Customary and Reasonable Fees – Appraisal Board Has A Plan

Today, the NC Appraisal Board did not vote to permanently adopt the VA fee schedule as the basis for customary and reasonable appraisal fees.

With so many appraisers statewide emailing, texting, and calling me today seeking accurate information about what happened at the NC Appraisal Board this morning, I thought I’d answer with a blog post.

Today, the Board received a detailed report from its AMC Committee, delivered in a very detailed manner by the Chair.  She left folks know that the committee members did not fully agree on all the PROPOSED rules but that they agreed on a “Guidance Document” to provide TEMPORARY GUIDANCE until the Board actually implements rules.  The Board also released DRAFT rules.

The Board’s schedule currently calls for a stakeholder’s meeting sometime in January 2017 to discuss customary and reasonable fees and the various associated issues.

In February 2017, the Board plans to consider scheduling a future rulemaking hearing to receive public comment on the PROPOSED rule.

Appraisers can expect to receive more information from the Board and to have ample opportunity to comment on the PROPOSED rules.

The Board voted to accept the Guidance Document and to move in the direction of rulemaking and to expose the PROPOSED rules for comment.

In the meantime, AMCs may use the published VA fee schedule.   “The Board does not require AMCs to pay appraisal fees only in accordance with the VA fee schedule.  An AMC may pay a fee that differs from the VA fee, but must be able to show compliance with the state law.”

For now, the VA fee schedule is a TEMPORARY solution.   It may become permanent in the future but for now it is merely temporary as the Board continues to study the matter.

Be on the lookout for a Board announcement.

Relevant documents:

Appraisal Board Guidance Document 12-13-2016
https://www.brightpathedu.com/wp-content/uploads/2016/12/Appraisal-Board-Guidance-Document-12-13-2016.pdf

Appraisal Board Proposed Rules 12-13-2016
https://www.brightpathedu.com/wp-content/uploads/2016/12/Appraisal-Board-Proposed-Rules-12-13-2016.pdf