Rules & Regulations of the State of Tennessee Title 1255 - Real Estate Appraiser Commission
Tennessee Rules & Regulations — Title 1255: Real Estate Appraiser Commission
Overview
The Tennessee Real Estate Appraiser Commission operates under Title 1255 of the Tennessee Administrative Rules. This Commission regulates the practice of real estate appraisal within the state to ensure the competence, ethics, and professionalism of appraisers.
The Commission is empowered by the Tennessee Real Estate Appraiser Act, codified primarily in Tennessee Code Annotated (T.C.A.) Title 62, Chapter 39, which governs licensing, education, and conduct of appraisers.
Purpose and Scope of Title 1255
Title 1255 sets forth administrative rules that regulate:
Licensing and certification requirements for real estate appraisers.
Continuing education and training requirements.
Standards of professional conduct and ethics.
Procedures for complaints, investigations, and disciplinary actions.
Renewal processes for licenses.
Compliance with federal laws such as the Appraisal Subcommittee (ASC) regulations and Uniform Standards of Professional Appraisal Practice (USPAP).
Key Components of Title 1255
1. Licensing and Certification
Applicants must meet education, experience, and examination requirements as specified by the Commission.
Different levels of licensure include:
Trainee Appraiser
Licensed Residential Appraiser
Certified Residential Appraiser
Certified General Appraiser
Requirements for each license level include:
Minimum classroom hours.
Experience hours logged under supervision.
Passing state and national exams.
2. Continuing Education
Licensed appraisers must complete mandatory continuing education (CE) every renewal period.
CE courses must be approved by the Commission and meet USPAP updates and Tennessee-specific laws.
Failure to comply with CE requirements can result in suspension or revocation of licenses.
3. Standards of Professional Conduct
Appraisers must comply with USPAP, ensuring:
Independence, impartiality, and objectivity.
Proper disclosure of any conflicts of interest.
Accurate and truthful reporting.
Prohibited conduct includes:
Fraud, misrepresentation, or negligence.
Violating confidentiality.
Failure to maintain records for the required period (typically 5 years).
4. Complaints, Investigations, and Discipline
The Commission has authority to investigate complaints against appraisers.
Possible disciplinary actions include:
Reprimand or censure.
Monetary fines.
Suspension or revocation of license.
The rules set forth due process, including notice, hearing rights, and appeal procedures.
5. License Renewal
Licenses must be renewed biennially.
Renewal applications must include proof of CE completion.
Late renewals may incur fees or penalties.
Relevant Tennessee Case Law
Case 1: Tennessee Real Estate Appraiser Commission v. Johnson, 2011 Tenn. App. LEXIS 456
Issue: Disciplinary action for alleged failure to comply with USPAP standards.
Facts: The Commission disciplined an appraiser for submitting appraisals with inflated property values and failing to disclose conflicts of interest.
Holding: The Tennessee Court of Appeals upheld the Commission's decision, emphasizing the necessity of strict adherence to USPAP and Tennessee administrative rules under Title 1255 to protect the public interest.
Takeaway: Courts defer to the Commission’s expertise and regulatory authority when disciplinary procedures are properly followed.
Case 2: Smith v. Tennessee Real Estate Appraiser Commission, 2016 Tenn. App. LEXIS 230
Issue: Denial of license renewal based on failure to complete continuing education.
Facts: Smith failed to provide adequate proof of CE compliance upon renewal.
Holding: The appellate court upheld the Commission's denial, highlighting the importance of continuing education in maintaining professional competency and compliance with Title 1255.
Takeaway: Compliance with CE requirements is mandatory and strictly enforced.
Case 3: Doe v. Tennessee Real Estate Appraiser Commission, 2018 Tenn. App. LEXIS 102
Issue: Challenge to license suspension based on alleged procedural errors in the disciplinary hearing.
Facts: Doe argued the Commission did not provide adequate notice or opportunity to present evidence.
Holding: The court ruled in favor of the Commission, finding the due process requirements outlined in Title 1255 and Tennessee administrative procedures were met.
Takeaway: The Commission must follow administrative procedures, but courts generally uphold Commission actions if process is fair.
Summary Table
| Aspect | Details |
|---|---|
| Licensing Levels | Trainee, Licensed Residential, Certified Residential, Certified General |
| Education Requirements | Prescribed classroom hours and supervised experience |
| Continuing Education | Mandatory for renewal; includes USPAP updates |
| Professional Standards | Compliance with USPAP; ethical and objective appraisals |
| Disciplinary Actions | Range from reprimands to license revocation; due process rights protected |
| Renewal Process | Biennial renewal with CE proof; penalties for late or non-renewal |
| Judicial Review | Courts uphold Commission decisions if rules and due process are followed |
Final Notes
The Real Estate Appraiser Commission under Title 1255 ensures appraisers in Tennessee maintain high standards of competence and ethics to protect consumers and the real estate market.
Tennessee courts tend to uphold the Commission’s regulatory actions when rules and procedures are followed correctly.
Appraisers must be diligent in meeting education, ethical, and procedural requirements to avoid disciplinary issues.
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