The following words, terms and phrases, when used in this chapter shall have the meanings ascribed to them under this section, except where the context clearly indicates a different meaning:
(1) “Appraisal” shall mean an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate as of a specific date. An appraisal may be classified by subject matter into either a valuation or an analysis. A valuation is an estimate of the value of real estate or real property. An analysis is a study of real estate or real property other than estimating value. A competitive market analysis is not an appraisal.
(2) “Appraisal management company” means a corporation, partnership, sole proprietorship, subsidiary or other business entity that directly or indirectly performs appraisal management services, regardless of the use of the term “appraisal management company,” “mortgage technology provider,” “lender processing services,” “lender services,” “loan processor,” “mortgage services,” “real estate closing services provider,” “settlement services provider,” “vendor management company” or any other term, and that does any of the following:
a. Administers an appraiser panel of independent contract appraisers to perform real property appraisal services in this State for clients.
b. Receives requests for real property appraisal services from clients and, for a fee paid by the client, enters into an agreement with 1 or more independent appraisers to perform the real property appraisal services contained in the request.
c. Otherwise serves as a third-party liaison of appraisal management services between clients and appraisers.
(3) “Appraisal management services” means the process of receiving a request for the performance of real property appraisal services from a client, and for a fee paid by the client, entering into an agreement with 1 or more independent appraisers who are part of an appraiser panel to perform the real property appraisal services contained in the request.
(4) “Appraiser panel” means a group of independent appraisers that has been selected by an appraisal management company to perform real property appraisal services for the appraisal management company.
(5) “Appraisal review” means the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment, but does not include an examination of an appraisal for grammatical, typographical or other similar errors that do not communicate an opinion related to the appraiser’s data collection, analysis, opinions, conclusions, estimate of value or compliance with the Uniform Standards of Professional Appraisal Practice.
(6) “AQB” shall mean the Appraisal Qualifications Board appointed by the Appraisal Foundation to establish the minimum education, examination, and experience requirements for real estate appraisers providing appraisals in federally-related transactions.
(7) “Certified general real property appraiser” shall mean a person, who has met the certification requirements of this chapter pertaining to the appraisal of residential and nonresidential real property utilized in connection with federally-related transactions, and who holds a current, valid certificate issued under this chapter.
(8) “Certified residential appraiser” shall mean a person, who has met the certification requirements of this chapter, pertaining solely to the appraisal of residential real property utilized in connection with federally-related transactions, and who holds a current, valid certificate issued under this chapter.
(9) “Classroom hour” shall mean 50 minutes out of each 60-minute hour.
(10) “Controlling person” means any of the following:
a. An owner, officer or director of a corporation, partnership or other business entity seeking to offer appraisal management services in this State.
b. An individual who is employed, appointed or authorized by an appraisal management company and who has the authority to enter into a contractual relationship with clients for the performance of appraisal management services and to enter into agreements with independent appraisers for the performance of real property appraisal services.
c. An individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.
(11) “Council” shall mean the State Council on Real Estate Appraisers established in this chapter.
(12) “Division” shall mean the State Division of Professional Regulation.
(13) “Excessive use or abuse of drugs” shall mean any use of narcotics, controlled substances, or illegal drugs without a prescription from a licensed practitioner, or the abuse of alcoholic beverage such that it impairs the ability to perform the work of an appraiser.
(14) “Federal financial institutions regulatory agencies” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration.
(15) “Federally-related transaction” means any real-estate-related financial transaction which a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and requires the services of an appraiser.
(16) “FIRREA” shall mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989, the act of July 21, 2010 [P.L. 111-203, 124 Stat. 2190].
(17) “Licensed real property appraiser” shall mean a person, who has met the licensing requirements of this chapter and who may appraise noncomplex 1 to 4 residential units having a transaction value less than $1,000,000 and complex 1 to 4 residential units having a transaction value of $400,000 or less, and who holds a current, valid license issued under this chapter. Licensed appraisers cannot appraise a property with a market value in excess of $1,000,000.
(18) “Person” shall mean an individual, firm, partnership, corporation, association, joint stock company, limited partnership, limited liability company, and any other legal entity and includes a legal successor of those entities.
(19) “Personal supervision” shall mean the active oversight by the state-licensed or certified real estate appraiser of the real property appraiser trainee. The trainee may assist in the completion of an appraisal report, including an opinion of value, and may co-sign an appraisal, provided that the trainee has been under the personal supervision of the state certified or licensed real estate appraiser, and provided further that the state-certified or licensed real estate appraiser shall review and sign the appraisal report and accept total responsibility for said appraisal report.
(20) “Real estate appraiser” means any person who advises, consults, or prepares analyses with respect to real estate values, uses, sales, developments or disposition, including acquisitions by eminent domain, or renders opinions relevant to the marketability of real estate, as a whole or partial vocation.
(21) “Real estate-related financial transaction” shall mean a transaction involving the following:
a. Sale, lease, purchase, investment in or exchange of real property, including interests in property or the financing thereof.
b. Refinancing of real property or interests in real property.
c. Use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.
(22) “Real property” shall mean 1 or more defined interests, benefits, and rights inherent in the ownership of real estate.
(23) “State” shall mean the State of Delaware.
(24) “Substantially related” shall mean the nature of the criminal conduct for which the person was convicted, has a direct bearing on the fitness or ability to perform 1 or more of the duties or responsibilities necessarily related to the practice of real estate appraisal.
(25) “Trainee” shall mean a person who has completed classroom hours of education on real estate matters satisfactory to the Council, as indicated in the rules and regulations, including classroom hours on the topic of Uniform Standards of Professional Appraisal Practice.
(26) “Uniform Standards of Professional Appraisal Practice” (USPAP) shall mean the standards of appraisal practice established by The Appraisal Foundation.