DE Council of Real Estate Appraisers
Meeting Minutes – February 19, 2008
Page 7
Cannon Building / STATE OF DELAWARE / Telephone: (302) 744-4500
861 Silver Lake Blvd., Suite 203 / DEPARTMENT OF STATE / Fax: (302) 739-2711
Dover, Delaware 19904-2467 / Website: www.dpr.delaware.gov
DIVISION OF PROFESSIONAL REGULATION
Members Present
Stephen Huston, Professional Council Member, Chairperson
George Fantini, Professional Council Member, Vice-Chairperson
Charles Witt, Professional Council Member
Donald West, Professional Council Member
Richard Bauermeister, Public Council Member
Stephen Simmons, Public Council Member
Division Staff/Deputy Attorney General
Eileen Kelly, Deputy Attorney General
Nicole Williams, Administrative Specialist II
Kay Warren, Deputy Director
Members Absent
Neal Scott, Professional Council Member
Kevin Esslinger, Public Council Member
Arthur Cahall, Public Council Member
Others Present
William Diveley
Call to Order
Mr. Huston called the meeting to order at 9:33 a.m.
Review and Approval of Minutes
The Council reviewed the minutes of the January 15, 2008 meeting. A motion was made by
Mr. Witt, seconded by Mr. Bauermeister to approve meeting minutes as submitted. The motion was unanimously carried.
Unfinished Business
Status of Complaints
Mr. Huston informed the Council that complaints 19-04-07 and 19-05-07 are being recommended by the DAG for consent agreements. The Council will review the consent agreements at their next board meeting on March 18, 2008.
New Business
Complaints
There were no new complaints presented to the Council.
Review of Licensed Real Property Appraiser Applications
There were no Licensed Real Property Appraiser Applications for the Council to review.
Review of Reciprocity Licensed Real Property Appraiser Applications
The Council reviewed the reciprocity Licensed Real Property applications for Sherry Stockslager, Douglas McGee, and Jennifer M. Sullivan. A motion was made by
Mr. Bauermeister, seconded by Mr. Fantani to approve the named applicants for licensure as Licensed Real Property Appraisers by reciprocity. The motion was unanimously carried.
Review of Reciprocity Certified Residential Real Property Appraiser Applications:
The Council reviewed the reciprocity Certified Residential Real Property Appraiser applications for Ellen J. Waters, Richard Kennedy Menseck, Hayley E. Howard, John W. Wienecke,
Patrick L. Callison, John Plamondon, and Teresa A. Figgs. Mr. Fantini made a motion, seconded by Mr. West to approve the named applicants for licensure as Certified Residential Real Property Appraisers. The motion was unanimously carried.
See section Other Business before the Council, Ms. Williams advised the Council that reciprocity applicant, Patrick L. Callison, has a consent order in which he submitted a copy with his application and suggested that the Council revisit his application and then take action. Mr. Fantini advised the Council that he will review Mr. Callison’s consent agreement and report back to the Council later in the meeting with the details of the consent agreement.
Review of Certified Residential Real Property Appraiser Application
The Council reviewed the Certified Residential Real Property application along with the education requirements and experience log to sit for the new 2008 Certified Residential exam for Melissa L. Holcombe. Mr. Witt made a motion, seconded by Mr. West to approve Ms. Holcombe to sit for the Certified Residential Real Property exam. The motion was unanimously carried.
Review of Reciprocity Certified General Real Property Appraiser Applications
The Council reviewed the applications by reciprocity Certified General Real Property for Thomas A. Weigand, Jill M. Jeffrey, Jolee G. Alyesworth and John D. D’Angelo . A motion was made by Mr. West, seconded by Mr. Simmons to approve the named applicants for licensure as Certified General Real Property Appraisers. The motion was unanimously carried.
Review of Certified General Real Property Appraiser Applications
There were no applications for Certified General Real Property Appraiser submitted for the Council to review.
Review of Appraiser Trainee Applications
There were no Appraiser Trainee applications submitted for the Council to review.
Review of Temporary Permit Applications (for discussion only)
The Council reviewed the temporary practice permits that were issued to Scott R. Tonneson – Millville Township Subdivision Land – Corner of Atlantic Ave & Whites Neck Road, Millville DE 19970; Avi M. Vardi – Retail – Dover Mall, Commons & 2 Pad sites – 1365 N. DuPont Hwy, Dover, DE 19901; Anne R. Lloyd-Jones – Atlantic Sands Hotel – Baltimore Ave at the Ocean Front, Rehoboth Beach, DE 19971; Douglas W. McKnight – Rabino Bay Court Plaza pad site – 640 Bay Rd, Dover, DE 19901. The Council approved the issuance of the above four temporary practice permits for their respective assignments.
Review of Continuing Education Activities
Mr. Huston made a motion, seconded by Mr. Witt to approve the listed continuing education courses with the designated CE hours. The motion was unanimously carried.
Philadelphia Metropolitan Chapter of the Appraisal Institute
Evaluating Commercial Construction – 16 CE hrs
Rates & Ratios: Making Sense of GIMS, OARs and DCF – 7 CE hrs
Litigation Skills for the Appraiser – 7 CE hrs
Mortgage Fraud and Predatory Lending – 7 CE hrs
Maryland Association of Appraisers
Appraising to “Yellow Book” Standards – 7 CE hrs
Fraud Awareness & the Appraiser – 6 CE hrs
Understanding Modular Construction – 4 CE hrs
Acquisition/Right-of-Way Appraising – 6 CE hrs
The Sale of Real Estate at Auction – 4 CE hrs
Legality of Deeds – 4 CE hrs
Becoming a More Effective Appraiser – 6 CE hrs
Appraising the Farm: An Overview – 3 CE hrs
Zoning & Development Regulations in MD – 3 CE hrs
Real Estate Easements Valuation – 8 CE hrs
Tools for Compliance & Competency – 3 CE hrs
Understanding the Relocation Appraisal – 3 CE hrs
Understanding the Condominium Appraisal – 3 CE hrs
Real Estate Communications – 8 CE hrs
Commercial Industrial Real Estate Agreements – 7 CE hrs
Basic Math for Appraisers – 7 CE hrs
Commercial Real Estate School
A Day in the life of the Commercial Real Estate Professional – 3.5 CE hrs
Green Advantage – 3.5 CE hrs
Environmental Due Diligence & Environmentally Impaired Sites – 3.5 CE hrs
Advanced Like Kind Exchanges of Property: Creative Planning Techniques – 3.5 CE hrs
Investing in Real Estate Through Self Directed Retirement Accounts – 3.5 CE hrs
Cost Segregation – 3.5 CE hrs
Appraisal Institute
REO Appraisal – Appraisal of Residential Property for Foreclosures and Pre-Foreclosure – 7 CE hrs
Appraisal Challenges: Declining Markets and Sales Concessions – 7 CE hrs
Lorman Business Center, Inc.
Zoning, Subdivision and Land Development Law – 7.5 CE hrs
Just Valuation Inc. (JVI)
Appraising Residential REO Properties (1-4 Units) – 6 CE hrs
International Right-of-Way Delmarva Chapter 56 (IRWA)
Legal Aspects of Easements (Course 802) – 8 QE/CE hrs
Eminent Domain Law Basics for Right-of-Way Professionals (Course 803) – 16 QE/CE hrs
Greater Philadelphia Realty Board School
Condos and Co-Ops – 3.5 CE hrs
Mortgage Fraud & Predatory Lending – 7 CE hrs
7 Hour National USPAP Course 2008 – 7 CE hrs
Review Appraisals on Properties In-State – Mr. Witt
Mr. Witt reported to the board that appraisers are not reviewing appraisals completed in another state. He stated that clerks are reviewing these appraisals and comparing Broker Price Opinion’s (BPOs) with the actual appraisal report. Mr. Witt suggested that the appraisal reviews should be reviewed by only a State Licensed or Certified appraiser and not the clerk. The concern expressed by Mr. Witt was that appraisal report reviews are being conducted by unqualified individuals. Ms. Kelly inquired if the reviews were occurring frequently on the national level or limited to just a few isolated occasions. Mr. Witt responded in stating that those reviews were occurring quite frequently on the national level.
Trainee License Renewal – Mr. Witt
The Council discussed if there should be a limitation on how long a trainee can be a licensed trainee or how many times the trainee’s license can be renewed. Mr. Witt advised that since education changes, especially the USPAP course, licensed trainees should only be permitted to renew the trainee license three times, meaning that the trainee would be a licensed trainee for a total of 6 years and then after the third renewal the trainee if the trainee is not in the process of becoming licensed or certified then he or she would need to start over and re apply for the trainee license. Mr. West advised that if trainees are required to do Continuing Education credits, which Ms. Williams advised the Council that trainees are required to complete CE’s, then it could be that the trainees are satisfied with the administrative duties of their job and do not wish to continue further. Mr. Huston concurred with Mr. West’s advice.
After discussion, it was determined by the Council that there should be no limit on the trainee license with regards to renewal or length of time as a trainee.
Mentor/Trainee Mandatory Course – Mr. Witt
Mr. Witt asked the council if a Mentor/Trainee course should be mandatory for all trainees and their supervisors. Mr. Huston stated that the Mentor/Trainee program set up by the State of Oklahoma Real Estate Board is very well organized and Delaware may want to look into implementing such a program. Mr. Huston stated that he review the Oklahoma Program and report to the council.
Mr. West asked Ms. Kelly if the council would need a rules and regulations change or statute change to accommodate the mentor/trainee program. Ms. Kelly stated it would be a rules and regulations change and asked the council if an entity exists to administer such a program.
Mr. West advised that Mr. Witt and Mr. Earl Loomis developed the 2 hour Delaware Law Rules and Regulations course and McKissock offers the course online as well. Mr. Witt advised that it would be best to look into what other states have developed and implemented in regards to a Mentor/Trainee program and what it encompasses. Mr. Huston advised that he will look into what other states offer and Mr. Witt advised that he will talk with Mr. Loomis.
Reciprocity/Discussion/Action – Mr. Witt
The Council discussed Delaware’s rules and regulations governing reciprocal applicants. Mr. Witt advised that Delaware’s standards for reciprocity are currently below the standards as the State of Maryland chose the “firm approach” to the implementation of the new 2008 Appraisal Qualifications Board (AQB) guidelines and Delaware chose the segmented approach. For that reason, Delaware is no longer substantially related to Maryland and any applicant applying for a Maryland license starting as of 1/1/2008 will not be able to reciprocate with them. Ms. Williams advised the Council that since the new 2008 AQB changes Maryland is still substantially related to Delaware.
The Council additionally discussed placing more stringent guidelines on reciprocal applicants, for example, paying a higher fee, taking the 2 hour DE law, rules and regulations in the classroom setting only and possibly requiring submission of work samples upon the Council’s request to ensure that the appraisals are USPAP compliant.
Mr. West advised the Council that he feels that it would benefit Delaware to implement more stringent guidelines for reciprocation into Delaware so that the guidelines are at a higher standard.
Mr. Huston inquired if this course of action would be a good start. Mr. Witt advised that this course of action would be beneficial as reciprocity into Delaware would be more difficult and the Delaware reciprocity standards would increase. Mr. Witt advised to have reciprocal applicants complete the 2 hour DE law rules and regulations course before applying for licensure and to submit proof of completion attached to the reciprocity application.
Mr. West advised Ms. Kelly to look into adding the requirement for the 2 hour DE law course into the rules and regulations for reciprocity.
Review of Education Audits
Ms. Williams advised the Council that the auditees, Patrick Shea, Bruno Petrillo, Michael McGavisk, W. Scott VanZandt, and Ellen Andrews, did not comply with the Continuing Education audit with 4 not completing the 2 hour DE law, rules and regulations course before the end of the last renewal period dating from 11/1/2005 to 10/31/2007 and 1 not completing the full requirement of 28 hours of CE’s. However, the auditees lacking the 2 hour DE course completed it this month prior to this meeting. Mr. Witt advised that the licensee that did not complete the full 28 CE hours did not have the 7 hour National USPAP update course as well. Mr. West advised as to what can be done within the limits of the Council about those that did not comply. Ms. Kelly advised that the Council can send a letter advising them of a Show Cause Hearing. Mr. West advised that he would like to see this resolved in a timely manner without having to drag it out and inquired to Ms. Kelly if the Council could just impose a sanction such as fining the licensee’s the maximum allowable amount. Ms. Kelly advised that the licensee’s are entitled to a due process in accordance to the statute therefore the Council must have the Show Cause Hearings. Mr. Witt made a motion seconded by Mr. Bauermeister to send out a Show Cause Hearing letter to the above five auditees scheduled for the March 18th meeting. The motion was unanimously carried.
Update – BPO Letter – Ms. Williams
Ms. Williams advised that the Real Estate Commission has received and reviewed the letter but has not given a response back to the Council. Ms. Williams also advised that the letter will be mailed out to the New Castle County Board of Realtors tomorrow. Mr. Huston advised that the letter has been posted to the Sussex County website for the past two weeks. Mr. Huston requested that Ms. Williams keep the Council updated on the process and response of the letter to New Castle County.
Other Business before the Council (for discussion only)
Mr. West advised the Council regarding agenda item 4.5, Melissa Holcombe’s application to sit for the exam, that her approval letter to sit for the exam should include language that she will be required to submit work samples requested by the Council for their review at their next available meeting. Ms. Williams advised that she will format the letter of approval to include that language.
Mr. Fantini advised the Council of Mr. Patrick L. Callison’s consent agreement final order and Ms. Kelly advised the Council to Propose to Deny the applicant and have hearing based on the premis that Mr. Callison entered into a consent agreement under section §4008 of 24 Del C. Mr. Fantini made a motion seconded by Mr. West to amended the previous motion of license approval for Mr. Callison and propose to deny Mr. Callison for licensure. The motion was unanimously carried.