietary 152
school registration, a state or federal commission or agency, or 153
any other organization that represents the interests of financial 154
institutions or real estate brokers, appraisers, or agents and 155
that provides appraisal education, plus fifteen classroom hours 156
related to standards of professional practice and the provisions 157
of this chapter;
(d) If the applicant is seeking a state-registered real 159
estate appraiser assistant registration, that the applicant has 160
successfully completed at least seventy-five classroom hours of 162
courses in subjects related to real estate appraisal, INCLUDING 163
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 164
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 165
appraisal organization, an institution of higher education, a 166
proprietary school registered by the state board of proprietary 167
school registration, or any other organization that represents 168
the interests of financial institutions or real estate brokers, 169
appraisers, or agents, and that provides appraisal education that 170
included at least fifteen classroom hours of instruction related 171
to standards of professional practice and the requirements of 172
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this chapter and the rules adopted under this chapter. 173
(2) Each person who files an application for an initial 175
certificate or license within one year of the date established by 176
the board as the first date on which applications will be 177
accepted under this section, which date shall be no later than 178
September 1, 1990, and who, at the time of filing that 179
application, does not satisfy the educational requirements for 180
the certification or licensure sought of either division 181
(C)(1)(a) or (b) of this section is exempt from those educational 182
requirements for the term of the initial certification or 183
licensure. In applying for a renewal certificate or license 184
pursuant to section 4763.06 of the Revised Code, a certificate 185
holder or licensee who was exempted from the educational 186
requirements of division (C)(1)(a) or (b) of this section when 187
applying for the initial certificate or license shall present 189
satisfactory evidence to the superintendent that the certificate 190
holder or licensee has completed the educational requirements for 192
the certification or licensure to be renewed of one of those 193
divisions before the renewal certificate or license may be 194
issued.
(D) An applicant for an initial general real estate 196
appraiser or residential real estate appraiser certificate or 197
residential real estate appraiser license shall take and 199
successfully complete a written examination in order to qualify 200
for the certificate or license. The examination shall require 201
the applicant to demonstrate all of the following:
(1) Appropriate knowledge of technical terms commonly used 203
in or related to real estate appraising, appraisal report 204
writing, and the economic concepts applicable to real estate; 205
(2) Understanding of the principles of land economics, 207
real estate appraisal processes, and problems likely to be 208
encountered in gathering, interpreting, and processing of data in 209
carrying out appraisal disciplines; 210
(3) Understanding of the standards for the development and 212
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communication of real estate appraisals as provided in this 213
chapter and the rules adopted thereunder; 214
(4) Knowledge of theories of depreciation, cost 216
estimating, methods of capitalization, direct sales comparison, 217
and the mathematics of real estate appraisal that are appropriate 218
for the certification or licensure for which the applicant has 219
applied; 220
(5) Knowledge of other principles and procedures as 222
appropriate for the certification or license; 223
(6) Basic understanding of real estate law; 225
(7) Understanding of the types of misconduct for which 227
disciplinary proceedings may be initiated against a certificate 228
holder and licensee. 229
(E)(1) A nonresident, natural person of this state who has 232
complied with this section may obtain a certificate,
registration, or license. The board shall adopt rules relating 234
to the certification, registration, and licensure of a 235
nonresident applicant whose state of residence the board 237
determines to have certification, registration, or licensure 239
requirements that are substantially similar to those set forth in 240
this chapter and the rules adopted thereunder.
(2) A nonresident appraiser may apply for, and the board 242
may issue, a temporary certificate or license if the board 243
determines that the state in which the nonresident appraiser is 244
licensed or certified has licensing or certification requirements 245
that are substantially similar to the certification or licensure 246
requirements set forth in this chapter and the rules adopted 247
thereunder. 248
The board shall adopt rules relating to the temporary 250
certification and licensure of nonresident appraisers. Each 251
temporary certificate and license issued by the board shall 252
identify the location of the real estate property to be appraised 253
and shall not authorize appraisal of more than one real estate 254
property located in this state. The board shall not issue more 255
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than two temporary certificates or licenses in any one calendar 256
year to any one applicant. 257
(3) In addition to any other information required to be 259
submitted with the nonresident applicant's or appraiser's 260
application for a certificate, registration, license, or 262
temporary certificate or license, each nonresident applicant or 263
appraiser shall submit a statement consenting to the service of 264
process upon the nonresident applicant or appraiser by means of 266
delivering that process to the secretary of state if, in an 267
action against the applicant, certificate holder, registrant, or 268
licensee arising from the applicant's, certificate holder's, 270
registrant's, or licensee's activities as a certificate holder, 272
registrant, or licensee, the plaintiff, in the exercise of due 273
diligence, cannot effect personal service upon the applicant, 274
certificate holder, registrant, or licensee. 275
(F) The superintendent shall not issue a certificate, 277
registration, temporary certificate or license, or license to a 278
corporation, partnership, or association. This prohibition shall 279
not be construed to prevent a certificate holder or licensee from 280
signing an appraisal report on behalf of a corporation, 281
partnership, or association. 282
(G) Every person licensed, registered, or certified under 284
this chapter shall notify the superintendent, on a form provided 286
by the superintendent, of a change in the address of the 287
licensee's, registrant's, or certificate holder's principal place 288
of business or residence within thirty days of the change. If a 289
licensee's, registrant's, or certificate holder's license, 291
registration, or certificate is revoked or not renewed, the 293
licensee, registrant, or certificate holder immediately shall 295
return the annual and any renewal certificate, registration, or 297
license to the superintendent.
(H) The superintendent shall not issue a certificate, 299
registration, temporary certificate or license, or license to any 300
person who does not meet applicable minimum criteria for state 301
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certification, registration, or licensure prescribed by federal 302
law or rule.
Section 2. That existing section 4763.05 of the Revised 304
Code is hereby repealed. 305