Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - April 2013

Appraiser Certification Program Mission, Purpose and Intent

Appraiser Certification Program Advisory Council

New Council Members

Senate Bill 60 Passes the Senate and House of the South Dakota Legislature

New Licensees - January/February 2013

Upgrades Issued March 2012 through February 2013

Information Regarding Disciplinary Actions

Anonymous Complaints

Review of Cases - January 1, 2013 through March 8, 2013

AMCs - Issued Registration in South Dakota October through February

AMC - No Longer Doing Business in South Dakota

Inspecting the Subject Property

Failure to Disclose Significant Appraisal Assistance in the Certification

Appraiser Certification Program Mission, Purpose and Intent

The Appraiser Certification 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 the website for meeting information.

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New Council Members

The Appraiser Certification Program is pleased to announce that John McMahon of Farm Credit Services of America and Allan Husby of Husby Appraisal have been appointed by Pam Roberts, The Department of Labor and Regulation Secretary, to the Advisory Council effective January 1, 2013. Mr. McMahon serves as an institutional staff appraiser member and Mr. Husby serves as a State-Certified General Appraiser of eastern South Dakota.

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Senate Bill 60 - Passes the Senate and House of the South Dakota Legislature

The Department of Labor and Regulation, Appraiser Certification Program introduced legislation to revise certain definitions. The Bill has passed through the Senate and House of the 2013 Legislature. It is currently awaiting approval by the Governor.

Section 1 defines "appraisal practice," which is currently not defined in statute. This will provide the Appraiser Certification Program jurisdiction and authority for effective supervision of appraisers that perform appraisal review and appraisal consulting assignments.

Sections 2 and 3 amend Chapter 36-21B and 36-21D to revise the definition of "appraisal" in statute to conform with the nationally recognized definition in the Uniform Standards of Professional Appraisal Practice and the definition in the administrative rules regarding appraisers (ARSD 20:14:01:01).

The Appraiser Certification Program Advisory Council unanimously recommended this legislation.

See website for the full text of the bill. If you have any questions, please contact Sherry Bren at 605.773.4608 or sherry.bren@state.sd.us.

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New Licensees - January/February 2013

Kyle Nelson, State-Certified General - Fargo, ND
William L. Rodrique, State-Certified Residential - Bloomington, MN

John A. Kilpatrick, State-Certified General - Seattle, WA
Barrie A. Jacobson, State-Licensed - Bloomington, MN
Janet L. Nelson, State-Certified Residential, Blaine, MN
Kristin M. Nattress, State-Registered - Lead, SD

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Upgrades Issued March 2012 through February 2013

Steven Jones, State-Certified Residential

Alex Protsch, State-Licensed

Jed Klein, State-Licensed

Michael Toates, State-Licensed

Dawn Puckett, State-Licensed

Alissa Cavanaugh, State-Licensed

Michael Haeder, State-Certified General

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Information Regarding Disciplinary Actions

Public information regarding disciplinary action taken against an appraiser is available upon written request to the 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 (ARSD 20:14:11:03).)

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

Raymond E. Meligan, Fort Pierre, South Dakota - Complaint Case #11-388. The Department of Labor and Regulation entered into a Consent Agreement on January 22, 2013 suspending the State-Certified General Appraiser Certificate of Raymond E. Meligan. The suspension commenced on January 22, 2013. Mr. Meligan's certificate remains suspended until the terms and conditions of the Consent Agreement are met.

Thomas P. Smith, Rapid City, South Dakota - Complaint Case #11-394. The Department of labor and Regulation entered into a Consent Agreement on January 24, 2013, suspending the State-Licensed Appraiser Certificate of Thomas P. Smith. The suspension commenced on January 24, 2013. Mr. Smith satisfied the terms and conditions of the Consent Agreement. Mr. Smith's certificate was reinstated January 28, 2013.

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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; and

(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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Review of Cases - January 1, 2013 through March 8, 2013

For the period January 1, 2013 through March 8, 2013, the Department has initiated five complaint investigations. (There have been no upgrade applications received during this period.)

Complaints - Five cases pending.

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AMCs - Issued Registration in South Dakota October through February

Appraisal 2U, LLC

Appraisal Links

Appraisal Nation, LLC

Appraiservendor.com, LLC

B Mortgage Services, LLC

Collateral Intelligence, LLC

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AMC - No Longer Doing Business in South Dakota

National Real Estate Information Services

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Inspecting the Subject Property
(Article reprinted Courtesy of the North Carolina Appraisal Board 'Appraisereport' Volume 22 September 2012 Number 2)

There has been an alarming rise in the number of cases involving an appraiser who signed an appraiser report and did not note that another person provided significant professional assistance.  In some instances it has been a trainee who provided the assistance, but in others it is another appraiser. USPAP requires that anyone who provides significant real property appraisal experience must be noted in the report. Failing to note the assistance of a trainee in a report will result in the denial of experience credit for the trainee and may result in disciplinary action for the appraiser.

Board staff has seen repeated instances where trainees and other appraisers have performed the inspection of the subject property, but the supervising appraiser is the only one to sign the appraisal report. In some cases there may be a mention about the trainee or other appraiser providing assistance, but no mention is made in the report that the trainee or other appraiser was the only one to inspect the property. This is a violation of USPAP and Appraisal Board rules.

There are some clients who will not accept an appraisal report if a trainee signs it, or if it is signed by an appraiser who is not on their list of approved appraisers. If the trainee or other appraiser who works on the preparation of the appraisal does not sign the report, the supervising appraiser must make a full disclosure in the report as to who provided assistance and provide a detailed explanation of the extent of the assistance. This information can appear in an addendum, as long as the addendum is incorporated into the appraisal report and sent to the client.

If an appraiser signs the report that indicates the appraiser inspected the subject property when he or she did not, the appraiser will be sanctioned.

If the Board receives an appraisal report in support of experience credit that is not signed by the trainee or appraiser, or does not contain the appropriate information regarding the assistance provided by the trainee or appraiser, experience credit will be denied. The Board will also pursue disciplinary action against the supervising appraiser for failure to comply with USPAP and Board Rules.

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Failure to Disclose Significant Appraisal Assistance in the Certification

Standards Rule 2-3 of the Uniform Standards of Professional Appraisal Practice (USPAP) requires that each real property appraisal report must contain a signed certification that includes certifications that are similar in content as printed in the USPAP. One of the certifications required is as follows:

  • No one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptions, the name of each individual providing significant real property appraisal assistance must be stated.)

The Comment in Standards Rule 2-3, states in part:

The names of individuals providing significant real property appraisal assistance who do not sign a certification must be stated in the certification. It is not required that the description of their assistance be contained in the certification, but disclosure of their assistance is required in accordance with Standards Rule 2-2(a), (b), or (c)(vii), as applicable.

There are clients that require appraisers to use pre-printed certification forms. If an appraiser is using a pre-printed form that cannot be revised to include the name of the individual(s) providing significant real property appraisal assistance, the mandatory disclosure may be added as an additional certification on a separate page. The additional certification page must be signed and contain the correct certification language. The additional signed certification page must be included in the appraisal report that is submitted to the client.

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