DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
DIRECTOR’S OFFICE
REAL ESTATE APPRAISERS - GENERAL RULES
Filed with the secretary of state on
These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.
(By authority conferred on the Michigan
board of real estate appraisers by section 308 of the occupational code, 1980
PA 299, MCL 339.308; and on the director of the department of licensing and
regulatory affairs by sections 202, 205, 210, 2601, 2605, and 2617 of the
occupational code, 1980 PA 299, MCL 339.202, 339.205, 339.210, 339.2601,
339.2605, and 339.2617; and Executive Reorganization Order Nos. 1991-9, 1996-2,
2003-1, 2008-4, and 2011-4, MCL 338.3501, 445.2001, 445.2011, 445.2025, and
445.2030)
PART 1. GENERAL PROVISIONS
R 339.23101 Definitions.
Rule 101. (1) As used in these rules:
(a) “AQB” means the Appraiser Qualification Board.
(b) “AQB Criteria” means The Real Property Appraiser Qualification Criteria.
(c) “Board” means the Michigan
board of real estate appraisers created under section 2603 of the code, MCL
339.2603.
(bd) “Code” means the
occupational code, 1980 PA 299, MCL 339.101 to 339.2677.
(ce) "Transaction
value" means either of the following:
(i) For loans or other extensions of credit, or for sales, leases, purchases, and investments, or in exchanges of real property, the market value of the real property interest involved.
(ii) For the pooling of loans or interests in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each loan or interest in real property.
(f) “PAREA” means the practical applications of real estate appraisal program created by the AQB.
(g) “USPAP” means the uniform standards of professional appraisal practice created by the Appraisal Foundation’s Appraisal Standards Board.
(2) Unless otherwise defined in these
rules, the termsA term defined in articles 1 to 6 and 26 of the
code, MCL 339.101 to 339.606 and 339.2601 to 339.2637, hashave
the same meaning whenas used in these rules.
R 339.23104 Exemption from standard.
Rule 104. The following are exempt from
the requirements of the Uniform Standards of Professional Appraisal Practice
(USPAP), Standard 3 and Standard 4:
(a) A board member who is performing an investigation or testifying at an adjudicatory hearing on behalf of the department.
(b) A board member who is serving in the capacity of a reviewer while reviewing the work experience of an applicant for licensure.
(c) An investigator employed by or retained by the department who is performing an investigation or testifying at an adjudicatory hearing.
R 339.23105 Standard for performing an appraisal.
Rule 105. Section 2605(1) of the code, MCL 339.2605, requires that a licensee perform an appraisal utilizing the USPAP that are in effect at the time the appraisal is performed.
PART 2. LICENSING R 339.23202 AQB Criteria required.
Rule 202. Section 2605(4) of the code, MCL 339.2605, requires that the AQB Criteria be utilized regarding education, examination, and experience for licensure.
R 339.23203 Appraisal experience for licensure; satisfactory evidence.
Rule 203. An applicant's experience hours must comply with 1 of the following requirements:
(a) All of the following requirements:
(i) Appraisal experience, demonstrated by copies of reports and file memoranda. The applicant shall submit a detailed log to the department that includes all of the following information:
(A) Date of each appraisal assignment.
(B) Property address.
(C) Property type.
(D) Description of work performed by the applicant.
(E) Scope of the review and level of
supervision of the applicant’s supervisory certified appraiser consistent with
the AQB criteria,. as that term is defined in section 2601(b)
of the code, MCL 339.2601, and R 339.23203a.
(F) A clear indication of the time devoted to each appraisal.
(ii) Work samples that must include the
supervisory certified appraiser’s signature and state certification
number. of the supervisory certified appraiser.
(iii) Experience in each of the following areas of the appraisal process:
(A) Defining the appraisal problem.
(B) Gathering and analyzing data.
(C) Applying all appropriate valuation approaches, including cost approach, market approach, income approach, and methodology.
(D) Arriving at an opinion of value.
(E) Reporting the opinion of value.
(iv) Documents that support the
information contained in an the application, including the an
applicant's experience log, or an. An affidavit of work
experience is accepted acceptable instead of an experience
log if dated before July 1, 2013. The documents and information
described in this subdivision must be maintained for not less than 6 years
after the date of application.
(b) The requirements of an Appraiser
Qualification Board (AQB) approved practical applications or real
estate appraisal (PAREA) program. An applicant that meets the
requirements of this subdivision shall submit to the department a certificate
of completion from the provider of an AQB approved PAREA program.
R 339.23203a Supervisory certified appraiser.
Rule 203a. (1) A supervisory certified appraiser shall comply with the supervisory certified appraiser qualifications in the AQB criteria.
(2) Before supervising, a supervisory
certified appraiser shall complete a course that, at a minimum,
complies with the specifications for course content established by the AQB
criteria and provide proof of completion of the course to the department.
(3) A supervisory certified appraiser shall provide each real estate appraiser trainee with documentation establishing that the supervisory certified appraiser has completed the requisite supervision course referenced in subrule (2) of this rule.
(3) (4) A supervisory
certified appraiser shall not supervise more than 3 real estate appraiser trainees pursuant to the AQB
criteria unless written authorization by the department is granted, under
subrule (4)(5) of this rule, to exceed the number of trainees at
any 1 time.
(4)(5) The
department may authorize a supervisory certified appraiser to exceed the
maximum number of trainees allowed to be supervised under subrule (34)
of this rule, provided all of the following are complied with:
(a) The applicant contacts
the department by email to request permission to supervise more than 3 real
estate appraiser trainees. submits an application on a form provided by
the department and approved by the board to the department.
(b) The supervisory
certified appraiser submits proof to the department that he or she the
supervisory certified appraiser has complied with the supervisory certified
appraiser qualifications in the AQB criteria and has more than 5 years of
experience as an appraiser.
(c) The supervisory certified
appraiser agrees in his or her application to attests that they will
limit supervision to no more than 6 trainees at any 1 time, with no more than 3
trainees with less than 1 year of experience.
(d) The supervisory
certified appraiser prepares and maintains trainee progress reports on each
trainee and makes them available to the department until the trainee becomes
certified or licensed or after 2 years has have lapsed since
supervising the trainee, whichever is earlier.
(e) The supervisory certified appraiser provides the department with a mentoring plan for each trainee before supervising the trainee.
R 339.23207 Market analysis by real estate licensees; acceptable experience. Rescinded. Rule 207. Market analysis as performed by a real estate licensee may be included in the experience required in R 339.23203, if both of the following conditions are met: (a) The applicant provides proof that he or she was properly licensed as a real estate broker, associate broker, or salesperson when the real estate market analysis was performed. (b) The analysis is prepared in conformity with standards 1 and 2 of USPAP, and the individual can demonstrate that he or she is using similar techniques as appraisers to value properties and effectively utilizes the appraisal process. PART 3. APPRAISER EDUCATION
R 339.23301 Definitions.
Rule 301. As used in this part:
(a) "Continuing education
course" means a course that complies with the AQB criteria for continuing
education courses, and is approved by the department., and
contributes to maintaining and increasing a licensee’s skill, knowledge, and
competency in real property appraising.
(b) "Coordinator" means an
individual who assumes, on behalf of a course sponsor, the responsibility pursuant
to these rules forof offering courses relating to the activities of
real estate appraisers in accordance with these rules.
(c) "Instructor" means an
individual who is determined to be qualified by the sponsor to instruct
students or licensees in prelicensure or continuing education courses and who
provides instruction directly and interactively in contact with students
or licensees. An instructor may utilize guest speakers but shall bear ultimate
responsibility to the sponsor for the quality of information imparted to
students or licensees.
(d) "Prelicensure course" means a course that complies with the AQB criteria for prelicensure education courses and is approved by the department.
(e) "Sponsor" means an entity
that meets the requirements of section 2617(2) of the code, MCL
339.2617, and that offers or proposes to offer either prelicensure
appraiser education or continuing education.
R 339.23303 Education; submission of documentation by applicants for licensure.
Rule 303. (1) In When submitting
documentation of prelicensure education obtained before the effective date of
the code or from course sponsors that are not approved under these rules, the
applicant shall show that the course was designed to teach individuals to
perform appraisals or to augment a basic knowledge of appraisals with general
information that the instructor then relates to the performance of appraisals.
(2) General educational courses, including business, economics, statistics, or law, or general courses in real estate or real estate law are not considered equivalent to approved prelicensure education unless a relationship to appraisal is shown in the course description, syllabus, or curriculum outline to the extent that 15 or more classroom hours are specifically related to appraisal. Classroom hours of credit must only be granted for hours that are specifically related to appraisal.
(3) An applicant's submission of documentation of prelicensure education must include all of the following information:
(a) The date and place the course was taken.
(b) The sponsor’s name of the
sponsor, the sponsor's current address, and the sponsor’s
telephone number, and email address, if available.
(c) A copy of the course outline, syllabus, detailed curriculum, or similar information.
(d) A copy of the certificate of completion.
(e) The number of classroom hours spent
in the course. To have the education hours approved by the department,
continuing education course sponsors utilizing distance-learning systems shall
have an acceptable method of ensuring that the licensee achieves an equivalent
to classroom hours.
(4) In When submitting
documentation of education from institutions of higher education that are
approved to grant degrees that confer credit hours rather than classroom hours,
1 credit hour is equivalent to 10 classroom hours of actual instruction for
term credits and 15 classroom hours of instruction for semester credits.
(5) Documentation to support information on the application for course approval must be maintained for not less than 6 years after the date of the application.
(6) To assist applicants, the department shall maintain a list of courses that are acceptable to the department.
R 339.23307 Prelicensure education; Conduct
conduct of courses.
Rule 307. (1) A course sponsor shall comply with all of the following requirements:
(a) A sponsor shall not represent a course to licensees or to the public as meeting the requirements of the code and these rules until the course is approved by the department, unless the course advertises that it has been submitted for approval but has not yet been approved by the department.
(b) A person shall not solicit for organizational membership, employment, or business-related products and services during qualifying course classroom hours.
(c) A sponsor shall appoint an individual as coordinator for the sponsor's courses. The coordinator is responsible for supervising the program of courses and ensuring compliance with the code, these rules, and the AQB criteria. The coordinator does not need to be a licensee.
(d) An instructor who meets the
requirements of R 339.23309(3) and (4) and (5) shall teach the
course.
(e) Each student or licensee shall be provided with a written syllabus that contains, at a minimum, all of the following information:
(i) The course title.
(ii) The times and dates of the course offering.
(iii) The name, business address, telephone number, and email address of the course coordinator, and the name of the instructor.
(iv) A detailed outline of the subject matter to be covered and the estimated time to be devoted to each subject.
(f) A course must not be credited for more than 10 classroom hours of instruction in 1 day. Calculations of classroom hours for a course must not include any of the following:
(i) Meals.
(ii) Breaks.
(iii) Registration.
(iv) Required reading.
(v) Outside assignments.
(g) Each course must reflect the most current version of state and federal laws, regulations, and the AQB criteria.
(h) A sponsor shall allow the department to review a course at any time or to inspect the records of a course sponsor during normal business hours.
(i) A sponsor whose programs are transferred to another entity shall arrange for student or licensee records to be maintained permanently by the successor entity. The successor entity shall ensure that student or licensee records are available to students or licensees who need to verify their education.
(2) A proprietary real estate appraiser
sponsor licensed under the proprietary schools act, 1943 PA 148, MCL 395.101 to
395.103, shall continuously comply with the proprietary schools act.
R 339.23309 Prelicensure course sponsor; instructorSponsors; duties; instructors;duties.
Rule 309. (1) A sponsor is responsible for all of the following:
(a) Complying with all laws, rules, and the AQB criteria, relating to appraiser education, including requirements related to class hours, content, course delivery mechanism, instructors, and examinations.
(b) Providing students or licensees with current and accurate information.
(c) Maintaining an atmosphere that is conducive to learning in the classroom.
(d) Ensuring and certifying the attendance of students or licensees who are enrolled in courses.
(e) Providing assistance to students or licensees and responding to questions relating to course materials.
(f) Supervising all guest
lecturers and ensuring relating all information that is presented
relates to the practice of real estate appraisal.
(2) Appraiser education programs may
be offered using Components of distance education delivered in
include synchronous, asynchronous, and hybrid formats. Sponsors
shall ensure that all forms of distance education comply with the AQB criteria.
(3)(a) In synchronous distance education, the
instructor and students shall interact simultaneously online, including phone
calls, video chat, live webinars, or web-based meetings.
(4)(b)
In asynchronous distance education, the instructor and student’s interaction
may be non-simultaneous, and the student may progress at his or her the
student’s own pace and follow a structured course content and quiz-exam
schedule.
(5)(c)
In hybrid distance courses, also known as blended courses, the student may
interact with the instructor both in–person and online through synchronous or
asynchronous education.
(6)(3) The course must
be equivalent to 15 classroom hours for prelicensure courses and 2 classroom
hours for continuing education courses.
(7)(4) A sponsor shall only
select as instructors only individuals who can demonstrate
mastery of the material being taught and who possess 1either of
the following qualifications:
(a) Experience as a faculty member of an institution of higher education that is approved to grant degrees.
(b) A state licensed, certified residential, or certified general appraiser with 3 years of appraisal experience.
(c) Other experience acceptable to
the sponsor for courses other than prelicensure courses.
(8)(5) Instructors of
USPAP shall comply with the AQB instructor certification program as required by
the real property AQB criteria.
R 339.23311 Unacceptable prelicensure Coursescourses,
activities not acceptable for prelicensure or continuing education.
Rule 311. The department shall not
approve a prelicensure or continuing education course or activity, nor
shall it grant credit to a licensee for the USPAP course for any of the
following:
(a) Courses that are offered using
distance education platforms that do not provide student or licensee access
to an instructor during the course. meet distance education course
requirements of the AQB criteria.
(b) Courses that deal with employment-related topics including explanations of rights, benefits, and responsibilities; organizational structure; and on-the-job methods, processes, or procedures.
(c) Membership in or service in an office, or on a committee of a professional, occupational, trade, or industry society or organization.
(d) Conferences, delegate assemblies, or similar meetings of professional organizations for policy-making purposes.
(e) Meetings and conventions of
societies and associations; however, educational activities that are provided
independently, by an approved course sponsor, and that are
held concurrently with a meeting or convention of societies or associations may
be given credit.
(f) Attendance at lecture series, cultural performances, entertainment, or recreational meetings or activities, or participation in travel groups, unless these activities are an integral part of a course that is approved pursuant to these rules.
(g) On-the-job training, apprenticeships, and other work experiences.
(h) Courses in sales promotion, motivation, marketing, psychology, time management, mechanical office, or business skills, including typing, speed-reading, or the use of office machines or equipment other than calculators or computers.
R 339.23315 Denial, suspension, or rescission of approval to offer courses; violation of
code or rules.
Rule 315. A real estate
sponsor or instructor is subject to the penalties of section 602 of the code,
MCL 339.602, including recission of course approval, for any of the following
reasons: Approval of a course will be rescinded if any of the following
occur:
(a) The sponsor or instructor fails Failing
to comply with the requirements of the code or these rules.
(b) Graduates from the last 5 course
offerings have Having a high rate of failure rate of more
than 50% on a licensing examination as a result of a lack of competent
instruction.
(c) The sponsor or instructor make Making
a substantial misrepresentation regarding an appraisal education sponsor or
course. the course.
(d) The sponsor or instructor pursue
Pursuing a continued course of misrepresentation or making false
promises through agents, salespersons, advertising, or otherwise.
PART 3A. PRELICENSURE EDUCATION COURSE APPROVAL
R 339.23316 Prelicensure education. Rescinded.
Rule 316. Prelicensure education
courses may be used to obtain credit for both prelicensure education and
continuing education. However, the prelicensure exam may not be used toward
continuing education hours.
R 339.23317 Prelicensure education; application for course approval; forms;
requirements; unacceptable courses.
Rule 317. (1) An application for approval of a prelicensure real estate appraiser education course must be made on forms provided by the department. The department shall accept or reject the application.
(2) The application must include all of the following information:
(a) The course title.
(b) The number of classroom hours to be given for completion of the course.
(c) The name, business address, email address, and telephone number of the sponsor.
(d) The name, business address, email address, and telephone number of the course coordinator.
(e) The name, license number, and qualifications of instructors.
(f) The graduate pass rate on a licensing examination for the last 5 course offerings.
(f)(g) A detailed
outline of the subject matter to be covered and the number of classroom hours
to be devoted to each topic, as it will appear in the student or licensee
syllabus.
(g)(h) A summary of the
required topics for prelicensure that are covered in the course completed on
the subject matter matrix provided by the department.
(h)(i) The methodology
for verifying and monitoring attendance, including the class make-up policy. A
sponsor shall have a written make-up policy for students or licensees who are
absent from all or a part of regularly scheduled class sessions. If there are
no opportunities to make up missed sessions, that policy must be stated.
(i)(j) The standards a
student or licensee must meet to complete the course, including assignments,
projects, examinations, and the passing score on the examination that must be
given at the completion of the course for a student or licensee to demonstrate
mastery of the material covered. For a distance education course, a student
must pass a written, closed-book examination proctored by an official approved
by the presenting college or university or by the sponsoring organization.
Remote proctoring, including bio-metric proctoring, is acceptable. A written
examination includes both written on paper or administered electronically on a
computer or other device. Oral examinations are not acceptable.
(j)(k) For a distance
education course, the methodology for proctoring the examination. Distance
education courses, whether synchronous, asynchronous, or hybrid, must comply
with AQB criteria and require the student to pass a written, closed-book
examination proctored by an official approved by the presenting college or
university or by the sponsoring organization. Remote proctoring, including
bio-metric proctoring, is acceptable. A written examination includes both
written on paper or administered electronically on a computer or other device.
Oral examinations are not acceptable.
(l) Proof that the sponsor is an entity that may offer prelicensure real estate appraisal education courses under section 2617(2) of the code, MCL 339.2617.
(3) If a sponsor desires to change a
course's content, instructors, speakers, or hours of credit, the sponsor shall
reapply for departmental department approval of the changes to
the course by completing an application for course approval, obtained from the
department, not less than 30 days before the date the course is offered to
students or licensees.
(4) Emergency changes to instructors
and speakers that are unable to be submitted to the department not less than 30
days before the date of the continuing education course may be reviewed by the
department if the department determines that the applicant was unable to submit
the requested change not less than 30 days before the date of the continuing
education course and the request submitted with the change supports the nature
of the emergency.
(5) The department shall notify the
sponsor of whether the proposed course change is approved. The sponsor
shall not offer the course with the proposed changes without departmental
department approval.
(65) The department may
determine that a proposed change cannot be made without the submission of
additional supporting documentation or that the extent or number of changes
requested require the sponsor to complete a new application for approval.
(76) A department-approved
course expires 3 years after the date of the course approval, at which time the
course approval is subject to renewal. A sponsor shall notify the department
of its intent to renew a previously approved course by submitting course
renewal forms provided by the department. All of the following apply regarding
course renewal:
(a) The completed course renewal forms must be received by the department not less than 60 days before the expiration date.
(b) If completed renewal forms are received by the department not less than 60 days before the expiration date, the course does not expire until reviewed by the department.
(c) If completed renewal forms are received by the department less than 60 days before the expiration date, approval of the course expires on the expiration date.
(d) Course renewal forms are not valid and are not accepted by the department less than 60 days before the expiration date.
(e) Sponsors requesting approval for a course less than 60 days before the expiration date shall complete and submit to the department an application for original course approval.
R 339.23319 Prelicensure education; student or licensee records; permanent record;
course completion certificate.
Rule 319. (1) A course sponsor shall
establish and permanently maintain a record for each student or licensee.
The record must contain all of the following information:
(a) The student's or licensee’s
name and address.
(b) The student's or licensee’s
date of birth.
(c) The number of classroom hours attended.
(d) The title of the course and the department's course completion number.
(e) The date of course completion.
(f) The student's or licensee’s
grade.
(g) The licensee’s real estate appraiser license number, if applicable.
(2) A course sponsor shall issue a
certificate of completion to a student or licensee who completes the
entire course and receives a passing grade in a prelicensure education course.
The certificate must include all of the following information:
(a) The name of the student or
licensee.
(b) The name of the sponsor.
(c) The name of the course attended.
(d) The number of classroom hours
completed by the student or licensee.
(e) The date of course completion.
(f) The signature of the course coordinator or instructor.
(g) The sponsor number assigned by the department.
(h) The course approval number assigned by the department.
(3) Within 15 business days after the
conclusion of a course, a sponsor shall certify to the department the names of
students and licensees who complete an approved course in a manner
approved by the department.
PART 3B. CONTINUING EDUCATION R 339.23321Continuing education; application for course approval; forms; requirements.Continuing education requirements for license renewal.
Rule 321. (1) An application for
approval of a continuing education course must be made on forms provided by the
department. The department shall accept or reject the application.
(2) The completed application forms must
be submitted to the department not less than 60 days before the date the course is conducted.
(3) The application must include, but
not be limited to, all of the following information:
(a) The course title.
(b) The number of classroom hours
to be given for completion of the course.
(c) The name, business address, and
telephone number of the sponsor.
(d) The name, business address, and
telephone number of the course coordinator.
(e) The name, license number, and
qualifications of instructors.
(f) An outline of the subject
matter to be covered and the number of classroom hours to be devoted to each
topic, as it will appear in the syllabus.
(g) The methodology for verifying
and monitoring attendance. A licensee shall attend the entire course to obtain
credit for the course. Credit for a distance learning course requires
completion of the entire course. A licensee shall not receive credit for
attending the same course more than 1 time during the same license renewal
cycle.
(h) The standards a licensee must meet
to complete the course, including assignments, projects, or examinations. The
sponsor, at its discretion, may give course examinations. The sponsor shall
require 1 of the following evaluations for an asynchronous distance education
course:
(i) A written examination proctored
by an official approved by a college or university or by the sponsoring
organization. Remote proctoring consistent with the requirements of the AQB criteria
is acceptable. A written examination includes both written on paper or
administered electronically on a computer or other device. Oral exams are not
acceptable.
(ii) Successful completion of
prescribed course mechanism required to demonstrate knowledge of the subject
matter.
(i) Proof that the sponsor is an
entity that may offer continuing education courses under section 2617(2) of
the code, MCL 339.2617.
(j) Information to demonstrate that
the course meets the requirements of the AQB criteria and is designed to
improve and maintain the capability of a licensee to perform activities
regulated by the code.
(4) Approval is for a term of 3 years
after the date that the department approved the course.
(5) An application for renewal of an
approved continuing education course must be made on forms provided by the
department. All of the following apply to course renewal:
(a) Course renewal forms must be
received by the department not less than 30 days before the approval expiration
date.
(b) Course renewal forms are not
accepted by the department if submitted less than 30 days before the expiration
date.
(c) Sponsors requesting approval for
course renewal less than 30 days before the expiration date shall complete and
submit to the department an application for original course approval.
(d) If completed renewal forms are
received by the department not less than 30 days before the expiration date,
the course does not expire until the department reviews the application and
makes a decision.
(e) If completed renewal forms are not
received by the department pursuant to the time frame established by this
subrule, the course approval expires on the expiration date.
(6) Subject to
subrule (7) of this rule, all changes to the instructors, speakers, course
content, or number of continuing education hours to be awarded for an approved
continuing education course must be submitted to the department on forms
provided by the department not less than 30 days before the date the continuing
education course is offered to licensees.
(7) Emergency
changes to instructors and speakers that are unable to be submitted to the
department not less than 30 days before the date of the continuing education
course may be reviewed by the department if the department determines that the
applicant was unable to submit the requested change not less than 30 days
before the date of the continuing education course and the request submitted
with the change supports the nature of the emergency.
(8) The department
may revoke the approval status of any approved continuing education course any
time the course fails to comply with these rules.
To renew a license, a licensee shall successfully complete 28 hours of continuing education every 2 calendar years. The continuing education must include all the following:
(a) The 7-hour national USPAP continuing education course, or its AQB approved equivalent, not less than every 2 calendar years. Equivalency is determined through the AQB course approval program or by an alternate method established by the AQB. The following provisions apply to licensees licensed in more than 1 state and instructors:
(i) Licensees who are credentialed in more than 1 jurisdiction do not have to take more than one 7-hour national USPAP continuing education course.
(ii) AQB certified USPAP instructors who successfully complete an instructor recertification course and examination, if an examination is required, within the current licensure cycle, have satisfied the 7-hour national USPAP continuing education course requirement.
(b) Beginning January 1, 2026, a course pertaining to valuation bias and fair housing law and regulations that meets the content requirements of the AQB. The course shall meet the following length requirements:
(i) The first time a licensee completes the continuing education requirement for this course, the course length must be 7 hours. If the licensee successfully completed a 7-hour course, plus a 1-hour examination, as part of the licensee’s qualifying education, the licensee has met this requirement.
(ii) Every 2 calendar years after completing the continuing education requirement for the first time, the course length must be at least 4 hours.
(c) The remaining required continuing education hours must be completed with educational offerings that contribute to maintaining and increasing a licensee’s skill, knowledge, and competency in real property appraising, are consistent with the AQB criteria, and can be fulfilled at any time during the 2-year licensure cycle.
(2) A licensee shall not receive credit for attending the same course more than 1 time during the same licensure cycle.
(3) The department shall not approve a continuing education course or activity that is listed in R 339.23311.
(4) The department shall not grant waivers to a licensee who has failed to meet the continuing education requirements.
(5) The department shall not grant deferrals to a licensee, except in the case of an individual returning from active military duty or an individual impacted by a state or federally declared disaster. However, the department may allow the following:
(a) A licensee returning from active military duty to remain in active status for a period of up to 90 days pending completion of all continuing education requirements.
(b) A licensee impacted by a state or federally declared disaster that occurs within 90 days before the end of the continuing education cycle to remain in active status for a period of up to 90 days after the end of the licensee’s continuing education cycle, pending completion of all continuing education requirements.
R 339.23322 Activities that simultaneously count toward prelicensure education and continuing education requirements. Rule 322. The following activities must be simultaneously counted toward prelicensure education credit and continuing education requirements: (a) Prelicensure education subject to all of the following: (i) The examination taken in a prelicensure course may not be used toward continuing education hours. (ii) The prelicensure course must be equivalent to 2 classroom hours. (iii) When submitting documentation of education from institutions of higher education that are approved to grant degrees that confer credit hours rather than classroom hours, 1 credit hour is equivalent to 10 classroom hours of actual instruction for term credits and 15 classroom hours of instruction for semester credits. (b) Up to 1/2 of a licensee’s continuing education requirement may be granted for participation, other than as a student, in appraisal educational processes and programs, including, but not limited to, teaching or program development of an approved real estate appraiser course, authorship of textbooks, or similar activity. Credit for instructing a course or seminar may be awarded only once during the licensure cycle. (c) The classroom hours for the completion of an instructor recertification course and examination if an examination is required.
(d) Educational offerings taken by a licensee to fulfill the class hour requirement for a different classification than the licensee’s current classification may be simultaneously counted toward the continuing education requirement of the licensee’s current classification.
R 339.23322a Application for continuing education course approval; forms;
requirements.
Rule 322a. (1) An application for approval of a continuing education course must be made on forms provided by the department. The department shall accept or reject the application.
(2) The completed application forms must be submitted to the department not less than 60 days before the date the course is conducted.
(3) The application must include, but is not limited to, all the following information:
(a) The course title.
(b) The number of classroom hours to be given for completion of the course.
(c) The name, business address, email address, and telephone number of the sponsor.
(d) The name, business address, email address, and telephone number of the course coordinator.
(e) The name, license number, and qualifications of instructors.
(f) An outline of the subject matter to be covered and the number of classroom hours to be devoted to each topic, as it will appear in the syllabus.
(g) The methodology for verifying and monitoring attendance to ensure the following requirements are met:
(i) A licensee shall attend the entire course to obtain credit for the course.
(ii) Continuing education course sponsors utilizing distance-learning systems shall have an acceptable method of ensuring that the licensee achieves an equivalent to classroom hours.
(iii) Credit for a distance learning course requires completion of the entire course.
(h) The standards a licensee must meet to complete the course, including assignments, projects, or examinations. The sponsor, at its discretion, may give course examinations. The sponsor shall require 1 of the following evaluations for an asynchronous distance education course:
(i) A written examination proctored by an official approved by a college or university or by the sponsoring organization. Remote proctoring consistent with the requirements of the AQB criteria is acceptable. A written examination includes both written on paper or administered electronically on a computer or other device. Oral exams are not acceptable.
(ii) Successful completion of prescribed course mechanism required to demonstrate knowledge of the subject matter.
(i) Proof that the sponsor is an entity that may offer continuing education courses under section 2617(2) of the code, MCL 339.2617.
(j) Information to demonstrate that a course meets the requirements of the AQB criteria and is designed to improve and maintain the capability of a licensee to perform activities regulated by the code.
(4) Approval is for a term of 3 years after the date the department approved the course.
(5) An application for renewal of an approved continuing education course must be made on forms provided by the department. All of the following apply to course renewal:
(a) Course renewal forms must be received by the department not less than 30 days before the approval expiration date.
(b) Course renewal forms are not accepted by the department if submitted less than 30 days before the expiration date.
(c) Sponsors requesting approval for course renewal less than 30 days before the expiration date shall complete and submit to the department an application for original course approval.
(d) If completed renewal forms are received by the department not less than 30 days before the expiration date, the course does not expire until the department reviews the application and decides whether to approve the course.
(e) If completed renewal forms are not received by the department pursuant to the time frame established by this subrule, the course approval expires on the expiration date.
(6) Subject to subrule (7) of this rule, all changes to the instructors, speakers, course content, or number of hours to be awarded for an approved continuing education course must be submitted to the department on forms provided by the department not less than 30 days before the date the continuing education course is offered to licensees.
(7) Emergency changes to instructors and speakers that are unable to be submitted to the department not less than 30 days before the date of the continuing education course may be reviewed by the department if the department determines that the applicant was unable to submit the requested change not less than 30 days before the date of the continuing education course and the request submitted with the change supports the nature of the emergency.
(8) The department may revoke the approval status of any approved continuing education course any time the course fails to comply with these rules.
R 339.23322b Conduct of continuing education courses.
Rule 322b. (1) A course sponsor shall comply with all the following requirements:
(a) A sponsor shall not represent a course to licensees or to the public as meeting the requirements of the code and these rules until the course is approved by the department, unless the course advertises that it has been submitted for approval but has not yet been approved by the department.
(b) A person shall not solicit for organizational membership, employment, or business-related products and services during qualifying course classroom hours.
(c) A sponsor shall appoint an individual as coordinator for the sponsor's courses. The coordinator is responsible for supervising the program of courses and ensuring compliance with the code, these rules, and the AQB criteria. The coordinator does not need to be a licensee.
(d) An instructor who meets the requirements of R 339.23322c(4) and (5) shall teach the course.
(e) Each student or licensee shall be provided with a written syllabus that contains, at a minimum, all of the following information:
(i) The course title.
(ii) The times and dates of the course offering.
(iii) The name, business address, telephone number, and email address of the course coordinator, and the name of the instructor.
(iv) A detailed outline of the subject matter to be covered and the estimated time to be devoted to each subject.
(f) A course must not be credited for more than 10 classroom hours of instruction in 1 day. Calculations of classroom hours for a course must not include any of the following:
(i) Meals.
(ii) Breaks.
(iii) Registration.
(iv) Required reading.
(v) Outside assignments.
(g) Each course must reflect the most current version of state and federal laws, regulations, and the AQB criteria.
(h) A sponsor shall allow the department to review a course at any time or to inspect the records of a course sponsor during normal business hours.
(i) A sponsor whose programs are transferred to another entity shall arrange for a licensee’s records to be maintained permanently by the successor entity. The successor entity shall ensure that a licensee’s records are available to a licensee who needs to verify their education.
(2) A proprietary real estate appraiser sponsor licensed under the proprietary schools act, 1943 PA 148, MCL 395.101 to 395.103, shall comply with the proprietary schools act.
R 339.23322c Continuing education sponsor; instructor; duties.
Rule 322c. (1) A sponsor is responsible for all the following:
(a) Complying with all laws, rules, and the AQB criteria, relating to appraiser education, including requirements related to class hours, content, course delivery mechanism, instructors, and examinations.
(b) Providing licensees with current and accurate information.
(c) Maintaining an atmosphere that is conducive to learning in the classroom or virtual environment.
(d) Ensuring and certifying the attendance of licensees who are enrolled in courses.
(e) Providing assistance to licensees and responding to questions relating to course materials.
(f) Supervising all guest lecturers and ensuring all information that is presented relates to the practice of real estate appraisal.
(2) Appraiser education programs may be offered using distance education delivered in synchronous, asynchronous, and hybrid formats. Sponsors shall ensure that all forms of distance education comply with the AQB criteria and are delivered in 1 of the following formats:
(a) In synchronous distance education, the instructor and licensee shall interact simultaneously online, including phone calls, video chat, live webinars, or web-based meetings.
(b) In asynchronous distance education, the instructor’s and licensee’s interaction may be non-simultaneous, and the licensee may progress at the licensee’s own pace and follow a structured course content and quiz-examination schedule.
(c) In hybrid distance courses, also known as blended courses, a licensee may interact with an instructor both in–person and online through synchronous or asynchronous education.
(3) The course must be equivalent to 2 classroom hours.
(4) A sponsor shall only select instructors who can demonstrate mastery of the material being taught and who possess 1 of the following qualifications:
(a) Experience as a faculty member of an institution of higher education that is approved to grant degrees.
(b) A state licensed, certified residential, or certified general appraiser with 3 years of appraisal experience.
(c) Other experience acceptable to the sponsor.
(5) Instructors of USPAP shall comply with the AQB instructor certification program as required by the real property AQB criteria.
R 339.23322d Unacceptable continuing education courses, activities.
Rule 322d. The department shall not approve a continuing education course or activity, nor shall it grant credit to a licensee for the USPAP course for any of the following courses or activities:
(a) Courses that are offered using distance education platforms that do not meet distance education course requirements of the AQB criteria.
(b) Courses that deal with employment-related topics including explanations of rights, benefits, and responsibilities; organizational structure; and on-the-job methods, processes, or procedures.
(c) Membership in or service in an office, or on a committee of a professional, occupational, trade, or industry society or organization.
(d) Conferences, delegate assemblies, or similar meetings of professional organizations for policy-making purposes.
(e) Meetings and conventions of societies and associations. However, educational activities that are provided independently, by an approved course sponsor, and are held concurrently with a meeting or convention of societies or associations may be given credit.
(f) Attendance at lecture series, cultural performances, entertainment, or recreational meetings or activities, or participation in travel groups, unless these activities are an integral part of a course that is approved pursuant to these rules.
(g) On-the-job training, apprenticeships, and other work experiences.
(h) Courses in sales promotion, motivation, marketing, psychology, time management, mechanical office, or business skills, including typing, speed-reading, or the use of office machines or equipment other than calculators or computers.
R 339.23322e Misleading information in continuing education courses.
Rule 322e. A person, including a sponsor, shall not provide misleading information about courses or any component of a course. Information is misleading when, taken as a whole, there is a probability that it deceives the class of persons that it is intended to influence. A sponsor shall not represent that the department's approval of a course is a recommendation or endorsement of the sponsor or the content of the course.
R 339.23325 Continuing education; course credit for instructors. Rescinded.
Rule 325. Real estate
appraisers who are also instructors may earn up to ½ of their required real
estate appraiser continuing education credit per license cycle by teaching an
approved real estate appraiser course. Credit is granted to an instructor once
in a licensing cycle for the same course either as a licensee or as an
instructor.
R 339.23326 Continuing education requirements for a licensee. Rescinded.
Rule 326. (1) A licensed appraiser
shall successfully complete the 7-hour national USPAP update course, or its
equivalent, not less than every 2 years. Equivalency is determined through the
AQB course approval program or by an alternate method established by the AQB.
(2) USPAP qualifying education
credit is awarded only when the class is taught by at least 1 instructor who is
an AQB certified instructor and who is a certified residential real estate
appraiser or a certified general real estate appraiser.
(3) Every 2 years, a licensed appraiser
shall successfully complete not less than 2 hours of continuing education
devoted to this state’s appraiser license law and rules.
(4) Credit for attending the board of
real estate appraisers meeting pursuant to the AQB criteria requires proof of
attendance by submission of the department form with the signature of a board
member or department staff person.
(5) The department shall not
grant waivers to a licensee who has failed to meet the continuing education
requirements.
(6) The department shall not
grant deferrals to a licensee, except in the case of an individual returning
from active military duty, or an individual impacted by a state or federally
declared disaster. The department may allow a licensee returning from active
military duty to remain in active status for a period of up to 90 days pending
completion of all continuing education requirements. The department may allow a
licensee impacted by a state or federally declared disaster that occurs within
90 days before the end of the continuing education cycle to remain in active
status for a period of up to 90 days after the end of the licensee’s continuing
education cycle, pending completion of all continuing education requirements.
PART 4. STANDARDS OF CONDUCT R 339.23403 State-licensed real estate appraiser; certified residential real estate appraiser; certified general real estate appraiser; allowed functions.
Rule 403. (1) If a state-licensed real estate appraiser is properly qualified to undertake an assignment, a state-licensed real estate appraiser may perform any of the following appraisal services:
(a) Appraise properties that are not federally related transactions.
(b) Appraise noncomplex 1 to 4-family
residential properties having a, unless the transaction value less
than is $1,000,000.00 or more or the property is complex and must
be appraised by a certified residential or certified general real estate
appraiser. and complex 1 to 4-family residential properties having a
transaction value of less than $400,000.00.
(c) Appraise nonresidential properties
for federally related transactions and real estate related financial
transactions where the transaction value is less than does not exceed
$250,000.00$500,000.00.
(d) Assist a certified residential or certified general real estate appraiser in the development of an appraisal of a complex residential property or a nonresidential property that is the subject of a federally related transaction, as appropriate. The state- licensed real estate appraiser shall not sign the report. However, the certified residential or certified general real estate appraiser shall acknowledge the specific contributions of the state-licensed real estate appraiser within the appraisal report.
(2) A certified residential real estate appraiser, if properly qualified to undertake an assignment, may perform any of the following appraisal assignments:
(a) Appraise properties that are not federally related transactions.
(b) Appraise 1 to 4-family residential properties without regard to complexity or value.
(c) Appraise nonresidential properties
for federally related transactions and real estate related financial
transactions where the transaction value is less than does not exceed
$250,000.00$500,000.00.
(d) Assist a certified general real estate appraiser in the development of an appraisal of a nonresidential property that is the subject of a federally related transaction, as appropriate. The certified residential real estate appraiser shall not sign the report. However, the certified general real estate appraiser shall identify the specific contributions of the certified residential real estate appraiser within the appraisal report.
(3) The licensee allowed to sign the report shall identify all participating licensees and their contributions to the report.