Chapter 40

§ 4001 Objectives. (a) The primary objective of the Council on Real Estate Appraisers, to which all other objectives and purposes are secondary, is to protect the general public, specifically those persons who are the direct recipients of services regulated by this chapter, from unsafe practices and from occupational practices which tend to reduce competition or fix the price of services rendered. (b) The secondary objectives of the Council are to maintain minimum standards of practitioner competency and to maintain certain standards in the delivery of services to the public. In meeting its objectives, the Council shall develop standards assuring professional competence; shall monitor complaints brought against practitioners regulated by the Council; shall adjudicate at informal hearings; shall promulgate rules and regulations; and shall impose sanctions where necessary against licensed practitioners. 75 Del. Laws, c. 105, §  3 ; § 4002 Definitions. The following words, terms and phrases, when used in this chapter shall have the meanings ascribed to them under this section, except where the context clearly indicates a different meaning: (1) “Appraisal” shall mean an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate as of a specific date. An appraisal may be classified by subject matter into either a valuation or an analysis. A valuation is an estimate of the value of real estate or real property. An analysis is a study of real estate or real property other than estimating value. A competitive market analysis is not an appraisal. (2) “Appraisal management company” means a corporation, partnership, sole proprietorship, subsidiary or other business entity that directly or indirectly performs appraisal management services, regardless of the use of the term “appraisal management company,” “mortgage technology provider,” “lender processing services,” “lender services,” “loan processor,” “mortgage services,” “real estate closing services provider,” “settlement services provider,” “vendor management company” or any other term, and that does any of the following: a. Administers an appraiser panel of independent contract appraisers to perform real property appraisal services in this State for clients. b. Receives requests for real property appraisal services from clients and, for a fee paid by the client, enters into an agreement with 1 or more independent appraisers to perform the real property appraisal services contained in the request. c. Otherwise serves as a third-party liaison of appraisal management services between clients and appraisers. (3) “Appraisal management services” means the process of receiving a request for the performance of real property appraisal services from a client, and for a fee paid by the client, entering into an agreement with 1 or more independent appraisers who are part of an appraiser panel to perform the real property appraisal services contained in the request. (4) “Appraiser panel” means a group of independent appraisers that has been selected by an appraisal management company to perform real property appraisal services for the appraisal management company. (5) “Appraisal review” means the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment, but does not include an examination of an appraisal for grammatical, typographical or other similar errors that do not communicate an opinion related to the appraiser’s data collection, analysis, opinions, conclusions, estimate of value or compliance with the Uniform Standards of Professional Appraisal Practice. (6) “AQB” shall mean the Appraisal Qualifications Board appointed by the Appraisal Foundation to establish the minimum education, examination, and experience requirements for real estate appraisers providing appraisals in federally-related transactions. (7) “Certified general real property appraiser” shall mean a person, who has met the certification requirements of this chapter pertaining to the appraisal of residential and nonresidential real property utilized in connection with federally-related transactions, and who holds a current, valid certificate issued under this chapter. (8) “Certified residential appraiser” shall mean a person, who has met the certification requirements of this chapter, pertaining solely to the appraisal of residential real property utilized in connection with federally-related transactions, and who holds a current, valid certificate issued under this chapter. (9) “Classroom hour” shall mean 50 minutes out of each 60-minute hour. (10) “Controlling person” means any of the following: a. An owner, officer or director of a corporation, partnership or other business entity seeking to offer appraisal management services in this State. b. An individual who is employed, appointed or authorized by an appraisal management company and who has the authority to enter into a contractual relationship with clients for the performance of appraisal management services and to enter into agreements with independent appraisers for the performance of real property appraisal services. c. An individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company. (11) “Council” shall mean the State Council on Real Estate Appraisers established in this chapter. (12) “Division” shall mean the State Division of Professional Regulation. (13) “Excessive use or abuse of drugs” shall mean any use of narcotics, controlled substances, or illegal drugs without a prescription from a licensed practitioner, or the abuse of alcoholic beverage such that it impairs the ability to perform the work of an appraiser. (14) “Federal financial institutions regulatory agencies” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration. (15) “Federally-related transaction” means any real-estate-related financial transaction which a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and requires the services of an appraiser. (16) “FIRREA” shall mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989, the act of July 21, 2010 [P.L. 111-203, 124 Stat. 2190]. (17) “Licensed real property appraiser” shall mean a person, who has met the licensing requirements of this chapter and who may appraise noncomplex 1 to 4 residential units having a transaction value less than $1,000,000 and complex 1 to 4 residential units having a transaction value of $400,000 or less, and who holds a current, valid license issued under this chapter. Licensed appraisers cannot appraise a property with a market value in excess of $1,000,000. (18) “Person” shall mean an individual, firm, partnership, corporation, association, joint stock company, limited partnership, limited liability company, and any other legal entity and includes a legal successor of those entities. (19) “Personal supervision” shall mean the active oversight by the state-licensed or certified real estate appraiser of the real property appraiser trainee. The trainee may assist in the completion of an appraisal report, including an opinion of value, and may co-sign an appraisal, provided that the trainee has been under the personal supervision of the state certified or licensed real estate appraiser, and provided further that the state-certified or licensed real estate appraiser shall review and sign the appraisal report and accept total responsibility for said appraisal report. (20) “Real estate appraiser” means any person who advises, consults, or prepares analyses with respect to real estate values, uses, sales, developments or disposition, including acquisitions by eminent domain, or renders opinions relevant to the marketability of real estate, as a whole or partial vocation. (21) “Real estate-related financial transaction” shall mean a transaction involving the following: a. Sale, lease, purchase, investment in or exchange of real property, including interests in property or the financing thereof. b. Refinancing of real property or interests in real property. c. Use of real property or interests in property as security for a loan or investment, including mortgage-backed securities. (22) “Real property” shall mean 1 or more defined interests, benefits, and rights inherent in the ownership of real estate. (23) “State” shall mean the State of Delaware. (24) “Substantially related” shall mean the nature of the criminal conduct for which the person was convicted, has a direct bearing on the fitness or ability to perform 1 or more of the duties or responsibilities necessarily related to the practice of real estate appraisal. (25) “Trainee” shall mean a person who has completed classroom hours of education on real estate matters satisfactory to the Council, as indicated in the rules and regulations, including classroom hours on the topic of Uniform Standards of Professional Appraisal Practice. (26) “Uniform Standards of Professional Appraisal Practice” (USPAP) shall mean the standards of appraisal practice established by The Appraisal Foundation. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 76 Del. Laws, c. 340, §§  1, 2 ; 79 Del. Laws, c. 163, §  1 ; 82 Del. Laws, c. 88, § 1 ; 83 Del. Laws, c. 532, § 1 ; § 4003 Council on Real Estate Appraisers; appointments; composition; qualifications; term; vacancies; suspension or removal; unexcused absences; compensation. (a) There is created a State Council on Real Estate Appraisers, which shall administer and enforce this chapter. (b) The Council shall consist of 9 members, who are residents of this State, and are appointed by the Governor. Four of the 9 members shall be licensed or certified appraisers engaged primarily in the real estate appraisal business or in the appraisal management business, including at least 1 certified general real property appraiser and at least 2 certified residential appraisers. One of the 9 members shall be a certified real estate appraiser also engaged in the real estate brokerage business. One member shall be from the banking community. Three of the 9 members shall be public members. The public members shall not be, nor ever have been, appraisers nor members of the immediate family of an appraiser; shall not have been employed by an appraiser or a company engaged in the practice of appraising; shall not have a material interest in the providing of goods and services to appraisers; nor have been engaged in an activity directly related to appraising. The public members shall be accessible to inquiries, comments and suggestions from the general public. (c) Except as provided in subsection (d) of this section, each member shall serve a term of 3 years, and may succeed himself or herself for 1 additional term; provided, however, that where a member was initially appointed to fill a vacancy, such member may succeed himself or herself for only 1 additional full term. Any person appointed to fill a vacancy on the Council shall hold office for the remainder of the unexpired term of the former member. Each term of office shall expire on the date specified in the appointment; however, the member shall remain eligible to participate in Council proceedings unless and until replaced by the Governor. (d) A person, who has never served on the Council, may be appointed to the Council for 2 consecutive terms; but no such person shall thereafter be eligible for 2 consecutive appointments. No person, who has been twice appointed to the Council or who has served on the Council for 6 years within any 9-year period, shall again be appointed to the Council until an interim period of at least 1 term has expired since such person last served. (e) Any act or vote by a person appointed in violation of this section shall be invalid. An amendment or revision of this chapter is not sufficient cause for any appointment or attempted appointment in violation of subsection (d) of this section, unless such an amendment or revision amends this section to permit such an appointment. (f) A member of the Council shall be suspended or removed by the Governor for misfeasance, nonfeasance, malfeasance, misconduct, incompetency, or neglect of duty. A member subject to disciplinary hearing shall be disqualified from Council business until the charge is adjudicated or the matter is otherwise concluded. A member may appeal any suspension or removal to the Superior Court. (g) No member of the Council, while serving on the Council, shall hold elective office in any professional association of real estate appraisers; this includes a prohibition against serving as head of the professional association’s Political Action Committee (PAC). (h) The provisions set forth in Chapter 58 of Title 29 shall apply to all members of the Council. (i) Any member, who is absent without adequate reason for 3 consecutive meetings, or who fails to attend at least 1 / 2 of all regular business meetings during any calendar year, shall be guilty of neglect of duty. (j) Each member of the Council shall be reimbursed for all expenses involved in each meeting, including travel, and in addition shall receive compensation per meeting attended in an amount determined by the Division in accordance with Del. Const. art. III, §  9. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 76 Del. Laws, c. 340, §  3 ; 79 Del. Laws, c. 163, §  1 ; 81 Del. Laws, c. 85, § 23 ; § 4004 Organization; meetings; officers; quorum. (a) The Council shall hold regularly scheduled business meetings at least once in each quarter of a calendar year, and at such times as the chair deems necessary, or, at the request of a majority of Council members. (b) The Council annually shall elect a chair and vice-chair. Each officer shall serve for 1 year and shall not succeed himself or herself for more than 2 consecutive terms. (c) A majority of the members shall constitute a quorum for the purpose of transacting business. No disciplinary action shall be taken without the affirmative vote of at least 5 members of the Council. (d) Minutes of all meetings shall be recorded and the Division shall maintain copies. At any hearing where evidence is presented, a record from which a verbatim transcript can be prepared shall be made. The expense of preparing any transcript shall be incurred by the person requesting it. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4005 Records. The Division shall keep a register of all approved applications for certified real estate appraiser, certified residential real property appraiser, licensed real property appraiser, and real property appraiser trainee, and complete records relating to meetings of the Council, examinations, rosters, changes and additions to the Council’s rules and regulations, complaints, hearings, and such other matters as the Council shall determine. Such records shall be prima facie evidence of the proceedings of the Council. 75 Del. Laws, c. 105, §  3 ; § 4006 Powers and duties. (a) The Council on Real Estate Appraisers shall have authority to: (1) Formulate rules and regulations, with appropriate notice to those affected; all rules and regulations shall be promulgated in accordance with the procedures specified in the Administrative Procedures Act of this State [Chapter 101 of Title 29]. Each rule or regulation shall implement or clarify a specific section of this chapter. (2) Designate the application form to be used by all applicants and process all applications. (3) Designate the written, standardized examination, endorsed by the Appraiser Qualifications Board (AQB), or its successor, and approved by the Council, and graded by the testing service, to be taken by all persons applying for licensure and certification; applicants, who qualify for licensure or certification by reciprocity, shall have achieved a passing score on all parts of the designated examination or a comparable, alternative national or regional examination, if the designated examination was not available at the time of the applicant’s original licensure. (4) Evaluate the credentials of all persons applying for a license or a certificate as an appraiser in this State, in order to determine whether such persons meet the qualifications for licensing or certification set forth in this chapter. (5) Grant certificates and licenses to, and renew certificates and licenses of, all persons who meet the qualifications for certification or licensure. (6) Register applicants as real property appraiser trainees. (7) Issue temporary certificates or licenses to persons who qualify. (8) Establish by rule and regulation continuing education standards required for license or certification renewal. (9) [Repealed.] (10) Refer all complaints from certificate holders, licensees and the public concerning certified or licensed appraisers or concerning practices of the Council or of the profession, to the Division for investigation pursuant to § 8735 of Title 29; and assign a member of the Council to assist the Division in an advisory capacity with the investigation of the technical aspects of the complaint. (11) Conduct hearings and issue orders in accordance with the Administrative Procedures Act, Chapter 101 of Title 29. (12) Where it has been determined after a hearing, that penalties or sanctions should be imposed, to designate and impose the appropriate sanction or penalty after time for appeal has lapsed. (b) The Council on Real Estate Appraisers shall promulgate regulations specifically identifying those crimes which are substantially related to the practice of real estate appraisal. 75 Del. Laws, c. 105, §  3 ; 79 Del. Laws, c. 163, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 4007 Certificate or license required. (a) No person, partnership, association, or corporation shall hold himself, herself, or itself out to the public in this State as being qualified to act as a real estate appraiser, or advertise, or engage in the practice of appraising or assume to act as an appraiser, or use in connection with the person’s, partnership’s, association’s or corporation’s name, or otherwise assume or use, any title or description conveying or tending to convey the impression that the person, partnership, association or corporation is qualified to act as an appraiser, unless such person has been duly certified or licensed under this chapter. (b) Whenever a certificate or license to practice as an appraiser in this State has expired or been suspended or revoked, it shall be unlawful for the person to act as an appraiser in this State. (c) No person shall act as an appraiser trainee or hold himself or herself out to be an appraiser trainee unless such person has been duly registered by the Council under this chapter. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 76 Del. Laws, c. 340, §  4 ; § 4008 Qualifications of applicant; report to Attorney General; judicial review. (a) An applicant, who is applying for certification or licensure as an appraiser under this chapter, for the relevant certificate, license or registration, shall submit evidence, verified by oath and satisfactory to the Council, that such person: (1) Has met the qualifications established by the AQB and incorporated into this section by reference. (2) Shall not have been the recipient of any administrative penalties regarding that applicant’s practice as an appraiser, including but not limited to fines, formal reprimands, license suspensions or revocation, (except for license revocations for nonpayment of license renewal fees), probationary limitations, and/or has not entered into any “consent agreements” which contain conditions placed by a Council on that applicant’s professional conduct and practice, including any voluntary surrender of a license. The Council may determine after a hearing whether such administrative penalty is grounds to deny licensure. (3) Shall not have any impairment related to drugs or alcohol that would limit the applicant’s ability to act as an appraiser in a manner consistent with the safety of the public. (4) Does not have a criminal conviction record, nor pending criminal charge relating to an offense that is substantially related to real estate appraising. Applicants, who have criminal conviction records or pending criminal charges, shall request appropriate authorities to provide information about the record or charge directly to the Council. However, if after consideration of the factors set forth under § 8735(x)(3) of Title 29 through a hearing or review of documentation the Council finds that a waiver would not create an unreasonable risk to public safety, the Council, by an affirmative vote of a majority of the quorum, shall waive this paragraph (a)(4). a.-d. [Repealed.] (5) Has no disciplinary proceedings or unresolved complaints pending against the applicant in any jurisdiction where the applicant has previously been or currently is licensed, certified, or registered. (b) Where the Council has found to its satisfaction that an applicant has been intentionally fraudulent, or that false information has been intentionally supplied, it shall report its findings to the Attorney General for further action. (c) Where the application of a person has been refused or rejected and such applicant feels that the Council has acted without justification, has imposed higher or different standards for the applicant than for other applicants, registrants, certificants or licensees, or has in some other manner contributed to or caused the failure of such application, the applicant may appeal to the Superior Court. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 75 Del. Laws, c. 436, §  46 ; 77 Del. Laws, c. 199, §  34 ; 78 Del. Laws, c. 44, §§  66, 67 ; 83 Del. Laws, c. 433, § 28 ; § 4009 Appraiser trainee; requirements of supervision. (a) Persons, who are presented to the Council by a supervising appraiser for registration as an appraiser trainee, shall provide a statement to the Council that the trainee: (1) Shall perform only those specific functions, which have been delineated in the supervising appraiser’s statement; and (2) Shall practice only under the direct supervision of a state-certified appraiser; and (3) Shall identify themselves to the public as a real estate appraisal trainee; and (4) Has not been convicted of a crime that is substantially related to the practice of real estate appraisal. However, if after consideration of the factors set forth under § 8735(x)(3) of Title 29 through a hearing or review of documentation the Council determines that granting a waiver would not create an unreasonable risk to public safety, the Council, by an affirmative vote of a majority of the quorum, shall waive this paragraph (a)(4). a.-d. [Repealed.] (b) An applicant, who has been registered by the Council as an appraiser trainee, may assist in the completion of an appraisal report, including an opinion of value, and may co-sign an appraisal, provided that the appraiser trainee is actively and personally supervised by a state-certified real estate appraiser. (c) In addition, the supervising state-certified real estate appraiser shall review and sign all appraisals prepared under the supervising state-certified real estate appraiser’s supervision by the appraiser trainee and shall accept total responsibility for the appraisal report. (d) The Council in its regulations shall determine the number of appraiser trainees that a supervising appraiser may supervise and the requirements of their supervision. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 75 Del. Laws, c. 436, §  47 ; 76 Del. Laws, c. 340, §  5 ; 77 Del. Laws, c. 199, §  35 ; 78 Del. Laws, c. 44, §§  68, 69 ; 82 Del. Laws, c. 9, § 3 ; 83 Del. Laws, c. 433, § 28 ; § 4010 Temporary license. (a) A real estate appraiser from another state, who is licensed or certified by the appraiser licensing or certifying agency in such state, may apply for registration to receive temporary licensing or certification privileges in this State by paying all required fees and filing with the Council an application, on a form prescribed by the Council for such purpose, which shall set forth and include: (1) The applicant’s name, address, social security number, and such other information as may be necessary to identify the applicant; and (2) The type of license or certificate held by the applicant and the license or certificate number; (3) The dates of licensure or certification and the expiration date of the applicant’s current license or certificate; (4) Whether the license or certificate was issued as a result of passing a licensure or certification examination, by reciprocity, or by some other means; (5) A statement that the person has met the requirements of § 4008(a)(2), (3), (4), and (5) of this title; (6) A statement that the applicant agrees to abide by all appraiser laws and rules of this State and to cooperate with any investigation initiated as provided under this chapter; (7) Identification of the property to be appraised and the anticipated duration of the assignment; and (8) Such other information as may be necessary to determine the applicant’s eligibility for temporary appraiser licensing or certification privileges in this State. (b) Licensing and certification privileges granted under the provisions of this section shall expire upon completion of the specific appraisal assignment for which the Council has issued the temporary license or certificate. (c) The Division is empowered to issue a temporary license or certificate to an appraiser from another state, who has documented compliance with the requirements of this section. 75 Del. Laws, c. 105, §  3 ; 82 Del. Laws, c. 9, § 3 ; § 4011 Reciprocity. (a) Upon payment of the appropriate fee and submission and acceptance of a written application on forms provided by the Council, the Council shall grant a license to each applicant, who shall present proof of current licensure in good standing in another state, the District of Columbia, or territory of the United States, whose standards for licensure are substantially similar to those of this State. (b) An applicant, who is licensed in a state whose standards are not substantially similar to those of this State, shall have practiced for a minimum of 5 years after licensure; provided however, that the applicant meets all other qualifications for reciprocity in this section. (c) An applicant, who is a graduate of a foreign college or university, and who is not licensed in another state, the District of Columbia, or territory of the United States, shall submit a certified copy of the applicant’s college or university record for evaluation by the Council, in addition to fulfilling the applicable requirements for licensure of §§ 4008 and 4009 of this title. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 79 Del. Laws, c. 163, §  1 ; § 4012 Fees. The amount to be charged for each fee imposed under this chapter shall approximate and reasonably reflect all costs necessary to defray the expenses of the Council, as well as the proportional expenses incurred by the Division in its service on behalf of the Council. There shall be a separate fee charged for each service or activity, but no fee shall be charged for a purpose not specified in this chapter. The application fee shall not be combined with any other fee or charge. At the beginning of each licensure biennium, the Division, or any other state agency acting in its behalf, shall compute, for each separate service or activity, the appropriate fees for the licensure biennium. The Division shall charge a biennial fee to licensees and certificate holders for enrollment in the federal roster or registry. 75 Del. Laws, c. 105, §  3 ; § 4013 Issuance and renewal of licenses and certification. (a) The Council shall issue a license to each applicant, who meets all of the requirements of this chapter for licensure or certification as an appraiser and who pays the fee established under § 4012 of this title. (b) Each license or certificate shall be renewed biennially in such manner as is determined by the Division, and upon payment of the appropriate fee and submission of a renewal form provided by the Division, and proof that the licensee has met the continuing education requirements established by the Council, and shall meet the requirements of § 4008(a)(2), (3), (4) and (5) of this title. (c) Licensees and certificate holders shall be enrolled in the Federal roster or registry of state-licensed and state-certified real property appraisers. The licensee or certificate holder shall pay the fee established for that purpose biennially to the State. (d) The Council, in its rules and regulations, shall determine the period of time within which a licensed or certified appraiser may still renew that appraiser’s license, notwithstanding the fact that such licensee or certificate holder has failed to renew on or before the renewal date. (e) A licensee or certificate holder, upon written request, may be placed in an inactive status in accordance with the Council’s rules and regulations. The renewal fee of such person shall be prorated according to the amount of time such person was inactive. Such person may reenter practice upon written notification to the Council of the intent to do so and completion of continuing education as required in the Council’s rules and regulations. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; 82 Del. Laws, c. 88, § 2 ; 83 Del. Laws, c. 532, § 1 ; § 4014 Grounds for discipline. (a) A practitioner licensed or certified under this chapter shall be subject to disciplinary actions set forth in § 4016 of this title, if, after a hearing, the Council finds that the appraiser: (1) Has employed or knowingly cooperated in fraud or material deception in order to acquire a license or certificate as an appraiser; has impersonated another person holding a license or certificate, or allowed another person to use that appraiser’s license or certificate, or aided or abetted a person not licensed or certified as an appraiser to represent himself or herself as an appraiser. (2) Has illegally, incompetently or negligently practiced appraising. (3) Has been convicted of a crime that is substantially related to the practice of real estate appraisal. A copy of the record of conviction certified by the clerk of the court entering the conviction shall be conclusive evidence therefor. (4) Has excessively used or abused drugs either in the past 2 years or currently; excessive use or abuse of drugs shall mean any use of narcotics, controlled substances, or illegal drugs without a prescription from a licensed practitioner, or the abuse of alcoholic beverage such that it impairs the practitioner’s ability to perform the work of an appraiser. (5) Has violated a lawful provision of this chapter, or any lawful regulation established thereunder. (6) Has had that appraiser’s own license or certificate as an appraiser suspended or revoked, or other disciplinary action taken by the appropriate licensing authority in another jurisdiction; provided, however, that the underlying grounds for such action in another jurisdiction have been presented to the Council by certified record; and the Council has determined that the facts found by the appropriate authority in the other jurisdiction constitute 1 or more of the acts defined in this chapter. Every person licensed or certified as an appraiser in this State shall be deemed to have given consent to the release of this information by the Council or other comparable agencies in another jurisdiction, and have waived all objections to the admissibility of previously adjudicated evidence of such acts or offenses. (7) Has failed to notify the Council that the appraiser’s license or certificate as an appraiser in another state has been subject to discipline, or has been surrendered, suspended, or revoked. A certified copy of the record of disciplinary action, surrender, suspension or revocation shall be conclusive evidence thereof. (b) Where a practitioner fails to comply with the Council’s request that the practitioner attend a hearing, the Council may petition the Superior Court to order such attendance, and the said Court or any judge assigned thereto shall have the jurisdiction to issue such order. (c) Subject to the provisions of subchapter IV of Chapter 101 of Title 29, no license or certificate shall be restricted, suspended, or revoked by the Council, and no practitioner’s right to practice appraising shall be limited by the Council until such practitioner has been given notice, and an opportunity to be heard, in accordance with the Administrative Procedures Act [Chapter 101 of Title 29]. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4015 Complaints. (a) All complaints shall be received and investigated by the Division in accordance with § 8735 of Title 29, and the Division shall be responsible for issuing a final written report at the conclusion of its investigation. (b) When it is determined that an individual is engaging, or has engaged, in the practice of appraising, or is using the title “appraiser” or other title implying that the individual is competent to act as an “appraiser” and is not licensed or certified under the laws of this State, the Council shall apply to the Office of the Attorney General to issue a cease and desist order. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4016 Disciplinary sanctions. (a) The Council may impose any of the following sanctions, singly or in combination, when it finds that 1 of the conditions or violations set forth in § 4014 of this title applies to a practitioner regulated by this chapter: (1) Issue a letter of reprimand. (2) Censure a practitioner. (3) Place a practitioner on probationary status, and require the practitioner to: a. Report regularly to the Council on the matters, which are the basis of the probation. b. Limit all practice and professional activities to those areas prescribed by the Council. (4) Suspend any practitioner’s license or certificate. (5) Revoke any practitioner’s license or certificate. (6) Impose a monetary penalty not to exceed $500 for each violation. (b) The Council may withdraw or reduce conditions of probation when it finds that the deficiencies, which required such action, have been remedied. (c) In the event of a formal or informal complaint concerning the activity of a licensee that presents a clear and immediate danger to the public health, safety or welfare, the Board may temporarily suspend the person’s license, pending a hearing, upon the written order of the Secretary of State or the Secretary’s designee, with the concurrence of the Board chair or the Board chair’s designee. An order temporarily suspending a license may not be issued unless the person or the person’s attorney received at least 24 hours’ written or oral notice before the temporary suspension so that the person or the person’s attorney may file a written response to the proposed suspension. The decision as to whether to issue the temporary order of suspension will be decided on the written submissions. An order of temporary suspension pending a hearing may remain in effect for no longer than 60 days from the date of the issuance of the order unless the temporarily suspended person requests a continuance of the hearing date. If the temporarily suspended person requests a continuance, the order of temporary suspension remains in effect until the hearing is convened and a decision is rendered by the Board. A person whose license has been temporarily suspended pursuant to this section may request an expedited hearing. The Board shall schedule the hearing on an expedited basis, provided that the Board receives the request within 5 calendar days from the date on which the person received notification of the decision to temporarily suspend the person’s license. 75 Del. Laws, c. 105, §  3 ; 79 Del. Laws, c. 213, §  2 ; § 4016A Counseling; letters of concern. (a) If the Council determines after an investigation that a violation of this chapter or of the rules and regulations enacted pursuant to this chapter warranting formal disciplinary action has not occurred, but that an act or omission of the licensee or certificate holder is a matter of concern and that licensee’s or certificate holder’s practice may be improved if made aware of the concern, the Council may issue a nondisciplinary confidential letter of concern regarding the licensee’s or certificate holder’s act or omission. (b) If a person licensed under this chapter receives a total of 3 letters of concern pursuant to this section, the Council may reasonably require a formal assessment of professional competency to assess the licensee’s or certificate holder’s ability in order to protect the health and safety of the public. At such hearing, all of the licensee’s or certificate holder’s letters of concern may be deemed no longer confidential and may be admitted into evidence. 79 Del. Laws, c. 163, §  1 ; § 4017 Hearing procedures. (a) If a complaint is filed with the Council pursuant to § 8735 of Title 29, alleging violation of § 4016 of this title, the Council shall set a time and place to conduct a hearing on the complaint. Notice of the hearing shall be given and the hearing shall be conducted in accordance with the Administrative Procedures Act, Chapter 101 of Title 29. (b) All hearings shall be informal without use of rules of evidence. If the Council finds, by a majority vote of all members, that the complaint has merit, the Council shall take such action permitted under this chapter, as it deems necessary. The Council’s decision shall be in writing and shall include its reasons for such decision. The Council’s decision shall be mailed immediately to the practitioner. (c) Where the practitioner is in disagreement with the action of the Council, the practitioner may appeal the Council’s decision to the Superior Court within 30 days of service, or of the postmarked date of the copy of the decision mailed to the practitioner. Upon such appeal the Court shall hear the evidence on the record. Stays shall be granted in accordance with § 10144 of Title 29. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4018 Reinstatement of a suspended license; removal from probationary status. (a) As a condition to reinstatement of a suspended license, or removal from probationary status, the Council may reinstate such license if, after a hearing, the Council is satisfied that the licensee has taken the prescribed corrective actions and otherwise satisfied all of the conditions of the suspension and/or the probation. (b) Applicants for reinstatement shall pay the appropriate fees and submit documentation required by the Council as evidence that all the conditions of a suspension and/or probation have been met. Proof that the applicant has met the continuing education requirements of this chapter may also be required, as appropriate. (c) [Repealed.] 75 Del. Laws, c. 105, §  3 ; 82 Del. Laws, c. 8, § 18 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 4019 Exception. (a) This chapter shall not apply to any Delaware licensed real estate salesperson or broker, who prepares a competitive market analysis survey used only for the purpose of listing a property for sale or lease, nor to any individual, who prepares real estate appraisals for the licensee’s full-time employer for the employer’s internal use only, and which is performed in the regular course of employee’s position. (b) Nothing in this chapter shall require a geologist licensed under Chapter 36 of this title to meet the requirements for either certification or licensure, provided that the geologist’s written estimate of value is not the sole determinant of a property’s value and that any such estimate of value is not used as an appraisal in federally-related transactions. (c) Nothing in the chapter shall require an auctioneer to meet the requirement for either certification or licensure under this chapter, provided that the auctioneer provides only a verbal estimate of sale and not a written appraisal of the value of any real property. (d) This chapter shall not invalidate nor shall it apply to real estate tax assessments or reassessments done for municipal or county governments where such appraisals are done by full-time municipal or county government employees acting in the regular course of business. (e) The Council on Real Estate Appraisers shall develop standards in cooperation with the Delaware Association of Counties and the Executive Director of the League of Local Governments or his or her designee for licensing and training of assessors in order for municipal and county assessment departments to be in compliance within 3 years of the development and adoption of said standards. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4020 Penalty. A person, not currently licensed as an appraiser under this chapter, when guilty of engaging in the practice of appraising, or using in connection with the person’s name, or otherwise assuming or using any title or description conveying, or tending to convey the impression that the person is qualified to act as an appraiser, such offender shall be guilty of a misdemeanor. Upon the first offense, the person shall be fined not less than $500 or more than $1,000 for each offense. For a second or subsequent conviction, the fine shall be not less than $1,000 or more than $2,000 for each offense. Justice of the Peace Court shall have jurisdiction over all violations of this chapter. 75 Del. Laws, c. 105, §  3 ; 70 Del. Laws, c. 186, §  1 ; § 4021 Criminal background checks of new applicants. An applicant for licensure or certification under § 4008 or § 4009 of this title shall submit, at the applicant’s expense, fingerprints and other necessary information in order to obtain the following: (1) A report of the individual’s entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Central Repository contains no such information relating to that person. (2) A report of the individual’s entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544 (28 U.S.C. § 534). The State Bureau of Identification shall be the intermediary for purposes of this section and the Council shall be the screening point for the receipt of said federal criminal history records. 79 Del. Laws, c. 163, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 4022 Registration of appraisal management companies. (a) A person shall not directly or indirectly engage or attempt to engage in business as an appraisal management company, directly or indirectly perform or attempt to perform appraisal management services or advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a registration issued by the Council pursuant to this section, regardless of the entity’s use of appraisal management company, mortgage technology company or any other name. (b) A person who wishes to be registered as an appraisal management company in this State must file a written application with the Council on a form prepared and furnished by the Council and pay a fee in an amount to be determined by the Division of Professional Regulation. The registration required by subsection (a) of this section shall include: (1) The name, residence address, business address and telephone number of the applicant and the location of each principal office and branch office at which the appraisal management company will conduct business in this State. (2) The name under which the applicant will conduct business as an appraisal management company. (3) The name, residence address, business address and telephone number of each person who will have an interest in the appraisal management company as a principal, partner, officer, director or trustee, specifying the capacity and title of each person. (4) If the person seeking registration is a corporation that is not domiciled in this State, the name and contact information for the company’s registered agent for service of process in this State. (5) A certification that the person seeking registration has a system and process in place to verify that a person being added to the appraiser panel for the appraisal management company’s appraisal management services in this State holds a license or certification in good standing in this State. (6) A certification that the person seeking registration has a system in place to review the work of all independent appraisers that are performing real property appraisal services for the appraisal management company on a periodic basis to confirm that the real property appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice. (7) A certification that the person maintains a detailed record of each service request that it receives and the independent appraiser that performs the real property appraisal services for the appraisal management company. (8) A certification that the person seeking registration has a system in place to train those who select individual appraisers for real property services in this State, to ensure that the selectors have appropriate training in placing appraisal assignments. (9) Proof of a surety bond of $20,000. (10) A registration fee to cover the cost of enrollment in the federal roster or registry. 79 Del. Laws, c. 163, §  2 ; 82 Del. Laws, c. 19, § 1 ; § 4023 Exemptions from registration. Nothing in this chapter shall apply to: (1) An appraisal management company that is a subsidiary owned and controlled by a financial institution that is subject to direct regulation by an agency of the United States government or of this State. (2) A corporation, partnership, sole proprietorship, subsidiary or other business entity that employs real estate appraisers exclusively on an employer and employee basis for the performance of all real property appraisal services in the normal course of its business and that is responsible for ensuring that the real property appraisal services being performed by its employees are being performed in accordance with Uniform Standards of Professional Appraisal Practice and federal and state law. 79 Del. Laws, c. 163, §  2 ; § 4024 Registration form for appraisal management companies. (a) An applicant for initial and renewal registration as an appraisal management company shall submit to the Council an application on a form prescribed by the Council. (b) An initial registration granted by the Council pursuant to this chapter is valid for 1 year. Registration renewals are renewed annually. 79 Del. Laws, c. 163, §  2 ; 83 Del. Laws, c. 532, § 1 ; § 4025 Owner requirements for appraisal management companies. (a) An appraisal management company applying for registration may not be owned by a person or have any principal of the company who has had any financial, real estate or mortgage lending industry license or certificate refused, denied, canceled, revoked or voluntarily surrendered in this State or in any other state, unless such license or certificate was subsequently granted or reinstated. This requirement may be waived by appeal and at the discretion of the Council. (b) Each person that owns an appraisal management company in this State shall: (1) Submit, at the applicant’s expense, fingerprints and other necessary information in order to obtain the following: a. A report of the applicant’s entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Central Repository contains no such information relating to that person. b. A report of the applicant’s entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544 (28 U.S.C. § 534). The State Bureau of Identification shall be the intermediary for purposes of this section and the Council on Real Estate Appraisers shall be the screening point for the receipt of said federal criminal history records. c. An applicant may not be registered until the applicant’s criminal history reports have been produced. An applicant whose record shows a prior criminal conviction that is substantially related to the practice of real estate appraisal may not be registered by the Council unless a waiver is granted pursuant to § 4008(a)(4) of this title. The State Bureau of Identification may release any subsequent criminal history to the Council. (2) Certify to the Council that the person has never had any financial, real estate or mortgage lending industry license or certificate refused, denied, canceled, revoked or voluntarily surrendered in this State or in any other state, unless such license or certificate was subsequently granted or reinstated. This requirement may be waived by appeal and at the discretion of the Council. 79 Del. Laws, c. 163, §  2 ; 82 Del. Laws, c. 88, § 3 ; 83 Del. Laws, c. 433, § 28 ; § 4026 Appraisal management company controlling person. (a) Each appraisal management company applying to the Council for registration in this State shall designate 1 controlling person that will be the main contact for all communication between the Council and the appraisal management company. (b) To serve as a controlling person of an appraisal management company, a person shall: (1) Certify to the Council that the person has never had any financial, real estate or mortgage lending industry license or certificate issued by this State, or any other state, refused, denied, canceled, revoked or voluntarily surrendered, unless such license or certificate was subsequently granted or reinstated. This requirement may be waived by appeal and at the discretion of the Council. (2) a. A report of the applicant’s entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544 (28 U.S.C. § 534). The State Bureau of Identification shall be the intermediary for purposes of this section and the Council on Real Estate Appraisers shall be the screening point for the receipt of said federal criminal history records. b. An applicant may not be registered until the applicant’s criminal history reports have been produced. An applicant whose record shows a prior criminal conviction that is substantially related to the practice of real estate appraisal may not be registered by the Council unless a waiver is granted pursuant to § 4008(a)(4) of this title. The State Bureau of Identification may release any subsequent criminal history to the Council. 79 Del. Laws, c. 163, §  2 ; 83 Del. Laws, c. 433, § 28 ; § 4027 Appraisal management company employees. Any employee of an appraisal management company that performs an appraisal review shall have demonstrated knowledge of the Uniform Standards of Professional Appraisal Practice and hold a valid appraiser license or certification in this or any state. 79 Del. Laws, c. 163, §  2 ; § 4028 Agreements with independent appraisers; limitations. An appraisal management company registered in this State pursuant to this chapter may not enter into contracts or agreements with an independent appraiser for the performance of real property appraisal services in this State unless that person is licensed or certified in good standing with the Council. 79 Del. Laws, c. 163, §  2 ; § 4029 Annual certification; renewal. (a) Each appraisal management company registered in this State shall certify to the Council on an annual basis at the time of renewal, on a form prescribed by the Council and after paying the appropriate fee, that the appraisal management company 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 or certificate in good standing in this State pursuant to the Council. (b) Each appraisal management company registered in this State shall certify to the Council on an annual basis, at the time of renewal, that it has a system in place to review the quality of appraisals of all independent appraisers that are performing real property appraisal services for the appraisal management company on a periodic basis to confirm that the real property appraisal services are being conducted in accordance with uniform standards of professional appraisal practice. (c) Each appraisal management company registered shall certify to the Council on an annual basis, at the time of renewal, that it maintains a detailed record of each service request that it receives and the name of the independent appraiser that performs the real property appraisal services for the appraisal management company. An appraisal management company shall maintain a detailed record for the same time period that an appraiser is required to maintain an appraisal record for the same real property appraisal activity. (d) Each appraisal management company registered shall certify to the Council on an annual basis, at the time of renewal, that it has a system in place to train those who select individual appraisers for real property services in this State, to ensure that the selectors have appropriate training in placing appraisal assignments. 79 Del. Laws, c. 163, §  2 ; 83 Del. Laws, c. 532, § 1 ; § 4030 Disclosure of fees. The appraisal management company shall not prohibit the appraiser from reporting in the appraisal report the fee paid to the appraiser. 79 Del. Laws, c. 163, §  2 ; § 4031 Appraiser independence; prohibitions. (a) Any employee, director, officer or agent of an appraisal management company registered pursuant to this chapter shall not influence or attempt to influence the development, reporting or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery or any other manner, including: (1) Withholding or threatening to withhold timely payment for an appraisal. (2) Withholding or threatening to withhold future business for an independent appraiser or demoting or terminating, or threatening to demote or terminate, an independent appraiser. (3) Expressly or implicitly promising future business, promotions or increased compensation for an independent appraiser. (4) Conditioning the request for an appraisal service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion or valuation to be reached or on a preliminary estimate or opinion requested from an independent appraiser. (5) Requesting that an independent appraiser provide an estimated, predetermined or desired valuation in an appraisal report or provide estimated values or comparable sales at any time before the independent appraiser’s completion of an appraisal service. (6) Providing to an independent appraiser an anticipated, estimated, encouraged or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided. (7) Providing to an independent appraiser, or any entity or person related to the appraiser, stock or other financial or nonfinancial benefits. (8) Allowing the removal of an independent appraiser from an appraiser panel, without prior written notice to the appraiser. (9) Obtaining, using or paying for a second or subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction, unless such action is required by law or there is a reasonable basis to believe that the initial appraisal was flawed or tainted and the basis is clearly and appropriately noted in the loan file or unless the appraisal or automated valuation model is done pursuant to a bona fide prefunding or postfunding appraisal review or quality control process. (10) Engaging in any other act or practice that impairs or attempts to impair an appraiser’s independence, objectivity or impartiality. (b) An appraisal fee offered or paid may not be based on the predetermined appraised value or range of appraised value of the subject property or the amount of the transaction price. (c) Subsections (a) and (b) of this section do not prohibit an appraisal management company from requesting that an independent appraiser either: (1) Provide additional information about the basis for a valuation. (2) Correct objective factual errors in an appraisal report. (3) Consider additional appropriate property information. 79 Del. Laws, c. 163, §  2 ; § 4032 Payment. Except in cases of breach of contract or substandard performance of services, each appraisal management company shall make payment to an independent appraiser for the completion of an appraisal or valuation assignment within 45 days after the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee. 79 Del. Laws, c. 163, §  2 ; § 4033 Appraisal reports; alteration; use. An appraisal management company shall not: (1) Alter, modify, revise or otherwise change a completed appraisal report submitted by an independent appraiser, including removing the signature of the appraiser. (