Bureau of Real Estate Appraisers (BREA) - 2015 Licensing Handbook
Table of Contents
- BREA Background
- Purpose of the Licensing Handbook
- Summary of Each License Level
- Major Changes Effective 2015
- Application Procedures
- Initial Application
- Renewal Process
- Upgrade Application
- Initial - Out of State (Reciprocal) Licensees
- Temporary Practice Permit
- Education Requirements
- Basic Education Requirements
- Continuing Education Requirements
- Acceptable Types Of Courses
- Course Credit Requirements
- Determining Hours of Credit for College Courses
- Foreign Education
- Work Experience Requirements
- Categories of Experience
- Documenting Experience
- Earning Acceptable Experience as a Trainee
- Obtaining Experience Without a License
- Examination and Licensing Issuance
- Other Application Information
- Appendix A – Core Curriculum – Education Module & Subtopics
- Appendix B – Basic Education Module Requirements
- Reference Guide
BREA Background
In 1989, Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) was enacted by Congress, mandating all states to license real estate appraisers who appraise real property in federally related transactions.
In response to the federal mandate, the Real Estate Appraisers' Licensing and Certification law was passed by the California Legislature in 1990 (AB 527, Chapter 491 of 1990). The law charged the Bureau of Real Estate Appraisers (BREA) with licensing real estate appraisers in the State of California and enforcing national ethical and professional standards and qualifications that comply with the mandate.
Effective January 1, 2010, California law (Chapter 173, Statutes of 2009) required the registration of Appraisal Management Companies (AMC) with the BREA. This handbook details the procedures for appraiser licensing only and not for AMC registration. Please refer to the BREA website for AMC laws, regulations, registration forms, and instructions.
Safeguard public trust by promoting professionalism in the real estate appraisal industry through licensing, education, and enforcement.
BREA consists of two primary functions, appraiser Licensing/AMC registration and Enforcement.
The Licensing Unit ensures that applicants for appraisal licenses meet minimum requirements for education, experience, and examination that comply with federal mandates and ensure that only qualified persons are licensed to conduct appraisals in federally related real estate loan transactions.
The Enforcement Unit investigates complaints of violations of the Uniform Standards of Professional Appraisal Practice (USPAP) and ensures that licensees adhere to all applicable laws and regulations.
Purpose of the Licensing Handbook
This handbook was revised in 2015. It is designed to assist applicants for licensure. You should use it in conjunction with instructions and requirements listed on the application forms. BREA has made every effort to ensure that the information is current and accurate as of May 1, 2015; however, as with any program, changes may occur and subsequent legislation may cause some of the information it contains to become out-of-date. The reader should consult current statutes, regulations and rules, which prevail over any information contained in this handbook.
Summary of Each License Level
There are four levels of real estate appraiser licensing:
- AT - Trainee License
- AL - Residential License
- AR - Certified Residential License
- AG - Certified General License
| BREA License Levels | Education Requirements* | Experience Requirements | Scope of Practice |
|---|---|---|---|
| Trainee (AT) | 150 hours, covering specific modules including the 15-hour National USPAP Course (or its equivalent as determined by the Appraiser Qualifications Board (AQB). Trainee applicants must also complete an approved Supervisory/ Trainee Appraisers course prior to obtaining a Trainee Appraiser license. | None | Any property which the supervising appraiser is permitted to appraise. |
| Residential (AL) |
150 hours, covering specific modules including the 15-hour National USPAP Course (or its equivalent as determined by the AQB);
|
2,000 hours and encompassing no less than 12 months of acceptable appraisal experience. | Any non-complex 1-4 family property with a transaction value up to $1 million; and non-residential property with a transaction value up to $250,000. |
| Certified Residential (AR) | 200 hours, covering specific modules, including the 15-hour National USPAP Course; and a Bachelor's degree or higher. | 2,500 hours and encompassing no less than 2.5 years (30 months) of acceptable appraisal experience. | Any 1-4 family property without regard to transaction value or complexity; and non-residential property with a transaction value up to $250,000. |
| Certified General (AG) | 300 hours, covering specific modules, including the 15-hour National USPAP Course; and a Bachelor's degree or higher. | 3,000 hours and encompassing no less than 2.5 years (30 months) of acceptable appraisal experience, of which 1,500 hours must be non-residential. | All real estate without regard to transaction value or complexity. |
*Degrees and college credit must be from an accredited college or university.
CHANGES EFFECTIVE 2015
On December 9, 2011 the Appraisal Qualifications Board (AQB) of the Appraisal Foundation adopted changes to the Real Property Appraiser Qualification Criteria that became effective January 1, 2015.
Qualifying Education
College education requirements are a fundamental component of these changes. Applicants for a Residential license are required to have a minimum of 30 college semester units or an Associate's degree; whereas applicants for either a Certified Residential or a Certified General license are required to have a Bachelor's degree or higher.
These requirements became effective for individuals seeking a real property appraiser credential after January 1, 2015.
Supervisory and Trainee
- Both the Trainee Appraiser and Supervisory Appraiser are required to complete an AQB approved Supervisory/Trainee Appraisers course. The Trainee Appraiser must complete the course prior to obtaining a Trainee Appraiser License, and the Supervisory Appraiser must complete the course prior to supervising a Trainee Appraiser. Existing credential holders can use this course regarding the roles and responsibilities of the Supervisor and Trainee Appraiser for continuing education.
- Supervisory and Trainee affiliations established prior to January 1, 2015, are "grandfathered" and the courses are not required; however, BREA highly recommends both Supervisory Appraiser and Trainee/Applicant search appraisal course providers for classes regarding the roles and responsibilities of the Supervisor and Trainee.
- A Supervisory Appraiser shall be state-certified and must be 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 disciplinary action would be considered to be in “good standing” three (3) years after successful completion/termination of the sanction imposed against the appraiser.
- A Supervisory Appraiser may not supervise more than three (3) Trainee Appraisers at one time. However, a Trainee Appraiser is permitted to have any number of Supervisory Appraisers.
APPLICATION PROCEDURES
BREA processes five types of applications. They are:
- Initial
- Renew
- Upgrade
- Initial Out of State (Reciprocal)
- Temporary Practice Permit
The basic procedures for real estate appraiser licensing are:
• Submission of application, including all of the following:
- Application and background review fees
- Education
- Experience
- Information for criminal records check
• Examination process (Initial and Upgrade only):
- Admission to Examination Letter sent after BREA reviews application
- Scheduling of the examination by applicant
- Payment of examination fee by applicant (paid directly to exam provider)
• Submission of license issuance request, including all of the following:
- Application for Issuance of a License (REA 3008)
- Original examination score results showing successful completion
- Work samples that BREA requested for review
State and federal laws provide that applicants must meet minimum education and experience requirements and must pass an examination prior to being licensed to perform real estate appraisals in federally related transactions. Education requirements include appropriate knowledge of the English language including reading, writing, spelling, and knowledge of arithmetic computations common to real estate and appraisal practices.
Every fact requested in the application is necessary and required to determine eligibility for licensure. An applicant must disclose the requested information, including any criminal convictions, on the application. Failure or refusal to provide any fact or information requested in the application may result in the application being rejected as incomplete or may subject the applicant to sanctions including, but not limited to, the denial of an application.
NOTE: Before issuing a license BREA must complete their background review process and perform a delinquent court-ordered child support review.
All applicants have one year to qualify for the exam from the date the application was received. BREA cannot extend the application received date.
Licensees must be at least 18 years of age.
Application fees must be paid by credit card, preprinted personal or company check, certified check, cashier's check or money order.
Renewal requirements (e.g., fees and continuing education) are waived for those whose BREA license term is set to expire while on active duty as a member of the United States Armed Forces or California National Guard.
Licensure process is expedited for applicants who hold a current appraiser license in another state and are married to, or in a domestic partnership or other legal union with, an active duty member of the United States Armed Forces who is assigned to a duty station in California. For questions or clarification call (916) 552-9000.Initial Application
This section applies to applicants who are applying for the first time, or for individuals previously licensed who are no longer eligible to renew. Applicants may apply at any level of licensure for which they meet the requirements.
To apply for an initial license, applicants must complete and submit all of the following (see list of forms on BREA website):
- Initial Application (REA 3001)
- Basic Education Attachment (REA 3002) to document basic education needed to qualify for the appropriate license level, along with copies of official transcripts and/or course completion certificates
- Evidence of education with official transcripts
- Log of Appraisal Experience (REA 3004) documenting the number of hours, months and experience. The log must also contain certifications on page 2 of the form (not required for the Trainee level)
- Experience Log Summary (REA 3003), which summarizes information from the Log of Appraisal Experience (REA 3004) (not required for the Trainee level)
- Request for Live Scan Service (BCII 8016); or if the applicant resides out of state, two FD-258 completed finger print cards*
- Consent to Service of Process (REA 3006), if the applicant's physical residence address is outside of California
- All appropriate fees as required
*BREA processes applicant fingerprints via Live Scan for California residents. If you are applying for a California license but reside out of state, you need to submit your fingerprints on two (2) FD-258 fingerprint cards with your application.
Once an application is reviewed, BREA will issue a letter informing you of eligibility to take your exam along with your Applied Measurement Professionals (AMP) identification number that is required to schedule your exam. Upon successful completion of the exam, applicants then submit all of the following:
- Application for Issuance of License (REA 3008)
- Original passing score results
- The requested work samples for BREA's review (not required for Trainee level)
- Balance of the license fees, if any
The expiration date of an appraiser license is normally two years from the date of issuance.
Renewal Process
This section applies to licensees who are applying for renewal of their license.
The term of a California real estate appraiser license is two years. All licensed appraisers must meet minimum continuing education requirements before renewing their license. A total of 56 hours of continuing education is required during the four-year continuing education cycle including the following mandatory courses for all licenses:
- 7-hour National USPAP Update Course - required every two years
- 4-hour course entitled Federal and State Laws and Regulations – required once every four years
To apply for renewal of a license after the first two years of the continuing education cycle, applicants must complete and submit all of the following (see list of forms on the BREA website):
- Renewal Application (REA 3012)
- Proof of completion of the 7-hour National USPAP Update Course or its equivalent as determined by the AQB
- All appropriate fees
To apply for renewal of a license at the end of the continuing education cycle (on time every four years), applicants must complete and submit all of the following (see list of forms on the BREA website):
- Renewal Application (REA 3012)
- Continuing Education Attachment (REA 3017), documenting the required continuing education to renew, along with copies of official transcripts and/or course completion certificates, including:
- The 7-hour National USPAP Update Course or its equivalent as determined by the Appraiser Qualifications Board (AQB)
- The 4-hour course entitled Federal and State Laws and Regulation
- A minimum of 38 hours additional approved continuing education
- All appropriate fees
BREA may require the following additional items for either the USPAP only or Full Continuing Education renewal:
- Consent to Service of Process (REA 3006), if the appraiser's physical residence address is outside of California
- A $125 late fee
- Additional education if late: 0-6 months = 7 hours; 6-12 months = 14 hours; 12-18 months = 21 hours; 18-24 months = 28 hours
Once the application is approved, BREA will issue a new certificate. The expiration date of a license is normally two years from the date of issuance.
You can submit most renewals on-line. The existing license must be current and in good standing. Renewal may not occur more than six months prior to the existing license expiration date. On-line renewal is not available for those who live out of state or those whose license has been suspended, resigned, revoked, or have had their right to renew revoked. Those who are subject to Enforcement monitoring are also ineligible to use the on-line renewal. Go to Online Renewal Application
Licensees may renew a license within two years of the license expiration. However, licenses renewed during the two-year grace period are considered late and are subject to additional fees and education requirements. Late renewal licensees must pay late renewal fees and submit proof of completion of seven additional hours of continuing education for each six-month period the application is received after the expiration of the continuing education cycle.
Applications are considered late if postmarked after the expiration date of the license or if any of the required continuing education is completed after the expiration date of the license.
NOTE: Appraisers whose licenses have expired cannot legally perform appraisals in federally related transactions until the license is renewed.
Upgrade Application
This section describes the process for applying to upgrade a current California license to a higher level.
NOTE: You cannot upgrade an expired license.
The expiration date of an upgraded license will remain the same as the expiration date of the current license. Therefore, upgrading a license does not extend its expiration date.
To upgrade a license to a higher level, appraisers must complete and submit all of the following (see list of forms on the BREA website):
- Upgrade Application (REA 3023)
- Log of Appraisal Experience (REA 3004) documenting the number of hours, months and experience. The log must also contain certifications on page 2 of the form
- Experience Log Summary (REA 3003), which summarizes information from the Log of Appraisal Experience (REA 3004)
- Basic Education Attachment (REA 3002) to document additional basic education required along with copies of official transcripts and/or course completion certificates
- Evidence of education with official transcripts
- Consent to Service of Process (REA 3006), if the appraiser's physical residence address is outside of California
- All applicable fees
Initial Out-of-State (Reciprocal) Licensees
Applicants who have a current valid license in another state and who wish to apply for a California license may apply by using the Initial Out-of-State Application process. However the out-of-state applicant is not required to take the California examination if:
- The licensing examination taken in the home state was endorsed by the Appraiser Qualifications Board; and
- The appraiser is in good standing in each state in which he or she is licensed.
To apply for an Out-State-License, applicants must complete and submit all of the following (see list of forms on the BREA website):
- Request for Live Scan Service (BCII 8016) or two FD-258 completed fingerprint cards*
- Initial Application (REA 3001)
- Consent to Service of Process (REA 3006)
- An original Letter of License History or Certificate of Good Standing, not more than 30 days old forwarded directly to BREA from the state in which applicant is currently licensed.
* BREA processes applicant fingerprints via Live Scan for California residents. If you are applying for a California license, but reside out of state, you need to submit your fingerprints on two (2) FD-258 fingerprint cards with your application.
Temporary Practice Permit
Appraisers who hold a valid license in good standing in another state may apply for a Temporary Practice Permit to perform real property appraisal assignments in California.
- Permits are only issued at the same classification as the current license issued by the state in which an applicant is licensed.
- Permits are valid for one year and for one assignment or until the expiration of the license in an applicant's home state, whichever is sooner.
- Appraisal field inspections must be completed within the term of the permit.
- The state in which the applicant is licensed must not have been found to be out of compliance by the Appraisal Subcommittee.
- The appraisal to be performed is not associated with a federally related transaction.
- The assignment is a review appraisal and the review appraiser does not physically enter California.
- The out-of-state appraiser affiliates with a California licensed appraiser. In such instances, the out-of-state appraiser's work is limited to assisting the California licensed appraiser in the preparation of the appraisal. The out-of-state appraiser is not permitted to reach a final conclusion of value and may not sign the report. The California licensed appraiser must make the determination of value, sign the report, disclose the assistance provided by the out-of-state appraiser and accept full responsibility for the entire appraisal.
- Request for Temporary Practice Permit (California form REA 3009).
- Consent to Service of Process (California form REA 3006).
- A copy of the contract or letter of engagement which shows the physical address(es) or location(s) of the property or properties to be appraised.
- An original Letter of License History or Certificate of Good Standing, not more than 30 days old from the home state.
- The required fee for each application submitted.
On-Line Temporary Practice Permits
You can submit most requests for a Temporary Practice Permit on-line.
For questions or clarification call (916) 552-9000.
EDUCATION REQUIREMENTS
There are two types of education used to meet licensing requirements:
- Basic Education to
qualify for a license - Continuing Education to
renew a license
Basic Education Requirements
All applicants must meet the basic education requirements before they can qualify for licensure.
To qualify for an appraiser license, applicants will have to complete a core curriculum for each license level as documented in Appendix A. Applicants must complete a minimum number of acceptable hours and specific modules (see Basic Education Modules in Appendix B) as required by the Appraisal Qualifications Board (AQB).
All applicants must successfully complete a 15-hour National Uniform Standards of Professional Appraisal Practice (USPAP) course or its equivalent as determined by the AQB.
The required number of basic education hours for each licensing level is as follows:
| LICENSE LEVEL | BASIC EDUCATION REQUIREMENTS* |
|---|---|
| Trainee (AT) |
150 hours, including a 15-Hour National USPAP Course. → Trainee applicants must also complete an approved Supervisory/Trainee Appraisers course prior to obtaining a Trainee Appraiser license. The Supervisory/Trainee Appraisers course is not eligible towards the 150 hours of qualifying education. NOTE: Course work for the Trainee level license taken more than 5 years prior to the application date is not acceptable. |
| Residential (AL) | 150 hours, including a 15-Hour National USPAP Course; and 30 semester units of college-level education, OR an Associate's degree or higher (in any field). |
| Certified Residential (AR) | 200 hours, including a 15-Hour National USPAP Course and a Bachelor's degree or higher. |
| Certified General (AG) | 300 hours, including a 15-Hour National USPAP Course and a Bachelor's Degree or higher. |
*Degrees and college credit must be from an accredited college or university.
Basic Education Requirements to Upgrade a License
The following education is required to upgrade a license to a higher classification (see Handbook section above regarding 2015 changes).
| Trainee Licensees Upgrading to: | Residential Licensees Upgrading to: | Certified Residential Licensees Upgrading to: | ||||
| Residential License | Certified Residential License | Certified General License | Certified Residential License | Certified General License |
Certified General License |
|
| Evidence of Education or a Degree from an accredited college or university required: | 30 semester units of college-level education, OR an Associate's degree or higher | Bachelor's Degree | Bachelor's Degree | Bachelor's Degree | Bachelor's Degree | Bachelor's Degree |
|
Additional hours of acceptable education required:
Must include at a minimum the following modules: |
75 hours | 125 hours | 225 hours | 50 hours | 150 hours | 100 hours |
| Residential Market Analysis and Highest & Best Use | 15 hours | 15 hours | ||||
| Residential Appraisal Site Valuation and Cost Approach | 15 hours | 15 hours | ||||
| Residential Sales Comparison and Income Approaches | 30 hours | 30 hours | ||||
| Residential Report Writing and Case Studies | 15 hours | 15 hours | ||||
| Statistics, Modeling and Finance | 15 hours | 15 hours | 15 hours | 15 hours | ||
| Advanced Residential Applications and Case Studies | 15 hours | 15 hours | ||||
| Appraisal Subject Matter Electives | 20 hours | 20 hours | ||||
| General Appraiser Market Analysis and Highest & Best Use | 30 hours | 15 hours | 15 hours | |||
| General Appraiser Sales Comparison Approach | 30 hours | 15 hours | 15 hours | |||
| General Appraiser Site Valuation and Cost Approach | 30 hours | 15 hours | 15 hours | |||
| General Appraiser Income Approach | 60 hours | 45 hours | 45 hours | |||
| General Appraiser Report Writing and Case Studies | 30 hours | 15 hours | 10 hours | |||
| Appraisal Subject Matter Electives | 30 hours | 30 hours | ||||
NOTE: Basic education courses taken to upgrade a license can count toward continuing education when the course is taken within the four-year continuing education cycle; however, there is no credit for the exam time.
Basic education courses, both classroom and online, must meet AQB requirements. The requirements for approval of basic education courses are:
- Course must be a minimum of 15 classroom hours in length (a classroom hour means 50 minutes within a one-hour period actually spent in presenting the course content).
- Courses must include a closed book final examination which covers the course material.
- Courses must cover at least one of the specific subtopics required by the AQB (see Basic Education Modules & Subtopics in Appendix A).
NOTE: Credit is only given for the portion or portions of the class that covers required modules.
Example: An approved course is 50 hours in length but only 30 hours of the course covers the module Real Estate Appraisal Principles. The remaining 20 hours do not cover any of the required modules. Therefore, the applicant can only receive credit for 30 of the 50 course hours.
Examination preparation courses (i.e., courses designed solely to prepare a person to pass the licensing examination) do not meet the basic education requirements.
Continuing Education Requirements
All licensed appraisers must meet continuing education requirements before they may renew their license. The current term of a California real estate appraiser license is two years. The cycle starts with the issuance date of the current license.
Applicants for license renewal must complete a total of 56 hours of continuing education during the four- year continuing education cycle. The cycle starts with the issuance date of the current license. License renewals are required every two years and Licensees must provide proof of completion of the following mandatory courses for all licenses:
- USPAP — Licensees must complete the 7-hour National USPAP Update Course (or its equivalent as determined by the AQB) every two years. An AQB Certified USPAP Instructor who is a Certified Residential or Certified General appraiser in good standing must teach the course.
- Laws and Regulations — Licensees must complete a four hour BREA approved course covering Federal and State Laws and Regulations once every four years.
Although licensees should complete an average of 14 hours for each calendar year, they are not required to complete continuing education in each specific year.
Continuing education courses, both classroom and online, must meet the requirements of the AQB. The requirements for BREA approval of continuing education courses are:
- Courses must be a minimum of two classroom hours long (classroom hour means 50 minutes within a one-hour period actually spent in presenting the course content).
- Participants must have been present for at least 90% of the course hours to obtain credit for the course.
Continuing education courses that BREA has already approved allow for faster processing of renewal applications. Courses offered by providers that are private vocational schools or professional organizations are assigned a BREA course approval number. In addition, some college and university courses may be acceptable if the courses cover one of the topics listed below.
The AQB allows, and BREA may grant, continuing education credit for courses that cover topics including but not limited to:
- Ad Valorem Taxation
- Arbitration-Dispute Resolution
- Practice of Real Estate Appraisal
- Development Cost Estimating
- Ethics and Standards of Practice (USPAP)
- Land use Planning-Zoning
- Property Management-Leasing-Timesharing
- Property Development-Partial Interests
- Real estate law-Easements-Legal Interests
- Real Estate Litigation-Damages-Condemnation
- Real Estate Financing and Investment
- Real Estate Appraisal Computer Applications
- Real Estate Securities and Syndication
- Real Property Appraisals-Personal Property-Business Valuation
- Seller Concession Impact on Value
- Energy Efficient-Green Building Appraisals
NOTE: Basic education courses taken to upgrade a license can count toward continuing education when the course is taken within the four-year renewal cycle; however, there is no credit for the exam time.
Course Completion Certificates
Course providers must provide course completion certificates to those who successfully complete the course. Licensees must not send completion certificates to BREA until it is time to renew their licenses. Licensees must retain their completion certificates and attach them (photocopies are acceptable) to their application for renewal of their license.
Acceptable Types of Courses
Basic and continuing education courses that are accredited by BREA have a BREA approval number. They include courses from professional organizations and vocational schools. Applicants can verify approved schools and individual courses by visiting the BREA website (www.orea.ca.gov) and/or by calling BREA at (916) 552-9000.
A Petition for Equivalency (REA 3005) is required for all courses that do not have a BREA approval number. Courses not approved by BREA may still be considered acceptable if they meet the minimum qualification requirements of the AQB. For example, applicants may petition for basic or continuing education credit for courses taken from vocational schools or professional organizations which are no longer in business, and courses that are no longer offered. Petitioned courses must meet all of the same requirements as courses that BREA has approved. For instance, online education that is petitioned must be approved by the International Distance Education Certification Center (IDECC) in order for the petition to be accepted.
Applicants must submit a Petition for Equivalency Credit (REA 3005), all required attachments, and the required fee for each course. BREA will review the petitions to determine the acceptability of each course.
You must also submit a timed course outline and BREA Topic Matrix Addendum for each course as part of the review process for qualifying education.
College and university courses that have not been approved by BREA may be considered acceptable if they meet the minimum qualification requirement of the AQB. Applicants must submit a Petition for Equivalency Credit (REA 3005) and all required attachments for each course. For qualifying education a BREA Topic Matrix Addendum must be submitted for each course as part of the review process along with a timed course outline or syllabus with sufficient detail to enable BREA to determine the specific subtopics and number of hours covered by the course.
The AQB does not permit BREA to accept online education courses unless they are: 1) Approved by BREA; 2) Meet the requirements for AQB appraisal-related courses; and 3) Offered by either an accredited college or university, or approved by the International Distance Education Certification Center (IDECC).
- Courses must be a minimum of 15 hours in length.
- The individual must successfully complete a final examination proctored by an official appointed by the presenting entity or by the sponsoring organization, consistent with the requirements of the course accreditation.
- Courses must be a minimum of two hours in length.
- Courses must include either embedded quizzes or a final examination proctored by an official appointed by the presenting entity or by the sponsoring organization, consistent with the requirements of the course accreditation.
Appraisers may receive up to one half of their continuing education credit for teaching appraisal courses, developing appraisal education programs and writing articles that are published in legitimate appraisal journals.
BREA may award up to one half of continuing education credit, not to exceed 28 hours, to instructors of real estate appraisal courses. To request such credit, the instructor must submit written verification from the department dean or other appropriate school official that includes all of the following:
- Name of school
- Name of course
- BREA Approval number
- Date(s) the course was taught
- Course outline or other description detailing the specific topics covered
- Date and original signature of the department dean or other appropriate school official signed under penalty of perjury
If a course is not BREA approved, the instructor must submit a Petition for Equivalency Credit (REA 3005) with all appropriate fees.
Course Credit Requirements
To receive credit for a course, an applicant must submit a course completion certificate, a college transcript from the school, an official school grade slip or other documentation acceptable to BREA for proof of course completion. The documentation must be submitted with the application and must include all of the following information:
- Name of the school
- Name and address of the student
- Course number and title of the course
- BREA approval number
- Number of hours or units of credit
- Date of successful completion
- Whether the course is classroom or online
- Identity and signature of verifier of course completion, completed under penalty of perjury
In addition:
- Basic education completion certificates must include the length of time allowed for the final examination.
- Continuing education completion certificates must indicate that the student completed 90% of the class.
Determining Hours of Credit for College Courses
To determine the maximum number of hours of education credit which BREA may grant for acceptable college level courses, multiply the number of semester or quarter units of credit awarded by the college times the number of weeks in the semester or quarter.
Example: A three unit course taken at a school with 18 week semesters equals a maximum of 54 hours of education credit. A five unit course taken at a school with 10 week quarters equals a maximum of 50 hours of education credit. The hours spent taking the final examination for a course are already included in these hours and are not added in separately.
Foreign Education
Transcripts showing education or a degree earned outside the United States require translation and/or evaluation at a credentialing service. In addition to translating transcripts from colleges outside the United States, the credentialing service can determine if a degree is equivalent to an AA degree or a BA degree earned from an accredited college in the United States. A credentialing service is also used to determine if a specific course is equivalent to the same course taken at an accredited college in the United States.
When a credentialing service is used to determine if a degree is equivalent to a degree earned in the United States, the Applicant must submit documentation from a credentialing service indicating that the college is accredited and the degree is equivalent to a degree earned from an accredited college in the United States.
If a credentialing service is used to determine if a specific course is equivalent to a course taken from an accredited college in the United States, the Applicant must submit documentation from a credentialing service that the college is accredited, the course is equivalent to a specific course taken at an accredited college in the United States, and the number of semester units the course is equivalent to in the United States.
WORK EXPERIENCE REQUIREMENTS
BREA may grant credit toward meeting the minimum appraisal work experience requirements in the categories shown below. Acceptable experience must, at a minimum, meet the criteria listed after each category shown below and in all cases MUST comply with USPAP.
NOTE: The Applicant must have performed claimed work experience for a business purpose (mock appraisal experience is ineligible). The Applicant may also gain work experience through case studies and practicum courses that are approved by the AQB Course Approval Program. However, case studies and practicum courses cannot be credited for more than 50% of the total experience requirement.
Restricted Appraisal Reports and Restricted Use Appraisal Reports are not eligible for experience credit. To be acceptable for experience credit the applicant must be either:
- A signing appraiser; or
- Identified by name (and BREA license number, if licensed) with the extent of the real property appraisal assistance clearly and conspicuously described in the report.
State law requires that the Applicant make documentation of work experience available to BREA upon request. Work samples are one such form of documentation. Each work sample must be an exact, non-redacted copy of the completed appraisal report(s) submitted to the client(s) for a business purpose.
Categories of Experience
Category 1. Fee and Staff Appraisal
A real property appraisal prepared for a business purpose shall:
- Be a written document
- Use the entire appraisal process
- Use all appraisal methods (market, cost, income) customarily used for a particular property type (i.e., residential, commercial, industrial, etc.)
- Include analysis completed by the applicant
- Conform to USPAP
NOTE: Category 1 experience requires applicants to have effectively completed 100% of the appraisal process (under the guidance of a supervisory appraiser, if applicable).
Category 2. Ad Valorem Tax Appraisal - Non-California tax appraisal experience only. See Category 9 for California tax appraisal experience.
A real property appraisal prepared by an appraiser to estimate a value that is used for property tax purposes:
Experience in this category shall:
- Be a written document
- Use the entire appraisal process
- Conform to USPAP
Experience in this category shall:
- Use highest and best use analysis, model specification (developing the model), and model calibration (developing adjustments to the model)
- Conform to USPAP
NOTE: Other components of the mass appraisal process, by themselves, are not eligible for experience credit.
This category is limited to appraisals performed as an employee or agent of a County Assessor's office in another state, or the other state's equivalent of the California Board of Equalization.
All applicants for Category 2 experience must document their work experience on the Log of Appraisal Experience (REA 3004) and the Experience Log Summary (REA 3003) forms. Reports listed on the Log of Appraisal Experience must be available for release to the BREA for verification of work experience.
Category 3. Review Appraisal
Experience in this category shall:
- Be limited to a maximum of 400 hours towards meeting the minimum experience hours required, but only after obtaining 1,600 hours of acceptable experience in other categories.
- Not contain more than 50% of the hours in the performance of desk reviews.
- Be a written document separate from the appraisal itself.
- Not be a review of an applicant's own appraisal.
- Require the review appraiser to form an opinion as to whether the analyses, opinions and conclusions in the appraisal report under review are appropriate and reasonable, as opposed to work performed by clients and users of appraisal services as a due diligence function in the context of making a business decision, such as underwriting, buying or selling.
- Conform to USPAP.
Category 4. Appraisal Analysis; Category 5. Real Estate Consulting (NOTE: “Real Estate Consulting” does not include consulting done by a real estate broker or real estate salesperson to help a client determine list price or how much they should offer in purchasing property); Category 6. Highest and Best Use Analysis; and Category 7. Feasibility Analysis and Study – Are not acceptable for reports completed after January 1, 2014.
Experience in Categories 4-7 shall:
- Be a written document
- Conform to USPAP.
Category 8. Teaching of Appraisal Courses - No longer eligible for experience credit.
Category 9. Setting Forth Opinions of Value of Real Property for Tax Purposes - This category is limited to appraisals performed as an employee or agent of a County Assessor's Office or of the California State Board of Equalization.
Experience as an employee of a California County Assessor's Office or the California Board of Equalization in setting forth opinions of value of real property for tax purposes may be counted towards work experience.
Appraisal experience in this category shall:
- Be a written document
- Use the entire appraisal process
- Conform to USPAP
Experience in this category shall:
- Use highest and best use analysis, model specification (developing the model), and model calibration (developing adjustments to the model); and
- Conform to USPAP.
NOTE: Other components of the mass appraisal process, by themselves, are not eligible for experience credit.
All applicants for Category 9 experience must document their work experience on the Log of Appraisal Experience (REA 3004) and Experience Log Summary (REA 3003) forms. Reports listed on the Log of Appraisal Experience must be available for release to the BREA for verification of work experience.
Category 10. Assisting in the Preparation of Appraisals
Experience in this category shall:
- Be limited to a maximum of 400 hours towards meeting the experience requirements.
- Be a written document.
- Effectively use the appraisal process performing market research, data analysis and applying the appropriate appraisal techniques.
- Conform to all applicable USPAP standards, state laws and BREA regulations.
NOTE: Category 10 experience requires applicants to have effectively completed at least 75% of the appraisal process under the guidance of a supervisory appraiser. The work experience must go beyond such tasks as taking photographs, typing the report, or other non-analytical duties. Applicants must be identified by name (and BREA license number, if licensed) with the extent of the real property appraisal assistance clearly and conspicuously described in the report.
Category 11. Real Estate Valuation Experience as a Real Estate Lending Officer or Real Estate Broker
Effective January 1, 2008, applicants may gain up to 50% of the experience requirements through case studies and practicum courses that are approved by the AQB Course Approval Program.
NOTE: No practicum courses are approved at this time.
Documenting Experience
Applicants for a Residential License, Certified Residential License or Certified General License must document their experience on the Log of Appraisal Experience (REA 3004) and the Experience Log Summary (REA 3003) and shall include all of the following:
- Document appraisal assignments on the official Log of Appraisal Experience (REA 3004). BREA will not accept other formats.
- Follow the Directions of the Log of Appraisal Experience (REA 3004) current as of the date the application is submitted.
- Include signed Certification(s) from the Log of Appraisal Experience (REA 3004) current as of the date the certification is signed.
BREA will select and review work samples from the Log of Appraisal Experience (REA 3004) to verify applicants have met the experience requirement. Each work sample requested by BREA must be an exact, non-redacted copy of the report delivered to the client, and in full conformance with USPAP requirements. If any of the work samples are found not to conform to any portion of USPAP, BREA may reject the experience claimed and deny the application. BREA reserves the right to require the submission of additional samples and/or complete work files.
Appraisal reports that do not comply with USPAP and/or Restricted Appraisal Report and Restricted Use Appraisal Reports are not eligible for experience credit.
Earning Acceptable Experience as a Trainee
To earn acceptable hours of experience, a Trainee licensee must work under the direct technical supervision of a Certified Residential or Certified General licensed appraiser in good standing who meets the Supervisory Appraiser criteria outlined in Changes Effective 2015 section of handbook. The supervisor must be licensed at the appropriate level for the type of property being appraised. "Technical supervision" does not mean that the Trainee is required to be an employee of the supervising appraiser, but must receive direct supervision in the duties performed as an appraiser. In addition, a Trainee may work for more than one supervisor. The Trainee must either:
- Sign the appraisal report as the appraiser; or
- Be identified by name and BREA license number with the extent of the real property appraisal assistance clearly and conspicuously described in the report.
NOTE: A maximum of 400 hours of Category 10 experience may be credited toward meeting the minimum experience requirements.
In addition, work experience and the appraisal report must fully conform to both the requirements of USPAP and Title 10, Chapter 6.5, California Code of Regulations (commencing with Section 3500).
Trainees must:
- Maintain custody of the work file, or make appropriate work file retention, access and retrieval arrangements with the party having custody of the work file in accordance with the Record Keeping section of the Ethics Rule of USPAP. Since BREA will examine work samples when a Trainee wishes to upgrade his or her license, all appraisals included on the log must be available for review by BREA regardless of USPAP minimum retention requirements; and
- Maintain an appraisal log. A separate Log of Appraisal Experience (REA 3004) must be maintained for each supervising appraiser.
The supervising appraiser must do all of the following:
- Personally inspect the property with the Trainee until the supervisor determines the Trainee is competent to make unsupervised inspections, in accordance with the Competency Rule of USPAP for the type of property being appraised.
- Review the Trainee's appraisal report.
- Accept responsibility for the appraisal report by signing and certifying that the report is in compliance with USPAP.
- Review and initial each page of the Trainee's appraisal log to verify that the work was completed under his/her supervision.
- Sign the certification of the Log of Appraisal Experience (REA 3004) current as of the date the certification was signed.
- Maintain records of the appraisals in accordance with USPAP.
- Include trainee’s name and BREA license number (if licensed) and identification of assistance in appraisal report.
NOTE: Supervising appraisers must be licensed at the Certified Residential or Certified General Level and have no more than three trainees under their supervision.
Obtaining Experience Without a License
An individual who is unlicensed may obtain appraisal experience in
- By providing "significant real property appraisal assistance" to a licensed appraiser and properly identifying the assistance in the appraisal report. If unlicensed individuals perform at least 75% of the professional appraisal work and the appraisal conforms to USPAP with the unlicensed individual identified by name with the extent of the real property appraisal assistance clearly and conspicuously described in the report, the experience can qualify under Category 10 (Assistance in the Preparation of Appraisals), up to a maximum of 400 hours.
- By performing the entire appraisal process under the direct technical supervision of a Certified Residential or Certified General licensed appraiser in good standing. The final conclusion to value is made by and the appraisal is signed by the supervising appraiser, with the unlicensed individual identified by name with the extent of the real property appraisal assistance clearly and conspicuously described in the report. If the unlicensed individual performs all appraisal methods customarily used for the assignment and the appraisal conforms to USPAP, the experience can qualify under Category 1 (Fee and Staff Appraisal).
- By performing appraisals in non-federally related transactions. If the appraisals were performed for a business purpose and conform to USPAP, the experience can qualify under Category 1.
NOTE: Individuals unlicensed in California may not sign appraisals in federally related transactions, even if co-signed by a licensed California appraiser.
EXAMINATION AND LICENSE ISSUANCE
Applicants must successfully complete the examination for the license level for which they have applied. After BREA reviews and makes a preliminary determination that an applicant has met the minimum requirements, BREA will send the applicant a letter informing them that they are eligible to take the exam. The letter will have AMP's contact information, the applicant's identification number and the selected work samples for review that the applicant needs to submit after successfully passing the exam.
AMP has a helpful California Candidate Handbook for your perusal.
Applicants pay examination fees directly to the exam provider.
Applicants who receive a letter of exam eligibility should verify that the examination level indicated on the letter conforms to the license level for which they applied. Applicants may then call the test administrator to schedule an examination date and choose a testing center. Applicants who require special accommodations in order to test must inform the test administrator when making the appointment. Note that testing dates, facilities and seating are limited.
The applicant must successfully complete the examination within five attempts and no later than one year from the date they became eligible according to AMP records. Since reservations are subject to space availability, applicants should reserve space as early as possible. Failure to successfully complete the examination within five attempts or prior to eligibility end date will result in expiration of the application. After five attempts and/or the eligibility end date, the applicant must reapply for licensure. This will require a new application, supporting documentation and payment of all appropriate fees in accordance with the requirements in existence at the time the new application is submitted.
NOTE: It is the responsibility of applicants to ensure that the correct examination is taken at the testing center.
Examinations are scored upon completion and applicants should receive their results immediately after completing the exam.
NOTE: Applicants should not leave the testing center without the original copy of the examination results containing the applicant's photograph, and the appropriate BREA form as described below.
Applicants who pass the examination will receive proof of successful completion from the test provider. In order to request license issuance, applicants must forward the original examination score results sheet showing successful completion, a completed Application for Issuance of a License (REA 3008), BREA requested work samples (not required for Trainee level), and all appropriate fees (if any still outstanding) to BREA.
NOTE: BREA must receive applications for issuance within one year from the date the examination was successfully completed. After one year, applicants who still desire to pursue licensure must reapply as indicated above.
Applicants who fail the examination will need to contact AMP again to reschedule another exam.
The California Department of Justice (DOJ) and/or the Federal Bureau of Investigation (FBI) will use identification and fingerprint information to assist BREA in determining if applicants have a criminal record. This information is provided to BREA as part of the application process and is automatically updated should a subsequent criminal conviction occur during the period of licensure.
The Department of Child Support Services provides BREA with a list of persons who are delinquent in court ordered child support payments. If an applicant's name is on this list who is otherwise qualified for licensure, BREA will issue a temporary license that is valid for 150 days. During this time the applicant must have the County Department of Child Support Services that placed the applicant on the list submit a release to BREA. BREA cannot extend the 150 day temporary license and fees submitted are non- refundable. (See Family Code section 17420.)
If an application is denied due to the applicant's failure to meet minimum requirements, the applicant may have certain rights to have the decision reviewed in a hearing. These rights are contained in California Government Code Section 11500 et seq. and California Business and Professions Code Section 475 et seq. Applicants should become familiar with these sections as failure to timely protect these rights may result in the loss of any right.
OTHER APPLICATION INFORMATION
Investigation of Offenses
Before an application is approved, BREA is required by law to verify the identity of the applicant and determine if the applicant has committed any crimes or acts which constitute grounds for denial of an application for licensure. To assist BREA with this review process, please ensure you include all of the following with your application for each offense:
- A written explanation of the incident including current status, address criteria of rehabilitation in your statement and attach it to the application Part B questions.
- A copy of police report.
- A complete copy of the court docket.
NOTE: If charges were dismissed without a conviction, provide a copy of the court document evidencing dismissal of the charges.
Applicants must disclose to BREA any and all prior misdemeanor and felony convictions. If a conviction has been purged, the applicant must still disclose the conviction unless entitled to an exemption based upon successful completion of a diversion program, a judicial determination of factual innocence or other order of court which expressly provides for such exemption. Applicants claiming this exemption must provide BREA with a certified copy of the court order or other authority for the exemption. A Certificate of Rehabilitation (Penal Code Section 4852.01) or termination of probation and dismissal of the information or accusation (Penal Code Section 1203.4) does not exempt an applicant from disclosing a conviction when applying for a license issued by BREA. However, convictions adjudicated in the juvenile court or convictions more than two years old under California Health and Safety Code, Sections 11357(b), (c), (d), (e), or 113606(b) should not be reported.
Applicants must also disclose the following pleas or convictions:
Nolo Contendre or No Contest
- Applicants who pled Nolo Contendre or No Contest to a crime must still disclose the resulting conviction on the application.
Applicants are given an opportunity to explain any offense or criminal conviction. BREA may ask applicants to do this in writing and/or require participation in an office conference to provide the explanation. In addition to providing an explanation, BREA may require applicants to demonstrate proof of rehabilitation subsequent to the acts or the actions that are the basis of the conviction in accordance with the Criteria for Rehabilitation as stated in Article 12, Title 10, California Code of Regulations, Section 3723.
Applicants are required to provide certified copies of the court records, including the complaint, complete docket, judgment and sentence and probation report, if any, for any convictions. Applicants are also required to provide copies of police and/or other investigating agency reports, as well as certified copies of decisions from other state or federal agencies, if applicable. Providing these documents with the application will assist BREA in processing the application as quickly as possible. If an applicant is unable to obtain these records, the applicant must provide BREA with a sworn declaration signed by the applicant under penalty of perjury stating the efforts the applicant made to obtain the records, the inability to obtain them, and the reasons why.
If BREA determines the applicant is not qualified to receive a license due to prior acts or convictions, the applicant may have certain rights to have this decision reviewed in a hearing. These rights are stated in California Government Code Section 11500 et seq. and California Business and Professions Code Section 475 et seq. Applicants should become familiar with these sections as failure to timely protect these rights may result in the loss of any right the applicant may have to a hearing.
Due Diligence
Applicants must exercise due diligence in pursuing an application for licensure. This means the applicant must respond in a timely fashion to any inquiries or requests for additional information or documents from BREA and ensure that BREA.
Failure to exercise due diligence in pursuing an application or responding to a request from BREA may result in an application being closed or denied. Should this occur and the applicant subsequently decides to pursue licensure or application for upgrade or renewal, the applicant must submit a new application, supporting documentation, and all appropriate fees in accordance with requirements in existence at that time.
Refunds
Pursuant to state statute, all fees are deemed earned upon receipt. No refunds will be granted.
Change of Information
APPENDIX A
The following are the subtopics for each module. Not all module subtopics are required for credit toward completion of a module. The examination, however, is based on all of the subtopics. Courses may contain one module or parts of one or more modules.
APPENDIX B
| Minimum Hours | License Level | |||
Basic Education Modules |
Trainee & Residential | Certified Residential | Certified General | |
| 30 | Basic Appraisal Principles | X | X | X |
| 30 | Basic Appraisal Procedures | X | X | X |
| 15 | 15-Hour National USPAP Course | X | X | X |
| 15 | Residential Market Analysis and Highest and Best Use | X | X | |
| 15 | Residential Appraiser Site Valuation and Cost Approach | X | X | |
| 30 | Residential Sales Comparison and Income Approach | X | X | |
| 15 | Residential Report Writing & Case Studies | X | X | |
| 15 | Advanced Residential Applications and Case Studies | X | ||
| 15 | Statistics Modeling and Finance | X | X | |
| 30 | General Appraiser Market Analysis and Highest and Best Use | X | ||
| 30 | General Appraiser Sales Comparison Approach | X | ||
| 30 | General Appraiser Site Valuation and Cost Approach | X | ||
| 30 | General Appraiser Report Writing and Case Studies | X | ||
| 60 | General Appraiser Income Approach | X | ||
| Appraisal Subject Matter Electives. May include hours over the minimum requirement in the above modules or in modules not required | 20 hours | 30 hours | ||
REFERENCE GUIDE
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