Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - April 2012

Appraiser Certification Program Mission, Purpose and Intent

Appraiser Certification Program Advisory Council

New Licensees - February 2012/March 2012

Anonymous Complaints

Information Regarding Disciplinary Actions

Review of Cases - January 1, 2012 through April 4, 2012

Proposed Revisions to ARSD 20:14 - Notice of Important Changes to Administrative Rules

Appraisal Management Companies to be Registered - Registration Number to be Disclosed

Appraiser Qualifications Board Questions and Answers

Appraiser Certification Program Mission, Purpose and Intent

Program was implemented July 1, 1990, pursuant to enactment of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by Congress. The mission of the Program is to certify, license and register appraisers to perform real estate appraisals in the state of South Dakota pursuant to Title XI (FIRREA). The purpose of the Program is to examine candidates, issue certificates, investigate and administer disciplinary actions to persons in violation of the rules, statutes and uniform standards, and approve qualifying and continuing education courses. Title XI intends that states supervise all of the activities and practices of persons who are certified or licensed to perform real estate appraisals through effective regulation, supervision and discipline to assure their professional competence.

Effective July 1, 2011, pursuant to the Dodd-Frank Wall Street Reform Act, the Program was granted legislative authority to register and supervise the activities of Appraisal Management Companies doing business in South Dakota.

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Appraiser Certification Program Advisory Council


Council members provide recommendations to the Secretary of the Department of Labor and Regulation in the areas of program administration in order to sustain a program that is consistent with Title XI. The Council meets quarterly in public forum. See our Advisory Council Web page for meeting information.

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New Licensees - February 2012/March 2012

Patrick M. Wyatt, State-Registered - Hot Springs, SD
Kelsey K. Malecha, State-Certified General - Minneapolis, MN
Adam L. Smith, State-Certified Residential - Kailua-Kona, HI
Gary J. Alexander, State-Certified General - Ontario, CA

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Anonymous Complaints

ARSD 20:14:11:01.01. Anonymous complaints. Initiation of an investigation may be commenced upon receipt of an anonymous complaint if it meets the following criteria:

  1. The allegations of violations of any provision of this article are considered credible and based upon factual information which is independently verifiable.
  2. The complaint is accompanied by a copy of the appraisal report or other documents which contain clearly identifiable errors or violations of the provisions of this article.
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Information Regarding Disciplinary Actions

Public information regarding disciplinary action taken against an appraiser is available upon written request to:

Department of Labor and Regulation

Appraiser Certification Program

445 East Capitol Avenue

Pierre, SD 57501

or email Sherry.Bren@state.sd.us.

Include in the request for information the name of the appraiser and the appraiser's city and state of residence. (Disciplinary action may include denial, suspension, censure, reprimand, or revocation of a certificate by the department.) (Administrative Rule of South Dakota (ARSD) 20:14:11:03)

The following disciplinary action has been taken by the Department of Labor and Regulation, Appraiser Certification Program:

Charles R. Glassing, Eden Prairie, Minnesota - Complaint Case #11-405. The Department of Labor and Regulation entered Findings of Fact, Conclusions of Law and Order denying Charles R. Glassing's a Non-Resident Application for Temporary Practice for violation of SDCL 36-21B-1 and ARSD 20:14:11:03(18).

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Review of Cases - January 1, 2012 through April 4, 2012

For the period January 1, 2012 through April 4, 2012, the Department received two upgrade applications and initiated three complaint investigations.

Upgrades - Two upgrades pending.
Complaints - Two complaint consent agreements executed and one complaint pending.

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Proposed Revisions to ARSD 20:14 - Notice of Important Changes to Administrative Rules

The Appraiser Qualifications Board adopted revisions to the Real Property Appraiser Qualifications Criteria effective January 1, 2015.

The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council will not allow a segmented approach to implementation of the Criteria changes. Therefore, the Department will adopt the following criteria changes effective July 1, 2014. [The current criteria remains the same until July 1, 2014.]

All applications for state-licensed, state-certified residential and state-certified general meeting the current criteria must be postmarked on or before June 30, 2014. The fees and the completed application must be submitted verifying the required education and experience. The Appraisal Experience Log verifying the experience by assignment must be submitted with the application. The Department will request work product to review for compliance with the uniform standards. Once the review is completed, and there are no significant uniform standards violations cited, the application will be approved and the applicant will be allowed to sit for the examination. The examination must be successfully completed on or before December 31, 2014.

It is necessary to require all applications for state-licensed, state-certified residential and state-certified general appraiser classification to be postmarked on or before June 30, 2014 to allow the Department enough time to complete the required experience reviews for applicants for the state-licensed, state-certified residential and state-certified general appraiser classifications and approve the applicants to sit for the Uniform National Appraiser Examination. This requirement is necessary for the applicants that may be required to meet additional educational requirements and successfully complete the examination in the event the work product review reveals violations of the uniform standards that would warrant denial of the application.

Effective July 1, 2014

Education Requirements

  • An applicant for state-licensed appraiser shall have successfully completed 30 semester hours of college-level education from an accredited college, junior college, community college, or university. An applicant holding an Associate degree, or higher satisfies the 30-hour college-level education requirement. (The criteria does not identify specific college-level courses to be completed.)
  • The applicant for state-certified residential appraiser may no longer use the 21 semester credit hours of collegiate level courses in lieu of the Associate degree.
  • The applicant for state-certified residential appraiser must hold a Bachelor's degree, or higher from an accredited college or university.
  • The applicant for state-certified general appraiser may no longer use the 30 semester credit hours of collegiate level courses in lieu of the Bachelor's degree.

Effective July 1, 2013

Supervisory Appraisers

  • State-licensed appraisers may no longer supervise state-registered appraisers.
  • Supervisory appraisers must be state-certified residential or state-certified general.
  • Supervisory appraisers are considered in good standing if the appraiser has not been subject to any disciplinary action within any jurisdiction that affects legal eligibility to engage in appraisal practice for three years after the successful completion or termination of any sanctions imposed.
  • Supervisory appraisers must have a minimum of three years appraisal experience.

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Appraisal Management Companies to be Registered - Registration Number to be Disclosed

Pursuant to South Dakota Codified Law (SDCL) 36-21D Appraisal Management Companies are to be registered in the State of South Dakota. The roster of registered AMCs is now available online in Adobe .pdf format*.

An AMC is required by Administrative Rule of South Dakota (ARSD) 20:77 to disclose its certificate of registration number within its engagement document with each utilized appraiser. Effective in January, an appraiser is required, pursuant to ARSD 20:14 to assure that the AMC is properly registered before accepting an appraisal assignment and include the company's registration number in the appraisal report.

If an appraiser is unable to verify an AMC requesting appraisal services on the AMC Roster available on the website, the appraiser is advised to report the company to the Appraiser Certification Program.

Department of Labor and Regulation

Appraiser Certification Program

445 East Capitol Avenue

Pierre, SD 57501

or email Sherry.Bren@state.sd.us.

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Appraiser Qualifications Board Questions and Answers

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state certification. The AQB Q&A is a form of guidance issued by the AQB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria in specific situations and to offer advice from the AQB for the resolution of appraisal issues and problems. The AQB Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations. AQB Q&A does not establish new Criteria. AQB Q&A is not part of the Real Property Appraiser Qualification Criteria. AQB Q&A is approved by the AQB without public exposure and comment.

2012-13 USPAP Q & A, Issue Date: January 20, 2012

2012-01: Appraisal Development – Scope of Work Issues

Marketing Time on Appraisal Forms

Question: I am completing a market value appraisal. I use standard pre-printed residential report forms that ask for a neighborhood marketing time. Does marketing time on these forms mean the same thing as exposure time as it is used in USPAP?

2012-13 USPAP Q&A, Issue Date: February 13, 2012

2012-02: Ethics Rule – Conduct

“Acting as an Appraiser”

Question: I know that appraisers are prohibited from accepting appraisal assignments in which the fee is contingent upon the attainment of a stipulated result, such as a reduction in property taxes. However, I've heard of some appraisers who believe that they are able to accept such assignments, claiming that they are not “acting as an appraiser.” Are these appraisers correct?

2012-03: Definitions

Personal Property Appraisal Consulting

Question: I am an appraiser who has been asked to perform a consulting service on when and where best to sell some machinery and equipment. I am aware that STANDARDS 4 and 5 relate only to real property appraisal consulting. I have determined that this assignment will require me to estimate probably value ranges in different markets. What are my USPAP obligations?

2012-13 USPAP Q&A, Issue Date: March 22, 2012

2012-04: Ethics Rule - Management

Appraisal Fees for “Assessment Appeal” Assignments

Question: I am aware of some appraisers who perform property tax assessment appeal assignments where their fee is based on a percentage of the tax savings to the property owner. Doesn't USPAP prohibit an individual, who is acting as an appraiser, from accepting assignments where the fee is based on a specific outcome?

2012-05: Appraisal Development – Scope of Work Issues

Alternative Valuation Products

Question: I am a state certified appraiser and as such, perform real property appraisals in compliance with USPAP. However, I have recently been asked by a client to provide them with an “alternative valuation product” that they have designed. This product, as designed, does not appear to comply with USPAP. Am I allowed to perform such an assignment as an appraiser?

2012-06: Ethics Rule - Conduct

Appraising a Property More Than Once in Three Years

Question: I am aware of the USPAP requirements to disclose to the client, both prior to accepting an assignment as well as in the certification of the report, services I performed on a property within the prior three years. However, I have been told that based on this requirement, USPAP prohibits me from appraising a property more than once within a three-year period. Is this true?

Answers to the above USPAP Q&A are posted on The Appraisal Foundation website: www.appraisalfoundation.org.

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*Opening and printing Adobe .pdf files requires Adobe Acrobat Reader. Click here as needed to download the free Adobe Acrobat Reader.

 


Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184