When the Department of Consumer Industries and Services changed its name to the Department of Labor and Economic Growth (DLEG) late last year (see January ­­­Michigan REALTOR®), everyone in the real estate business took notice.

Especially appraisers.

That’s because with the new moniker came a new ­address for appraisers to send reports. According to DLEG ­officials, all reports must now contain a statement that reads ­“appraisers are required to be licensed and are regulated by the ­Michigan Department of Labor & Economic Growth, P.O. Box 30018, Lansing, Michigan 48909.”

This change affects the more than 4,500 appraiser­ members who belong to the Michigan Association of REALTORS®.

Last December, the MAR board of directors approved a motion that created a new appraisal section within the ­association. MAR will enhance the value of membership for appraisers, bringing it up to par with other association ­specialties, with communications, member benefits and legislative and legal issue representation.
The following information was compiled by MAR staff, the Department of Labor and Economic Growth and Beth Graham, Women’s Council of REALTORS® president and ­licensed state appraiser.

Required continuing education

Did you know about the required Michigan continuing education credits for appraisers? According to Graham, the seven-hour national USPAP course must be completed every renewal period. There is also a two-hour course on ­Michigan appraiser licensing law and rules that must be completed at a minimum of every four years.

All licensees renewing in 2004 are required to take the two-hour Michigan law class either this cycle (2004) or in their next cycle (2006). All licensees renewing in 2005 must take the two-hour Michigan law course by their 2005 ­renewal.

More information about appraiser’s continuing education the information is listed at this Web site:
http://michigan.gov/cis/0,1607,7-154-10557_12992_13893-41129--,00.html

To check your continuing education hours, go to this Web site:
http://cis.state.mi.us/bcsc/coned/research.htm

Administrative notes

According to Virginia Abdo, assistant licensing administrator at the DLEG, in February of last year, the Bureau of Commercial Services, Licensing Division distributed a letter to education sponsors and other interested parties regarding the use of Limited Licensed Real Estate Appraisers. The letter was based on an outdated set of administrative rules and should be disregarded.

Prior to May 2002, Limited Licensed Real Estate ­Appraisers were allowed to perform appraisals for non-federally related transactions, which included real-estate related financial transactions with a transaction value of $250,000 or less.

The Real Estate Appraiser Administrative Rules were revised to prohibit this and became effective on May 21, 2002. Administrative Rule 403(1)(a) states that a limited appraiser­ may not perform an appraisal for any real estate related financial transaction, not just those that are federally related.

Therefore, a limited appraiser may not perform appraisals for financing, refinancing, or exchange of real property, nor the use of real property as a security. Furthermore, Administrative Rule 403(1)(b) states that a Limited Real Estate Appraiser may not sign an appraisal report prepared for any real ­estate related financial transaction.