Cerreta v. Dept. of Commerce, 2008 Ca 00125 (4-13-2009)

2009 Ohio 1760
CourtOhio Court of Appeals
DecidedApril 13, 2009
DocketNo. 2008 CA 00125.
StatusPublished
Cited by1 cases

This text of 2009 Ohio 1760 (Cerreta v. Dept. of Commerce, 2008 Ca 00125 (4-13-2009)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cerreta v. Dept. of Commerce, 2008 Ca 00125 (4-13-2009), 2009 Ohio 1760 (Ohio Ct. App. 2009).

Opinion

OPINION *Page 2
{¶ 1} Plaintiff-Appellant Carmen P. Cerreta appeals from the May 16, 2008, Judgment Entry of the Stark County Court of Common Pleas, affirming the decision of the Ohio Real Estate Appraiser Board.

STATEMENT OF THE FACTS AND CASE
{¶ 2} For purposes of this appeal, the relevant facts are as follows:

{¶ 3} R.C. Chapter 4763, first enacted in 1989, required appraisers to be licensed or certified and regulates the conduct of appraisers in Ohio.

{¶ 4} Approximately one month after R.C. 4763 was enacted, the U.S. Congress enacted the Financial Institutions Reform, Recovery and Enforcement Act ("FIRREA") in 1989. Title XI of FIRREA was intended "to provide that Federal financial and public policy interests in real estate related transactions will be protected by requiring that real estate appraisals utilized in connection with federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision." Title XI of FIRREA established the Appraisal Subcommittee ("ASC") and the Appraiser Qualifications Board ("AQB") to standardize qualifications and to monitor individuals who assess the value of real estate property.12 U.S.C. A. 3331.

{¶ 5} The federal law required that the state certified appraiser satisfy the requirements for certification in a State or territory "whose criteria for certification as a real estate appraiser currently meet or exceed the minimum criteria for certification issued by the Appraiser Qualifications Board of the Appraisal Foundation." 12 U.S. *Page 3

§ 3345; 12 CFR 225.62(j). Only a state certified appraiser is permitted to evaluate property valued over $1,000,000 or apartment buildings with more than four apartments. Below that "threshold," the federal statute created the category of "state licensed appraiser," defined as "any individual who has satisfied the requirements for licensing in a State or territory where the licensing procedures comply with Title XI of FIRREA." 12 U.S.C.A. § 3342; 12 CFR 225.62(k). Further, the AQB also required states to implement appraiser certificate requirements that are no less stringent than those the AQB issues. (Record, State's Ex. H.) Thus, Ohio cannot have requirements that are less than those of the AQB.

{¶ 6} The initial Ohio legislation adopted in 1990 contained only two (2) classifications of real estate appraiser, namely; Licensed Real Estate Appraiser and Licensed General Real Estate Appraiser, with the Licensed Real Estate Appraiser being limited to residential properties and the Licensed General Real Estate Appraiser being authorized to appraise both residential and commercial properties.

{¶ 7} Appellant Carmen Cerreta had been a real estate appraiser prior to the enactment of the licensure requirement. Appellant subsequently passed the required examination in 1992, completed the required education and received a license.

{¶ 8} In 1996, the State of Ohio, by H.B. 304, amended its real estate licensing statute to provide for both a Ohio Licensed Residential Real Estate appraiser and an additional classification of real estate appraiser designated as and called "Ohio Certified Residential Real Estate Appraiser" in order to match and conform to the Federal regulations and terminology which uses the language "Certified Residential Real Estate Appraiser" to describe residential real estate appraisers having recognition under *Page 4 Federal regulations to make real estate appraisals including appraisals for federally related transactions involving complex one (1) through four (4) family structures and structures having a value which could exceed $1,000,000.00. The amendment of the Ohio Statute was made because Ohio, at the time, only had one (1) classification for residential real estate appraisers, including appraisers eligible to appraise all one (1) through four (4) family residential properties and without limitation on dollar value, and that was the "Ohio Licensed/Certified Real Estate Appraiser" and had no classification exactly matching and using the Federal terminology and classification of "Certified Residential Real Estate Appraiser" as designated in the Federal statutes and regulations.

{¶ 9} As a result of the amended Ohio legislation, which became effective on or about March 9, 1996, Ohio thereafter then had three (3) classifications of real estate appraisers, namely: Licensed Residential Real Estate Appraisers, which included the residential appraisers who were licensed before 1996 including those who had passed the Certified Residential Real Estate Appraiser examination (as did Carmen P. Cerreta); General Real Estate Appraisers, who were licensed to perform both residential and commercial real estate appraisals; and, from 1996 on, the new classification of Certified Residential Real Estate Appraiser. Because the existing Ohio statutory scheme up to the amendment made in 1996 only had one (1) classification of residential real estate appraiser, which classification was designated as Licensed Real Estate Appraiser, the licenses held by those people who currently held Residential Real Estate Appraiser Licenses/Certificates were not in conformity with the certification terminology under *Page 5 Federal regulations, regardless of the fact that these individuals had taken and passed the Certified Residential Real Estate Appraiser examination. (T. at 28-32; 42-51.)

{¶ 10} As a result of the foregoing situation and in order to specifically address the situation, the State of Ohio, in 1996, adopted OAC § 1301:11-3-7, which specifically provided that any person who had taken the Federally approved examination for Certified Residential Real Estate Appraiser prior to March 9, 1996, would be eligible at any time to convert his or her License/Certificate as a Residential Real Estate Appraiser to that of Certified Residential Real Estate Appraiser by satisfying certain additional educational requirements and without having to re-take the written examination for Certified Residential Real Estate Appraiser. (T. at 42-51.)

{¶ 11} Effective April 1, 2000, the AQB set forth a requirement that States cannot accept exams that are over 24 months old.

{¶ 12} On June 15, 2004, after completing the additional education requirements, Appellant Cerreta filed a Certified Residential Application for Licensed Appraisers, for appraisers tested prior to March 1996.

{¶ 13} On July 29, 2004, the former Superintendent granted Appellant Cerreta's application and issued Appellant Cerreta an upgrade from his License to a Certificate. Appellant Cerreta subsequently renewed his Certificate in 2005, 2006 and 2007. (T. at 28-32, 42-53.)

{¶ 14}

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Bluebook (online)
2009 Ohio 1760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cerreta-v-dept-of-commerce-2008-ca-00125-4-13-2009-ohioctapp-2009.