(1) Alabama law recognizes five classes of real estate appraisers:

(a) Trainee Real Property Appraiser,

(b) State Registered Real Property Appraiser,

(c) Licensed Real Property Appraiser,

(d) Certified Residential Real Property Appraiser,

(e) Certified General Real Property Appraiser.

(2) The Board is mandated by statute to promulgate rules and regulations which conform in all respects to the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Pub. L. 101-73. See Code of Ala. 1975, §§34-27A-5(b)(12)(13) and 34-27A-29. Consistent therewith, and pursuant to the authority granted the Board by the Alabama legislature, the classes of state licensed real property appraisers are defined as follows:

(a) Introductory Statement. All 1 to 4 unit transactions less than $1,000,000 are assumed to be non-complex. If a property, its form of ownership, or market conditions are atypical, the regulated institution requesting the appraisal analysis will make the determination as to whether it is a complex or non-complex transaction. Alabama requires compliance with the Uniform Standards of Professional Appraisal Practice by all persons who perform real estate appraisals in the State of Alabama. There is no differentiation as to the scope of appraisal activity on federally related and non-federally related transactions. The appraiser must at all times comply with the Ethics Provision and Competency Provision of the Uniform Standards of Professional Appraisal Practice.

The definition of a federally related transaction both in the Alabama law and FIRREA is "any real estate-related financial transaction which (a) a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in contracts for, or regulates; and (b) requires the services of an appraiser." Non-federally related properties are those properties which are the subject of appraisals for non-federally related transactions.

(b) Trainee Real Property Appraiser. The scope of practice for the Appraiser Trainee is the appraisal of those properties which the supervising appraiser is permitted to appraise.

If the Trainee plans to use these experience hours as part of the experience needed for licensure, the work must be included in the Trainee's assignment log, and the appraisal report must be signed by the supervising appraiser.

(c) State Registered Real Property Appraiser. Those individuals licensed by the Board as being qualified to perform real estate appraisals on non-federally related properties including:

1. Complex appraisals of 1 to 4 unit non-federally related residential properties having transaction value of $250,000 or less; other non-federally related non-residential properties having transaction value of $250,000 or less.

2. Non-complex appraisals of 1 to 4 unit non-federally related residential properties having transaction value of $1,000,000 or less.

3. This classification does not include the appraisal of subdivisions wherein a development analysis/appraisal is necessary and utilized.

4. All registered real property appraisers are bound by the Competency Provision of the Uniform Standards of Professional Appraisal Practice.

(d) State Licensed Real Property Appraiser. Those individuals licensed by the Board as being qualified to perform real estate appraisals on properties including:

1. Complex appraisals of 1 to 4 unit residential properties having transaction value of $250,000 or less; other non-residential properties having transaction value of $250,000 or less;

2. Non-complex appraisals of 1 to 4 unit residential properties having transaction value of $1,000,000 or less.

3. This classification does not include the appraisal of subdivisions wherein a development analysis/appraisal is necessary and utilized.

4. All licensed real property appraisers are bound by the Competency Provision of the Uniform Standards of Professional Appraisal Practice.

(e) State Certified Residential Real Property Appraiser. Those individuals licensed by the Board as being qualified to perform federally related residential real estate appraisals on 1 to 4 unit residential properties without regard to the complexity or dollar amount. These appraisers are also permitted to appraise non-residential properties having transaction value of $250,000 or less.

1. The Certified Residential Real Property Classification does not include the appraisal of subdivisions wherein a development analysis/appraisal is necessary and utilized.

2. All certified residential real property appraisers are bound by the Competency Provision of the Uniform Standards of Professional Appraisal Practice.

(f) State Certified General Real Property Appraiser. This classification applies to the appraisal of all types of real property, regardless of transaction value. Appraisals on federally related transactions, which must be done by a State Certified General Real Estate Appraiser, include all non-residential properties having transaction value of $250,000 or more. All Appraisers are bound by the Competency Provision of the Uniform Standards of Professional Appraisal Practice.

Author: Alabama Real Estate Appraisers Board

Statutory Authority: Code of Ala. 1975, §§34-27A-5(b)12,13; 34-27A-29.

History: Emergency adoption filed February 15, 1991; effective February 18, 1991. Permanent adoption filed April 8, 1991; effective May 15, 1991. Amended: Filed June 18, 1992; effective July 23, 1992. Amended: Filed March 14, 1994; effective April 18, 1994. Proposed New Rule: Filed April 21, 1994. Emergency adoption: Filed May 5, 1994; effective June 1, 1994. Repealed and Replaced: Filed June 22, 1994; effective July 27, 1994. Amended: Filed January 11, 1996; effective February 15, 1996.