Board Rules

NORTH CAROLINA ADMINISTRATIVE CODE
TITLE 21
OCCUPATIONAL LICENSING BOARDS

CHAPTER 57
REAL ESTATE APPRAISAL BOARD

SUBCHAPTER 57A – REGISTRATION, LICENSING, CERTIFICATION AND PRACTICE

CHAPTER 57A - REAL ESTATE APPRAISAL BOARD

(Updated July 01, 2005)

SECTION .0100 APPLICATION FOR REAL ESTATE APPRAISER LICENSE OR CERTIFICATE

.0101 Form

A person who wishes to file an application for a real estate trainee registration, appraiser license or certificate may obtain the required form upon request to the Board. In general, the form calls for information such as the applicant’s name and address, the applicant’s social security number, a recent passport size photograph of the applicant, places of residence and employment, education, and such other information as may be necessary to identify the applicant and determine his qualifications and fitness for registration, licensure or certification.

.0102 Filing and Fees

(a) Each application for registration, licensure or certification must be filed in the proper form and must be accompanied by the required application fee. An additional fee may be charged to defray the cost of any competency examination administered by a private testing service. This additional fee shall be no more than the fee set by the private testing agency. The Board may reject and return to the applicant any application which is incomplete, not in proper form, or not accompanied by the required fee or fees. Application fees accompanying complete applications submitted in proper form are not refundable.
(b) The following fees shall be charged:
(1) application for original trainee registration $150.00;
(2) application for original residential appraiser license $150.00;
(3) application for original residential appraiser certificate $150.00;
(4) application for original general appraiser certificate $150.00
(c) Payment of application fees shall be made by certified check, bank check or money order
payable to the North Carolina Appraisal Board.

SECTION .0200
TRAINEE REGISTRATION, APPRAISER LICENSING AND CERTIFICATION

.0201 Qualifications For Trainee Registration, Appraiser Licensure and Certification

(a) Applicants for trainee registration, licensure as a licensed residential real estate appraiser and certification as a certified real estate appraiser must satisfy the qualification requirements stated in G.S. 93E-1-6 as further set forth in Subparagraphs (a)(1), (a)(2), (a)(3), and (a)(4) of this Rule, provided however that registration as a trainee or licensure as a licensed residential real estate appraiser is not prerequisite for certification as a certified residential or general real estate appraiser:
(1) Applicants for trainee registration shall have completed, within the five-year period immediately preceding the date application is made, 90 hours of education in the areas of Introduction to Real Estate Appraisal, Valuation Principles and Practices, Applied Residential Property Valuation, and, effective January 1, 2003, the Uniform Standards of Professional Appraisal Practice (USPAP) or appraisal education found by the Board to be equivalent to such courses.
(2) Applicants for licensure as a licensed residential real estate appraiser shall have completed, within the five-year period immediately preceding the date application is made, 90 hours of education as set forth in Subparagraph (a)(1) of this Rule, and shall have obtained at least 2,000 hours of appraisal experience acquired within the five-year period immediately preceding the date application is made and over a minimum period of 18 calendar months. Applicants must have been actively engaged in real estate appraising for at least 18 months prior to the date application is made.
(3) Applicants for certification as a certified residential real estate appraiser shall have completed those courses required for registration as a trainee or licensure as a licensed residential real estate appraiser or equivalent education and, in addition, within the five-year period immediately preceding the date application is made, a course in Introduction to Income Property Appraisal consisting of at least 30 classroom hours of instruction or equivalent education; and shall have obtained at least 2,500 hours of appraisal experience acquired within the five-year period immediately preceding the date application is made and over a minimum period of two calendar years. Applicants must have been actively engaged in real estate appraising for at least two calendar years prior to the date application is made. At least 50 percent of this appraisal experience must have been of one to four family residential properties in which the sales comparison approach was utilized in the appraisal process.
(4) Applicants for certification as a certified general real estate appraiser shall have completed those courses required for certification as a certified residential real estate appraiser or equivalent education and, in addition, within the five-year period immediately preceding the date application is made, courses in Advanced Income Capitalization Procedures and Applied Income Property Valuation each consisting of at least 30 classroom hours of instruction or equivalent education; and shall have obtained at least 3,000 hours of appraisal experience acquired within the five-year period immediately preceding the date application is made and over a minimum period of two and a half calendar years of which at least 50 percent must have been in appraising non-residential real estate. Applicants must have been actively engaged in real estate appraising for at least two and one-half calendar years prior to the date application is made. At least 50 percent of the non-residential appraisal experience must have been of complex properties or of improved properties in which the income approach was utilized in the appraisal process.
(b) Applicants for licensure or certification may be required to provide to the Board copies of appraisal reports in support of experience credit. All appraisals submitted in support of experience credit must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and with any applicable state statutes or rules.
(c) When a trainee becomes a licensed or certified real estate appraiser or when a licensed real estate appraiser becomes certified as a real estate appraiser, his registration or licensure shall be immediately canceled by the Board. When a certified residential real estate appraiser becomes certified as a general real estate appraiser, his previous certification shall be immediately canceled by the Board.
(d) In the event that the Board asks an applicant to submit updated information or provide further information necessary to complete the application and the applicant fails to submit such information within 90 days following the Board's request, the Board shall cancel the applicant's application and the application fee will be retained by the Board. An applicant whose application has been cancelled and who wishes to obtain a registration, license or certificate must start the licensing process over by filing a complete application with the Board and paying all required fees.

.0201 Qualifications For Trainee Registration, Appraiser Licensure and Certification (a) Applicants for trainee registration, licensure as a state-licensed residential real estate appraiser and for certification as a state-certified real estate appraiser must satisfy the qualification requirements stated in G.S. 93E-1-6 as further set forth in Subparagraphs (a) (1), (2), (3), (4) and (5) of this Rule, provided however that registration as a trainee or licensure as a state-licensed residential real estate appraiser is not prerequisite for certification as a state-certified residential or general real estate appraiser:
(1) Applicants for trainee registration shall have completed, within the five-year period immediately preceding the date application is made, 90 hours of education in the areas of Introduction to Real Estate Appraisal, Valuation Principles and Practices, Applied Residential Property Valuation and, effective January 1, 2003, the Uniform Standards of Professional Appraisal Practice (USPAP) or appraisal education found by the Board to be equivalent to such courses;
(2) Applicants for licensure as a state-licensed residential real estate appraiser shall have completed, within the five-year period immediately preceding the date application is made, 90 hours of education as set forth in .0201(a)(1), and have at least 2,000 hours of appraisal experience.
(3) Applicants for certification as a state-certified residential real estate appraiser shall have completed those courses required for registration as a trainee or licensure as a state-licensed residential real estate appraiser or equivalent education and, in addition, within the five-year period immediately preceding the date application is made, a course in Introduction to Income Property Appraisal consisting of at least 30 classroom hours of instruction or equivalent education; and shall have obtained at least 2,500 hours of appraisal experience acquired over a minimum period of two calendar years.
(4) Applicants for certification as a state-certified general real estate appraiser shall have completed those courses required for certification as a state-certified residential real estate appraiser or equivalent education and, in addition, within the five-year period immediately preceding the date application is made, courses in Advanced Income Capitalization Procedures and Applied Income Property Valuation each consisting of at least 30 classroom hours of instruction or equivalent education; and shall have obtained at least 3,000 hours of appraisal experience acquired over a minimum period of two and a half calendar years of which at least 50 percent must have been in appraising non-residential real estate.
(b) (1) Applicants for licensure or certification may be required to provide to the Board copies of appraisal reports in support of experience credit.
(2) All appraisals submitted in support of experience credit must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and with any applicable state statutes or rules.
(c) When a trainee becomes a state-licensed or state-certified real estate appraiser, or when a state-licensed real estate appraiser becomes certified as a state-certified real estate appraiser, his registration or licensure shall be immediately canceled by the Board. When a state-certified residential real estate appraiser becomes certified as a state-certified general real estate appraiser, his previous certification as a state-certified residential real estate appraiser shall be immediately canceled by the Board.

.0202 Fitness for Registration, Licensure or Certification

(a) The Appraisal Board shall consider the fitness for registration, licensure or certification of each applicant who has passed the appropriate examination. When the fitness of an applicant is in question, action by the Board shall be deferred until the applicant has affirmatively demonstrated that the applicant possesses the requisite competency, truthfulness, honesty and integrity.
(b) When the application is deferred, the Board shall notify the applicant and the applicant shall be entitled to demonstrate his or her competency or fitness for registration, licensure or certification at a hearing before the Board.
(c) The inquiry into fitness for registration, licensure or certification may include consideration of whether the applicant has had any disciplinary action taken against any professional license in North Carolina or any other state, or whether the applicant has committed or done any act which, if committed or done by any real estate trainee or appraiser , would be grounds under the provisions hereinafter set forth for disciplinary action including the suspension or revocation of registration, licensure, or certification, whether the applicant has been convicted of or pleaded guilty to any criminal act, or whether any such actions or charges are pending.
(d) Notice to the applicant that his or her competency or fitness for registration, licensure or certification is in question shall be in writing, sent by certified mail, return receipt requested, to the address shown upon the application. The applicant shall have 60 days from the date of receipt of this notice to request a hearing before the Board. Failure to request a hearing within this time shall constitute a waiver of the applicant's right to a hearing on his or her application for trainee registration, licensing or certification, and the application shall be deemed denied. Nothing in this Rule shall be interpreted to prevent an applicant from reapplying for registration, licensure or certification.

.0203 Registration, License and Certificate Renewal

(a) All registrations, licenses and certificates expire on June 30 of each year unless renewed before that time.
(b) A holder of a trainee registration, an appraiser license or certificate desiring the renewal of such registration, license or certificate shall apply for same in writing upon the form approved by the Board and shall forward the required fee of two-hundred dollars ($200.00). Forms are available upon request to the Board.
(c) All trainees, licensees and certificate holders, either active or inactive, resident or non-resident, who are required by G.S 93E-1-7 to complete continuing education as a condition of renewal, shall be required to satisfy the continuing education requirements set forth in Rule .0204 of this Section.
(d) An applicant applying for renewal of a registration, license or certificate obtained by reciprocity must submit with the renewal application a current license history from the appraiser regulatory authority of the state upon whose qualification requirements the reciprocal registration, license or certificate was granted showing that the applicant is currently registered, licensed of certified in good standing. Submission of false or misleading information to the Board in connection with registration, license or certificate renewal shall constitute grounds for disciplinary action.
(e) Any person who acts or holds himself out as a registered trainee, state-licensed or state-certified real estate appraiser while his trainee registration, appraiser license or certificate is expired shall be subject to disciplinary action and penalties as prescribed in Chapter 93E of the North Carolina General Statutes.

.0204 Continuing Education

(a) All registered trainees, real estate appraiser licensees and certificate holders shall, upon the renewal of their registration, license or certificate, present evidence satisfactory to the Board of having obtained continuing education as required by this Section. Registered trainees who were initially registered with the Board after January 1 of an odd numbered year will not be required to show continuing education credit for renewal of their registration in that odd numbered year.
(b) Each trainee, licensee and certificate holder who is required to complete continuing education pursuant to Paragraph (a) of this Rule must complete 28 hours of continuing education between July 1, 2003 and June 30, 2005 and prior to June 30 of every odd numbered year thereafter. Except as provided in Paragraphs (g) and (h) of this Rule, such education must have been obtained by taking courses approved by the Board for continuing education purposes. Such education must relate to real estate appraisal and must contribute to the goal of improving the knowledge, skill and competence of trainees, and licensed and certified real estate appraisers. There is no exemption from the continuing education requirement for trainees or appraisers whose registered, licensed or certified status has been upgraded to the level of licensed residential, certified residential or certified general appraiser since the issuance or most recent renewal of their registration, license or certificate, and courses taken to satisfy the requirements of a higher level of certification may not be applied toward the annual continuing education requirement. Trainees, licensees and certificate holders may not take the same continuing education course more than once during the two year continuing education cycle. The 7 hour National Uniform Standards of Professional Appraisal Practice (USPAP) update course may be taken once for each edition of USPAP.
(c) Each appraisal continuing education course must involve a minimum of three and one-half classroom hours of instruction on real estate appraisal or related topics such as the application of appraisal concepts and methodology to the appraisal of various types of property; specialized appraisal techniques; laws, rules or guidelines relating to appraisal; standards of practice and ethics; building construction; financial or investment analysis; land use planning or controls; feasibility analysis; statistics; accounting; or similar topics. The trainee, license or certificate holder must have attended at least 90 percent of the scheduled classroom hours for the course in order to receive credit for the course.
(d) Each trainee, licensee and certificate holder who is required to complete continuing education pursuant to .0204(a) must, as part of the 28 hours of continuing education required in .0204(b) of this section, complete the seven hour National USPAP update course, as required by the Appraiser Qualifications Board of the Appraisal Foundation, or its equivalent, prior to June 30 of every odd numbered year.
(e) A licensee who elects to take approved continuing education courses in excess of the requirement shall not carry over into the subsequent years any continuing education credit.
(f) Course sponsors must provide a prescribed certificate of course completion to each trainee, licensee and certificate holder satisfactorily completing a course. In addition, course sponsors must send directly to the Board a certified roster of all who successfully completed the course. This roster must be sent within 15 days of completion of the course, but not later than June 30 of each year. In order to renew a registration, license or certificate in a timely manner, the Board must receive proper proof of satisfaction of the continuing education requirement prior to processing a registration, license or certificate renewal application. If proper proof of having satisfied the continuing education requirement is not provided, the registration, license or certificate shall expire and the trainee, licensee or certificate holder shall be subject to the provisions of Rules . 0203(e) and .0206 of this Section.
(g) A current or former trainee, licensee or certificate holder may request that the Board grant continuing education credit for a course taken by the trainee, licensee or certificate holder that is not approved by the Board, or for appraisal education activity equivalent to a Board-approved course, by making such request and submitting a non-refundable fee of fifty dollars ($ 50.00) for each course or type of appraisal education activity to be evaluated. Continuing education credit for a non-approved course shall be granted only if the trainee, licensee or certificate holder provides satisfactory proof of course completion and the Board finds that the course satisfies the requirements for approval of appraisal continuing education courses with regard to subject matter, course length, instructor qualifications, and student attendance. Appraisal education activities for which credit may be awarded include, but are not limited to, teaching appraisal courses, authorship of appraisal textbooks, and development of instructional materials on appraisal subjects. The awarding of credit for such activities is wholly discretionary on the part of the Board. Trainees or licensed or certified appraisers who have taught an appraisal course or courses approved by the Board for continuing education credit shall be deemed to have taken an equivalent course and shall not be subject to the fifty ($50.00) fee, provided they submit verification satisfactory to the Board of having taught the course(s). A trainee, licensee or certificate holder who teaches a Board-approved continuing education course may not receive continuing education credit for the same course more than once every three years, regardless of how often he teaches the course.
(h) A trainee, licensee or certificate holder may receive continuing education credit by taking any of the Board-approved prelicensing or precertification courses or their approved equivalents. These courses cannot be used for both continuing education credit and for credit for licensing purposes. In order to receive continuing education credit for these courses, the examination must be taken. Trainee, licensees and certificate holders who wish to use a prelicensing course for continuing education credit must comply with the provisions of 21 NCAC 57B .0604.

.0205 Inactive Status

Repealed effective August 1, 2002

.0206 Expired Registration, License or Certificate

(a) Expired registrations, licenses and certificates may be reinstated within 12 months after expiration upon proper application, payment to the Board of the two-hundred dollar ($200.00) renewal fee plus a late filing fee of five dollars ($5.00) per month for each month or part thereof that such registration, license or certificate is lapsed, and provision of proof of having obtained the continuing education that would have been required had the registration, license or certificate been continuously renewed.
(b) If the registration, license or certificate has been expired for more than 12 months, a request for reinstatement shall be treated as an original application. In order to be considered for reinstatement, the applicant must pay the one-hundred fifty dollar ($150.00) original registration, license or certificate fee and include in the application a description of the applicant's appraisal education and experience during the period of registration, licensure or certification and during the time of expiration. Such applications shall be reviewed by the Board to determine whether an examination, additional real estate appraisal education or additional appraisal experience shall be required. In addition, the Board may consider whether the applicant for reinstatement has any prior or current disciplinary actions, and may examine the applicant's fitness for registration, licensure or certification before granting the request for reinstatement.
(c) A request for reinstatement shall not be granted if the registration, license or certificate has been expired for more than 24 months.
(d) Reinstatement is effective the date it is issued by the Board. It is not retroactive

.0207 Payment of Registration, License and Certificate Fees

Checks given the Board in payment of registration, license and certificate fees which are returned unpaid shall be cause for registration, license or certificate denial, suspension or revocation.

.0208 Replacement Registration, License and Certificate Fees

A trainee, licensee or certificate holder may, by paying a five dollar ($5.00) fee to the Board, obtain a duplicate trainee registration, appraiser license or certificate or pocket card to replace an original registration, license, certificate or pocket card which has been lost, damaged or destroyed or if the name of the trainee, licensee or certificate holder has been lawfully changed. The Board, at its discretion, may require a trainee, licensee or certificate holder requesting a duplicate registration, license or certificate to submit an affidavit stating the reason for the request.

.0209 National Appraiser Registry

Licensees and certificate holders who are qualified for enrollment in the national roster or registry of state-licensed and state-certified real estate appraisers may apply for enrollment or for the renewal or reinstatement of such enrollment upon a Board form. The application form must be accompanied by a fee of $20 plus any additional fee that may be required by the appropriate federal agency or instrumentality.

.0210 Temporary Practice

(a) A real estate appraiser who does not reside in North Carolina and who is licensed or certified by the appraiser licensing or certifying agency in another state may apply to receive temporary appraiser licensing or certification privileges in this State by filing a notarized application with the Board.
(b) Upon filing a completed application accompanied by a fee of one hundred fifty dollars ($150.00) and otherwise satisfying the Appraisal Board as to his or her qualifications, eligibility and moral fitness for temporary licensing or certification privileges, an applicant shall be granted a temporary practice permit by the Board authorizing the applicant to perform in this State the appraisal assignment described in such application, provided that the length of time projected by the applicant for completion of the assignment is reasonable given the scope and complexity of the assignment. The fee must be paid by money order, certified check or cashier's check. As part of the examination for moral fitness, the Board may consider whether an applicant's trainee registration or appraiser license or certification is or has been subject to discipline in their resident state or any other state, and may consider all other information outlined in Rule .0202 of this Section.
(c) Privileges granted under the provisions of this Rule shall expire upon the expiration date set forth in the temporary practice permit. However, upon a showing by the permittee satisfactory to the Appraisal Board that, notwithstanding the permittee's diligent attention to the appraisal assignment, additional time is needed to complete the assignment, the Board shall extend the temporary practice privileges granted under the permittee's temporary practice permit to afford him additional time to complete the appraisal assignment.
(d) Persons granted temporary practice privileges under this Rule shall not advertise or otherwise hold themselves out as being a North Carolina trainee or state-licensed or state-certified appraiser.
(e) A trainee may apply for a temporary practice permit and the provisions of Sections (a), (b) and (c) above shall apply. The supervising appraiser for the trainee must be a North Carolina licensed or certified appraiser. If not, the supervising appraiser must be licensed or certified as a real estate appraiser in another state and must also receive a temporary practice permit for the same assignment as the trainee. The term "trainee" shall include apprentices and others who are licensed and regulated by a state agency to perform real estate appraisals under the supervision of a licensed or certified appraiser.
f) An applicant for a temporary practice permit shall not begin performing any appraisal work in this State until the temporary practice permit has been issued by the Board.

SECTION .0300
APPRAISER EXAMINATIONS

.0301 Time and Place

(a) Applicants who have met the education and experience requirements shall be issued an examination approval form by the Appraisal Board in order to take the examination. The examination approval form is valid for three attempts at the examination or for one year from date of issuance, whichever comes first.
(b) Examinations for real estate trainee registrations, appraiser licenses and certificates shall be scheduled at such times and places as determined by the Executive Director and the Board-approved private testing service. Applicants shall be scheduled for examination based on their successful completion of appraiser qualification requirements stated in G.S. 93E-1-6 and filing an application with the Board. Violation of examination procedures and instructions shall be grounds for denial, suspension or revocation of a license or certificate.
(c) Examination results are valid for 24 months from the date the examination is successfully completed.

.0303 Re-examination

(a) Applicants for a trainee registration, or appraiser license or certificate who fail to pass or appear for any examination for which the applicant has been scheduled by the Board-approved private testing service, may schedule a subsequent examination and shall pay the prescribed examination testing fees to the Board-approved private testing service.
(b) Applicants may take the examination no more than three times per application. If an applicant fails the examination, the applicant must wait a minimum of 30 days before retaking the examination. If the applicant does not pass the examination by the third attempt at the examination or within one year of the date of issuance of the examination approval form, the application is cancelled. If the application is cancelled, the applicant must wait six months before filing a new application for registration, licensure or certification and must meet all the qualification requirements for original approval.

.0304 Cheating and Related Misconduct

Applicants shall not cheat or attempt to cheat on an examination by any means, including both giving and receiving assistance, and shall not communicate in any manner for any purpose with any person other than an examination supervisor during an examination. Violation of this Rule shall be grounds for dismissal from an examination, invalidation of examination scores, and denial of a trainee registration, appraiser license or certificate, as well as for disciplinary action if the applicant holds a trainee registration, an appraiser license or certificate.

SECTION .0400
GENERAL APPRAISAL PRACTICE

.0401 Use of Titles

(a) A trainee shall utilize either the term "registered trainee" or the term "trainee real estate appraiser" when performing an appraisal of real estate or any interest therein, and when referring to himself as a trainee.
(b) A licensed residential real estate appraiser shall utilize the term "licensed residential real estate appraiser" and a certified residential real estate appraiser shall utilize the term "certified residential real estate appraiser" when performing an appraisal of real estate or any interest therein, and when referring to himself or herself as an appraiser. A certified general real estate appraiser shall utilize either the term "certified general real estate appraiser" or "certified residential/general real estate appraiser" when performing appraisals of all types of real estate or any interest therein, and when referring to himself or herself as an appraiser.
(c) Trainee registration, licensure or certification as a real estate appraiser is granted only to persons and does not extend to a business entity operated by a trainee, licensed or certified real estate appraiser.

.0402 Display of Registrations, Licenses and Certificates

(a) The original or a copy of the trainee registration, real estate appraiser license or certificate of a trainee, state-licensed or state-certified real estate appraiser shall be prominently displayed at each of the trainee’s or appraiser’s places of business.
(b) The annual registration, license or certificate renewal pocket card issued by the Board to each trainee, state-licensed or state-certified real estate appraiser shall be retained by the trainee, licensee or certificate holder as evidence of registration, licensure or certification.

.0403 Advertising

(a) When advertising or otherwise holding himself out as a trainee or real estate appraiser, a trainee shall identify himself or herself either as a "registered trainee" or as a "trainee real estate appraiser," a licensed residential real estate appraiser shall identify himself or herself as a "licensed residential real estate appraiser," a certified residential real estate appraiser shall identify himself or herself as a "certified residential real estate appraiser," and a certified general real estate appraiser shall identify himself or herself as either a "certified general real estate appraiser" or a "certified residential/general real estate appraiser".
(b) A registered trainee, licensed or certified real estate appraiser doing business as a partnership, association, corporation or other business entity shall not represent in any manner to the public that the partnership, association, corporation or other business entity is registered, licensed or certified by the State of North Carolina to engage in the business of real estate appraising.
(c) In the event that any trainee, licensee or certificate holder shall advertise in any manner using a firm name, corporate name, or an assumed name which does not set forth the surname of the trainee, licensee or certificate holder, he shall first notify the Board in writing of such name and furnish the Board with a copy of each registration of assumed name certificate filed with the office of the county register of deeds in compliance with Section 66-68, North Carolina General Statutes.

.0404 Change of Name or Address

All trainees, licensees and certificate holders shall notify the Board in writing of each change of business address, residence address, or trade name within ten days of said change. The address shall be sufficiently descriptive to enable the Board to correspond with and physically locate the trainee, licensee or certificate holder.

.0405 Appraisal Reports

(a) Each written appraisal report prepared by or under the supervision of a state-licensed or state-certified real estate appraiser shall bear the signature of the state-licensed or state-certified appraiser, the license or certificate number of the licensee or certificate holder in whose name the appraisal report is issued, and the designation “state-licensed residential real estate appraiser”, “state-certified residential real estate appraiser”, or the designation “state-certified general real estate appraiser”, or “state-certified residential/general real estate appraiser”, as applicable. Each such appraisal report shall also indicate whether or not the state-licensed or state-certified appraiser has personally inspected the property, and shall identify any other person who assists in the appraisal process other than by providing clerical assistance.
(b) Every state-licensed and state-certified real estate appraiser shall affix or stamp to all appraisal reports a seal which shall set forth the name and license or certificate number of the appraiser in whose name the appraisal report is issued and shall identify the appraiser as a “state-licensed residential real estate appraiser”, a “state-certified residential real estate appraiser”, or as a “state-certified general real estate appraiser” or “state-certified residential/general real estate appraiser”, as applicable. Registered trainees are prohibited from using a seal on appraisal reports.
(c) A state-licensed or state-certified real estate appraiser who signs an appraisal report prepared by another person, in any capacity, shall be fully responsible for the content and conclusions of the report.
(d) A written appraisal report shall be issued on all real estate appraisals performed in connection with federally related transactions.

.0406 Business Practices

Each trainee or appraiser who has an ownership interest in an appraisal firm must assure that:
(1) notification according to 21 NCAC 57A .0404 is given to the Board of any change of business address or trade name of the firm and the registration of any assumed business name adopted by the firm for its use; and
(2) advertising of appraisal services by or in the name of the firm is conducted as set out in 21 NCAC 57A .0403.

.0407 Supervision of Trainees

(a) A licensed or certified real estate appraiser may engage a registered trainee to assist in the performance of real estate appraisals, provided that the licensed or certified real estate appraiser:
(1) has been licensed or certified for at least two years;
(2) has no more than one trainee working under his or her supervision at any one time, if the supervisor is a licensed real estate appraiser, or two trainees if the supervisor is a certified real estate appraiser, either as employees or as a subcontractors. Prior to the date any trainee begins performing appraisals under his or her supervision, the supervisor must inform the Board of the name of the trainee;
(3) actively and personally supervises the trainee. The supervisor must accompany the trainee on the inspections of the subject property on the first 50 appraisal assignments performed after the effective date of this Rule for which the trainee will perform more than 75% of the work. After that point, the trainee may perform the inspections without the presence of the supervisor provided that the trainee is competent to perform those inspections, and provided that the subject property is less than 50 miles from the supervisor's primary business location. The supervisor must accompany the trainee on all inspections of subject properties that are located more than 50 miles from the supervisor's primary business location;
(4) reviews all appraisal reports and supporting data used in connection with appraisals in which the services of a trainee is utilized;
(5) complies with all provisions of Rule .0405 of this Section regarding appraisal reports;
(6) prepares and furnishes to each trainee, whose services were utilized in connection with the appraisal, a report describing the nature and extent of assistance rendered by the trainee in connection with the appraisal, and places a copy of such report in the supporting file for the appraisal. In addition, the supervisor must make available to the trainee a copy of every appraisal report to the trainee where the trainee performs more than 75% of the work on the appraisal; and
(7) has not received any disciplinary action regarding his or her appraisal license or certificate from the State of North Carolina or any other state within the previous two years. For the purposes of this Section, disciplinary action means only an active suspension or a revocation.
(b) The trainee must maintain a log on a form prescribed by the Board that includes, but is not limited to, each appraisal performed by the trainee, the name of the supervisor for that appraisal, the supervisor's license or certificate number, whether the supervisor accompanied the trainee on the inspection of the subject property and the date the supervisor sent in the Supervisor Declaration Form to the Appraisal Board.
(c) A license or certificate holder who wishes to supervise a trainee must attend an education program regarding the role of a supervisor before such supervision may begin.
(d) Trainees must assure that the supervisor has properly completed and sent the Supervisor Declaration Form to the Appraisal Board on or before the trainee begins assisting the supervising appraiser. Trainees shall not receive appraisal experience credit for appraisals performed in violation of this Section.
(e) Supervising appraisers shall not be employed by a trainee or by a company, firm or partnership in which the trainee has a controlling interest.

.0408 Supervision of Licensed and Certified Residential Appraisers

Repealed effective August 1, 2002

.0409 Reporting Required Actions

Whenever any of the actions outlined in G.S 93E-1-12(b)(1), (2), (4), (5) or (6) are taken against a trainee, licensee or certificate holder, the registration/license/certificate holder must report those actions to the Board within 60 days of the final judgment or final order.

SECTION .0500
STANDARDS OF APPRAISAL PRACTICE

.0501 Appraisal Standards

Every registered trainee, and licensed and certified real estate appraiser shall, in performing the acts and services of a registered trainee, or licensed or certified real estate appraiser, comply with those appraisal practice standards known as the "Uniform Standards of Professional Appraisal Practice" promulgated by the Appraisal Standards Board of the Appraisal Foundation, which standards, including subsequent amendments and editions of those standards which may from time to time be approved, are hereby incorporated by reference. For the purpose of this Rule, the "Uniform Standards of Professional Appraisal Practice" are the Definitions, Preamble, Ethics Rule, Competency Rule, Departure Rule, Jurisdictional Exception Rule, Supplemental Standards Rule, Statements on Appraisal Standards, and Standards 1, 2, and 3.

SUBCHAPTER 57B - REAL ESTATE APPRAISAL EDUCATION

SECTION .0100 - COURSES REQUIRED FOR REGISTRATION, LICENSURE OR CERTIFICATION

.0101 Registered Trainee, and Licensed Residential Real Estate Appraiser Course Requirements

a) Each applicant for registration as a trainee or licensure as a licensed residential real estate appraiser shall complete a minimum of 90 hours of prelicensing education, consisting of the following;
(1) A minimum of 30 hours in Introduction to Real Estate Appraisal (R-1);
(2) A minimum of 30 hours in Valuation Principles and Procedures (R-2);
(3) A minimum of 15 hours in Applied Residential Property Valuation (R-3); and
(4) A minimum of 15 hours in The Uniform Standards of Professional Appraisal Practice (USPAP).
(b) Credit for these courses must be earned from a Board-approved course sponsor or school and all course content shall be approved by the Appraisal Board in accordance with these rules. These courses must be completed within the five-year period immediately preceding the date when application for registration, licensure or certification is made to the Board.
(c) Introduction to Real Estate Appraisal (R-1) shall be a prerequisite to taking Valuation Principles and Procedures (R-2), and Valuation Principles and Procedures (R-2) shall be a prerequisite to taking Applied Residential Property Valuation (R-3). The 15 hour USPAP course may be taken any time after the successful completion of R-2.

.0102 Certified Residential Real Estate Appraiser Course Requirements

(a) In addition to the courses specified in Rule .0101 of this Section, an applicant for certification as a state-certified residential real estate appraiser shall complete a minimum of 30 hours in Introduction to Income Property Appraisal (G-1). This course must be taken after the applicant’s successful completion of the prelicensing courses specified in Rule .0101 of this Section. Credit for this course must be earned from a Board-approved course sponsor or school.
(b) An applicant who is not a trainee or a state-licensed residential real estate appraiser must have completed all required courses within the five-year period immediately preceding the date application is made to the Board.
(c) An applicant who is a trainee or state-licensed residential real estate appraiser must have completed the required course in Introduction to Income Property Appraisal (G-1) within the five-year period immediately preceding the date application is made to the Board.

.0103 Certified General Real Estate Appraiser Course Requirements

(a) In addition to the courses specified in Rules .0101 and .0102 of this Section, an application for certification as a state-certified general real estate appraiser is required to complete the following precertification courses, each involving a minimum of 30 classroom hours:
(1) Advanced Income Capitalization (G-2); and
(2) Applied Income Property Valuation (G-3).
These courses must be commenced and completed after the applicant’s successful completion of the courses specified in Rules .0101 and .0102 of this Section. Income Property Appraisal (G-1) shall be a prerequisite for Advanced Income Capitalization (G-2), and Advanced Income Capitalization (G-2), shall be a prerequisite to Applied Income property Valuation (G-3). Credit for all courses must be earned from a Board-approved course sponsor or school, and all courses shall comply with the course content standards prescribed in Rule .0302 of this Subchapter.
(b) An applicant who is not a trainee, or a state-licensed or state-certified residential real estate appraiser must have completed all the required courses within the five-year period immediately preceding the date application is made to the Board.
(c) An applicant who is a trainee or a state-licensed or state-certified residential real estate appraiser must have completed all courses required beyond those required for his current licensure or certification within the five-year period immediately preceding the date application is made to the Board.

.0104 Course Exemptions For Equivalent Education

A person desiring an exemption from the course requirements stated in Rules. 0101, .0102, and .0103 of this Section must made application for exemption upon a form prescribed by the Board. The Board will grant exemptions only upon a finding that the person requesting the exemption possesses education determined by the Board to be equivalent to the course or courses for which exemption is requested.

SECTION .0200 - COURSE SPONSOR STANDARDS FOR PRELICENSING AND PRECERTIFICATION EDUCATION

.0201 Purpose And Applicability

This Section established criteria for approval and operational requirements for all real estate appraisal prelicensing and precertification course sponsors and schools. These standards must be satisfied in order to course sponsors and schools to obtain and maintain approval of their courses for appraiser prelicensing and precertification education credit. Schools and course sponsors must obtain course approval from the Board prior to conducting prelicensing and precertification courses and prior to advertising or otherwise representing that a course is or may be approved for credit in North Carolina.

.0202 Application For Approval

Schools and other course sponsors seeking approval to conduct real estate appraisal prelicensing courses or precertification courses must make written application to the Board upon a form prescribed by the Board.

.0203 Criteria For Approval

Approval to conduct real estate appraisal prelicensing or precertification courses or both shall be granted to a school or course sponsor when it is shown to the satisfaction of the Board that:
(1) the school or course sponsor has submitted all information required by the Board.
(2) the school or course sponsor complies with the standards described in this Section; and
(3) the courses to be conducted comply with the standards described in Section .0300 of this Subchapter.

.0204 Facilities and Equipment

(a) Classrooms shall be of sufficient size to accommodate comfortably all students enrolled in a course, shall have adequate light, heat, cooling and ventilation and shall be free of distractions which would disrupt class sessions.
(b) Classrooms shall contain a student desk or worktable space for each student that contains sufficient area for each student.
(c) Sponsors are required to comply with all applicable local, state and federal laws and regulations regarding safety, health and sanitation. Sponsors shall furnish the Board with inspection reports from appropriate local building, health and fire inspectors upon the request of the Board.

.0205 Enrollment Contracts

Schools and course sponsors shall execute a written contract with each student enrolled and shall provide a copy of such contract to the student. Such contract shall state the amount of tuition and fees paid, the school’s policy regarding refund of tuition and fees, and the title and dates of the courses for which the student is enrolled.

.0206 Admissions Policy and Practice

Schools and course sponsors shall not discriminate in their admissions policy, practice or general operations against any person on the basis of age, sex, race, color, creed, national origin, religious preferences or handicap. A statement to this effect shall be included in all bulletins, catalogues or similar official publications.

.0207 Administration

One person must be designated as the Director for each approved school or course sponsor and shall be responsible for administrative matters such as program development, scheduling of classes, advertising, maintenance of facilities and equipment, record keeping and general supervision of the instruction program. The director shall ensure that the policies and general operations of the school or course sponsor comply with the provisions of Sections .0200 and .0300 of this Subchapter. The Director must possess a good character and reputation and must also meet the fitness standards for applicants for trainee registration, licensure or certification.
The Director shall:
(a) have a baccalaureate or higher degree in the field of education; or
(b) have at least two years full time experience within the past ten years as an instructor or school administrator; or
(c) possess qualifications which are found by the Board to be substantially equivalent to (a) or (b) above.

.0208 Accommodations for Persons with Disabilities

The Board may suspend, revoke or deny renewal of approval of a real estate school or course sponsor to conduct appraiser prelicensing and precertification courses upon finding that any court of competent jurisdiction has found the school or course sponsor official or instructor in the employ of the school or course sponsor to be in violation of any applicable federal or state law or regulation prohibiting discrimination on the basis of disability, requiring that courses related to licensing or certification for professional or trade purposes be offered in a place and manner accessible to persons with disabilities.

.0209 Certification of Course Completion

Approved schools or course sponsors must provide each passing student with a course completion certificate. Certificates of course completion must be on a document bearing the letterhead or insignia of the school or course sponsor and must have the signature or signature stamp, which must be in ink color other than black, of the school or course sponsor director.

.0210 Course Records

Approved schools or course sponsors must provide each passing student with a course completion certificate. Certificates of course completion must be on a document bearing the letterhead or insignia of the school or course sponsor and must have the signature or signature stamp, which must be in an ink color other than black, of the school or course sponsor director. A student who has taken a prelicensing or precertification course, other than the 15 hour National USPAP course, for continuing education credit and who does not pass the examination shall not be given a course completion certificate, but shall be given a certificate of attendance for the course, provided that the student complies with the provisions of 21 NCAC 57B .0303. Either certificate shall be valid to obtain continuing education credit, in accordance with 21 NCAC 57B .0604.

.0211 Program Changes

Approved schools and course sponsors must notify the Board of any changes to be made with respect to course content, course completion standards, instructors, school director or textbooks as prescribed in Section .0300 of this Subchapter. Requests for approval of such changes must be in writing.

SECTION .0300 - COURSE STANDARDS FOR PRELICENSING AND PRECERTIFICATION

.0301 Purpose

This Section establishes minimum standards for real estate appraisal prelicensing and precertification courses prescribed by G.S 93E-1-6(a).

.0302 Course Content

(a) All courses shall consist of instruction in the subject areas and at the competency and instructional levels prescribed in the course syllabi. Copies of the syllabi are available free of charge upon request to the Board.
(b) Courses may also include coverage of additional related subject areas not prescribed by the Board; however, any such course must provide additional class time above the minimum requirement of 30 classroom hours for R-1, R-2, G-1, G-2 and G-3 and the minimum requirement of 15 hours for R-3 and USPAP for the coverage of such additional subject areas.

.0303 Course Completion Standards

(a) Academic standards for course completion must reasonably assure that students receiving a passing grade possess adequate knowledge and understanding of the subject areas prescribed for the course. A student's grade must be based solely on his or her performance on examinations and on graded homework and class work assignments.
(b) Course completion requirements must include a comprehensive final course examination which covers all prescribed subject areas and which accounts for at least 50 percent of a student's grade for the course. Take-home or open-book final course examinations are prohibited. Schools and course sponsors may, within 90 days of the course ending date, allow a student one opportunity to make up any missed course examination or to retake any failed course examination without repeating the course, however any make up examination must be comparable to the initial examination with regard to the number of questions and overall difficulty, and at least 75 percent of the questions in the make up examination must be different from those used in the initial examination.
(c) The minimum attendance required for satisfactory course completion is 90 percent of all scheduled classroom hours for the course.
(d) The instructor may offer additional hours of instruction so that students can make up lost hours of instruction.
(e) Students who are taking a prelicensing or precertification course, other than the 15 hour National USPAP course, for continuing education credit are required to sit for the final course examination, but they are not required to pass the examination in order to receive continuing education credit. Students who pass the examination and who comply with the provisions of this Rule shall be given a course completion certificate. Students who do not pass the examination but who otherwise comply with the provisions of this Rule shall be given a certificate of attendance. Students who are taking the course as a result of a conditional dismissal, consent order or order of the Board after a hearing must take and pass the examination.

.0304 Course Scheduling

(a) All courses must have fixed beginning and ending dates, and schools and course sponsors may not utilize a scheduling system that allows students to enroll late for a course and then complete their course work in a subsequently scheduled course. Late enrollment is permitted only if the enrolling student can satisfy the minimum attendance requirement set forth in Paragraphs (c) and (d) of Rule .0303 of this Section.
(b) Courses may be scheduled in a manner that provides for class meetings of up to eight classroom hours in any given day; however credit for courses shall be limited to 30 classroom hours per seven-day period.
(c) A classroom hour consists of 50 minutes of classroom instruction and ten minutes of break time. For any class meeting that exceeds 50 minutes in duration, breaks at the rate of 10 minutes per hour must be scheduled and taken at reasonable times.
(d) Instruction must be given for a minimum of 30 classroom hours for R-1, R-2, G-1, G-2 and G-3, and a minimum of 15 hours for R-3 and USPAP. Instructors shall not accumulate unused break time to end the class early. The time for the final examination shall not be included in the credit hours.

.0305 Textbooks

Each Course must utilize a textbook or course materials which are approved by the Board as well as any additional instructional materials which may be prescribed by the Board for such course.

.0306 Instructor Requirements

(a) Except as indicated in Paragraph (b) of this Rule, all appraisal prelicensing and precertification courses or courses deemed equivalent by the Board shall be taught by instructors who possess the fitness for licensure required of applicants for trainee registration or real estate appraiser licensure or certification and either the minimum appraisal education and experience qualifications listed in this Rule or other qualifications that are found by the Board to be equivalent to those listed. These qualification requirements shall be met on a continuing basis. The minimum qualifications are as follows:
(1) Residential appraiser courses: 120 classroom hours of real estate appraisal education equivalent to the residential appraiser education courses prescribed in Rules .0101 and .0102 of this Subchapter and either two years' full-time experience as a residential real estate appraiser within the previous five years or three years full time experience as a general real estate appraiser within the previous five years, with at least one-half of such experience being in residential property appraising. Instructors must also be either certified residential or general real estate appraisers.
(2) General appraiser courses: 180 classroom hours of real estate appraisal education equivalent to the general appraiser education courses prescribed in Rules .0101, .0102 and .0103 of this Subchapter and three years' full-time experience as a general real estate appraiser within the previous five years, with at least one-third of such experience being in income property appraising. Instructors must also be certified general real estate appraisers.
(3) USPAP: certification by the Appraiser Qualifications Board of the Appraisal Foundation as an instructor for the National USPAP Course.
(b) Guest lecturers who do not possess the qualifications stated in Paragraph (a) of this Rule may be utilized to teach collectively up to one-fourth of any course, provided that each guest lecturer possesses education and experience directly related to the particular subject area the lecturer is teaching.
(c) Instructors shall conduct themselves in a professional manner when performing their instructional duties and shall conduct their classes in a manner that demonstrates knowledge of the subject matter being taught and mastery of the following basic teaching skills:
(1) The ability to communicate effectively through speech, including the ability to speak clearly at an appropriate rate of speed and with appropriate grammar and vocabulary;
(2) The ability to present instruction in a thorough, accurate, logical, orderly, and understand able manner, to utilize illustrative examples as appropriate and to respond appropriately to questions from students;
(3) The ability to effectively utilize varied instructive techniques other than straight lecture, such as class discussion or other techniques;
(4) The ability to effectively utilize instructional aids to enhance learning;
(5) The ability to maintain an effective learning environment and control of a class; and
(6) The ability to interact with adult students in a manner that encourages students to learn, that demonstrates an understanding of students backgrounds, that avoids offending the sensibilities of students, and that avoids personal criticism of any other person, agency or organization.
(d) Upon request of the Board, an instructor or proposed instructor must submit to the Board a videotape in a manner and format which depicts the instructor teaching portions of a prelicensing course specified by the Board and which demonstrates that the instructor possesses the basic teaching skills described in Rule .0306(c) of this Section.
(e) The inquiry into fitness shall include consideration of whether the instructor has ever had any disciplinary action taken on his or her appraisal license or certificate or any other professional license or certificate in North Carolina or any other state, or whether the instructor has ever been convicted of or pleaded guilty to any criminal act. This inquiry may include consideration of whether disciplinary action or criminal charges are pending.
(f) Instructors shall not have received any disciplinary action regarding his or her appraisal license or certificate from the State of North Carolina or any other state within the previous two years. For the purposes of this Section, disciplinary action means a reprimand, suspension (whether active or inactive) or a revocation.
(g) Proposed prelicensing or precertification instructors who do not meet the minimum appraisal education and experience qualifications listed in Paragraph (a) of this Rule, and who seek to have their qualifications determined by the Board to be equivalent to the qualifications listed in Paragraph (a) of this Rule, must supply the Board with copies of sample appraisal reports.
(h) Persons desiring to become instructors for prelicensing and precertification courses must file an application for approval with the Board. Board approval of instructors expires on the next June 30 following the date of issuance. Instructors who wish to renew their approval must file an application for renewal of approval annually on or before June 1. There is no fee for application for or renewal of instructor approval. Once an instructor has been approved to teach a specific prelicensing or precertification course, that person may teach the course at any school or for any course sponsor approved by the Appraisal Board to offer prelicensing and precertification courses.

.0307 Criteria for Course Recognition

(a) Entities other than approved schools and course sponsors seeking recognition of their appraiser prelicensing or precertification courses as equivalent to the North Carolina appraisal prelicensing or precertification courses required by G.S. 93E-1-6 and specified in Rules .0101, .0102, and .0103 of this Subchapter must made written application to the Board.
(b) Courses must be conducted in accordance with the minimum course standards prescribed in this Section, provided that the following exceptions to those standards shall apply:
(1) Courses may be structured differently from those course content requirements prescribed in the Board’s course syllabi; however, appropriate prerequisites for advanced courses must be established and each course for which Board recognition is sought must consist of a minimum of 15 classroom hours and require the passing of a comprehensive examination.
(2) Various combinations of courses may be recognized as equivalent to single North Carolina appraisal prelicensing and precertification courses; however, equivalent credit will only be granted in increments of 30 classroom hours.
(c) The 15 hour USPAP course must be the 15-hour National USPAP Course approved by the Appraiser Qualifications Board of the Appraisal Foundation, or its equivalent.
(d) The finding of equivalency is entirely within the discretion of the Board.

SECTION .0400 - COURSE SPONSOR FEES FOR PRELICENSING AND PRECERTIFICATION EDUCATION

.0401 Applicability

This Section applies to all appraisal trade organizations and to all other course sponsors other than private real estate appraisal schools, North Carolina colleges, universities, junior colleges, community or technical colleges accredited by the Southern Association of Colleges and Schools, and agencies of the federal, State or local government.

.0402 Original Course Approval Fee

The original application fee shall be three hundred ($300.00) for each course which the Board is being requested to evaluate and recognize. The fee shall be paid by certified check, bank check or money order payable to the North Carolina Appraisal Board and is non-refundable. A course sponsor may offer approved courses as frequently as is desired during the period for which approval is granted without paying additional course fees.

.0403 Fee for Renewal of Course Approval

(a) Board approval of courses expires on the next June 30 following the date of issuance. In order to assure continuous approval of courses, applications for renewal of Board approval, accompanied by the prescribed renewal fee, must be filed with the Board annually on or before June 1. Applications for renewal that are complete and that are received between June 1 and June 30 will be processed after processing applications received by the due date. All applications for renewal of course approval received on or before June 30 which are incomplete as of that date, as well as all applications for renewal of course approval submitted after June 30, shall be treated as original course approval applications.
(b) The annual fee for renewal of Board approval shall be fifty ($50.00) for each course for which renewal of Board approval is requested. The fee is non-refundable.

SECTION .0500 - PRIVATE REAL ESTATE APPRAISAL SCHOOL FEES FOR PRELICENSING AND
PRECERTIFICATION EDUCATION

.0501 Applicability

This Section applies to all private real estate appraisal schools offering prelicensing and precertification courses.

.0502 Original Course Approval Fee

The original application fee shall be forty dollars ($40.00) for each real estate appraisal prelicensing or precertification course for which the applicant requests approval. The fee shall be paid by certified check, bank check or money order payable to the North Carolina Appraisal Board and is non-refundable. The school may offer approved courses as frequently as is desired during the course approval period without paying additional course fees.

.0503 Fee for Renewal of Course Approval

(a) Approval of private school courses expires on the next June 30 following the date of issuance. In order to assure continuous approval, applications for renewal of course approval, accompanied by the prescribed renewal fee, must be filed with the Board annually on or before June 1. Applications for renewal that are complete and that are received between June 1 and June 30 will be processed after processing applications received by the due date. All applications for renewal of course approval received on or before June 30 which are incomplete as of that date, as well as all applications for renewal of course approval submitted after June 30, shall be treated as original course approval applications.
(b) The course renewal fee shall be twenty dollars ($20.00) for each previously approved appraisal prelicensing or precertification course for which the applicant requests continuing approval. The fee is non-refundable.

SECTION .0600 - CONTINUING EDUCATION COURSES

.0601 Purpose and Applicability

This Section establishes minimum standards for appraisal continuing education courses authorized by G.S. 93E-1-8(c) and required by Rule .0204 of Subchapter 57A. These standards must be satisfied in order for course sponsors to obtain and maintain approval of their courses for appraiser continuing education credit. Except as provided in Rule .0602(a) of this Section, any school, organization, agency, individual, or other entity is eligible to become a continuing education course sponsor. Course sponsors must obtain course approval from the Board prior to conducting the course for continuing education credit and prior to advertising or otherwise representing that a course is or may be approved for continuing education credit in North Carolina. To request credit for a continuing education course which has not been approved by the Board, a trainee, licensee or certificate holder must follow the procedure set forth in 21 NCAC 57A.0204(f)

.0602 Application and Fee

(a) Course sponsors seeking approval of their courses as appraisal continuing education courses must make written application to the Board. A course sponsor must be the owner of the proprietary rights to the course for which approval is sought or must have the permission of the course owner to seek course approval. If the course for which approval is sought is one that may be offered outside North Carolina, and the course owner wants the Board to approve such course when it is conducted outside North Carolina, application must be made by the course owner. After receipt of a properly completed application, the Board will review the application pursuant to the criteria set forth in 21 NCAC 57B.0603 and shall notify the sponsor of its decision. Decisions to approve or withhold approval lie within the sole discretion of the Board.
(b) The original application fee shall be one hundred dollars ($100.00) for each course for which approval is sought, provided that no fee is required if the course sponsor is an accredited North Carolina college, university, junior college, or community or technical college, or if the course sponsor is an agency of the federal, state or local government. The fee is non-refundable. A course sponsor may offer approved courses as frequently as is desired during the period for which approval is granted without paying additional fees.

.0603 Criteria for Course Approval

The following requirements must be satisfied in order for course sponsors to obtain approval of a course for appraiser continuing education credit:
(1) The subject matter of the course must comply with the requirements of Rule .0204 of Subchapter 57A and the information to be provided in the course must be both accurate and current.
(2) The course must involve a minimum of three and one-half classroom hours of instruction on acceptable subject matter. A classroom hour consists of 50 minutes of classroom instruction and 10 minutes of break time. Instruction must be given for the full number of hours for which credit is given. Instructors may not accumulate unused break time to end the class early.
(3) The course instructor(s) must:
(a) possess the fitness for licensure required of applicants for trainee registration, real estate appraiser licensure or certification; and
(b) either:
(i) two years' full-time experience that is directly related to the subject matter to be taught;
(ii) a baccalaureate or higher degree in a field that is directly related to the subject matter to be taught;
(iii) two years' full-time experience teaching the subject matter to be taught; or
(iv) an equivalent combination of such education and experience.
(4) If two or more instructors shall be utilized to teach a course during the approval period and the course shall be taught in states other than North Carolina, it is sufficient for the course sponsor to show that it has minimum instructor requirements comparable to these requirements. The inquiry into fitness shall include consideration of whether the instructor has had any disciplinary action taken on his or her appraisal license or any other professional license in North Carolina or any other state, or whether the instructor has been convicted of or pleaded guilty to any criminal act.
(5) The course must be one involving a qualified instructor who, except as noted in Item (6) of this Rule, shall be physically present in the classroom at all times and who shall personally provide the instruction for the course. The course instructor may utilize videotape instruction, remote television instruction or similar types of instruction by other persons to enhance or supplement his personal instruction; however, such other persons shall not be considered to be the official course instructor and the official course instructor must be physically present when such indirect instruction by other persons is being utilized. No portion of the course may consist of correspondence instruction. The instructor must comply with Rule .0306(c) of this Subchapter. Instructors for the National USPAP courses must be certified by the Appraiser Qualifications Board of the Appraisal Foundation.
(6) A trainee or appraiser may receive up to 14 hours of credit every two years in the period ending on June 30 of each odd numbered year for participation in a course on a computer disk or on-line via the Internet. A sponsor seeking approval of a computer-based education course must submit a complete copy of the course on the medium that is to be utilized and, must make available at the sponsor's expense, all hardware and software necessary for the Board to review the submitted course. In the case of an internet-based course, the Board must be provided access to the course via the internet at a date and time satisfactory to the Board and shall not be charged any fee for such access. To be approved for credit, a computer-based continuing education course must meet all of the conditions imposed by the Rules in this Subchapter in advance, except where otherwise noted. The course must be interactive, permitting the participant to communicate, via telephone, electronic mail, or a website bulletin board, with the presenter and other participants. The sponsor of an on-line course must have a reliable method for recording and verifying attendance. The sponsor of a course on a computer disk must demonstrate that there is a reliable method for the user or the sponsor to record and verify participation in the course. A participant may periodically log on and off of a computer-based continuing education course provided the total time spent participating in the course is equal to or exceeds the credit hours assigned to the program. A course completion certificate must be forwarded to the student as stated in Rule .0607 of this Section, and a course roster must be sent to the Appraisal Board in accordance with Rule .0608 of this Section.
(7) The course must be an educational program intended to improve the knowledge, skill and competence of trainees, licensed and certified real estate appraisers. Activities not eligible for approval as a continuing education course include in-house training programs of a firm, organization or agency, trade conferences or similar activities.
(8) The course sponsor must certify that the course shall be conducted in accordance with the operational requirements stated in Rule .0606 of this Section and that the course sponsor will comply with all other applicable rules contained in this Section .

.0604 Prelicensing and Precertification Courses

(a) Appraisal prelicensing or precertification courses conducted by North Carolina approved schools or by appraisal trade organizations which are approved as equivalent to the North Carolina prelicensing and precertification courses may be separately approved as appraisal continuing education courses. Trainees, license and certified appraisers may obtain continuing education credit for these courses only to the extent permitted by Rule .0204 of Subchapter 57A. Appraisal trade organizations must at all times assure compliance with Rules .0606, .0607, and .0608 of this Section in order to retain such approval for these courses.
(b) It is presumed that any person taking any of the prelicensing or precertification courses is doing so for registration, licensure or certification purposes. If the person wishes to obtain continuing education credit for the course, he or she must request such credit and must send the original course completion certificate or course attendance certificate with the request.

.0605 Continuing Education Credit Hours

The course approval issued to a course sponsor shall include the number of hours of continuing education credit that will be awarded for the course. The minimum number of continuing education credit hours awarded for a course shall be three and one-half hours, and the maximum number of continuing education credit hours awarded for a course, regardless of its length, shall be thirty hours. Continuing education credit hours shall not be carried forward into subsequent licensing periods.

.0606 Course Operational Requirements

Course sponsors must at all times assure compliance with the criteria for course approval stated in Rule .0603 of this Section and must also comply with the following requirements relating to scheduling, advertising and conducting approved appraisal continuing education courses:
(1) Courses must be scheduled and conducted in a manner that limits class sessions to a maximum of eight classroom hours in any given day and that includes appropriate breaks for each class session. A classroom hour consists of 50 minutes of classroom instruction and ten minutes of break time. For any class meeting that exceeds 50 minutes in duration, breaks at the rate of ten minutes per hour must be scheduled and taken at reasonable times.
(2) Course sponsors must not utilize advertising of any type that is false or misleading in any respect. If the number of continuing education credit hours awarded by the Board for a course is less than the number of scheduled classroom hours for the course, any course advertisement or promotional materials which indicate that the course is approved for appraiser continuing education credit in North Carolina must specify the number of continuing education credit hours awarded by the Board for the course.
(3) Course sponsors must, upon request, provide any prospective student a description of the course content sufficient to give the prospective student a general understanding of the instruction to be provided in the course.
(4) Courses must be conducted in a facility that provides an appropriate learning environment. At a minimum, the classroom must be of sufficient size to accommodate comfortably all enrolled students, must contain a student desk or sufficient worktable space for each student, must have adequate light, heat, cooling and ventilation, and must be free of distractions that would disrupt class sessions. Sponsors are required to comply with all applicable local, state and federal laws and regulations regarding safety, health and sanitation. Sponsors shall furnish the Board with inspection reports from appropriate local building, health and fire inspectors upon the request of the Board.
(5) The course sponsor must require students to attend at least 90 percent of the scheduled classroom hours in order to satisfactorily complete the course, even if the number of continuing education credit hours awarded by the Board for the course is less than the number of scheduled classroom hours. Attendance must be monitored during all class sessions to assure compliance with the attendance requirement. Instruction must be given for the number of hours for which credit is given. Instructors may not accumulate unused break time to end the class early.
(6) Instructors must require reasonable student attentiveness during class sessions. Students must not be permitted to engage in activities that are not related to the instruction being provided.
(7) Course sponsors for which an application fee is required by Rules .0602(b) and .0611(b) of this Section must fairly administer course cancellation and fee refund policies. In the event a scheduled course is canceled, reasonable efforts must be made to notify preregistered students of the cancellation and all prepaid fees received from such preregistered students must be refunded within 30 days of the date of cancellation or, with the student's permission, applied toward the fees for another course.
(8) Upon request of the Board, the course sponsor must submit to the Board a videotape in a manner and format which depicts the instructor teaching portions of any continuing education course specified by the Board and which demonstrates that the instructor possesses the basic teaching skills described in Rule .0306(c) of this Section.
(9) Course sponsors shall provide the Board with the dates and locations of all classes the sponsor is or will be offering in the State of North Carolina at least 30 calendar days before such class is offered, unless circumstances beyond the control of the course sponsor require that the course be rescheduled. If the dates or location of the classes change after such information is provided to the Board, the course sponsor must notify the Board of such changes.
(10) Course sponsors must participate in the Board's course and instructor evaluation program. Course sponsors must require that students complete a course evaluation form prior to or upon completion of the course. Course sponsors must also send the completed course evaluation forms to the Board together with the roster required pursuant to 21 NCAC 57B .0608.
(11) Persons desiring to become instructors for continuing education courses must file an application for approval with the Board. Board approval of instructors expires on the next June 30 following the date of issuance. Instructors who wish to renew their approval must file an application for renewal of approval annually on or before June 1. There is no fee for application for or renewal of instructor approval. Once an instructor has been approved to teach a specific course, that person may teach the course for any course sponsor approved by the Appraisal Board to offer continuing education courses.

.0607 Certification of Course Completion

Course sponsors must issue a certificate of course completion within 15 days of completion of the course to all students who satisfactorily complete an approved course. If the course sponsor is located in North Carolina, the certificate, which the student must retain for a period of 5 years, and must bear the signature or signature stamp which must be in a color of ink other than black of a person designated by the course sponsor to sign such certificate. The North Carolina-based course sponsor must notify the Board in advance of the person(s) designated to sign certificates of course completion for courses conducted in North Carolina. If the course sponsor is not located in North Carolina, the certificate of course completion must show the name of the course sponsor, the name of the course, the number of classroom hours, the course dates, the state or city where the course was conducted, and the full name of the student.

.0608 Sponsor Reporting Of Continuing Education Credit

Course sponsors must, within 15 days of course completion but no later than June 30 of each year, submit to the Board a roster of all North Carolina registered trainees, licensed and certified appraisers who satisfactorily completed the course. The roster must be sent by regular mail together with the course evaluation forms required by 21 NCAC 57B .6506(10). Rosters sent by fax or other electronic means shall not be accepted.

.0609 Changes During the Approval Period

Course sponsors must obtain advance approval from the Board for any changes to be made in approved courses with regard to the number of classroom hours, course content or instructors. Requests for approval of such changes must be in writing.

.0610 Course Records

Course sponsors must retain on file for three years records of student registration and attendance for each approved course that is conducted and must make such records available to the Board upon request.

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