Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Words shall have their usual meaning unless
the context or a definition clearly indicates a different meaning. Words used in
their present tense include the future tense and words in the singular form include
the plural form. Use of the word "shall" or "must" denotes mandatory conduct; "may"
denotes permissive conduct; and "should" denotes recommended conduct.
(b) As used in these regulations, the following
words and phrases shall have the following definitions:
(1) "Applicant" means a natural person who has
made application to be a State Licensed Real Estate Appraiser, a State Certified
Real Estate Appraiser, a Course Provider or a person who has applied for a Trainee
License, a Reciprocal License or a Temporary Practice Permit. Applicant also means
an entity or Controlling Person that has applied for a Certificate of Registration
as an Appraisal Management Company;
(2)
"Appraisal management company" means any person or entity as defined in Business and
Professions Code section
11302.
(3) "Appraisal management services" as defined in
Business and Professions Code section
11302.
(4) "Appraisal Standards Board (ASB)" means the
board of The Appraisal Foundation;
(5)
"Appraisal Subcommittee (ASC)" means the Appraisal Subcommittee of the Federal
Financial Institutions Examination Council;
(6) "Appraiser" means an individual who holds a
license issued by the Bureau of Real Estate Appraisers;
(7) "Appraiser Qualifications Board (AQB)" means
the subcommittee of The Appraisal Foundation. The "Appraiser Qualifications Board"
(AQB) is the board of The Appraisal Foundation which promulgates the minimum
national requirements for licensure for licensed appraisers. The minimum national
requirements include the interpretations and clarifications of the appraiser
qualifications criteria issued by AQB;
(8) "Asynchronous" means any distance education
course where course instruction and licensee participation in the course do not
occur simultaneously and that requires completing and passing an assessment or
examination of the course content at the conclusion of course instruction.
(9) "Bias" means basing, either partially or
completely, an analysis or opinion of market value upon any of the personal
characteristics or criteria listed in Section
11424
of the Business and Professions Code.
(10) "BREA" means the California Bureau of Real
Estate Appraisers;
(11) "Bureau" means
the California Bureau of Real Estate Appraisers;
(12) "Certificate of Registration" means a
certificate issued by the California Bureau of Real Estate Appraisers verifying the
registration of a person or entity as approved to conduct business in California as
an Appraisal Management Company.
(13)
"Chief" means the Chief of BREA or their designee;
(14) "Controlling Person" means one or more of the
following:
(A) An officer or director of an
Appraisal Management Company, or an individual that holds 10% or greater ownership
interest in an Appraisal Management Company.
(B) An individual employed, appointed or
authorized by an Appraisal Management Company that has the authority to enter into a
contractual relationship with clients for the performance of appraisal services and
that has the authority to enter into agreements with independent appraisers for the
completion of appraisals.
(C) An
individual who possesses the power to direct or cause the direction of the
management or policies of an Appraisal Management Company.
(15) "Course Provider" means a person or
organization that has been approved by the Bureau of Real Estate Appraisers to
provide educational courses within the parameters set forth herein.
(16) "Designated Officer" means a Controlling
Person authorized by the governing structure of the Appraisal Management Company to
act on behalf of the company for purposes of application for, and compliance with, a
Certificate of Registration to operate as an Appraisal Management Company pursuant
to California law. The Designated Officer shall be responsible for the supervision
and control of activities conducted on behalf of the Appraisal Management Company by
its officers and employees as necessary to secure full compliance with the Real
Estate Appraisers' Licensing and Certification Law and these regulations as related
to Appraisal Management Companies.
(17)
"Distance Education" means transmission of instruction to students at a location
separate from the educational provider's location.
(18) "FIRREA" means the Financial Institutions
Reform, Recovery and Enforcement Act of 1989,
Public Law
101-73 and any amendments thereto;
(19) "Non-residential property" means all other
property except one to four unit residential structures and land suitable for one to
four unit residential use;
(20)
"Registrant" means a person or entity authorized to conduct business as an Appraisal
Management Company in California through issuance of a Certificate of Registration
by the California Bureau of Real Estate Appraisers.
(21) "Registration" means the procedures and
requirements with which a person or entity shall comply in order to qualify to
conduct business as an Appraisal Management Company;
(22) "Residential property" means real property
containing, and land suitable for, four or fewer residential units.
(23) "Synchronous Distance Education" means any
distance education course and any form of systematic learning where the instructor
and students interact simultaneously.
(24) "Uniform Standards of Professional Appraisal
Practice; (USPAP)" means those standards as adopted by the Appraisal Standards Board
of the Appraisal Foundation.
1. New chapter 6.5,
article 1 and section filed 6-7-94; operative 6-7-94 (Register 94, No. 23). For
prior history, see Register 93, No. 8.
2. Amendment of section and NOTE
filed 11-1-96; operative 11-1-96 pursuant to Government Code section
11343.4(d)
(Register 96, No. 44).
3. Amendment of subsection (b)(1), new subsection
(b)(6), subsection renumbering and amendment of NOTE filed 8-8-2006; operative
9-7-2006 (Register 2006, No. 32).
4. Amendment filed 1-21-2010 as an
emergency; operative 1-21-2010 (Register 2010, No. 4). A Certificate of Compliance
must be transmitted to OAL by 7-20-2010 or emergency language will be repealed by
operation of law on the following day.
5. Amendment refiled 7-21-2010 as
an emergency; operative 7-21-2010 (Register 2010, No. 30). A Certificate of
Compliance must be transmitted to OAL by 10-19-2010 or emergency language will be
repealed by operation of law on the following day.
6. Amendment refiled
10-18-2010 as an emergency; operative 10-18-2010 (Register 2010, No. 43). A
Certificate of Compliance must be transmitted to OAL by 1-18-2011 or emergency
language will be repealed by operation of law on the following day.
7.
Certificate of Compliance as to 10-18-2010 order transmitted to OAL 12-17-2010 and
filed 1-31-2011 (Register 2011, No. 5).
8. Change without regulatory
effect amending subsections (b)(5), (b)(7), (b)(9), (b)(11) and (b)(14)-(16) filed
2-11-2014 pursuant to section
100, title 1, California Code of
Regulations (Register 2014, No. 7).
9. Amendment of section and NOTE
filed 2-20-2019; operative 4-1-2019 (Register 2019, No. 8).
10. Amendment
of subsections (b)(8)-(23), including additions, repealers and renumbers and
amendment of NOTE filed 2-1-2023; operative 2-1-2023 pursuant to Government Code
section
11343.4(b)(3)
(Register 2023, No. 5).
Note: Authority cited: Sections
11313,
11314,
11350
and
11361,
Business and Professions Code. Reference: Sections
10,
11302,
11310,
11360,
11361
and
11424,
Business and Professions Code.
