As Reported by the Senate Insurance, Commerce 2
and Labor Committee 2
123rd General Assembly 5
Regular Session H. B. No. 338 6
1999-2000 7
REPRESENTATIVES BRITTON-ALLEN-BEATTY-BOYD-DePIERO-FORD- 9
HARTLEY-HARTNETT-JONES-R. MILLER-OLMAN-PADGETT-PATTON-SCHULER- 10
SULLIVAN-TERWILLEGER-D. MILLER-WILLIAMS-DISTEL-KRUPINSKI-VERICH- 11
ROBERTS-BARRETT-SYKES-SMITH 12
_________________________________________________________________ 13
A B I L L
To amend section 4763.05 of the Revised Code to 15
require real estate appraisers initially to 16
complete a course on federal, state, and 17
municipal fair housing law in order to be 18
eligible for certification or licensure as a real 19
estate appraiser. 20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That section 4763.05 of the Revised Code be 24
amended to read as follows: 25
Sec. 4763.05. (A)(1) A person shall make application for 34
an initial state-certified general real estate appraiser 35
certificate, an initial state-certified residential real estate 37
appraiser certificate, an initial state-licensed residential real 38
estate appraiser license, or an initial state-registered real 39
estate appraiser assistant registration in writing to the 40
superintendent of real estate on a form the superintendent 42
prescribes. The application shall include the address of the 43
applicant's principal place of business and all other addresses 44
at which the applicant currently engages in the business of 46
preparing real estate appraisals and the address of the 47
applicant's current residence. The superintendent shall retain 48
the applicant's current residence address in a separate record 49
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which shall not constitute a public record for purposes of
section 149.03 of the Revised Code. The application shall 50
indicate whether the applicant seeks certification as a general 51
real estate appraiser or as a residential real estate appraiser, 52
licensure as a residential real estate appraiser, or registration 54
as a real estate appraiser assistant and be accompanied by the 55
prescribed examination and certification, registration, or 56
licensure fees set forth in section 4763.09 of the Revised Code. 58
The application also shall include a pledge, signed by the 59
applicant, that the applicant will comply with the standards set 61
forth in this chapter and a statement that the applicant
understands the types of misconduct for which disciplinary 63
proceedings may be initiated against the applicant pursuant to 64
this chapter.
(2) For purposes of providing funding for the real estate 66
appraiser recovery fund established by section 4763.16 of the 67
Revised Code, the real estate appraiser board shall levy an 68
assessment against each person issued an initial certificate, 69
registration, or license and against current licensees, 71
registrants, and certificate holders, as required by board rule. 73
The assessment is in addition to the application and examination 74
fees for initial applicants required by division (A)(1) of this 75
section and the renewal fees required for current certificate 76
holders, registrants, and licensees. The superintendent shall 78
deposit the assessment into the state treasury to the credit of 79
the real estate appraiser recovery fund. The assessment for 80
initial certificate holders, registrants, and licensees shall be 82
paid prior to the issuance of a certificate, registration, or 83
license, and for current certificate holders, registrants, and 85
licensees, at the time of renewal. 86
(B) An applicant for an initial general real estate 88
appraiser certificate shall possess at least thirty months of 89
experience in real estate appraisal, or any equivalent experience 90
the board prescribes. An applicant for a residential real estate 92
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appraiser certificate or residential real estate appraiser 93
license shall possess at least two years OF experience in real 94
estate appraisal, or any equivalent experience the board 95
prescribes. In addition to any other information required by the 96
board, the applicant shall furnish, under oath, a detailed 97
listing of the appraisal reports or file memoranda for each year 98
for which experience is claimed and, upon request of the 99
superintendent or the board, shall make available for examination 100
a sample of the appraisal reports prepared by the applicant in 101
the course of the applicant's practice. 102
(C)(1) Except as provided in division (C)(2) of this 104
section, an applicant for an initial certificate, registration, 105
or license shall be at least eighteen years of age, honest, 107
truthful, and of good reputation and shall present satisfactory 108
evidence to the superintendent of the following, as appropriate: 110
(a) If the applicant is seeking a state-certified general 112
real estate appraiser certificate, that the applicant has 113
successfully completed at least one hundred sixty-five classroom 115
hours of courses in subjects related to real estate appraisal, 117
INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 118
STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 120
recognized appraisal organization, an institution of higher 121
education, a proprietary school registered by the state board of 122
proprietary school registration, a state or federal commission or 123
agency, or any other organization that represents the interests 124
of financial institutions or real estate brokers, appraisers, or 125
agents and that provides appraisal education, plus fifteen 126
classroom hours related to standards of professional practice and 127
the provisions of this chapter;
(b) If the applicant is seeking a state-certified 129
residential real estate appraiser certificate, that the applicant 130
has successfully completed at least one hundred five classroom 132
hours of courses in subjects related to real estate appraisal, 133
INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 134
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STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 135
recognized appraisal organization, an institution of higher 136
education, a proprietary school registered by the state board of
proprietary school registration, or any other organization that 137
represents the interests of financial institutions or real estate 138
brokers, appraisers, or agents and that provides appraisal 139
education, plus fifteen classroom hours related to standards of 140
professional practice and the provisions of this chapter; 141
(c) If the applicant is seeking a state-licensed 143
residential real estate appraiser license, that the applicant has 144
successfully completed at least seventy-five classroom hours of 146
courses in subjects related to real estate appraisal, INCLUDING 147
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 149
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 151
appraisal organization, an institution of higher education, a 152
proprietary school registered by the state board of proprietary 153
school registration, a state or federal commission or agency, or 154
any other organization that represents the interests of financial 155
institutions or real estate brokers, appraisers, or agents and 156
that provides appraisal education, plus fifteen classroom hours 157
related to standards of professional practice and the provisions 158
of this chapter;
(d) If the applicant is seeking a state-registered real 160
estate appraiser assistant registration, that the applicant has 161
successfully completed at least seventy-five classroom hours of 163
courses in subjects related to real estate appraisal, INCLUDING 164
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 165
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 166
appraisal organization, an institution of higher education, a 167
proprietary school registered by the state board of proprietary 168
school registration, or any other organization that represents 169
the interests of financial institutions or real estate brokers, 170
appraisers, or agents, and that provides appraisal education that 171
included at least fifteen classroom hours of instruction related 172
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to standards of professional practice and the requirements of 173
this chapter and the rules adopted under this chapter. 174
(2) Each person who files an application for an initial 176
certificate or license within one year of the date established by 177
the board as the first date on which applications will be 178
accepted under this section, which date shall be no later than 179
September 1, 1990, and who, at the time of filing that 180
application, does not satisfy the educational requirements for 181
the certification or licensure sought of either division 182
(C)(1)(a) or (b) of this section is exempt from those educational 183
requirements for the term of the initial certification or 184
licensure. In applying for a renewal certificate or license 185
pursuant to section 4763.06 of the Revised Code, a certificate 186
holder or licensee who was exempted from the educational 187
requirements of division (C)(1)(a) or (b) of this section when 188
applying for the initial certificate or license shall present 190
satisfactory evidence to the superintendent that the certificate 191
holder or licensee has completed the educational requirements for 193
the certification or licensure to be renewed of one of those 194
divisions before the renewal certificate or license may be 195
issued.
(D) An applicant for an initial general real estate 197
appraiser or residential real estate appraiser certificate or 198
residential real estate appraiser license shall take and 200
successfully complete a written examination in order to qualify 201
for the certificate or license. The examination shall require 202
the applicant to demonstrate all of the following:
(1) Appropriate knowledge of technical terms commonly used 204
in or related to real estate appraising, appraisal report 205
writing, and the economic concepts applicable to real estate; 206
(2) Understanding of the principles of land economics, 208
real estate appraisal processes, and problems likely to be 209
encountered in gathering, interpreting, and processing of data in 210
carrying out appraisal disciplines; 211
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(3) Understanding of the standards for the development and 213
communication of real estate appraisals as provided in this 214
chapter and the rules adopted thereunder; 215
(4) Knowledge of theories of depreciation, cost 217
estimating, methods of capitalization, direct sales comparison, 218
and the mathematics of real estate appraisal that are appropriate 219
for the certification or licensure for which the applicant has 220
applied; 221
(5) Knowledge of other principles and procedures as 223
appropriate for the certification or license; 224
(6) Basic understanding of real estate law; 226
(7) Understanding of the types of misconduct for which 228
disciplinary proceedings may be initiated against a certificate 229
holder and licensee. 230
(E)(1) A nonresident, natural person of this state who has 233
complied with this section may obtain a certificate,
registration, or license. The board shall adopt rules relating 235
to the certification, registration, and licensure of a 236
nonresident applicant whose state of residence the board 238
determines to have certification, registration, or licensure 240
requirements that are substantially similar to those set forth in 241
this chapter and the rules adopted thereunder.
(2) A nonresident appraiser may apply for, and the board 243
may issue, a temporary certificate or license if the board 244
determines that the state in which the nonresident appraiser is 245
licensed or certified has licensing or certification requirements 246
that are substantially similar to the certification or licensure 247
requirements set forth in this chapter and the rules adopted 248
thereunder. 249
The board shall adopt rules relating to the temporary 251
certification and licensure of nonresident appraisers. Each 252
temporary certificate and license issued by the board shall 253
identify the location of the real estate property to be appraised 254
and shall not authorize appraisal of more than one real estate 255
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property located in this state. The board shall not issue more 256
than two temporary certificates or licenses in any one calendar 257
year to any one applicant. 258
(3) In addition to any other information required to be 260
submitted with the nonresident applicant's or appraiser's 261
application for a certificate, registration, license, or 263
temporary certificate or license, each nonresident applicant or 264
appraiser shall submit a statement consenting to the service of 265
process upon the nonresident applicant or appraiser by means of 267
delivering that process to the secretary of state if, in an 268
action against the applicant, certificate holder, registrant, or 269
licensee arising from the applicant's, certificate holder's, 271
registrant's, or licensee's activities as a certificate holder, 273
registrant, or licensee, the plaintiff, in the exercise of due 274
diligence, cannot effect personal service upon the applicant, 275
certificate holder, registrant, or licensee. 276
(F) The superintendent shall not issue a certificate, 278
registration, temporary certificate or license, or license to a 279
corporation, partnership, or association. This prohibition shall 280
not be construed to prevent a certificate holder or licensee from 281
signing an appraisal report on behalf of a corporation, 282
partnership, or association. 283
(G) Every person licensed, registered, or certified under 285
this chapter shall notify the superintendent, on a form provided 287
by the superintendent, of a change in the address of the 288
licensee's, registrant's, or certificate holder's principal place 289
of business or residence within thirty days of the change. If a 290
licensee's, registrant's, or certificate holder's license, 292
registration, or certificate is revoked or not renewed, the 294
licensee, registrant, or certificate holder immediately shall 296
return the annual and any renewal certificate, registration, or 298
license to the superintendent.
(H) The superintendent shall not issue a certificate, 300
registration, temporary certificate or license, or license to any 301
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person who does not meet applicable minimum criteria for state 302
certification, registration, or licensure prescribed by federal 303
law or rule.
Section 2. That existing section 4763.05 of the Revised 305
Code is hereby repealed. 306