2012 North Dakota Century Code Title 43 Occupations and Professions Chapter 43-23.3 Real Estate Appraisers
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CHAPTER 43-23.3
REAL ESTATE APPRAISERS
43-23.3-01. Definitions.
As used in this chapter, unless the context otherwise requires:
1. "Analysis" means a study of real estate other than estimating value.
2. "Appraisal" means an analysis, opinion, or conclusion relating to the nature, quality,
value, or utility of specified interests in, or aspects of, real estate. An appraisal may be
classified by subject matter into either a valuation or an analysis.
3. "Appraisal assignment" means an engagement for which a person is employed or
retained to act, or would be perceived by the public as acting, as a disinterested party
in rendering an unbiased supportable appraisal.
4. "Appraisal foundation" means the appraisal foundation incorporated as an Illinois
corporation on November 30, 1987.
5. "Appraisal report" means any communication of an appraisal.
6. "Appraisal subcommittee" means the appraisal subcommittee of the federal financial
institutions examination council.
7. "Appraiser" means a person who engages in appraisal activity for valuable
consideration.
8. "Apprentice appraiser" means a person who holds a valid permit as an apprentice
appraiser.
9. "Board" means the North Dakota real estate appraiser qualifications and ethics board.
10. "Certified appraiser" means a person who holds a valid permit as a certified residential
or general appraiser.
11. "Certified general appraiser" means a person who holds a valid permit as a certified
general appraiser.
12. "Certified residential appraiser" means a person who holds a valid permit as a certified
residential appraiser.
13. "Licensed appraiser" means a person who holds a valid permit as a licensed
appraiser.
14. "Permit" means the document issued by the board, verifying that the person named on
the permit has fulfilled all prerequisites to practice either as an apprentice appraiser, a
licensed appraiser, or a certified appraiser.
15. "Real estate" means an identified parcel or tract of land including improvements, and
interests, benefits, and rights inherent in the ownership of real estate.
16. "Uniform standards of professional appraisal practices" means standards of appraisal
promulgated by the appraisal foundation as adopted and modified by the board. The
standards adopted and modified by the board must meet the minimum standards
adopted by the appraisal foundation.
17. "Valuation" means an estimate of the value of real estate or real property.
43-23.3-02. North Dakota real estate appraiser qualifications and ethics board.
1. The governor shall appoint the board. The board must consist of five members. One
member must represent the public; one member must be a representative of the
financial industry; and three members must be appraisers, at least one of which is
experienced in the appraisal of agricultural property.
a. Each appraiser member of the board must be either a licensed or certified
appraiser, but at least two of the appraiser members must be certified appraisers.
b. The governor shall appoint the financial industry representative from a list of
qualified individuals submitted by the North Dakota bankers associations, the
credit union association of the Dakotas, and the North Dakota farm credit system
associations. Each of these entities may submit two names of candidates to the
governor. The public member of the board may not be engaged in the practice of
real estate appraising.
2. The term of each member is five years. A member may not serve more than two
consecutive five-year terms, after which at least two years must pass before the
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3.
governor may reappoint that former member to the board. The governor shall appoint
members so the terms of no more than two members expire each year. A member of
the board continues to hold office until the appointment and qualification of a
successor. The governor may remove a board member for cause.
Annually the members shall elect a chairman from among the members. At least two
of the members who are appraiser members must be present in order for a quorum to
exist. The members are entitled to receive compensation for each day actually
engaged in the service of the board and actual and necessary traveling expenses at
the rate allowed other state officials, paid from the fees collected by the board.
43-23.3-03. Powers and duties of the board.
1. The board, or the board's designated representative, shall:
a. Define apprentice appraiser, licensed appraiser, certified residential appraiser,
and certified general appraiser; determine the type of educational experience,
appraisal experience, and equivalent experience that meet the requirements of
this chapter; establish application procedures; and establish standards for
approval and disapproval of applications for permits.
b. Establish examination specifications for each category of licensed and certified
appraiser and administer examinations.
c. Approve or disapprove applications for permits, issue pocket cards and permits to
practice, and maintain a registry of the names and addresses of individuals
holding permits.
d. Discipline permittees.
e. Hold meetings, hearings, and examinations in places and at times as the board
designates and maintain records of board activities.
f. Adopt rules, pursuant to chapter 28-32, necessary to implement this chapter or
carry out the requirements imposed by federal law.
g. Adopt rules that clearly and concisely establish the standards for approval and
disapproval of applications for permits. The rules must include a requirement that
an application disapproval clearly specify the basis for the disapproval.
h. Keep permittees informed of board activities, including providing notification of
board member terms and any upcoming board vacancy; internet posting of
meeting notices and minutes; and internet posting of proposed and final rule
changes.
2. The board, or the board's designated representative, may:
a. Promote research and conduct studies relative to real estate appraising and
sponsor educational activities.
b. Contract for services necessary to carry out this chapter.
c. Enter reciprocity agreements with other states.
3. The board, or the board's authorized representative, may investigate and gather
evidence concerning alleged violations of the provisions of chapter 43-23.3 or the rules
of the board. Board investigative files are exempt records as defined in subsection 5 of
section 44-04-17.1, but a copy of the investigative file must be provided to a licensee if
a complaint is filed against the licensee by the board.
43-23.3-03.1. Public records exception.
Documents obtained by the board as part of the licensing, investigation, or disciplinary
process which are deemed confidential under the uniform standards of professional appraisal
practices are exempt records as defined in subsection 5 of section 44-04-17.1.
43-23.3-04. Permit required - Exemptions.
Except as provided in this section, a person may not directly or indirectly engage in,
advertise, conduct the business of, or act in any capacity as an apprentice, licensed, or certified
appraiser without first obtaining a permit as provided in this chapter. An appraiser, apprenticed,
licensed, or certified in another state may not engage in, advertise, conduct the business of, or
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act in any capacity as an appraiser in this state without first obtaining a temporary permit under
section 43-23.3-11. This chapter does not apply to a licensed real estate broker or salesperson
who, in the ordinary course of business, gives an opinion to a potential seller or third party as to
the recommended listing price of real estate or an opinion to a potential purchaser or third party
as to the recommended purchase price of real estate. However, the opinion as to the listing
price or the purchase price may not be referred to as an appraisal. This chapter does not apply
to a person who, in the ordinary course of business, gives an opinion of the value of real estate
to that person's employer.
43-23.3-04.1. Issuance of permits to applicants licensed or certified by another state.
The board shall issue a permit to an applicant who is licensed or certified in good standing
by another state if the other state's requirements to be licensed or certified are at least
substantially equivalent to the requirements imposed by this state, and if grounds for denial of
the application under section 43-23.3-18 do not exist. If an applicant was licensed or certified by
another state by reciprocity or a similar process, the requirements of the state in which the
applicant was originally licensed or certified must be at least substantially equivalent to the
requirements imposed by this state. Within sixty days of filing a completed application, the board
shall issue or deny the application and inform the applicant of the decision.
43-23.3-05. Permit process.
An individual who desires to engage in the practice of real estate appraisal shall apply for a
permit on forms prescribed by the board and submit the required fee.
43-23.3-06. Classes of permits.
The board may issue apprentice, license, and certification permits for appraisers.
1. An apprentice appraiser must meet the minimum requirements established by the
board for a permit. An apprentice appraiser may only assist a licensed or a certified
appraiser in the performance of an appraisal assignment.
2. A licensed appraiser must meet the minimum requirements established by the board
for a permit.
3. A certified residential appraiser must meet the minimum requirements established by
the board for a permit. The board's requirements may not exceed the appraisal
foundation qualification criteria. The board shall review periodically the appraisal
foundation appraisal qualification criteria to ensure the board's rules do not exceed the
appraisal qualification criteria.
4. A certified general appraiser must meet the minimum requirements established by the
board for a permit. The board's requirements may not exceed the appraisal foundation
qualification criteria. The board shall review periodically the appraisal foundation
appraisal qualification criteria to ensure the board's rules do not exceed the appraisal
qualification criteria.
43-23.3-07. Examination requirement.
The board shall issue a permit to practice as a licensed, certified residential, or certified
general appraiser to an individual who has demonstrated the following qualifications through a
written examination process:
1. Knowledge of technical terms used in or related to real estate appraising, appraisal
report writing, and economic concepts relating to real estate.
2. Understanding of the principles of land economics, appraisal processes, and of
problems likely to be encountered in gathering, interpreting, and processing of data in
carrying out appraisal disciplines.
3. Understanding of the uniform standards of professional appraisal practices.
4. Knowledge of theories of depreciation, cost estimating, methods of capitalization, the
mathematics of real estate appraisal, and other principles and procedures determined
by the board to be appropriate for the appreciable classification of permit.
5. Basic understanding of real estate law.
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6.
Understanding of the types of misconduct for which disciplinary proceedings may be
initiated against an appraiser.
43-23.3-08. Application prerequisites.
An applicant for a permit as an apprentice, licensed, certified residential, or certified general
appraiser must successfully complete the education requirements established by the board.
43-23.3-09. Appraisal experience.
The board may issue a permit to practice as a licensed, certified residential, or certified
general appraiser to an individual who possesses the minimum experience requirements
established by the board. The board may require an applicant to furnish, under oath, a detailed
listing of the appraisal reports or file memoranda for which appraisal experience is claimed by
the applicant. Upon request, the applicant shall provide to the board copies of appraisal reports
or other documents that the applicant has assisted in preparing.
43-23.3-10. Expiration of permit.
Permits expire on December thirty-first of each year. The expiration date of the permit must
appear on the permit and no other notice of its expiration need be given to the permittee.
43-23.3-11. Temporary permit.
1. The board may issue a temporary permit to an applicant who is apprenticed, licensed,
or certified in good standing by another state. The board may deny a temporary permit
to an applicant whose permit, apprenticeship, license, or certification was revoked,
suspended, or otherwise subjected to discipline by any state or jurisdiction.
2. An applicant for a temporary permit shall file with the board a designation in writing
which appoints the chairman of the board to act as the applicant's licensed agent upon
whom all judicial and other process or legal notices directed to the applicant may be
served. Copies of the appointment, certified by the chairman of the board, may be
received in evidence in any proceeding and must be given the same effect as the
original. In the written designation, the applicant shall agree that any lawful process
against that individual which is served upon the agent is of the same legal force as if
served upon the applicant, and that the authority of the agent continues in force as
long as any liability of the applicant remains outstanding in this state. Upon the receipt
of any process or notice, the chairman shall mail a copy of the process or notice by
certified mail, return receipt requested, to the last-known business address of the
applicant.
3. The board may issue a temporary permit to an applicant if the applicant agrees in
writing to abide by this chapter and to submit to the jurisdiction of the board.
4. The board shall issue a temporary permit to an applicant who has complied with this
section. The board may require the applicant to pay a fee. The board shall determine
the amount of the fee and the duration of the temporary permit.
43-23.3-12. Permit renewal.
To renew a permit, the permittee shall apply to the board and pay the required fee. With the
application for renewal, the appraiser shall present evidence of having completed the continuing
education requirements for renewal. The board may adopt rules to allow permits to be assigned
to inactive status. Permits assigned to inactive status are subject to disciplinary action and
activation of an inactive permit may be subject to a denial by the board.
43-23.3-13. Principal place of business.
A permittee shall notify the board of the address of the permittee's place of business. Within
twenty days of a change in the address of the place of business, the permittee shall give written
notification of the change to the board and pay the change of address fee.
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43-23.3-14. Permit number displayed with signature.
A permittee shall place the permittee's permit number adjacent to the permittee's signature
on an appraisal report, contract, or other writing used by the permittee in conducting appraisal
activities.
43-23.3-15. Use of designation.
The terms "apprentice appraiser", "licensed appraiser", "certified residential appraiser",
"certified general appraiser", and "certified appraiser" may only be used to refer to an individual
who holds a permit under this chapter and may not be used following or immediately in
connection with the name or signature of any other individual or person or in a manner that
might be interpreted as referring to any other individual or person other than the individual who
holds the permit. This section does not prohibit a licensed or certified appraiser from signing an
appraisal report on behalf of a corporation, limited liability company, partnership, or firm.
43-23.3-16. Action for fee.
No claim for relief may be instituted in any court of this state for compensation for an act
done or service rendered as an apprentice, licensed, or certified appraiser unless the appraiser
held a permit to practice under this chapter at the time of offering to perform the act or service or
procuring a promise to contract for the payment of compensation for a contemplated act or
service as an apprentice, licensed, or certified appraiser.
43-23.3-17. Retention of records.
An apprentice, licensed, or certified appraiser shall retain, for at least five years, originals or
copies of all written contracts engaging the permittee's services for appraisal work and all
reports and supporting data assembled and formulated by the permittee in preparing the
reports. The period for retention of records applies to each engagement of the services of the
permittee and commences upon the date of the submission of the appraisal to the client unless,
within that period, the permittee is notified that the appraisal report is involved in litigation, in
which event the period for the retention of records commences on the date of the final
disposition of the litigation. The permittee shall make available for inspection and copying by the
board on reasonable notice all records required to be maintained.
43-23.3-18. Standards of professional appraisal practice.
An apprentice, licensed, or certified appraiser shall comply with the standards of
professional appraisal practice and ethical rules specified by the uniform standards of
professional appraisal practice and all other standards and ethical requirements adopted by the
appraisal foundation.
43-23.3-19. Continuing education.
The board shall adopt rules for the implementation of continuing education requirements to
assure that permit renewal applicants have current knowledge of appraisal theories, practices,
and techniques that provide a high degree of service and protection to the public. The rules
must establish:
1. Policies and procedures for obtaining board approval of courses of instruction.
2. Standards, policies, and procedures to be applied by the board in evaluating an
applicant's claims of equivalency.
3. Standards, monitoring methods, and systems for recording attendance by course
sponsors.
43-23.3-20. Fees.
The board may charge apprentice, licensed, and certified permittees and educational
providers or promoters reasonable fees to help offset costs of operating the board. The board
shall establish the charges by rule.
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43-23.3-21. Disposition of fees.
The board, or its designated representative, shall deposit all fees collected by the board in a
separate account. Disbursements from the account may not exceed the moneys credited to it.
The board's designated representative shall review and pay appropriate charges against the
account for services provided to the board.
43-23.3-22. Disciplinary proceedings.
1. The board may deny an application for, refuse to renew, suspend, or revoke a permit,
impose a monetary fine, or issue a letter of reprimand, when the applicant or permittee
has:
a. Procured or attempted to procure a permit by knowingly making a false
statement, submitting false information, refusing to provide complete information
in response to a question in an application for certification, or through fraud or
misrepresentation.
b. Failed to meet the minimum qualifications established under this chapter.
c. Paid money other than provided for by this chapter to any member or employee
of the board to procure a permit.
d. Been convicted, including a conviction based upon a plea of guilty or
nolo contendere, of a felony or of a crime that is substantially related to the
qualifications, functions, and duties of a person developing and communicating
appraisals to others.
e. Performed an act involving dishonesty, fraud, or misrepresentation with the intent
to benefit substantially that person or another person, or with the intent to injure
substantially another person.
f. Violated any standard for the development or communication of appraisals as
provided in this chapter.
g. Failed or refused without good cause to exercise reasonable diligence in
developing an appraisal, preparing an appraisal report, or communicating an
appraisal.
h. Acted with gross negligence or incompetence in developing an appraisal, in
preparing an appraisal report, or in communicating an appraisal.
i. Willfully violated this chapter or rules of the board.
j. Accepted an appraisal assignment when the employment is contingent upon the
reporting of a predetermined estimate, analysis, or opinion, or if the fee is
contingent upon the opinion, conclusion, or valuation reached, or upon the
consequences resulting from the appraisal assignment.
k. Violated the confidential nature of governmental records to which the person
gained access through employment or engagement as an appraiser by a
governmental agency.
l. Had entry of a civil judgment against the person on grounds of fraud,
misrepresentation, or deceit in the making of an appraisal.
2. In a disciplinary proceeding based upon a civil judgment, the permittee must be
afforded an opportunity to present matters in mitigation and extenuation, but may not
collaterally attack the civil judgment.
43-23.3-23. Penalties.
A person acting or purporting to act as an apprentice, licensed, or certified appraiser without
holding a permit to practice is guilty of a class A misdemeanor. An appraiser, apprenticed,
licensed, or certified in another state, who engages in, advertises, conducts the business of, or
acts in any capacity as an appraiser without first obtaining a temporary permit is guilty of a
class A misdemeanor. In addition to any other penalty, a person receiving any money or other
compensation in violation of this chapter is subject to a penalty of not less than the amount of
the sum of money received and not more than three times the sum in the discretion of the court.
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