Rules & Regulations of the State of Tennessee
Title 1255 - Real Estate Appraiser Commission
Chapter 1255-01 - General Provisions
Section 1255-01-.12 - REGISTERED TRAINEE

Universal Citation: TN Comp Rules and Regs 1255-01-.12

Current through April 3, 2024

(1) Application. An applicant for registration as a real estate appraiser trainee shall successfully complete the following requirements prior to obtaining registration:

(a) Obtain and complete the required application form from the Commission.

(b) Provide proof on the application form showing that he or she has obtained a high school diploma or its equivalent.

(c) Provide on the application form the name and certificate number of the certified real estate appraiser under whose direct supervision the applicant will serve.

(d) Provide the business address of his or her supervisory appraiser and use that address as his or her business address. If an applicant has more than one (1) supervisory appraiser, then the applicant shall use the business address of at least one (1) of his or her supervisory appraisers.

(e) Complete a thirty (30) hour course in Appraisal Principles, a thirty (30) hour course in Practices and Procedures, and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Course, or its equivalent as determined through the AQB. These courses may be taken via distance education.

(f) Registered trainees shall be required to complete a four (4) hour course on the requirements and responsibilities of supervisory appraisers and trainee appraisers. The course shall be completed by the registered trainee prior to application.

(g) An applicant should refer to Chapter 1255-02 Evaluation of Appraiser Education for further delineation of qualifying education requirements.

(h) Submit with the application a nonrefundable application and registration fee of one hundred twenty-five dollars ($125.00).

(2) Upon receipt of a properly completed application form with the required aforementioned documentation and the required fee, the Commission shall review the application to determine whether to issue the applicant a real estate appraiser trainee registration certificate and number.

(3) Education. Before registration, an applicant for trainee registration shall complete seventy-five (75) hours of courses in subjects related to real estate appraisal, which shall include, but shall not be limited to coverage of the Uniform Standards of Professional Appraisal Practice (hereinafter, "course credit"). An applicant shall complete the required course credit as a prerequisite to applying for registration as a registered trainee. All applicants shall submit evidence of completion of a minimum of an approved thirty (30) hour course in Appraisal Principles, an approved thirty (30) hour course in Practices and Procedures, and the fifteen (15) hour National Uniform Standards of Professional Appraisal Practice Course. An applicant shall also ensure that his or her course credit complies with the following:

(a) A course hour is defined as fifty (50) minutes of teaching out of each sixty (60) minute segment.

(b) An applicant may obtain course credit only where the minimum length of the education offering is fifteen (15) hours and the individual successfully completes the examination pertinent to that educational offering.

(c) An applicant may obtain course credit from the following:
1. Colleges or universities;

2. Community or junior colleges;

3. Real estate appraisal or real estate related organizations;

4. Proprietary schools; and

5. Other providers approved by the Commission.

(d) An applicant shall obtain course credit within the five (5)-year period immediately preceding an applicant's submission of his or her application for registration as a registered trainee.

(e) The content for courses shall include, but is not limited to, coverage of the following real estate appraisal related topics:
1. Influences on real estate value;

2. Legal considerations in appraisals;

3. Types of value;

4. Economic principles;

5. Real estate markets and analysis;

6. Valuation process;

7. Property description;

8. Highest and best use analysis;

9. Appraisal statistical concepts;

10. Sales comparison approach;

11. Site value;

12. Cost approach;

13. Income approach;

14. Valuation of partial interests; and

15. Appraisal standards and ethics.

(4) Experience.

(a) There is no experience prerequisite for an applicant to become a registered trainee.

(b) A registered trainee may have more than one (1) supervisory appraiser.

(c) A registered trainee shall be subject to direct supervision by a supervisory appraiser who shall be a state certified residential real estate appraiser or a state certified general real estate appraiser in good standing.

(d) A registered trainee shall only appraise those properties which the supervisory appraiser is permitted to appraise.

(e) If a trainee's registration has expired or the trainee is no longer under the supervision of a state certified residential or state certified general real estate appraiser, then the registered trainee shall not perform the duties as a registered trainee until he or she submits an affidavit on a form provided by the Commission which states that he or she has a supervisory appraiser. The registered trainee's supervisory appraiser shall sign the affidavit stating that he or she is the supervisory appraiser responsible for the registered trainee.

(f) A registered trainee shall maintain an appraisal log of his or her experience, shall maintain a separate appraisal log for each supervisory appraiser, and shall, at a minimum, include the following in the appraisal log:
1. Type of property;

2. Date of report;

3. Address of appraised property;

4. Description of work performed by the trainee/applicant and scope of the review and supervision of the supervisory appraiser;

5. Number of actual work hours by the trainee/applicant on the assignment, up to the maximum allotted by property type;

6. Client name and address; and

7. Signature and State certification number of the supervisory appraiser.

(g) A registered trainee may conduct property inspections alone (without being accompanied by the supervisory appraiser) only after completing five hundred (500) hours of acceptable experience. In order to conduct property inspections pursuant to this paragraph, the registered trainee shall submit a form to the Commission on which both the registered trainee and the supervisory appraiser shall certify the experience.

(h) A registered trainee shall comply with the Uniform Standards of Professional Appraisal Practice.

(5) Examination.

(a) There is no examination prerequisite for an applicant to become a registered trainee.

(b) Once the registered trainee has completed all of the required qualifying education and experience, then the trainee may submit his or her application for license or certificate. The Commission office shall not process an applicant's application if the required qualifying education and experience have not been satisfied or if the application is incomplete. The Commission office shall keep an incomplete application active for six (6) months, unless the applicant requests an extension in writing to the Commission.

(6) Renewal.

(a) A registered trainee's registration shall expire two (2) years after the date of issuance.

(b) A registered trainee must renew his or her registration, at least thirty (30) days prior to its expiration, by filing the prescribed form with the Commission and paying a renewal fee of one hundred twenty-five dollars ($125.00).

(c) If a registered trainee fails to file the prescribed form and pay the renewal fee within thirty (30) days prior to its expiration, the registered trainee may, upon payment of a one hundred dollar ($100.00) late renewal penalty in addition to the renewal fee, apply for renewal. No late renewal will be granted if more than six (6) months have passed since the expiration of the registered trainee's registration. The registered trainee may then reapply to be a registered trainee.

(7) Continuing Education.

(a) Any person in the classification of registered trainee shall be required to obtain a minimum of twenty-eight (28) course hours of instruction in courses, seminars, workshops, or conferences approved by the Commission prior to each renewal period (hereinafter, "continuing education").

(b) As part of a registered trainee's continuing education, a registered trainee shall complete the seven (7) hour National Uniform Standards of Professional Appraisal Practice Course at least once every two (2) years as defined and required by rule 1255-04-.01(2).

(c) A course hour is defined as fifty (50) minutes of actual instruction for each sixty (60) minute segment.

(d) The Commission may grant continuing education credit only if the length of the educational offering is at least two (2) hours.

(e) An applicant may obtain continuing education credit from the following:
1. Colleges or universities;

2. Community or junior colleges;

3. Real estate appraisal or real estate related organizations;

4. State or federal agencies or commissions;

5. Proprietary schools; and

6. Other providers approved by the Commission.

(f) The Commission may grant continuing education credit for educational offerings which are consistent with the purpose of continuing education stated in subparagraph (g) below and cover real estate appraisal topics such as the following:
1. Ad valorem taxation;

2. Arbitration;

3. Business courses related to practice of real estate appraisal;

4. Construction estimating;

5. Ethics and standards of professional practice;

6. Land use planning, zoning and taxation;

7. Management, leasing, brokerage, and timesharing;

8. Property development;

9. Real estate appraisal (valuations/evaluations);

10. Real estate law;

11. Real estate litigation;

12. Real estate financing and investment;

13. Real estate appraisal related computer applications;

14. Real estate securities and syndication; and

15. Real property exchange.

(g) The purpose of continuing education is to ensure that a registered trainee participates in a program that maintains and increases his or her skill, knowledge, and competency in real estate appraisals.

(h) A registered trainee may complete the individual's required education credits via distance education.

(8) Each registered trainee shall notify the Commission of such registered trainee's current residence and principal place of business, all mailing and other addresses at which the registered trainee is currently engaged in the business of assisting in the preparation of real estate appraisal reports, and the name of the registered trainee's supervisory appraiser(s). When a registered trainee changes any of the above addresses or supervisory appraiser(s), the registered trainee shall notify the Commission, in writing, of such change within thirty (30) days thereafter.

(9) No registered trainee may represent him or herself as a licensed or certified appraiser or use the appellation "State Licensed Real Estate Appraiser," "State Certified Residential Real Estate Appraiser," "State Certified General Real Estate Appraiser," or any form thereof, or do any other act which gives or is designed to give the impression that the registered trainee is a licensed or certified real estate appraiser.

(10) Supervisory Appraisers for Registered Trainees.

(a) Supervisory appraisers shall be state-certified and in "good standing" in the jurisdiction in which the trainee appraiser practices for a period of at least three (3) years. Supervisory appraisers shall not have been subject to any disciplinary action within any jurisdiction within the last three (3) years that affects the supervisory appraiser's legal eligibility to engage in appraisal practice. A supervisory appraiser subject to a disciplinary action would be considered to be in "good standing" three (3) years after the successful completion/termination of the sanction imposed against the appraiser.

(b) The supervisory appraiser shall sign each written appraisal report, relating to real property in this state, which was prepared by a registered trainee under the supervisory appraiser's direct supervision.

(c) A supervisory appraiser shall ensure that the appraisal reports prepared by the registered trainee are prepared under the supervisory appraiser's direct supervision. "Direct supervision" of a registered trainee means that a supervisory appraiser shall:
1. Accompany the registered trainee and personally inspect each subject property with the registered trainee on all assignments until the trainee has completed five hundred (500) hours of acceptable appraisal experience, or until the supervisory appraiser determines the registered trainee is competent to inspect the property, in accordance with the competency rule of the Uniform Standards of Professional Appraisal Practice (USPAP) for the type property;

2. Review the registered trainee's appraisal report(s) to ensure the registered trainee's research of general and specific data has been adequately conducted and properly reported, that the registered trainee's application of appraisal principles and methodologies has been properly applied, that the registered trainee's analysis is sound and adequately reported, and that any analyses, opinions, or conclusions of the registered trainee are adequately developed and reported so that the appraisal report is not misleading;

3. Review the registered trainee's work product and discuss with the registered trainee any edits, corrections, or modifications that need to be made to such work product, and make such edits, corrections, or modifications as are required to such work product; and

4. Accept responsibility for the appraisal report by signing the appraisal report and certifying that the appraisal report has been prepared in compliance with the current edition of the Uniform Standards of Professional Appraisal Practice by:
(i) Making a clear and prominent disclosure that the registered trainee has provided significant real property appraisal assistance in each appraisal report in accordance with Uniform Standards of Profession Appraisal Practice Standards Rule 2-2 and Standards Rule 2-3;

(ii) Prohibiting the registered trainee from signing any appraisal report or other document involved in the appraisal which states or implies that said trainee is "licensed" or "certified" in any manner, and by prohibiting the registered trainee from engaging in any activity which is limited to licensed or certified appraisers, or which is designed to give third parties the impression that the registered trainee is a licensed or certified appraiser;

(iii) Ensuring that the registered trainee gains sufficient knowledge, skills, and abilities that will enable such trainee to accomplish all of the following:
(I) Define the appraisal problem, which requires the trainee to:
I. Identify and locate the real estate;

II. Identify the property rights to be valued;

III. Identify the use of the appraisal;

IV. Define value(s) to be estimated;

V. Establish date(s) of value estimate(s);

VI. Identify and describe the scope of the appraisal; and

VII. Identify and describe limiting conditions.

(II) Conduct preliminary analysis, and select and collect applicable data , which requires the trainee to:
I. Identify general data (regional, city, and neighborhood) including social, economic, governmental and environmental factors;

II. Identify specific data (subject and comparables), including site and improvement, cost and depreciation, income/expense and capitalization rate, history of ownership and use of property; and

III. Identify competitive supply and demand in the subject market, which requires a comprehensive review of inventory of competitive properties, sales and listings, vacancies and offerings, absorption rates, demand studies.

(III) Conduct an analysis of the subject property, which requires a trainee to analyze:
I. Site improvements;

II. Size;

III. Costs;

IV. Elements of comparison; and

V. Units of comparison;

(IV) Conduct a highest and best use analysis (specified in terms of use, time, and market participants), which requires a trainee to analyze:
I. Land as if vacant and available; and

II. Property as improved (existing or proposed).

(V) Estimate land value, including on-site improvements.

(VI) Estimate value of the property using each of the three approaches to value-cost, sales comparison and income capitalization.

(VII) Reconcile each value indication and reconcile the final value estimate.

(VIII) Report estimate(s) of value(s) as defined.

(d) A supervisory appraiser may supervise a maximum of three (3) registered trainees at one time.

(e) A supervisory appraiser shall keep copies of appraisal reports for a period of at least five (5) years or at least two (2) years after final disposition of any judicial proceeding in which testimony was given, whichever period expires last. The supervisory appraiser shall allow the registered trainee to have reasonable access to the appraisal reports to which the registered trainee contributed.

(f) A supervisory appraiser shall notify the board in writing if he or she is no longer the supervising appraiser for a registered trainee within thirty (30) days thereafter. If the disassociation is for cause, the cause shall be communicated to the Commission.

(g) Supervisory appraisers shall be required to complete a four (4) hour course on responsibilities of supervisory appraisers and trainee appraisers. The course shall be completed by the supervisory appraiser prior to supervising a trainee appraiser. This course may be completed via distance education.

(h) In any appraisal in which a registered trainee has inspected a subject property, the supervisory appraiser is also required to disclose in the appraisal report whether the supervisory appraiser has inspected the subject property both inside and out, and whether the supervising appraiser has made an exterior inspection of all comparable sales relied upon in the appraisal.

Authority: T.C.A. §§ 62-39-105, 62-39-203, 62-39-204, 62-39-301, 62-39-303, 62-39-304, 62-39-317, 62-39-321, 62-39-324, 62-39-329, 62-39-333, and 62-39-337.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.