Appraisal Regulations & Standards

a federally related transaction

The Appraisal Foundation

Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of
1989 (FIRREA)

three Es: education, examination, experience.

Maryland Commission of Real Estate Appraisers and Home Inspectors

For federally related transactions, non-complex one- to four-unit residential properties with a transaction value of less than $1 million

Complex one- to four-unit residential properties having a transaction value of less than $250,000

Commercial properties having a transaction value of less than $250,000

150 hours of courses approved by the Maryland Commission of Real Estate Appraisers and Home Inspectors

Associate’s degree, or higher, from an accredited college, junior college, or community college or 30 semester credit hours of college-level education from an accredited college, junior college, community college or university

At least 2,000 hours of appraisal work experience over a period of at least two calendar years (24 months)

For federally related transactions, one- to four-unit residential properties without regard to value or complexity

Commercial properties having a transaction value of less than $250,000

200 hours of courses approved by the commission

Bachelor’s degree or higher from an accredited college or university

At least 2,500 hours of appraisal work over a period of at least two calendar years (24 months)

For federally related transactions, all types of residential or commercial real property without regard to value or complexity.

300 hours of courses approved by the commission

Bachelor’s degree or higher from an accredited college or university

3,000 hours of appraisal work over a period of at least 30 months, at least 1,500 hours of which in nonresidential real property appraisal work

Works under the supervision of a supervising certified appraiser.

Qualifications
Within the five-year period prior to the date of submission of an application for a real estate appraiser trainee license, complete 75 tested hours of commission-approved real estate appraisal courses of which 15 hours shall be in the subject of the Uniform Standards of Professional Appraisal Practice and a commission-approved course oriented toward trainee appraiser expectations and responsibilities.

Written evaluation of one or more of the components of an existing residential building, including the heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior and interior components, or any other related residential housing component

72-hour on-site home inspector training course approved by the commission and pass the National Home Inspector Examination

Additional qualifications include:

Criminal background check (for new applicants)
No repeat courses in the same cycle for credit

Real estate brokers and salespersons in the ordinary practice of their business (e.g., for providing comparative market
analyses) (CMAs may not be referred to as “appraisals,” however)
A public officer performing official duties
A consultant who, as part of her consulting services, offers a valuation or analysis of real estate or standing timber (this
valuation may not be referred to as an appraisal or used in connection with obtaining a loan)
An employee directed to value a property for his employer, provided the valuation is not referred to or used as an appraisal
A representative of a lender who is offering a valuation in connection with a financial transaction where an appraisal by a state-certified or state-licensed appraiser is not required

Appraisal management companies (AMCs)

AMCs aren’t a separate licensing category in Maryland, but they must be registered with the Maryland Commission of Real Estate Appraisers and Home Inspectors and their appraisers must be licensed or certified and must possess the same qualifications

and education as individuals who aren’t part of an AMC.

A person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state

Another entity that is owned by a person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state

In addition, a “controlling person” must be designated as the responsible party for the AMC. This person also must not have had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state unless it was

later granted or reinstated; and must be of good character as determined by the commission.