N.Y. Executive Law § 160-d: Powers of the board

§ 160-d. Powers of the board. 1. The board shall adopt rules and

regulations in aid or furtherance of this article and shall have the

following powers and duties:

a. To define, with respect to each category of state certified real

estate appraisers, state licensed real estate appraisers, and state

licensed real estate appraiser assistants, the type of educational

experience, appraisal experience and equivalent experience that will

meet the statutory requirements of this article, provided, however, that

in no event shall the experience, education and examination requirements

adopted by the board be less than the minimum criteria established by

the Appraisal Subcommittee of the Federal Financial Institutions

Examination Council or by the Appraiser Qualification Board of the

Appraisal Foundation as referred to in title XI of the Financial

Institutions Reform, Recovery and Enforcement Act of 1989;

b. To establish examination specifications consistent with the

standards of the Appraisal Qualifications Board of the Appraisal

Foundation for state licensed real estate appraiser assistants, state

licensed real estate appraisers and each category of state certified

real estate appraisers, to provide or procure appropriate examination

questions and answers and to establish procedures for grading

examinations;

c. To define, with respect to state licensed real estate appraiser

assistants, state licensed real estate appraisers and each category of

state certified real estate appraisers, the continuing education

requirements for the renewal of a license or a certification that will

meet the statutory requirements provided in this article;

d. To review the standards for the development and communication of

real estate appraisals provided in this article and to adopt regulations

explaining and interpreting such standards, provided, however, that such

standards must, at a minimum, conform to the uniform standards of

professional appraisal as promulgated by the Appraisal Standards Board

of the Appraisal Foundation; and

e. To prescribe the scope of practice for state licensed real estate

appraiser assistants, state licensed real estate appraisers and each

category of state certified real estate appraisers, provided, however,

that in no event shall the scope of practice prescribed by the board be

less than the scope of practice established by the Appraisal

Subcommittee of the Federal Financial Institutions Examination Council

or by the Appraiser Qualification Board of the Appraisal Foundation as

referred to in title XI of the Financial Institutions Reform, Recovery

and Enforcement Act of 1989;

f. To perform such other functions and duties as may be necessary in

carrying out the provisions of this article.

2. The board shall promulgate rules and regulations prescribing the

form and content of each appraisal report. Such rules and regulations

shall include but are not limited to the following requirements:

a. Each appraisal report shall clearly and accurately disclose any

extraordinary assumption or limited condition that directly affects an

appraisal.

b. Each written appraisal report shall comply with the following

specific reporting guidelines:

(1) Identify and describe the real estate being appraised;

(2) Identify the real property being appraised;

(3) Define the opinion that is the purpose of the appraisal and

describe the scope of the appraisal;

(4) Set forth the effective date of the opinion and the date of the

appraisal report;

(5) Set forth the appraiser's opinion of the highest and best use of

the real estate being appraised when such an opinion is necessary and

appropriate;

(6) Set forth the appraisal procedure followed, the data considered

and the reasoning that supports the analyses, opinions and conclusions;

(7) Set forth all assumptions and limiting conditions that affect the

analyses, opinions and conclusions in the appraisal report; and

(8) Set forth any additional information that may be appropriate to

show compliance with, and identify permitted departures from, the

requirements for the development of appraisals as provided in this

article or as established by the board.

3. The board shall establish standards of developing an appraisal.

Such standards shall, among other things, state the following

guidelines:

a. All state certified or licensed real estate appraisers conducting

certified or licensed appraisals, performing appraisal service or

issuing an appraisal shall:

(1) Be aware of, understand and correctly employ those recognized

appraisal methods and techniques that are necessary to produce a

credible analysis, opinion or conclusion;

(2) Not commit a substantial error or omission of commission which

results from a significant departure from the recognized appraisal

methods and techniques;

(3) Not commit a substantial error or omission of commission that

significantly affects an analysis, opinion or conclusion;

(4) Identify the real estate and real property under consideration,

define the opinion that is the purpose of the appraisal, consider the

scope of the appraisal service and identify the effective date of the

opinion;

(5) Identify and consider the appropriate procedures and market data

required to perform the appraisal service, where appropriate;

(6) Consider the effect on use and value of the following factors:

existing land use regulations, reasonably probable modifications of land

use regulations, economic demand, the physical adaptability of the

property, neighborhood trends and the highest and best use of the

property;

(7) Consider the effect on the property being appraised of anticipated

public or private improvements, located on or off the site, to the

extent that market actions reflect the anticipated improvements as of

the effective appraisal date;

(8) Recognize that land may be appraised as though vacant and avail-

able for development and that the appraisal of improvements is based on

their actual contributions to the site;

(9) Appraise proposed improvements only after examining and having

available for future examination plans, specifications or other

documentation sufficient to identify the scope and character of the

proposed improvements, evidence indicating the probable time of

completion of the proposed improvements, and reasonably clear and

appropriate evidence supporting development costs, anticipated earnings,

occupancy projections and the anticipated competition at the time of

completion; and

(10) Base estimates of anticipated future rent and expenses for the

real estate and real property being appraised on reasonably clear and

appropriate evidence.

b. In addition to the foregoing, an appraiser shall define the value

being considered. If the value estimate is a statement or estimate of

market value, he or she shall clearly indicate whether the statement or

estimate is the most probable price in terms of cash or financial

arrangements equivalent to cash or other terms as may be precisely

defined. If an estimate of value is based on submarket financing or

financing with unusual conditions or incentives, the terms of such a

typical financing shall be clearly set forth, their contributions to, or

negative influence on value shall be described and estimated, and the

market data supporting the valuation estimate shall be described and

explained.

c. For each real property appraisal analysis, opinion or conclusion

that contains an estimate of value, a state certified or licensed real

estate appraiser shall observe all of the following specific real

property appraisal guidelines:

(1) Consider whether an appraised fractional interest, physical

segment or partial holding contributes pro rata to the value of the

whole;

(2) Identify any personal property or other items that are not real

estate but are included with or considered in connection with real

estate being appraised and contribute to the total value estimate or

conclusion;

(3) Consider and analyze any current agreement of sale, option or

listing of the real estate and real property being appraised, if the

information is available to the person in the normal course of business;

(4) Consider and analyze any prior sales of the property being

appraised that occurred within one year;

(5) When estimating the value of a leased fee estate or a leasehold

estate, analyze and consider the effect on value, if any, of the terms

and conditions of the lease; and

(6) Give careful consideration to the effect on value, if any, of the

assemblage of the various estates or component parts of an estate and

refrain from estimating the value of the whole solely by adding together

the individual values of its various estates or component parts.

d. In developing a review appraisal, a state certified or licensed

real estate appraiser shall observe all of the following specific

appraisal guidelines:

(1) Identify the appraisal report being reviewed, the real estate

being appraised, the real property being appraised, the effective date

of the opinion in the original report, the date of the original report

and the date of the review;

(2) Identify the scope of the review process to be conducted,

including a determination of whether or not it is appropriate or

essential to inspect the appraised property and the data presented;

(3) Form an opinion as to the adequacy and relevance of the data used

and the propriety of any adjustment made;

(4) Form an opinion as to whether or not the appraisal methods and

techniques used were appropriate and, if not, the reasons for the

person's disagreement with the original appraisal; and

(5) Form an opinion as to whether or not the analyses, opinions or

conclusions in the report being reviewed are correct or appropriate and,

if not, state his or her analyses, opinions or conclusions and his or

her reasons for disagreement with the original appraisal.

e. In developing an appraisal for an employer or a client, a state

certified or licensed real estate appraiser shall carefully consider and

determine whether the appraisal service to be performed is intended to

result in an analysis, opinion or conclusion of a disinterested third

party and therefore would be classified as an appraisal assignment as

defined in subdivision two of section one hundred sixty-x of this

article. If the appraisal service to be performed is not intended to

result in an analysis, opinion or conclusion of a disinterested third

party, the person shall then carefully consider whether or not he or she

would be perceived by third parties or the public as acting as a

disinterested third party.

f. Prior to entering into an agreement to perform a real property

appraisal service, a state certified or licensed real estate appraiser

shall carefully consider the knowledge and experience that will be

required to complete the appraisal service competently and either:

(1) Have the knowledge and experience necessary to complete the

appraisal service competently; or

(2) Immediately disclose the lack of knowledge or experience to the

client and take all steps necessary to complete the appraisal service

competently.

g. A state certified or licensed real estate appraiser may enter into

an agreement to perform a real property appraisal service that calls for

something less than, or different from, the work that would otherwise be

required by the specific appraisal guidelines, provided that prior to

entering into the agreement, he or she has done all of the following:

(1) The state certified or licensed real estate appraiser has

determined that the appraisal service to be performed is not so limited

in scope that the resulting analysis, opinion or conclusion concerning

real estate or real property would tend to mislead or confuse the

client, the users of the appraisal report or the public; and

(2) The state certified or licensed real estate appraiser has advised

the client that the appraisal service calls for something less than, or

different from, the work required by the specific appraisal guidelines,

and therefore the appraisal report will include a qualification that

reflects the limited or differing scope of the appraisal service.