§ 160-D — Powers of the board

New York § 160-D

• Jurisdiction: New York
• Law EXC: Executive
• Art. 6-E: State Certified and Licensed Real Estate Appraisers

Text

§ 160-d. Powers of the board. 1. The board shall adopt rules and\nregulations in aid or furtherance of this article and shall have the\nfollowing powers and duties:\n a. To define, with respect to each category of state certified real\nestate appraisers, state licensed real estate appraisers, and state\nlicensed real estate appraiser assistants, the type of educational\nexperience, appraisal experience and equivalent experience that will\nmeet the statutory requirements of this article, provided, however, that\nin no event shall the experience, education and examination requirements\nadopted by the board be less than the minimum criteria established by\nthe Appraisal Subcommittee of the Federal Financial Institutions\nExamination Council or by the Appraiser Qualification Board of the\nAppraisal Foundation as referred to in title XI of the Financial\nInstitutions Reform, Recovery and Enforcement Act of 1989;\n b. To establish examination specifications consistent with the\nstandards of the Appraisal Qualifications Board of the Appraisal\nFoundation for state licensed real estate appraiser assistants, state\nlicensed real estate appraisers and each category of state certified\nreal estate appraisers, to provide or procure appropriate examination\nquestions and answers and to establish procedures for grading\nexaminations;\n c. To define, with respect to state licensed real estate appraiser\nassistants, state licensed real estate appraisers and each category of\nstate certified real estate appraisers, the continuing education\nrequirements for the renewal of a license or a certification that will\nmeet the statutory requirements provided in this article;\n d. To review the standards for the development and communication of\nreal estate appraisals provided in this article and to adopt regulations\nexplaining and interpreting such standards, provided, however, that such\nstandards must, at a minimum, conform to the uniform standards of\nprofessional appraisal as promulgated by the Appraisal Standards Board\nof the Appraisal Foundation; and\n e. To prescribe the scope of practice for state licensed real estate\nappraiser assistants, state licensed real estate appraisers and each\ncategory of state certified real estate appraisers, provided, however,\nthat in no event shall the scope of practice prescribed by the board be\nless than the scope of practice established by the Appraisal\nSubcommittee of the Federal Financial Institutions Examination Council\nor by the Appraiser Qualification Board of the Appraisal Foundation as\nreferred to in title XI of the Financial Institutions Reform, Recovery\nand Enforcement Act of 1989;\n f. To perform such other functions and duties as may be necessary in\ncarrying out the provisions of this article.\n 2. The board shall promulgate rules and regulations prescribing the\nform and content of each appraisal report. Such rules and regulations\nshall include but are not limited to the following requirements:\n a. Each appraisal report shall clearly and accurately disclose any\nextraordinary assumption or limited condition that directly affects an\nappraisal.\n b. Each written appraisal report shall comply with the following\nspecific reporting guidelines:\n (1) Identify and describe the real estate being appraised;\n (2) Identify the real property being appraised;\n (3) Define the opinion that is the purpose of the appraisal and\ndescribe the scope of the appraisal;\n (4) Set forth the effective date of the opinion and the date of the\nappraisal report;\n (5) Set forth the appraiser's opinion of the highest and best use of\nthe real estate being appraised when such an opinion is necessary and\nappropriate;\n (6) Set forth the appraisal procedure followed, the data considered\nand the reasoning that supports the analyses, opinions and conclusions;\n (7) Set forth all assumptions and limiting conditions that affect the\nanalyses, opinions and conclusions in the appraisal report; and\n (8) Set forth any additional information that may be appropriate to\nshow compliance with, and identify permitted departures from, the\nrequirements for the development of appraisals as provided in this\narticle or as established by the board.\n 3. The board shall establish standards of developing an appraisal.\nSuch standards shall, among other things, state the following\nguidelines:\n a. All state certified or licensed real estate appraisers conducting\ncertified or licensed appraisals, performing appraisal service or\nissuing an appraisal shall:\n (1) Be aware of, understand and correctly employ those recognized\nappraisal methods and techniques that are necessary to produce a\ncredible analysis, opinion or conclusion;\n (2) Not commit a substantial error or omission of commission which\nresults from a significant departure from the recognized appraisal\nmethods and techniques;\n (3) Not commit a substantial error or omission of commission that\nsignificantly affects an analysis, opinion or conclusion;\n (4) Identify the real estate and real property under consideration,\ndefine the opinion that is the purpose of the appraisal, consider the\nscope of the appraisal service and identify the effective date of the\nopinion;\n (5) Identify and consider the appropriate procedures and market data\nrequired to perform the appraisal service, where appropriate;\n (6) Consider the effect on use and value of the following factors:\nexisting land use regulations, reasonably probable modifications of land\nuse regulations, economic demand, the physical adaptability of the\nproperty, neighborhood trends and the highest and best use of the\nproperty;\n (7) Consider the effect on the property being appraised of anticipated\npublic or private improvements, located on or off the site, to the\nextent that market actions reflect the anticipated improvements as of\nthe effective appraisal date;\n (8) Recognize that land may be appraised as though vacant and avail-\nable for development and that the appraisal of improvements is based on\ntheir actual contributions to the site;\n (9) Appraise proposed improvements only after examining and having\navailable for future examination plans, specifications or other\ndocumentation sufficient to identify the scope and character of the\nproposed improvements, evidence indicating the probable time of\ncompletion of the proposed improvements, and reasonably clear and\nappropriate evidence supporting development costs, anticipated earnings,\noccupancy projections and the anticipated competition at the time of\ncompletion; and\n (10) Base estimates of anticipated future rent and expenses for the\nreal estate and real property being appraised on reasonably clear and\nappropriate evidence.\n b. In addition to the foregoing, an appraiser shall define the value\nbeing considered. If the value estimate is a statement or estimate of\nmarket value, he or she shall clearly indicate whether the statement or\nestimate is the most probable price in terms of cash or financial\narrangements equivalent to cash or other terms as may be precisely\ndefined. If an estimate of value is based on submarket financing or\nfinancing with unusual conditions or incentives, the terms of such a\ntypical financing shall be clearly set forth, their contributions to, or\nnegative influence on value shall be described and estimated, and the\nmarket data supporting the valuation estimate shall be described and\nexplained.\n c. For each real property appraisal analysis, opinion or conclusion\nthat contains an estimate of value, a state certified or licensed real\nestate appraiser shall observe all of the following specific real\nproperty appraisal guidelines:\n (1) Consider whether an appraised fractional interest, physical\nsegment or partial holding contributes pro rata to the value of the\nwhole;\n (2) Identify any personal property or other items that are not real\nestate but are included with or considered in connection with real\nestate being appraised and contribute to the total value estimate or\nconclusion;\n (3) Consider and analyze any current agreement of sale, option or\nlisting of the real estate and real property being appraised, if the\ninformation is available to the person in the normal course of business;\n (4) Consider and analyze any prior sales of the property being\nappraised that occurred within one year;\n (5) When estimating the value of a leased fee estate or a leasehold\nestate, analyze and consider the effect on value, if any, of the terms\nand conditions of the lease; and\n (6) Give careful consideration to the effect on value, if any, of the\nassemblage of the various estates or component parts of an estate and\nrefrain from estimating the value of the whole solely by adding together\nthe individual values of its various estates or component parts.\n d. In developing a review appraisal, a state certified or licensed\nreal estate appraiser shall observe all of the following specific\nappraisal guidelines:\n (1) Identify the appraisal report being reviewed, the real estate\nbeing appraised, the real property being appraised, the effective date\nof the opinion in the original report, the date of the original report\nand the date of the review;\n (2) Identify the scope of the review process to be conducted,\nincluding a determination of whether or not it is appropriate or\nessential to inspect the appraised property and the data presented;\n (3) Form an opinion as to the adequacy and relevance of the data used\nand the propriety of any adjustment made;\n (4) Form an opinion as to whether or not the appraisal methods and\ntechniques used were appropriate and, if not, the reasons for the\nperson's disagreement with the original appraisal; and\n (5) Form an opinion as to whether or not the analyses, opinions or\nconclusions in the report being reviewed are correct or appropriate and,\nif not, state his or her analyses, opinions or conclusions and his or\nher reasons for disagreement with the original appraisal.\n e. In developing an appraisal for an employer or a client, a state\ncertified or licensed real estate appraiser shall carefully consider and\ndetermine whether the appraisal service to be performed is intended to\nresult in an analysis, opinion or conclusion of a disinterested third\nparty and therefore would be classified as an appraisal assignment as\ndefined in subdivision two of section one hundred sixty-x of this\narticle. If the appraisal service to be performed is not intended to\nresult in an analysis, opinion or conclusion of a disinterested third\nparty, the person shall then carefully consider whether or not he or she\nwould be perceived by third parties or the public as acting as a\ndisinterested third party.\n f. Prior to entering into an agreement to perform a real property\nappraisal service, a state certified or licensed real estate appraiser\nshall carefully consider the knowledge and experience that will be\nrequired to complete the appraisal service competently and either:\n (1) Have the knowledge and experience necessary to complete the\nappraisal service competently; or\n (2) Immediately disclose the lack of knowledge or experience to the\nclient and take all steps necessary to complete the appraisal service\ncompetently.\n g. A state certified or licensed real estate appraiser may enter into\nan agreement to perform a real property appraisal service that calls for\nsomething less than, or different from, the work that would otherwise be\nrequired by the specific appraisal guidelines, provided that prior to\nentering into the agreement, he or she has done all of the following:\n (1) The state certified or licensed real estate appraiser has\ndetermined that the appraisal service to be performed is not so limited\nin scope that the resulting analysis, opinion or conclusion concerning\nreal estate or real property would tend to mislead or confuse the\nclient, the users of the appraisal report or the public; and\n (2) The state certified or licensed real estate appraiser has advised\nthe client that the appraisal service calls for something less than, or\ndifferent from, the work required by the specific appraisal guidelines,\nand therefore the appraisal report will include a qualification that\nreflects the limited or differing scope of the appraisal service.\n