Ark. Code Ann. § 17-14-101 Title.
Section 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq. shall be known and may be cited as the “Arkansas Appraiser Licensing and Certification Act”.
Appraisers
Ark. Code Ann. tit. 17, ch. 14
in effectArk. Code Ann. § 17-14-102 Necessity for registration, license, or certificate.
(a)(1) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., is created in response to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and specifies three (3) classes of appraisers: state-licensed, state-certified residential, and state-certified general appraisers for federally related transactions.
(2) A fourth class is created for nonfederally related transactions, which shall be known as “state-registered appraisers”.
(3) A fifth class is created for an appraiser who is subject to direct control and supervision by a qualified state-certified appraiser supervisor as part of upgrading his or her classification to state-licensed or state-certified, which shall be known as “registered apprentice appraiser”.
(b) It is the intent of the General Assembly that this law be no more restrictive than required under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
Ark. Code Ann. § 17-14-104 Exceptions to registration, licensing, or certification.
(a)(1)(A) Except when an interstate transaction or a federally related transaction is involved, the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to a real estate broker or sales person licensed by this state who:
(i) In the ordinary course of his or her business, gives to a potential seller or third party a written report called a market analysis or a broker's price opinion as to the recommended listing price of real estate or an opinion to a potential purchaser or third party as to the recommended price of real estate; or
(ii) Provides testimony regarding an opinion of the value of real property under § 28-51-302.
(B) A broker's price opinion or a market analysis issued in this state in connection with an interstate transaction or a federally related transaction shall not contain the term “appraisal” or the term “market value”.
(C) The prohibition in subdivision (a)(1)(B) of this section does not apply to an intrastate, nonfederally related broker's price opinion or market analysis.
(2)(A) The listing price, purchase price, market analysis, or broker's price opinion may be treated as an appraisal solely for the purposes of § 28-51-302.
(B) A real estate broker who provides testimony regarding an opinion of the value of real property that may be treated as an appraisal for purposes of § 28-51-302 shall nonetheless be exempt from registration as an appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(b)(1)(A) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to any state, county, or municipal public officer or employee while the officer or employee is performing appraisal or appraisal-related duties as the officer or employee.
(B) Appraisals performed by state, county, or municipal officers or employees outside the scope of their employment are subject to the provisions of the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(2) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to:
(A) Persons performing appraisals as officers or staff of a bank, savings and loan, or credit union;
(B) Company foresters in the ordinary course of their duties; or
(C) Staff appraisers performing ad valorem tax appraisals for county assessors or employees of contractors performing county-wide reappraisals.
(c)(1) Except as provided in subsection (b) of this section, appraisers, when providing appraisal reports or appraisal services in nonfederally related transactions, who become licensed or certified by the State Board of Appraisers, Abstracters, and Home Inspectors are subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., in all matters involving appraisal services, including transactions below the federally established threshold.
(2) If an appraiser does not make appraisals for any federal agency, any federally insured lending institution, the Federal Housing Administration, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, the United States Bankruptcy Courts, the Federal Highway Administration, the Federal Aviation Administration, the United States Department of Veterans Affairs, the Internal Revenue Service, or any other federal or quasi-federal authority, including appraisal work that is distributed via interstate commerce or appraisals involving transactions above the threshold established by a federal financial institutions regulatory agency, the appraiser is only required to be a state-registered appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(d) The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not preclude any person from testifying as an expert witness in any judicial proceeding in which the value of real estate is in issue unless that person holds himself or herself out as a practicing real estate fee appraiser.
(e) Nothing in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., prohibits any person who is licensed to practice in this state under any law from engaging in the practice for which he or she is licensed.
Ark. Code Ann. § 17-14-105 Rights and privileges of appraisers.
(a) A state-registered appraiser or state-licensed appraiser as defined in § 17-14-103 may appraise real property for compensation if the use of a state-certified appraiser is not required under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., or by federal or state law, rule, or policy.
(b) An appraiser shall not sign an appraisal report or be cited within the report as having provided “significant real property appraisal assistance” in the development of the appraisal without having been state-registered, state-licensed, registered apprentice, or state-certified.
(c) An appraiser shall not perform or be employed to perform an appraisal where the property that is subject to the assignment lies within the borders of the State of Arkansas without first being state-registered, state-licensed, registered apprentice, or state-certified by the State Board of Appraisers, Abstracters, and Home Inspectors.
Ark. Code Ann. § 17-14-106 Absence of liability.
(a) Financial institutions or affiliates hiring the services of appraisers registered, licensed, or certified by the State Board of Appraisers, Abstracters, and Home Inspectors in nonfederally related transactions, including transactions below the federally established threshold, shall not be liable to any party asserting damages due to the alleged actions of the appraiser, nor shall the financial institution or affiliate be subject to any requirements to report to the board regarding such transactions other than as may be required by the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and the rules promulgated by the board.
(b) This section does not limit the investigative or subpoena powers of the board.
Ark. Code Ann. § 17-14-202 Powers and duties — Reporting standards — Qualification standards.
(a) The State Board of Appraisers, Abstracters, and Home Inspectors may establish, maintain, report, and periodically update meaningful qualification standards for state-licensed, registered apprentice, and state-certified appraisers practicing in the State of Arkansas, including testing, experience, and educational requirements that:
(1) Are adequate to demonstrate knowledge and competency; and
(2) Will further demonstrate the continued compliance with:
(A) All applicable federal law and regulations, including Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and related requirements of the federal financial institutions regulatory agencies; and
(B) The minimum standards and qualifications as promulgated by the Appraisal Standards Board and the Appraiser Qualifications Board of the Appraisal Foundation.
(b) The State Board of Appraisers, Abstracters, and Home Inspectors may adopt, maintain, report, and periodically update minimum reporting standards for state- registered, state-licensed, registered apprentice, and state-certified appraisers practicing in the State of Arkansas. The reporting standards shall:
(1) Be equivalent to the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation; and
(2) At all times seek compliance with:
(A) All applicable federal law and regulations, including Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and related requirements of the federal financial institutions regulatory agencies; and
(B) The minimum standards as promulgated by the Appraisal Standards Board of the Appraisal Foundation.
Ark. Code Ann. § 17-14-203 Powers and duties — In general.
In accordance with these general powers and duties, the State Board of Appraisers, Abstracters, and Home Inspectors shall:
(1) Perform all duties and functions necessary to carry out this chapter;
(2)(A) Receive applications for registering, licensing, and certification.
(B) The application shall include the applicant's consent to a state criminal background check and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations;
(3) Establish administrative procedures for processing applications;
(4)(A)(i) Approve and issue registration, licenses, and certificates to qualified applicants or disapprove applications for registering, licensing, and certification for applicants who do not meet the minimum requirements as prescribed in this chapter.
(ii) The minimum requirements shall include a determination that the applicant possesses a background that does not call into question public trust or the applicant's fitness for registration, licensure, or certification.
(B) All application materials and records submitted to the State Board of Appraisers, Abstracters, and Home Inspectors shall be retained by the State Board of Appraisers, Abstracters, and Home Inspectors;
(5)(A) Maintain a roster of the names, addresses, email addresses, and telephone numbers of all persons licensed and certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and, in accordance with sections 1103(a)(3) and 1109(a)(1) of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, shall submit this roster monthly to the Appraisal Subcommittee.
(B) This roster may be published and periodically updated and provided to all interested parties at cost;
(6)(A) Establish by rule the minimum examination, education, experience, and continuing education requirements for state-registered, state-licensed, registered apprentice, and state-certified appraisers.
(B)(i) The criteria for a state-registered appraiser shall be less rigorous than the criteria for a state-licensed appraiser.
(ii) The criteria for a state-licensed appraiser shall be less rigorous than the criteria for a state-certified appraiser. However, the criteria will ensure that licensed appraisers have sufficient experience and training to perform appraisals for transactions within and in compliance with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
(C) These rules shall at all times be equivalent to the minimum appraiser-qualification criteria as promulgated by the Appraiser Qualifications Board of the Appraisal Foundation for state-licensed, registered apprentice, and state-certified appraisers performing federally related transactions.
(D) With respect to examinations, these rules shall at all times require minimum examination contents that are equivalent to the national uniform examination content as promulgated by the Appraiser Qualifications Board of the Appraisal Foundation and shall provide for the selection and utilization of a testing service acceptable to the Appraiser Qualifications Board of the Appraisal Foundation.
(E)(i) Every applicant for registering, licensing, and certifying shall be accompanied by an application fee that the State Board of Appraisers, Abstracters, and Home Inspectors may establish by rule.
(ii) However, the State Board of Appraisers, Abstracters, and Home Inspectors, at its discretion, may direct each applicant to pay the actual cost of the examination fee directly to a testing service engaged by the State Board of Appraisers, Abstracters, and Home Inspectors to administer the examination.
(F)(i) The application fee to upgrade a credential from registered apprentice to state-licensed or to state-certified shall not exceed one hundred dollars ($100).
(ii) The application fee to upgrade a credential from state-licensed to state-certified shall not exceed fifty dollars ($50.00).
(G) The total annual resident registering, licensing, certification, and application fees established by the State Board of Appraisers, Abstracters, and Home Inspectors shall not exceed three hundred dollars ($300), excluding fees for:
(i) Applicable examination and federal pass-through fees; and
(ii) Criminal background check fees.
(H) Courses, schools, seminars, and any other educational programs must be recognized by the State Board of Appraisers, Abstracters, and Home Inspectors as acceptable to satisfy registration, licensing, and certification standards and continuing education requirements under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
(7)(A) Establish administrative procedures for disciplinary proceedings conducted under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(B) The administrative procedures shall include provisions for the suspension and revocation of registration, licenses, and certificates and the enforcement of civil penalties concurrent with existing statutes regarding civil procedures;
(8) Subpoena and issue subpoena duces tecum and to bring before the State Board of Appraisers, Abstracters, and Home Inspectors any person in this state, and to take testimony by deposition, in the same manner as prescribed by law in judicial proceedings in the courts of this state or to require production of any records relevant to any inquiry or hearing by the State Board of Appraisers, Abstracters, and Home Inspectors;
(9) Recommend procedures necessary to assure the ready availability to appraisers in the state of adequate and reliable information regarding property prices and the terms and conditions of real estate and real property transactions and related financing;
(10) Establish administrative procedures for the setting, charging, and collecting of fees necessary for the operation of the State Board of Appraisers, Abstracters, and Home Inspectors and to concurrently collect and submit to the proper agency as prescribed under Section 1109(a)(4) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and any other related federal law, any additional fees that may from time to time be required to be paid by appraisers whose practices include the appraisal of properties included in federally related transactions;
(11) Be authorized to adopt and enforce such administrative rules as may be necessary to comply with state law and federal law with specific reference to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 as it exists today and as it may be amended and adopted by the Appraisal Subcommittee; and
(12)(A)(i) Obtain a state criminal background check performed by the Identification Bureau of the Division of Arkansas State Police and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations for all applicants for a real property appraiser registration, license, or certification to determine if the applicant possesses a background that does not call into question public trust or the applicant's fitness for registration, licensure, or certification.
(ii) Subdivision (12)(A)(i) of this section applies to an application for a state-registered appraiser credential, an application for a registered apprentice appraiser credential, an application to upgrade an existing appraiser credential, an application to reinstate an appraiser credential that has been inactive for more than twelve (12) months, and an application for a new reciprocal appraiser credential.
(iii) Subdivision (12)(A)(i) of this section does not apply to an application for a temporary practice permit.
(B) An applicant shall provide all information requested by the State Board of Appraisers, Abstracters, and Home Inspectors to assist making the determination.
(C) Factors to consider in making the determination include without limitation whether the applicant:
(i) During the five (5) years immediately preceding the date of the application was convicted of, or pled guilty or nolo contendere to, a crime that would call into question the applicant's fitness for registration, licensure, or certification, including without limitation a crime involving:
(a)(1) An act substantially related to the qualifications, functions, or duties of an appraiser.
(2) A crime or act may be deemed substantially related to the qualifications, functions, or duties of an appraiser if, to a substantial degree, the crime or act evidences present or potential unfitness of a person applying for or holding a real property appraiser credential to perform the functions authorized by the credential;
(b) Taking, appropriating, or retaining the funds or property of another;
(c) Forging, counterfeiting, or altering an instrument affecting the rights or obligations of another;
(d) Evasion of a lawful debt or obligation, including without limitation a tax obligation;
(e) Trafficking in narcotics or controlled substances;
(f) Violation of a relation of trust or confidence;
(g) Theft of personal property or funds;
(h) An act of violence or threatened violence against persons or property; or
(i) A sexually related crime or act under § 5-14-101 et seq., except for a misdemeanor violation of sexual indecency with a child, § 5-14-110;
(ii) Has had an appraiser registration, license, certification, or credential of any type revoked in any governmental jurisdiction;
(iii) Performed any act which if done by an appraiser would be grounds to revoke or suspend the appraiser's license or certification;
(iv) Knowingly made a false statement of material fact required to be disclosed in an application for any professional license or certification;
(v) Has been prohibited from participating in the affairs of an insured depository institution under Section 19(a) of the Federal Deposit Insurance Act, 12 U.S.C. § 1829;
(vi) Misrepresented facts or information on the appraiser registration, license, or certification application; or
(vii) Cheated on an examination for a real property appraiser registration, license, or certification.
Ark. Code Ann. § 17-14-204 Meetings, quorum, and voting.
(a) The State Board of Appraisers, Abstracters, and Home Inspectors shall meet not less frequently than twice each calendar year to conduct its business.
(b) Places of future meetings shall be decided by the vote of members at meetings.
(c) Written notice shall be given to each member of the time and place of each meeting of the board at least ten (10) days before the scheduled date of the meetings.
(d) An administrative secretary shall be present at all meetings of the board and shall record the minutes of all meetings, the record of which shall be made a permanent part of the records of the board.
(e)(1) A quorum of the board shall be five (5) members .
(2) No binding decisions or regulatory changes may be made by the board in the absence of a quorum.
Ark. Code Ann. § 17-14-301 Business entities — Eligibility for licensing.
A registration, license, or certificate shall not be issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., to a firm, corporation, partnership, group, or other business entity.
Ark. Code Ann. § 17-14-302 License required — Membership in other organizations.
(a) On or after December 31, 2001, it shall be a Class B misdemeanor for any individual to perform an appraisal or provide appraisal services as defined in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., without holding a registration, license, or certificate except as provided in § 17-14-104.
(b) A person shall not be excluded from obtaining a registration, license, or certification based solely upon membership or lack of membership in any particular appraisal organization.
Ark. Code Ann. § 17-14-303 Unlicensed persons — Federally and nonfederally related transactions.
(a) It is a Class B misdemeanor for any person who is not licensed, registered, or certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., to perform appraisal services as defined in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., in connection with a federally related transaction.
(b) An appraiser who does not hold an appraiser's classification that permits the performance of a particular appraisal assignment for use in federally related transactions must include in such an appraisal report a statement that the appraisal may not be eligible for use in a federally related transaction.
Ark. Code Ann. § 17-14-304 Use of terms.
(a) The terms “certified real property appraiser”, “certified real estate appraiser”, and “certified appraiser” shall only be used to refer to individuals who hold a current certificate and shall not be used in connection with or as part of the name or signature of an individual, firm, partnership, corporation, group, or other business entity, or anyone other than an individual holder of the certificate.
(b) An appraiser practicing or providing appraisal services in this state as defined in § 17-14-103 may not use the term “registered”, “certified”, or “licensed” in conjunction with his or her appraisal practice, unless he or she holds a valid registration, license, or certification issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
(c) The terms “licensed real estate appraiser”, “licensed real property appraiser”, and “licensed appraiser” shall only be used to refer to an individual who holds a current license and shall not be used in connection with or as part of the name or signature of an individual, firm, corporation, or group or in a manner that may be interpreted as referring to a firm, partnership, corporation, group, or other business entity, or anyone other than an individual holder of the license.
(d) A person other than a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser shall not assume or use that title or any title, designation, or abbreviation likely to create the impression of registration, licensing, or certification as an appraiser by this state.
(e) A person who is not registered, licensed, or certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not describe or refer to any appraisal report, written or oral, or other evaluation of real estate covered under the activities of appraisers by the term “registered”, “licensed”, “certified”, or any other similar term that may be construed to imply qualification or competency recognized by the state.
Ark. Code Ann. § 17-14-305 Compliance with uniform standards and code of ethics – Licensing and certification documents.
(a) Each state-registered appraiser, each state-licensed appraiser, each registered apprentice appraiser, and each state-certified appraiser shall comply with the Uniform Standards of Professional Appraisal Practice and code of ethics adopted by the State Board of Appraisers, Abstracters, and Home Inspectors and shall authenticate all written appraisal reports with the registration, license, or certification number of the appraiser.
(b) The number shall also be used in all statements of qualifications, contracts, or other instruments used by the registration, license, or certificate holder when reference is made to his or her status as a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser.
Ark. Code Ann. § 17-14-306 Additional licenses — Nonresidents.
(a)(1) Every applicant for registration, licensure, or certification under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., who is not a resident of this state shall submit with the application for registration, licensure, or certification an irrevocable consent that service of process upon him or her may be made by delivery of the process to the Secretary of State if, in an action against the applicant in a court of this state arising out of the applicant's activities as a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser, the plaintiff cannot effect personal service upon the applicant.
(2) A nonresident of this state who has complied with this provision may obtain a license or certification as a state-licensed appraiser or a state-certified appraiser by complying with the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., relating to state-registered appraisers, state-licensed appraisers, or state-certified appraisers, including the payment of a fee.
(b)(1) If, in the determination by the State Board of Appraisers, Abstracters, and Home Inspectors, another state is deemed to have substantially equivalent licensing and certification requirements, an applicant who is licensed or certified under the laws of the other state may obtain a nonresident license or certificate as a state-licensed appraiser or a state-certified appraiser in this state upon such terms and conditions as may be determined by the board.
(2) An appropriate fee is to be charged.
Ark. Code Ann. § 17-14-307 Minimum qualifying requirements for registered appraiser.
In order to qualify as a state-registered appraiser, an applicant must:
(1) Make application to the State Board of Appraisers, Abstracters, and Home Inspectors on approved forms which shall include an affidavit that states that the appraiser has read and understands:
(A) The current edition of the Uniform Standards of Professional Appraisal Practice;
(B) The board's statutes; and
(C) The board's rules;
(2) Attest in a statement to the verification of tenure and scope of practice as a fee appraiser making independent appraisal assignments; and
(3) Meet any additional requirements which may from time to time be adopted by the board under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
Ark. Code Ann. § 17-14-401 Short title.
This subchapter shall be known and may be cited as the “Appraisal Management Company Registration Act”.
Ark. Code Ann. § 17-14-403 Registration of appraisal management companies required.
A person shall not act as an appraisal management company or perform appraisal management services in this state unless registered by the State Board of Appraisers, Abstracters, and Home Inspectors.
Ark. Code Ann. § 17-14-404 Rulemaking authority.
The State Board of Appraisers, Abstracters, and Home Inspectors may adopt rules to implement, administer, and enforce this subchapter, including without limitation to prescribe:
(1) Forms and procedures for submitting information to the board;
(2) Standards of practice for a person registered under this subchapter; and
(3) Standards for the operation of appraisal management companies.
Ark. Code Ann. § 17-14-405 Requirements for registration.
(a)(1) Before acting or offering to act as an appraisal management company in this state, a person shall make written application on the forms provided on the official website of the State Board of Appraisers, Abstracters, and Home Inspectors to the board for registration accompanied by the fee and bond established by the board.
(2) The same requirements for registration shall apply to the initial application and each subsequent application for renewal.
(b) The initial application or application for renewal shall include without limitation the following information:
(1) The name, business address, and telephone contact information of the person seeking registration;
(2)(A) If the applicant is a domestic organization, the information required by § 4-20-105(a) to designate an agent for service of process; or
(B)(i) If the applicant is a foreign organization, documentation that the foreign organization is authorized to transact business in this state and has appointed an agent for service of process by submitting a copy of:
(a) The company's filing with the Secretary of State appointing an agent for service of process under § 4-20-112; and
(b) A certificate of authority issued by the Secretary of State.
(ii) A foreign organization's failure to comply with subdivision (b)(2)(B)(i) of this section may result in the rejection of the application;
(3)(A) The name, address, and contact information of any person that owns ten percent (10%) or more of the appraisal management company.
(B) Any person owning more than ten percent (10%) of an appraisal management company in this state shall submit to a state criminal background check and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations;
(4) The name, mailing address, and contact information of a controlling person or a managing principal;
(5)(A) An appraisal management company is not eligible to be registered in this state if the appraisal management company, in whole or in part, directly or indirectly, is owned by a person who has had an appraiser license or certification refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state for a substantive cause as determined by the board.
(B) An appraisal management company is not barred by subdivision (b)(5)(A) of this section if the license or certification of the appraiser with an ownership interest was not revoked for a substantive cause and has been reinstated by the state or states in which the appraiser was licensed or certified;
(6) A certification that the person:
(A) Has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
(B) Has a system in place to review the work of all independent appraisers that are performing appraisal services for the appraisal management company on a periodic basis to ensure that the appraisal services are being conducted in accordance with the minimum reporting standards under § 17-14-202(b);
(C) Maintains a detailed record of each request for appraisal services that it receives and the independent appraiser that performs the appraisal services for the appraisal management company; and
(D) Has a system in place to verify that:
(i) Appraisals are conducted independently and free from inappropriate influence and coercion under the appraisal independence standards established under 15 U.S.C. § 1639e, as existing on January 1, 2019; and
(ii) The appraisal management company establishes and complies with processes and controls reasonably designed to ensure that the appraisal management company:
(a) When engaging an appraiser, selects an appraiser who is independent of the transaction and has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property; and
(b) Conducts its appraisal management services in accordance with the requirements of 15 U.S.C. § 1639e, as existing on January 1, 2019, and federal regulations, as existing on January 1, 2019;
(7) Requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice;
(8) Has a system in place to verify that only licensed or certified appraisers are used for federally related transactions; and
(9) Any other information required by the board.
(c) The board shall issue an initial or a renewal certificate of registration to an applicant authorizing the applicant to act or offer to act as an appraisal management company in this state upon:
(1) Receipt of a properly completed application;
(2) Payment of the required fee;
(3) Posting of a bond; and
(4)(A) Determination by the board that the activities of the applicant will be directed and conducted by persons of good moral character.
(B) The determination of the board under subdivision (c)(4)(A) of this section shall consider the results of all fingerprint-based criminal history reports.
(d)(1) If the board finds that there is substantial reason to deny the application for registration, the board shall notify the applicant that the application has been denied and shall afford the applicant an opportunity for a hearing before the board to show cause why the application should not be denied.
(2) All proceedings concerning the denial of a certificate of registration shall be governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(e) The acceptance by the board of an application for registration does not constitute the approval of its contents or waive the authority of the board to take disciplinary action under this subchapter.
Ark. Code Ann. § 17-14-406 Fees and renewals.
(a)(1) The State Board of Appraisers, Abstracters, and Home Inspectors shall establish by rule an application fee for an initial application or an application for renewal not to exceed one thousand five hundred dollars ($1,500) to be paid by each appraisal management company seeking registration under this subchapter.
(2) The board shall establish by rule and criminal background check a fee not to exceed fifty dollars ($50.00) to be paid by the appraisal management company for each person owning more than ten percent (10%) of the appraisal management company.
(b)(1) Each applicant for registration shall post with the board and maintain a surety bond in the amount of twenty thousand dollars ($20,000).
(2) The bond shall:
(A) Be in the form prescribed by rule of the board; and
(B) Accrue to the state for the benefit of a claimant against the registrant to secure the faithful performance of the registrant's obligations under this subchapter.
(3) The aggregate liability of the surety shall not exceed the principal sum of the bond.
(4) A party having a claim against the registrant may bring suit directly on the surety bond, or the board may bring suit on behalf of the party having a claim against the registrant.
(5) Consumer claims are given priority in recovering from the bond.
(6) A deposit of cash or security may be accepted in lieu of the surety bond.
(7) A claim reducing the face amount of the bond shall be annually restored upon renewal of the registrant's registration.
(c)(1)(A) Registrations issued under this subchapter shall be renewed annually beginning twelve (12) months from the date of issuance.
(B) The board may review and renew or refuse renewal of an appraisal management company's renewal application.
(2)(A) Failure to timely renew a registration shall result in a loss of authority to operate under this subchapter.
(B) A request to reinstate a certificate of registration shall be accompanied by payment of the renewal fee and a late fee of fifty dollars ($50.00) per month for each month or partial month of delinquency.
(d)(1) The board shall collect from each appraisal management company registered under this chapter the Appraisal Management Company National Registry fee required by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
(2) The amount and method of calculation of the Appraisal Management Company National Registry fee shall be established by rule of the board.
(e) Notwithstanding § 17-14-412, the board may collect from each federally regulated appraisal management company:
(1) The Appraisal Management Company National Registry fee required by the Appraisal Subcommittee;
(2) Information regarding the determination of the Appraisal Management Company National Registry fee as required by the Appraisal Subcommittee; and
(3) Any other information required by state or federal law.
(f) The Appraisal Management Company National Registry fees collected under this section shall be sent to the Appraisal Subcommittee regularly as required by federal law.
Ark. Code Ann. § 17-14-407 Registrant responsibilities and duties.
(a) A registrant that is an organization shall:
(1) Maintain a registered agent for service of process under the Model Registered Agents Act, § 4-20-101 et seq.; and
(2) Provide to the State Board of Appraisers, Abstracters, and Home Inspectors the information required by § 4-20-105(a) concerning the organization's agent for service of process and within five (5) business days any changes to the information.
(b)(1) A registrant shall maintain or cause to be maintained complete records of requests for appraisal services referred to an appraiser licensed or certified by the board, including without limitation records pertaining to the acceptance of fees from borrowers or clients and payments to appraisers.
(2) The board may inspect the records without prior notice periodically or if the board determines that the records are pertinent to an investigation of a complaint against a registrant.
(c)(1) A registrant shall designate a controlling person or managing principal responsible for ensuring compliance with this subchapter.
(2) The registrant shall file a form with the board certifying:
(A) The identity of the controlling person or the managing principal; and
(B) The individual's acceptance of the responsibilities of a controlling person or a managing principal.
(3) The registrant shall notify the board within thirty (30) days of a change in its controlling person or managing principal.
(4) An individual registrant who operates as a sole proprietorship is considered the managing principal under this subchapter.
(d)(1) A registrant shall make and keep the accounts, correspondence, memoranda, papers, books, and other records in accordance with rules promulgated by the board.
(2) All records shall be retained for five (5) years unless the board by rule prescribes a different retention period for particular types of records.
(e) If the information contained in a document filed with the board is or becomes inaccurate or incomplete in any material respect, the registrant shall promptly file an amendment correcting the information contained in the document.
(f) The registrant shall disclose to its client the actual fees paid to an appraiser for appraisal services separately from any other fees or charges for appraisal management services.
Ark. Code Ann. § 17-14-408 Prohibited activities.
(a) An employee, director, officer, or agent of an appraisal management company or any other third party acting as a joint venture partner with or independent contractor for an appraisal management company shall not improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal, including without limitation through the use of intimidation, coercion, extortion, bribery, blackmail, threat of nonpayment or withholding payment for appraisal services, or threat of exclusion from future appraisal work.
(b) A registrant shall not:
(1) Require an appraiser to collect the appraisal fee from a borrower, homeowner, or other third party;
(2) Require an appraiser to provide the registrant with the appraiser's digital signature or seal;
(3) Alter, amend, or change an appraisal report submitted by a licensed or certified appraiser, including without limitation by:
(A) Removing the appraiser's signature or seal; or
(B) Adding or removing information to or from the appraisal report;
(4)(A) Allow the removal of an independent appraiser from an appraiser panel without prior written notice to the appraiser.
(B) Written notice shall include written evidence of:
(i) The appraiser's illegal conduct;
(ii) A violation of the minimum reporting standards under § 17-14-202(b) or other applicable statutes or rules;
(iii) Substandard performance; or
(iv) Otherwise improper or unprofessional behavior;
(5) Enter into contracts or agreements with an independent appraiser for the performance of appraisal services unless the independent appraiser is licensed or certified in good standing with the State Board of Appraisers, Abstracters, and Home Inspectors;
(6) Request that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report or provide estimated values or comparable sales at any time before the appraiser completes an appraisal report;
(7)(A) Except as provided in subdivision (b)(7)(B) of this section, provide to an appraiser an anticipated, estimated, encouraged, or desired value for a property or a proposed or target amount to be loaned to the borrower.
(B) A copy of the sales contract for purchase transactions may be provided;
(8) Commit an act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality; or
(9) An appraisal management company shall not require an:
(A) Employee of the appraisal management company who is an appraiser to sign an appraisal that is completed by another appraiser who contracts with the appraisal management company in order to avoid the requirements of this subchapter; or
(B) Appraiser on the appraisal management company's appraiser panel to pay or reimburse the appraisal management company for the Appraisal Management Company National Registry fee.
(c) Subsection (a) of this section does not prohibit an appraisal management company from requesting that an independent appraiser:
(1) Provide additional information about the basis for a valuation;
(2) Correct objective factual errors in an appraisal report; or
(3) Provide further detail, substantiation, or explanation for the appraiser's value conclusion.
Ark. Code Ann. § 17-14-409 Registry of applicants and roster.
(a)(1) The Director of the State Board of Appraisers, Abstracters, and Home Inspectors shall keep a register of all applicants for registration.
(2) The register shall indicate:
(A) The date of application;
(B) The applicant's name;
(C) The applicant's business address; and
(D) Whether the registration was granted or denied.
(3) The register shall be prima facie evidence of all matters contained in the register.
(b)(1) The executive director shall keep a current roster showing the names and addresses of all appraisal management companies registered with the State Board of Appraisers, Abstracters, and Home Inspectors.
(2) The roster shall be kept on file in the office of the board and shall be open for public inspection.
(c)(1) The board shall submit to the Appraisal Subcommittee all information required to be submitted by Appraisal Subcommittee rules or guidance concerning appraisal management companies that operate in this state.
(2) Information under subdivision (c)(1) of this section shall include without limitation a roster of registered appraisal management companies, reports of investigations, and disciplinary actions involving appraisal management companies.
Ark. Code Ann. § 17-14-410 Disciplinary authority, enforcement, and hearings.
(a) The State Board of Appraisers, Abstracters, and Home Inspectors may deny, suspend, revoke, or refuse to issue or renew the registration of an appraisal management company under this subchapter or may restrict or limit the activities of an appraisal management company or a person who owns an interest in or participates in the business of an appraisal management company if the board finds that any of the following circumstances apply to the applicant, a registrant, or a partner, member, manager, officer, director, managing principal, controlling person, or a person occupying a similar status or performing similar functions, or a person directly or indirectly controlling the applicant or registrant:
(1) The person's application for registration when filed or after filing contained a statement that in light of the circumstances under which it was made is false or misleading with respect to a material fact;
(2) The person has violated or failed to comply with this subchapter;
(3) The person has pleaded guilty or nolo contendere to or been found guilty of:
(A) A felony listed under § 17-3-102; or
(B) Within the past ten (10) years:
(i) A misdemeanor involving mortgage lending or real estate appraising; or
(ii) An offense involving breach of trust or fraudulent or dishonest dealing;
(4) The person is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving appraisal management services or operating an appraisal management company;
(5) The person is the subject of an order of the board or any other state appraisal management company regulatory agency denying, suspending, or revoking the person's privilege to operate as an appraisal management company;
(6) The person acted as an appraisal management company while not properly registered by the board; or
(7) The person failed to pay the proper filing or renewal fee under this subchapter.
(b) Upon its own motion or the written complaint of a person and after notice and hearing as prescribed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq., the board may:
(1) Suspend or revoke the registration of a registrant;
(2) Impose a fine not to exceed one thousand dollars ($1,000) per violation; or
(3) Take other appropriate disciplinary actions as established by rule of the board.
(c)(1) Before imposing a penalty on a registrant, the board shall:
(A) Notify the registrant in writing of any charges made at least twenty (20) days before the date set for the hearing; and
(B) Afford the registrant an opportunity to be heard in person or by counsel.
(2) The board may make findings of fact and shall deliver or mail the findings to the registrant charged with an offense under this subchapter.
Ark. Code Ann. § 17-14-411 Injunctive relief — Criminal penalty.
(a) The State Board of Appraisers, Abstracters, and Home Inspectors may appear in its own name in a circuit court of competent jurisdiction to obtain injunctive relief to prevent a person from violating this subchapter.
(b) The circuit court may grant a temporary or permanent injunction regardless of whether:
(1) Criminal prosecution has been or may be instituted as a result of the violation of this subchapter; or
(2) The person is the holder of a registration issued by the board.
(c) A violation of this subchapter is a Class D felony.
Ark. Code Ann. § 17-14-412 Applicability.
This subchapter does not apply to:
(1) An agency of the federal, state, county, or municipal government;
(2) A person authorized to engage in business as a bank, farm credit system, savings institution, or credit union under the laws of the United States, the State of Arkansas, or any other state;
(3) A licensed real estate broker or licensed real estate agent performing activities regulated by the Arkansas Real Estate Commission unless the licensed real estate broker or licensed real estate agent receives compensation or other pecuniary gain in connection with the referral, placement, or execution of a request for appraisal services;
(4) An officer or employee of a government agency, person, licensed real estate broker, or licensed real estate agent described in this section when acting within the scope of employment of the officer or employee;
(5) A federally regulated appraisal management company;
(6) A person who exclusively employs appraisers on an employer and employee basis for the performance of appraisals;
(7) A person acting as an appraisal firm that at all times during a calendar year employs on an exclusive basis as independent contractors not more than fifteen (15) appraisers for the performance of appraisals;
(8) A person who enters into an agreement with an appraiser for the performance of an appraisal that on completion results in a report signed by both the appraiser who completed the appraisal and the appraiser who requested completion of the appraisal; or
(9) An appraisal management company operating:
(A) Only in this state with an appraiser panel of not more than fifteen (15) appraisers at all times during a calendar year; or
(B) In multiple states, including this state, with an appraiser panel of not more than twenty-four (24) appraisers in all states at all times during a calendar year.
Ark. Code Ann. § 17-14-413 Compensation of appraisers.
(a) An appraisal management company shall:
(1) Except in cases of breach of contract or substandard performance of services, pay an appraiser for the completion of an appraisal or valuation assignment not later than the sixtieth day after the date the appraiser provides the initial appraisal or valuation assignment to the appraisal management company; and
(2) Compensate appraisers at a rate that is reasonable and customary for appraisals being performed in the market area of the property being appraised consistent with the presumptions under federal law.
(b) An appraiser who is aggrieved under this section may file a complaint with the State Board of Appraisers, Abstracters, and Home Inspectors against the appraisal management company.
Ark. Code Ann. § 17-14-414 Appraisal review.
Any employee of an appraisal management company or an independent contractor of the appraisal management company who performs a Uniform Standards of Professional Appraisal Practice Standard 3 appraisal review of an appraisal report on a property located in this state shall be an appraiser with the proper level of appraiser credential issued by the State Board of Appraisers, Abstracters, and Home Inspectors.
Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.17.htmlFetched: 11/8/2026