TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

REAL ESTATE APPRAISER BOARD

Fast-Track Regulation

Titles of Regulations: 18VAC130-20. Real Estate Appraiser Board Rules and Regulations (amending 18VAC130-20-120).

18VAC130-30. Appraisal Management Company Regulations (amending 18VAC130-30-10, 18VAC130-30-80).

Statutory Authority: §§ 54.1-201 and 54.1-2013 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: July 2, 2025.

Effective Date: July 17, 2025.

Agency Contact: Breanne Lindsey, Regulatory Operations Administrator, Department of Professional and Occupational Regulation, 9960 Mayland Drive, Perimeter Center, Suite 400, Richmond, VA 23233, telephone (804) 367-4872, FAX (866) 826-8863, or email reappraisers@dpor.virginia.gov.

Basis: Section 54.1-201 of the Code of Virginia authorizes the Real Estate Appraiser Board to promulgate regulations necessary to ensure continued competency and prevent deceptive or misleading practices by practitioners and to effectively administer the regulatory system. Section 54.1-2013 of the Code of Virginia requires the board to promulgate regulations that are necessary for the federal financial institution's regulatory agencies to recognize and accept licenses for licensed residential real estate appraisers, certified residential real estate appraisers, certified general real estate appraisers, and appraisal management companies issued by the board.

Purpose: The board protects the public health, safety, and welfare, in part, by establishing through regulation (i) the minimum qualifications of applicants for licensure, provided that all qualifications are necessary to ensure either competence or integrity to engage in the profession or occupation; (ii) minimum standards to ensure continued competency and to prevent deceptive or misleading practices by practitioners; and (iii) requirements to effectively administer the regulatory system administered by the board. The goal of this action is to streamline the establishment of a paperless application and renewal process by removing the requirement that regulants mail documents and payments.

Rationale for Using Fast-Track Rulemaking Process: This action is expected to be noncontroversial and is appropriate for the fast-track rulemaking process because it will benefit the regulated community and the public by creating more efficient license application and renewal processes, which will save members of the regulated community time when renewing licenses.

Substance: The amendments (i) provide that the board will send, rather than mail, a renewal notice to the licensee, certificate holder, or registered firm; (ii) remove references to the address of record being a mailing address; and (iii) provide that the board will send, rather than mail, a renewal notice to the licensee.

Issues: The primary advantage of this action to the regulated community, the Commonwealth, and the public is that the amendments will allow the department and the board to adopt a paperless process for renewal of licenses as part of implementation of the new licensing system, which will benefit the regulated community and the public by creating a more efficient license renewal process, saving members of the regulated community time when renewing licenses. The Commonwealth will benefit with the cost savings associated with a paperless license renewal process. No disadvantages to the public, the Commonwealth, or the regulated community have been identified.

Department of Planning and Budget Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Real Estate Appraiser Board (board) proposes to remove rules that mandate the physical mailing of documents and payments in connection to licensure renewal as it plans to transition to online paperless licensing system.

Background. These regulations set out license renewal requirements for real estate appraisers (certified residential appraisers, certified general appraisers, and residential appraisers), appraiser trainees, certified appraiser instructors, registered appraiser businesses, and appraisal management companies. According to the Department of Professional Occupational Regulation (DPOR), a new licensing system is being developed to provide a paperless process for regulants to renew licenses, certifications, and registrations, as well as perform other maintenance functions electronically. The development of the new system is expected to virtually eliminate the need for licensing transactions to involve the physical mailing of documents and payments.

Estimated Benefits and Costs. The proposal would no longer require regulants to physically mail documents and payments for license renewals. The proposed regulatory text would allow paperless renewal transactions but does not rule out mailing of documents for renewals. Thus, the main impact of this regulatory action would be to facilitate the transition from the current paper-based renewal process to a paperless system for renewal transactions that DPOR plans to implement.

Businesses and Other Entities Affected. The proposed amendments apply to license renewal transactions for real estate appraisers (certified residential appraisers, certified general appraisers, and residential appraisers), appraiser trainees, certified appraiser instructors, registered appraiser businesses, and appraisal management companies. DPOR expects a total of 1,425 license renewal applications in 2025. No regulant appears to be disproportionately affected. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.² An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.³ As noted above, the proposal does not increase costs or reduce benefits for any entity. Thus, an adverse impact is not indicated.

Small Businesses⁴ Affected.⁵ The board issues licenses to appraisal management companies and registrations to business entities that provide appraisal services. DPOR reports that many of these entities may fall within the meaning of small business as that term is defined in as defined in § 2.2-4007.1 of the Code of Virginia. Other licenses and certifications issued by the board are issued to individuals. Many of these individuals may be owners or employees of business entities that fall within the meaning of small business. However, the proposed amendments do not appear to adversely affect small businesses.

Localities⁶ Affected.⁷ The proposed amendments do not introduce costs for localities, nor do they disproportionately affect any locality more than others.

Projected Impact on Employment. No impact on employment is expected.

Effects on the Use and Value of Private Property. No impact on the use and value of private property nor on real estate development costs is expected.
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¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

³ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁴ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁵ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁶ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁷ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Real Estate Appraiser Board concurs with the Department of Planning and Budget's economic impact analysis.

Summary:

In order to streamline the establishment of a paperless application and renewal process, the amendments (i) provide that the board will send, rather than mail, a renewal notice to the licensee, certificate holder, or registered firm; (ii) remove references to the address of record being a mailing address; and (iii) provide that the board will send, rather than mail, a renewal notice to the licensee.

18VAC130-20-120. Procedures for renewal.

A. The board will mail send a renewal application form notice to the licensee and certificate holder at the last known home address and to the registered firm or at the last known business address. This form shall outline the procedures for The board will send a renewal notice to the registered firm. Failure to receive the renewal application form shall notice does not relieve the licensee, certificate holder, or the registrant of the obligation to renew.

B. Prior to the expiration date shown on the license or registration, each licensee, certificate holder, or registrant desiring to renew the license or registration shall must return to the board the completed renewal application form and the appropriate renewal and registry fees as outlined in 18VAC130-20-130.

C. The date on which the renewal application form and the appropriate registry fees are received by the Department of Professional and Occupational Regulation or its agent will determine whether the licensee, certificate holder, or registrant is eligible for renewal. If either the renewal application form or renewal fee, including the registry fee, is not received by the Department of Professional and Occupational Regulation or its agent within 30 days of the expiration date, the licensee, certificate holder, or registrant must reinstate his license the license, certificate, or registration by meeting all requirements listed in 18VAC130-20-110 and pay a reinstatement fee as specified in 18VAC130-20-130. One year after the expiration date on the license, certificate, or registration, reinstatement is no longer possible. To resume practice, the former licensee, certificate holder, or registrant shall must reapply for licensure as a new applicant, meeting current education, examination, and experience requirements.

18VAC130-30-10. Definitions.

A. Section 54.1-2020 of the Code of Virginia provides definitions of the following terms and phrases as used in this chapter:

"Appraisal management company"

"Appraisal services"

"Appraiser"

"Board"

"Employee"

"Uniform Standards of Professional Appraisal Practice"

B. The following words and phrases when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Address of record" means the mailing address designated by the regulant to receive notices and correspondence from the board. Notice mailed to the address of record by certified mail, return receipt requested, shall be deemed valid notice.

"Applicant" means an appraisal management company that has submitted an application for licensure.

"Application" means a completed, board-prescribed form submitted with the appropriate fee and other required documentation.

"Controlling person" means (i) an owner, officer, or director of a corporation or a partnership or a managing member of a limited liability company or other business entity seeking to offer appraisal management services; (ii) an individual employed, appointed, or authorized by an appraisal management company who has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals; or (iii) 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.

"Department" means the Virginia Department of Professional and Occupational Regulation.

"Direct supervision" means exercising oversight and direction of, and control over, the work of another.

"Firm" means a sole proprietorship, association, partnership, corporation, limited liability company, limited liability partnership, or any other form of business organization recognized under the laws of the Commonwealth of Virginia and properly registered, as may be required, with the Virginia State Corporation Commission.

"Regulant" means an appraisal management company as defined in § 54.1-2020 of the Code of Virginia that holds a license issued by the board.

"Reinstatement" means the process and requirements through which an expired license can be made valid without the regulant having to apply as a new applicant.

"Renewal" means the process and requirements for periodically approving the continuance of a license.

"Responsible person" means a person licensed under Chapter 20.1 (§ 54.1-2009 et seq.) of Title 54.1 of the Code of Virginia who shall be is designated by each regulant to ensure compliance with Chapter 20.2 (§ 54.1-2020 et seq.) of Title 54.1 of the Code of Virginia, and all regulations of the board, and to receive communications and notices from the board that may affect the regulant.

"Sole proprietor" means any individual, not a corporation or other registered business entity, who is trading under his the individual's own name or under an assumed or a fictitious name pursuant to the provisions of §§ Chapter 5 (§ 59.1-69 through 59.1-76 et seq.) of Title 59.1 of the Code of Virginia.

"Timely payment" means payment to an appraiser for the completion of an appraisal or a valuation assignment within 30 days after the appraiser delivers the completed appraisal or valuation assignment to the appraisal management company except in cases of breach of contract or noncompliance with the conditions of the engagement or performance of services that violates the Uniform Standards of Professional Appraisal Practice.

18VAC130-30-80. Expiration and renewal.

A. Prior to the expiration date shown on the license, licenses shall will be renewed upon (i) completion of the renewal application, (ii) submittal of proof of current bond or letter of credit as detailed in 18VAC130-30-30 H, and (iii) payment of the fees specified in 18VAC130-30-60.

B. The board will mail send a renewal notice to the regulant at the last known mailing address of record. Failure to receive this notice shall does not relieve the regulant of the obligation to renew. If the regulant fails to receive the renewal notice, a copy of the license may be submitted with the required fees as an application for renewal. By submitting an application for renewal, the regulant is certifying continued compliance with the standards of conduct and practice in Part V (18VAC130-30-120 et seq.) of this chapter.

C. Applicants for renewal shall continue to meet all of the qualifications for licensure set forth in Part II (18VAC130-30-20 et seq.) of this chapter.