Section 2: Appraiser Qualifications & Evaluations
Anchor: #i1004547Selecting Appraisers
TxDOT accomplishes its appraisal work by the use of fee appraisers on a contract basis and by staff appraisers. The District will make affirmative efforts to locate minority appraisers. For example, accomplish this by sending letters to the local appraisal offices in the district, attending local Chamber of Commerce meetings, contacting the local Board of Realtors, newspaper notices, and meetings of other professional organizations. The District should document evidence of these affirmative efforts in its office files.
Accomplish identification of appraisers on Form ROW-A-1, Appraiser Pre-certification Application, as minority or non-minority by the following classifications:
- “Black Americans,” which includes persons having origins in any of the Black racial groups of Africa;
- “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;
- “Native Americans,” which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians (registration as an official member of an Indian tribe recognized by the Bureau of Indian Affairs is required for American Indians);
- “Asian-Pacific Americans,” which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U. S. Trust Territories of the Pacific, and the Northern Marianas Islands;
- All Other;
- Unknown;
- “Subcontinent Asian Americans,” which includes persons whose origins are from India, Pakistan, and Bangladesh, Sri Lanka, Bhutan or Nepal;
- “Alaska Native”, which includes all persons who are native Alaskans, i.e. Inuits.
- Women.
Appraiser Application Approval Committee
The Appraiser Application Approval Committee was authorized by the ROW Division Director in 1997. It is composed of two ROW Division personnel and one District staff person, appointed by the ROW Division Director. The members of this committee serve at the pleasure of the ROW Division Director.
The purpose of this Committee is to:
- review District-recommended fee and staff appraiser/reviewer applications;
- recommend approval of qualified applicants to the ROW Division Director; and
- arbitrate in the fee appraiser administrative appeal process.
Qualifications
An appraiser should possess integrity of character and reputation, and should subscribe to the ethics of the profession. In qualifying appraisers, place emphasis upon the individual’s educational background, experience, and ability as an appraiser, and integrity. In order to check these factors, the District should contact a reasonable number of the appraiser’s prior clients by letter, including out of state clients, regarding his/her qualifications, and including a request for their response to be by letter. However, should circumstances prevent this, a verbal contact is acceptable as long as the District’s file is appropriately documented.
Any fee appraiser or appraisal reviewer performing work for TxDOT must be State-certified as a Certified General Appraiser or Certified Residential Appraiser by the Texas Appraiser Licensing and Certification Board. A current Texas real estate license, as required by the Texas Real Estate Licensing Act, is not required for certification or licensing by the Board. However, the Texas Appraiser Licensing and Certification Board does not discourage having a Real Estate Salesman or Broker license.
Though licensing and certification is recommended, but not required, of a staff appraiser/reviewing appraiser, he or she must possess certain qualifications and obtain certain training to be approved by the Appraiser Application Approval Committee. The staff appraiser/reviewing appraiser and outsource reviewing appraiser must submit Form ROW-A-1, Appraiser Pre-Certification Application for review and approval by the Appraiser Application Approval Committee. This committee will include the ROW Division Director, a member of the ROW Division Appraisal Section, and the District Right of Way Administrator.
Qualifications and training for ROW staff appraisers/reviewers should include, but are not limited to:
- possession of a Bachelor’s Degree from an accredited institute of higher learning; or, a minimum of four (4) years of experience in the appraisal profession;
- successful completion of Courses 110 (Appraisal Principles), 120 (Appraisal Procedures) and 310 (Basic Income Capitalization) by the Appraisal Institute; or, Courses 404 (Appraisal Theory and Principles) and 402 (Introduction to the Income Capitalization Approach) by the International Right of Way Association (IRWA), or equivalent appraisal courses by other organizations;
- successful completion of 15 hours of classroom instruction for the Uniform Standards of Professional Appraisal Practice (such as Appraisal Institute Course 410 or IRWA Course 406-A);
- regular attendance at a Department-sponsored seminar related to appraisal and review work;
- regular attendance at International Right of Way Association, Appraisal Institute and/or TxDOT approved/sponsored seminars;
- within three (3) years of TxDOT approval as a staff appraiser/reviewing appraiser, successful completion of the equivalent of Courses 401 (The Appraisal of Partial Acquisitions), 403 (Easement Valuation), 407 (Valuation of Contaminated Properties), 214 (Skills of Expert Testimony), 803 (Eminent Domain Law Basics for Right of Way Professionals) and Seminar H005 (Reviewing Appraisals in Eminent Domain) of the International Right of Way Association;
- a good faith effort to attend and successfully complete all required courses.
- The District Appraiser Application Approval Committee periodically reviews the approved staff appraiser/reviewing appraisers. The District Right of Way sections will continue to evaluate fee appraisers on a per parcel basis by using Form ROW-A-19A, “Evaluation of Appraiser”, and on an annual basis by using Form ROW-A-19, “Annual Evaluation of Appraiser.”
ROW Division will:
- maintain a list of approved fee and staff appraisers, including their license and certification status;
- provide legal and technical assistance and support to the Districts; and
- approve or disapprove an appraiser’s fee if it exceeds $10,000.00 for a single parcel.
The appointment as appraiser is based upon the investigation and recommendations of the District Engineer with appropriate limitations, if any, regarding the type assignment in keeping with the applicant’s qualifications. Submitted with Form ROW-A-1 should be:
- a written request to and response from the Texas Appraiser Licensing and Certification Board inquiring if any complaints have been filed against the applicant (applicant history);
- the original of Form ROW-A-2, Contract for Appraisal Services -Statewide; and
- a copy of the appraiser’s certification.
Every two years, ROW Division, Appraisal Branch, will request by memorandum a list of the appraisers from each District to remain on the approved list along with their License or Certification renewal dates. The District shall forward one copy of each appraiser’s certification to the ROW Division, Appraisal Branch with the requested list. However, during the interim, as additional appraisers are submitted and approved, they will be included on the official list in ROWIS. Before submission of contracts for appraisal services, ROW Division must reinstate an appraiser previously approved, but not on the current list of the State’s approved appraisers. Reinstatement of any previously approved appraiser will be accomplished through the same process used to obtain the original approval for such appraiser.
Anchor: #i1004784Evaluation of Fee Appraisers
The District will establish procedures for the continuing evaluation of fee and staff appraisers’ qualifications and performance. Form ROW-A-19, Annual Evaluation of Appraiser, will be used as a minimum guide for evaluations. Besides the annual evaluation, each appraiser must also be evaluated per appraisal using Form ROW-A-19A, Evaluation of Appraiser, and by the District Appraisal Assignment Team using Form ROW-A-19B, Guide for Appraiser Assignment. The District may expand these forms in more detail if necessary.
The District should maintain sufficient information insuring adequate qualifications of the assigned appraiser and his/her capability to perform the proposed services efficiently without overload.
It is important to note that fee appraisers who consistently submit appraisal reports later than 30 days past the report due date should be considered for disqualification and removal from the State-approved list.
Anchor: #i1004813Fee Appraiser Disqualification
If for some reason, it is determined that a previously approved appraiser should be disqualified and removed from the TxDOT’s approved list of appraisers, the District shall provide documentation and recommendation to the ROW Division for removal of the appraiser. The recommendation for removal of the appraiser from the TxDOT list of appraisers may be based on, but not limited to, the following situations:
- appraiser is no longer available to perform appraisal work;
- request by the appraiser for removal;
- ethical violations; and/or
- performance issues, such as continued lateness of reports.
In the situation of ethical and performance issues, the District Engineer, or designated personnel, shall request that the appraiser be removed from the Department’s approved appraisal list and provide documentation such as the Annual Evaluation of Appraiser Form (Form ROW-A-19) and/or Evaluation of Appraisal Form (Form ROW-A-19A) and other relevant information to the ROW Division Director. In addition, the District shall notify the fee appraiser of this action and provide copies of appropriate documentation. After investigation, if the ROW Division Director should concur with the District’s recommendation for removal, the Division will notify the appraiser and District of the appraiser’s removal. All appraisers who are removed from the approved appraisal list shall receive similar notification.
Fee appraisers removed from the State-approved list may appeal their removal through the Administrative Appeal process below.
Anchor: #i1004857Fee Appraiser Administrative Appeal Process
Upon notification by ROW Division that an appraiser has either been removed from the State’s approved list of appraisers, or that their contract (ROW-A-2) has not been approved, the fee appraiser may appeal the decision through the Fee Appraiser Administrative Appeal process:
- The appraiser must contact the ROW Division’s Right of Way Acquisition Section, Appraisal Branch, in writing, detailing the reasons why he or she feels that removal is unwarranted, including such appropriate documentation as needed.
- The Appraisal Branch will confer with the Right of Way Acquisition Section Director and formulate a ruling on the appeal.
- The Right of Way Acquisition Section Director will submit the appeal ruling and appropriate supporting documentation to the ROW Division Director, whose opinion shall be final.
Evaluation of District Appraisal Reviewers
The Division will establish procedures for the evaluation of the District’s appraisal reviewers. They will also suggest continuing education, training, and other assistance for the District’s staff and appraisal reviewers.