The Texas Appraiser Licensing & Certification Board (TALCB) licenses and regulates professional real estate appraisers. As a part of its duties, TALCB receives, processes, and investigates complaints against real estate appraisers. If you are the subject of a disciplinary complaint, a Texas appraiser license defense lawyer can help defend you at all stages of your disciplinary licensing proceedings. Contact the offices of Bertolino LLP today by calling (512) 515-9518 or visiting us online.
Types of Licensed Appraisers in Texas
TALCB regulates, monitors, and enforces rules and laws relative to five types of certified and licensed appraisers, as follows:
- Appraiser Trainees
- Licensed Residential Appraisers
- Certified Residential Appraisers
- Certified General Appraisers
- Appraisal Management Companies
Investigation of Complaints Against Appraisers
The Texas Appraiser Licensing & Certification Board (TALCB) only has jurisdiction over certain types of complaints against appraisers, all of which involve violations of the Texas Occupations Code and TALCB rules. If the complaint does not involve this type of violation, TALCB will decline to investigate or address the complaint.
If a complaint falls within TALCB jurisdiction, staff members initially consider whether the allegations pose a high risk of public harm, including the following:
- Fraud;
- Identity theft;
- Unlicensed activity;
- Ethical violations;
- Violations of appraiser independence; or
- Other conduct determined by TALCB posing a significant risk of public harm.
These violations may constitute serious deficiencies if evidence exists that the appraiser committed the violations with knowledge, deliberately, willfully, or with gross negligence. Minor deficiencies do not call into question the appraiser’s qualifications for licensure, but major deficiencies can negatively impact an appraiser’s license.
Staff escalates the complaint if the alleged violation poses a high risk of public harm. They send the complaint to a high-risk team for investigation and disposition, including the need for a temporary suspension. Otherwise, if the alleged violation does not pose a high risk of public harm, TALCB staff will refer the case to an investigator.
A preliminary investigation may take up to three months, but an appraiser facing a disciplinary investigation only has 20 days to respond to the complaint. The investigator can gather data from all sources, including the complainant, the appraiser, and other parties involved. The preliminary investigation aims to determine whether the allegations support a formal TALCB complaint, along with disciplinary proceedings.
After completing the investigation, the investigator prepares a report with a recommended disposition of the case. The investigator then sends the report to a Peer Investigative Committee (PIC) within seven days. The PIC, consisting of two board members and an investigator, then presents a determination to the TALCB Commissioner within five days. The ultimate outcome of this process is determining whether TALCB should pursue formal disciplinary proceedings.
Disposition of Formal Disciplinary Proceedings
In some cases, TALCB resolves a disciplinary complaint with non-disciplinary sanctions. These sanctions do not create a disciplinary record and may include a non-disciplinary warning letter or require that an appraiser fulfill certain conditions.
However, TALCB can also issue disciplinary sanctions for more serious, multiple, or minor deficiencies with aggravating circumstances. Those sanctions can include:
- Completion of remedial measures;
- Mandatory adoption of written preventative policies or procedures;
- Completion of a probationary period that involves monitoring an appraiser’s practice;
- Placement of restrictions on supervising trainees and/or scope of practice;
- Payment of an administrative penalty;
- Mandatory refund of a client’s fees;
- Imposition of a period of suspension; or
- Imposition of license revocation.
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Determining Sanctions in TALCB Disciplinary Proceedings
22 Tex. Admin. Code §159.204(m)(2) contains a list of factors that must be considered when determining the appropriate disposition of a formal complaint before TALCB. These factors include:
- Whether the Respondent has previously received a warning letter or contingent dismissal, and if so, the similarity of facts or violations in that previous complaint to the facts or violations in the instant complaint matter;
- Whether the Respondent has previously been disciplined;
- If previously disciplined, the nature of the discipline, including:
- Whether it concerned the same or similar violations or facts;
- The nature of the disciplinary sanctions imposed;
- The length of time since the previous discipline;
- The difficulty or complexity of the incident at issue;
- Whether the violations found were of a negligent, grossly negligent, or a knowing or intentional nature;
- Whether the violations found involved a single appraisal or instance of conduct or multiple appraisals or instances of conduct;
- To whom were the appraisal report(s) or the conduct directed, with greater weight placed upon appraisal report(s) or conduct directed at;
- A financial institution or their agent contemplating a lending decision based, in part, on the appraisal report(s) or conduct at issue;
- The Board;
- A matter that is actively being litigated in a state or federal court or before a regulatory body of a state or the federal government;
- Another government agency or government-sponsored entity, including, but not limited to, the United States Department of Veteran’s Administration, the United States Department of Housing and Urban Development, the State of Texas, Fannie Mae, and Freddie Mac;
- A consumer contemplating a real property transaction involving the consumer’s principal residence;
- Whether Respondent’s violations caused any harm, including financial harm, and the amount of such harm;
- Whether Respondent acknowledged or admitted to violations and cooperated with the Board’s investigation before any contested case hearing;
- The business operating history of the AMC, including:
- The size of the AMC’s appraiser panel;
- The length of time Respondent has been licensed as an AMC in Texas;
- The length of time the AMC has been conducting business operations in any jurisdiction;
- The nature and extent of any remedial measures and sanctions the Respondent had received related to the areas in which violations were found; and
- Respondent’s affiliation with other business entities;
- Whether Respondent can improve the AMC’s practice through the use of remedial measures; and
- Whether Respondent has voluntarily completed remedial measures before the resolution of the complaint.
Next, 22 Tex. Admin. Code §159.204(m)(3) outlines sanctions guidelines based on whether a violation is a first, second, third, or fourth-time violation and whether it is a Level 1 (less serious) or Level 2 (more serious) violation. However, a fourth-time violation is not further subdivided into Level 1 and Level 2 violations; this violation is the most severe possible and will result in a license revocation and $10,000 in administrative penalties per violation, with each day of a continuing violation being a separate violation.
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Get Legal Advice and Defend Yourself Against Disciplinary Proceedings
An experienced Texas appraiser license defense lawyer at Bertolino LLP can examine your situation, evaluate your options, and advise you on the most effective strategy for minimizing any sanctions against your license. Our goal is to put you in the best position to protect your license and career from potentially negative consequences that may result from disciplinary proceedings. Call us today at (512) 980-3751 or get more information about us online.
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