Free October 18, 2007 - Michigan

STATE OF MICHIGAN
JENNIFER M. GRANHOLM
GOVERNOR

DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH
LANSING

STANLEY "SKIP" PRUSS
DIRECTOR

January 20, 2009

NOTICE TO: REAL ESTATE APPRAISER SCHOOLS/SPONSORS RE: RENEWAL OF PRELICENSURE & CONTINUING EDUCATION COURSES Due to the large volume of courses that are expiring on June 30, 2009, and given the age of some of the courses, the following procedures must be followed in order to renew your courses. Attached is a current list of all of your courses that will be expiring on June 30, 2009. If you wish to renew any or all of these courses you must complete an application for each course. We also ask that you submit a list of all courses you will not be renewing. Attached is the application (BCS/LAP-100R) Renewal of Continuing Education and Prelicensure Course Approval Application and Notice, or you can visit our website at www.michigan.gov/bcstesting for additional copies of this form. NOTE: Course renewal forms must be received by the department at least 60 days before the expiration date. If a satisfactorily completed renewal form is not received by the department by the expiration date, the course shall cease to be departmentally approved beyond the expiration date. Course renewal forms are not valid and shall not be accepted by the department after the expiration date. Sponsors requesting approval of course renewal after the expiration date, or approval if the course has changed in content, number of hours & matrix from the original approval, must submit on an original course approval application, form BCS/LAP-100 available at our website. Also, some changes in the approved course numbers may be changing, please review your approved course letter and copy of the application that you will receive after approval has been given to make sure you are using the correct course number when submitting verification of attendance and on your certificate of completion. If you have any questions you can contact us at (517) 241-9295 or (517) 241-9231 or you can e-mail us at [email protected] . The renewal forms and all required attachments must be received by the department no later than April 30, 2009. Please mail to: Michigan Department of Energy, Labor & Economic Growth Bureau of Commercial Services Testing, Education & Program Services P.O. Box 30018 Lansing, MI 48909 E-mailed forms or faxed forms will not be accepted.
DELEG is an equal opportunity employer/program. Auxiliary aids, services and other reasonable accommodations are available upon request to individuals with disabilities. BUREAU OF COMMERCIAL SERVICES P.O. BOX 30018 · LANSING, MICHIGAN 48909 www.michigan.gov/bcs

Following are excerpts of the Real Estate Appraisers rules that apply to the Real Estate Appraiser Prelicensure and Continuing Education programs. R 339.23307 Conduct of courses; changes in courses. Rule 307(4) Department approved courses shall expire 3 years from the date of the course approval, at which time the course approval shall be subject to renewal. A sponsor shall notify the department of its intent to renew or discontinue previously approved course or courses by satisfactorily completing and submitting a course renewal form provided by the department. Course renewal forms shall be received by the department at least 60 days before the expiration date. If a satisfactorily completed renewal form is not received by the department by the expiration date, the course shall cease to be departmentally approved beyond the expiration date. Course renewal forms are not valid and shall not be accepted by the department after the expiration date. Sponsors requesting approval of course renewal after the expiration date shall complete and submit an application for original course approval. R 339.23317 Prelicensure education; application for course approval; forms; requirements, unacceptable courses. Rule 317 (2) The application shall include all of the following information: (a) The course title. (b) The number of classroom hours to be given for completion for the course. As provided in section 2617(3) of the act, a course shall be not less than 15 classroom hours in length. (c) The name, business address, and telephone number of the sponsor. (d) The name, business address, and telephone number of the course coordinator. (e) The name, license number, and qualifications of instructors. (f) A detailed outline, of the subject matter to be covered and the number of classroom hours to be devoted to each topic, as it will appear in the student syllabus. (g) A summary of the required topics for prelicensure that are covered in the course completed on the subject matter matrix provided by the department. (h) The methodology for verifying and monitoring attendance, including the class makeup policy. A sponsor shall have a written makeup policy for students who are absent from all or part of regularly scheduled class sessions. If there are no opportunities to make up missed sessions, that policy shall be so stated. (i) The standards a student must meet to complete the course, including assignments, projects, examinations and the passing score on the examination that is required pursuant to the provision of section 2617(3) of the act be given at the completion of the course for a student to demonstrate mastery of the material covered. (j) Proof that the sponsor is an entity that may offer prelicensure real estate appraisal education courses in accordance with the provisions of section 2617(2) of the act. R 339.23321 Continuing education; application for course approval; forms; requirements. Rule 321 (2) The application shall include all of the following information: (a) The course title. (b) The number of classroom hours to be given for completion of the course. As provided in section 2617 of the act, a course shall not be less than 2 classroom hours in length. (c) The name, business address, and telephone number of the sponsor.

(d) The name, business address, and telephone number of the course coordinator. (e) The name, license number, and qualifications of instructors. (f) A detailed outline, of the subject matter to be covered and the number of classroom hours to be devoted to each topic, as it will appear in the student syllabus. (g) The methodology for verifying and monitoring attendance. The course sponsor shall be responsible for determining the number of hours, if any, that will be granted to a licensee who does not attend all planned classroom hours. A licensee shall not received credit for attending the same course more than 1 time during the same license renewal cycle. (h) The standards a student must meet to complete the course, including assignments, projects, or examinations. Course examinations may be given by the sponsor at its discretion, but examinations are not required by the act or these rules for continuing education courses. (i) Proof that the sponsor is an entity that may offer continuing education courses in accordance with the provision of section 2617(2) of the act. Information to demonstrate that the course meets the requirements of section 2627(3) and (4) of the act and is designed to improve and maintain the capability of a licensee to perform activities regulated by the act.

Michigan Department of Energy, Labor and Economic Growth Bureau of Commercial Services Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 517-241-9231 Fax: 517-241-7539 www.michigan.gov/bcstesting

APPLICATION CHECKLIST FOR RENEWAL OF COURSE APPROVAL FOR REAL ESTATE APPRAISER CONTINUING EDUCATION AND PRELICENSURE COURSES The following checklist is for your use in assembling and submitting the materials required for your application to offer courses. You do not have to return this form. Renewal of Real Estate Appraiser Continuing Education and Prelicensure Course Approval Application and Notice. (BCS/LAP-100R) Topic Matrix (Required for all Prelicensure Courses) Proprietary School Unit License (Proprietary Schools Only) Timed Course Outline & Detailed Course Description ­ Must include: Sponsor Name, Address and Telephone Number Name of the Subject(s) to be taught Number of minutes each subject is given, inserting number of minutes for any breaks or lunch ­ (Minimum of one [1], 15-minute break is mandatory for each two hours of instruction) Detailed Course Description Written summary/description of course (Instructor notes, Powerpoint, etc.) List of textbooks and/or reference materials to be used IDECC Certification (Distance Courses) Required for all distance education courses. AQB Approval If course is AQB approved submit a copy of approval letter. Sample Certificate of Completion ­ Must contain, at a minimum: The name of the student The name of the sponsor & sponsor number The name of the course attended The number of classroom hours completed by the student. The date of course completion Signature of Sponsor Coordinator or Instructor

BCS/LAP-100R (01/09) Michigan Department of Energy, Labor & Economic Growth Bureau of Commercial Services Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 Telephone: 517-241-9231 www.michigan.gov/bcstesting

RENEWAL
Current Course Approval Name Current Course Approval Number

RENEWAL OF REAL ESTATE APPRAISER CONTINUING EDUCATION AND PRELICENSURE COURSE APPROVAL APPLICATION AND NOTICE
AUTHORITY: P.A. 299 of 1980, as amended COMPLETION: Mandatory PENALTY: Failure to complete may result in denial of your application

This document can be completed on-line, printed and mailed to Testing, Education & Program Services. This form cannot be submitted electronically. If you need to clear the form for any reason, click the clear button.

Instructions: Sponsor should complete the application, Part A, B, C, and D where applicable and submit all required documentation. Upon approval, a copy of this form will be returned with part E completed for the Sponsor's records. If you are requesting approval for a prelicensure course, complete the Topic Matrix (BCS/LAP-100A) that is attached. NOTE: Current course numbers may be changing. E-mailed and faxed forms will not be accepted.

A. COURSE INFORMATION (Complete one form for each course offered; information listed will appear on the department website.)
Course Name Sponsor Name

Web Address

E-mail Address

Number of Classroom Hours

Course Type Con-Ed

Online (Complete Prelicensure Topic Matrix) Nonprofit Assoc. Proprietary School

Sponsor Telephone Number

MI Sponsor Number, If Known

Sponsor Type

College or University Government Agency

Proprietary School State Approval MI License #: Complete Address of Sponsor Submit copy of Out-Of-State - approval to operate

Contact Person/Coordinator

Contact Person Telephone Number

City, State, Zip Code

B. ATTENDANCE POLICY
How is attendance monitored? Sign In Other - Please describe:

Is there a class makeup policy? If yes, please descirbe Yes No

C. INSTRUCTOR QUALIFICATIONS
Instructor Name(s) License Type License No. If not an appraiser, explain qualifications

D. EXAM INFORMATION (Required for Prelicensure Courses Only)
Describe method of grading (include passing/failing scores) Describe other standards student must meet to pass the course

E. DEPARTMENT APPROVAL (For Office Use Only)
Sponsor Number Can Be Applied Toward Prelicensure Con-Ed Course No. Assigned Hours Approved Approval Signature Date Approved Both

Course Type - Prelicensure Only Res Non-Residential

DELEG is an equal opportunity employer/program. Auxiliary aids, services and other reasonable accommodations are available upon request to individuals with disabilities.

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 1 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics Basic Appraisal Principles (30 Hours) A. RP Concepts & Characteristics 1 Basic Real Property Concepts 2 Real Property Characteristics 3 Legal Description (Physical) B. Legal Consideration 1 Forms of Ownership 2 Public and Private Controls 3 Real Estate Contracts 4 Leases C. Influences on Real Estate Values 1 Governmental 2 Economic 3 Social 4 Environmental, Geographic & Physical D. Types of Value 1 Market Value 2 Other Value Types E. Economic Principles 1 Classic Economic Principles 2 Application & Illustration of Economic Principles F. Overview of Real Estate Markets & Analysis 1 Market Fundamentals, Characteristics & Definitions 2 Supply Analysis 3 Demand Analysis 4 Use of Market Analysis G. Ethics & How They Apply in Appraisal Theory & Practice Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. 30 Licensed Residential Req. Comp. Bal. 30 Certified Residential Req. Comp. Bal. 30 Certified General Req. Comp. Bal. 30

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 2 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics Basic Appraisal Procedures (30 Hours) A. Overview of Approaches to Value B. Valuation Procedures 1 Defining the Problem 2 Collecting & Selecting Data 3 Analyzing 4 Reconciling & Final Value Opinion 5 Communicating the Appraisal C. Property Description 1 Geographic Characteristics of the Land/Site 2 Geologic Characteristics of the Land/Site 3 Location & Neighborhood Characteristics 4 Land/Site Considerations for Highest & Best Use 5 Improvements - Architectural Styles & Types of Construction D. Residential Application Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. 30 Licensed Residential Req. Comp. Bal. 30 Certified Residential Req. Comp. Bal. 30 Certified General Req. Comp. Bal. 30

The 15-Hour National USPAP Course (or its equivalent) A. Preamble and Ethic Rule B. Standard 1 C. Standard 2 D. Standards 3 to 10 E. Statements & Advisory Opinions Exam Hours

15

15

15

15

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 3 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics Residential Market Analysis & Highest & Best Use (15 Hours) A. Residential Markets & Analysis 1 Market Fundamentals, Characteristics & Definitions 2 Supply Analysis 3 Demand Analysis 4 Use of Market Analysis B. Highest & Best Use 1 Test Constraints 2 Application of Highest & Best Use 3 Special Considerations 4 Market Analysis 5 Case Studies Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. Licensed Residential Req. Comp. Bal. 15 Certified Residential Req. Comp. Bal. 15 Certified General Req. Comp. Bal.

Residential Appraiser Site Valuation & Cost Approach (15 Hours) A. Site Valuation 1 Methods 2 Case Studies B. Cost Approach 1 Concepts & Definitions 2 Replacement/Reproduction Cost New 3 Accrued Depreciation 4 Methods of Estimating Accrued Depreciation 5 Case Studies Exam Hours

15

15

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517)241-7539 www.michigan.gov/bcstesting Page 4 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics Residential Sales Comparison & Income Approaches (30 Hours) A. Valuation Principles & Procedures-Sales Comparison Approach B. Valuation Principles & Procedures-Income Approach C. Finance & Cash Equivalency D. Financial Calculator Introduction E. Identification, Derivation & Measurement of Adjustments F. Gross Rent Multipliers G. Partial Interests H. Reconciliation I. Case Studies & Applications Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. Licensed Residential Req. Comp. Bal. 30 Certified Residential Req. Comp. Bal. 30 Certified General Req. Comp. Bal.

Residential Report Writing & Case Studies (15 Hours) A. Writing & Reasoning Skills B. Common Writing Problems C. Form Reports D. Report Options & USPAP Compliance E. Case Studies Exam Hours

15

15

Statistics, Modeling & Finance (15 Hours) A. Statistics B. Valuation Models (AVM's & Mass Appraisal) C. Real Estate Finance Exam Hours

15

15

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 5 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics Advanced Residential Applications & Case Studies (15 Hours) A. Complex Property, Ownership & Market Conditions B. Deriving & Supporting Adjustments C. Residential Market Analysis D. Advanced Case Studies Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. Licensed Residential Req. Comp. Bal. Certified Residential Req. Comp. Bal. 15 Certified General Req. Comp. Bal.

General Appraiser Market Analysis & Highest & Best Use (30 Hours) A. Real Estate Markets & Analysis 1 Market Fundamentals, Characteristics & Definitions 2 Supply Analysis 3 Demand Analysis 4 Use of Market Analysis B. Highest & Best Use 1 Test Constraints 2 Application of Highest & Best Use 3 Special Considerations 4 Market Analysis 5 Case Studies Exam Hours General Appraiser Sales Comparison Approach (30 Hours) A. Value Principles B. Procedures C. Identification & Measurement of Adjustments D. Reconciliation E. Case Studies Exam Hours

30

30

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 6 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics General Appraiser Site Valuation & Cost Approach (30 Hours) A. Site Valuation 1 Methods 2 Case Studies B. Cost Approach 1 Concepts & Definitions 2 Replacement/Reproduction Cost New 3 Accrued Depreciation 4 Methods of Estimating Accrued Depreciation 5 Case Studies Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. Licensed Residential Req. Comp. Bal. Certified Residential Req. Comp. Bal. Certified General Req. Comp. Bal. 30

General Appraiser Income Approach (60 Hours) A. Overview B. Compound Interest C. Lease Analysis D. Income Analysis E. Vacancy & Collection Loss F. Estimating Operating Expenses & Reserves G. Reconstructed Income & Expense Statement H. Stabilized Net Operating Income Estimate I. Direct Capitalization J. Discounted Cash Flow K. Yield Capitalization L. Partial Interests M. Case Studies Exam Hours

60

BCS/LAP-100A (01/09) Michigan Department of Energy, Labor & Economic Growth Testing, Education & Program Services P.O. Box 30018, Lansing, MI 48909 (517) 241-9231 FAX (517) 241-7539 www.michigan.gov/bcstesting Page 7 of 7

TOPIC MATRIX

General Matrix Model Revised AQB Real Property Appraiser/Criteria Core Curriculum Guide Note 1 Curriculum Content GN-1 Subtopics General Appraiser Report Writing & Case Studies (30 Hours) A. Writing & Reasoning Skills B. Common Writing Problems C. Report Options & USPAP Compliance D. Case Studies Exam Hours Qualification Criteria Hours Appraiser Trainee Req. Comp. Bal. Licensed Residential Req. Comp. Bal. Certified Residential Req. Comp. Bal. Certified General Req. Comp. Bal. 30

Appraisal Subject Matter Electives (20 Hrs Cert. Res.) (30 Hrs Cert. Gen.)

20

30

Exam

TOTAL HOURS

75

150

200

300