Home Table of Contents

235.03.2-III. General Examination and Experience Criteria

AR ADC 235.03.2-IIIArkansas Administrative CodeEffective: February 5, 2024

West's Arkansas Administrative Code
Title 235. Arkansas Department of Labor and Licensing
Division 3. Arkansas Appraiser Licensing and Certification Board
Rule 2. Arkansas Appraiser Licensing and Certification Board Rules
Effective: February 5, 2024
Ark. Admin. Code 235.03.2-III
Formerly cited as AR ADC 151.00.1-III
235.03.2-III. General Examination and Experience Criteria
Currentness
A. Examination Criteria
1. A new applicant, not currently licensed or certified and in good standing in another jurisdiction, shall have up to 24 months, after approval by the Board, to take and pass an AQB-approved qualifying examination for the credential. Successful completion of the examination is valid for a period of 24 months.
B. Experience Criteria
1. Education may not be substituted for experience, except as shown below in Subdivision four (4) of this Section III(B).
2. The quantitative experience requirements must be satisfied by time spent in the appraisal process. The appraisal process consists of: analyzing factors that affect value; defining the problem; gathering and analyzing data; applying the appropriate analysis and methodology; and arriving at an opinion and correctly reporting the opinion in compliance with USPAP.
3. Hours may be treated as cumulative in order to achieve the necessary number of hours of appraisal experience. Cumulative is defined as experience that may be acquired over multiple time periods.
4. There need not be a client in a traditional sense (e.g., a client hiring an appraiser for business purpose) in order for an appraisal to qualify for experience, but experience gained for work without a traditional client cannot exceed 50% of the total experience requirement.
a. Practicum courses that are approved by the Board can satisfy the non-traditional client experience requirement. A practicum course must include the generally applicable methods of appraisal practice for the credential category. Content includes, but is not limited to: requiring the student to produce credible appraisals that utilize an actual subject property; performing market research containing sales analysis; and applying and reporting the applicable appraisal approaches in conformity with USPAP. Assignments must require problem solving skills for a variety of property types for the credential category.
b. Experience credit shall be granted for the actual classroom hours of instruction and hours of documented research and analysis as awarded from the practicum course approval process.
5. An hour of experience is defined as verifiable time spent in performing tasks in accordance with acceptable appraisal practice. Acceptable real property appraisal practice for experience credit includes appraisal, appraisal review, appraisal consulting, and mass appraisal. All experience must be obtained after January 30, 1989, and must be USPAP-compliant. An applicant's experience must be in appraisal work conforming to Standards 1,2,3,4,5, and 6, as applicable where the appraiser demonstrates proficiency in appraisal principles, methodology, procedures (development), and reporting conclusions.
6. Documentation in the form of reports, certifications, or file memoranda, or, if such reports and memoranda are unavailable for good cause, other evidence at the Board's discretion that the work is compliant with USPAP must be provided as part of the Board's experience verification process to support the experience claimed.
7. Acceptable experience may include a limited number of hours related to necessary and fundamental tasks, such as records research, measurements, and certain aspects of property inspections. But to be satisfactory, the experience of the applicant must clearly demonstrate a progression in exposure, charge, responsibility, and successful performance of those comprehensive tasks related to real property appraisal practice, to include, but not limited to appraisal development and reporting, and should involve all aspects of the valuation process.
8. The burden of proving the amount and validity of experience claimed is entirely the responsibility of the applicant. As a minimum, the applicant must be prepared to substantiate, on request by the Board, the experience claimed with a true copy of appraisal assignment reports, work file to support the nature or the experience claims, and true copies of time records or calendars which support actual work time associated with the assignments.
9. The verification for experience credit claimed by an applicant shall be on the forms prescribed by the Board, which shall include:
a. Type of property;
b. Date of report;
c. Address of appraised property, including city name;
d. Description of work performed by the applicant and scope of the review and supervision of the supervising appraiser;
e. Number of actual work hours by the applicant on the assignment; and
f. The signature and credential number of the supervising appraiser, if applicable. Separate appraisal logs shall be maintained for each supervising appraiser, if applicable.
10. The Board reserves the right, at its discretion, to hold for a reasonable length of time for investigation of the amount of experience claimed on the application of any applicant.
11. There is no maximum time limit during which experience may be obtained.
C. Practical Applications of Real Estate Appraisal (PAREA)
Practical Applications of Real Estate Appraisal (PAREA) programs approved by the Appraiser Qualifications Board (AQB) utilize simulated experience training, and serve as an alternative to the traditional Supervisor/Trainee experience model, under Section B. To qualify as creditable experience, AQB-approved PAREA programs shall:
1. Contain, at a minimum, the content specified in the Practical Applications of Real Estate Appraisal section of The Real Property Appraiser Qualification Criteria (Criteria);
2. Require participants to possess the following prerequisites prior to commencement of training:
a. For the State Licensed Module: 150 hours of qualifying education as specified in the Required Core Curriculum for the State Licensed Residential Real Property Appraiser classification.
b. For the Certified Residential Module: 200 hours of qualifying education as specified in the Required Core Curriculum for the Certified Residential Real Property appraiser classification; and
i. Possession of a valid State Licensed Residential Real Property Appraiser credential; or
ii. Successful completion of an AQB-approved PAREA program for the State Licensed Real Property Appraiser classification;
3. Provide an adequate number of Mentors to ensure timely and competent mentoring for all program participants;
4. Ensure Mentors meet or exceed the following qualifications:
a. Mentors shall be state-certified appraisers and in good standing for a period of at least three (3) years prior to being eligible to become a Mentor; and
b. Mentors shall not have been subject to any disciplinary action, within any jurisdiction, within the last three (3) years that affected the Mentor's legal eligibility to engage in appraisal practice, or to act as a Supervisory Appraiser. A Mentor subject to a disciplinary action would be considered to be in good standing three (3) years after the successful completion or termination of the imposed sanction;
5. Ensure program participants produce demonstration appraisal reports that comply with USPAP, and meet or exceed the following requirements:
a. State Licensed:
i. No fewer than three (3) demonstration appraisal reports;
ii. Demonstration reports must represent a variety of assignment types and property types that are consistent with the State Licensed program content; and
iii. Demonstration reports must comply with the edition of USPAP that is in effect at the time.
b. Certified Residential
i. No fewer than three (3) demonstration appraisal reports;
ii. Demonstration reports must represent a variety of assignment types and property types that are consistent with the Certified Residential program content; and
iii. Demonstration reports must comply with the edition of USPAP that is in effect at the time;
6. Provide each program participant that successfully completes PAREA training with a certificate of completion, subject to the following:
a. Participants may not receive partial credit for PAREA training;
b. Participants may not receive a certificate of completion until all required components of PAREA training have been successfully completed and approved by a program Mentor;
c. Certificates of completion must be signed by an individual from the training entity qualified to verify a participant's successful completion; and
d. Certificates of completion must not contain an expiration date or other constraints that either limit or restrict the participant's ability to receive appropriate credit; and
7. Allow participants successfully completing approved PAREA programs to receive the following experience credit:
a. For participants completing an approved State Licensed program:
i. State Licensed classification: 100 percent of the required experience hours.
ii. Certified Residential classification: 67 percent of the required experience hours.
iii. Certified General classification: 33 percent of the total required experience, none of which is eligible towards the required non-residential hours.
b. For participants completing an approved Certified Residential program:
i. State Licensed classification: 100 percent of the required experience hours.
ii. Certified Residential classification: 100 percent of the required experience hours.
iii. Certified General classification: 50 percent of the total required experience, none of which is eligible towards the required non-residential hours.

Credits

Adopted Dec. 30, 2019. Amended Oct. 2, 2020; July 1, 2022; Feb. 5, 2024.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 235.03.2-III, AR ADC 235.03.2-III
End of Document