South Carolina Code of Regulations Chapter 137 - DEPARTMENT OF LABOR, LICENSING AND REGULATION-SOUTH CAROLINA REAL ESTATE APPRAISERS BOARD
South Carolina Code of Regulations, Chapter 137, is dedicated to the South Carolina Real Estate Appraisers Board, which operates under the umbrella of the Department of Labor, Licensing and Regulation (LLR). These regulations provide the detailed framework for the licensing, regulation, and discipline of real estate appraisers, appraisal management companies, and related educational providers and instructors in the state.
The primary objective of the Real Estate Appraisers Board and Chapter 137 is to protect the public's interest in real estate appraisal transactions by ensuring that appraisals are performed competently, ethically, and in accordance with established professional standards.
Here's a breakdown of the key areas covered in Chapter 137:
I. Definitions and Classifications (e.g., Section 137-100):
Key Definitions: Clarifies terms essential to appraisal practice, such as "appraisal," "appraisal report," "appraisal assignment," "supervising appraiser," "apprentice appraiser," and various types of real estate value.
Appraisal Categories/Classifications: Defines the different levels of appraisal licensure, each with varying scopes of practice:
Apprentice Appraiser Permit: Entry-level, requiring supervision.
State Licensed Appraiser: For non-complex residential properties.
State Certified Residential Appraiser: For all types of residential properties (up to 4 units) and non-residential properties under a certain value.
State Certified General Appraiser: The highest level, allowing appraisal of all types of real property (residential and commercial) without value limits.
Mass Appraiser classifications: For appraisers engaged in mass appraisal activities for ad valorem (property tax) purposes.
II. Qualifications and Licensing (e.g., Sections 137-100.02, 137-100.04, 137-100.05, 137-100.06, 137-100.07):
Education Requirements: Detailed coursework requirements (e.g., specific hours in Basic Appraisal Principles, Basic Appraisal Procedures, USPAP, Residential/Nonresidential Appraisals) for each license classification. Higher-level certifications (Certified Residential and Certified General) also require specific college-level degrees or college credit hours in relevant subjects.
Appraisal Experience Requirements: Specifies the minimum number of supervised experience hours required for each license level (e.g., 1,000 hours for Licensed Appraiser, 1,500 hours for Certified Residential, 3,000 hours for Certified General with a portion in non-residential). It also outlines how experience hours are logged and verified, including specific rules for co-appraisals and "review" appraisal experience.
Supervising Appraiser and Apprentice Appraiser Responsibilities: Clearly defines the duties and obligations of both supervising appraisers and their apprentices to ensure proper training and ethical conduct.
Examinations: Requirements for passing the relevant national uniform licensing and certification examination for each appraiser classification.
Application Procedures: Details on submitting applications, required documentation, and background checks.
Reciprocity: Rules for individuals licensed in other states to obtain a South Carolina license.
III. Continuing Education (e.g., Section 137-500.01):
Mandatory Continuing Education (CE): Requirements for licensed appraisers to complete a certain number of CE hours (e.g., 28 hours biennially) to maintain their license, including a mandatory 7-hour National USPAP Update Course every two years. There are also new requirements for a Valuation Bias and Fair Housing Course starting in 2026.
Provider and Instructor Approval: Regulations for the approval and oversight of educational providers and instructors who offer qualifying and continuing education courses.
IV. Professional Standards and Conduct:
Uniform Standards of Professional Appraisal Practice (USPAP): Chapter 137 explicitly adopts and mandates conformity to USPAP, which are the generally accepted ethical and performance standards for the appraisal profession in the United States.
Disclosure Requirements: Rules for appraisers to disclose their classification and license number on appraisal reports and in advertisements.
Ethical Conduct: General principles governing the ethical conduct of appraisers.
V. Appraisal Management Companies (AMCs):
Registration Requirements: Regulations for the registration of Appraisal Management Companies (AMCs) that operate in South Carolina, which facilitate appraisal services between lenders and appraisers.
AMC Oversight: Rules concerning the operation, record-keeping, and compliance of AMCs.
VI. Enforcement and Disciplinary Actions (e.g., Sections 137-600 to 137-700):
Investigations: Procedures for the Board to investigate complaints against applicants, licensed appraisers, appraisal management companies, and approved providers/instructors.
Disciplinary Actions: The range of disciplinary actions the Board can impose, including denial, suspension, revocation, restriction of a license/certification, fines, and public or private reprimands.
Hearings and Appeals: Procedures for hearings when disciplinary action is proposed, and the rights of individuals to appeal Board decisions.
VII. Fees and Renewals (e.g., Sections 137-800.03 to 137-800.05):
Fee Schedule: A comprehensive list of fees for applications, exams, various licenses, renewals, and other services.
Renewal Procedures: Details on the biennial renewal cycle for licenses, certifications, and registrations, including late penalties.
In essence, South Carolina Code of Regulations Chapter 137 ensures that the real estate appraisal profession in South Carolina is robustly regulated, safeguarding the public and promoting confidence in real estate valuations through strict licensing, education, experience, and ethical standards, all in alignment with federal guidelines.
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