The Texas Appraiser Licensing & Certification Board (TALCB) licenses and regulates various types of appraisers. TALCB’s duty, in part, is to ensure licensees follow applicable laws and regulations. As a result, TALCB can pursue disciplinary proceedings and sanctions against appraisers who have violated these laws. The sanctions for violating the rules and laws that govern a professional license, including an appraiser’s license, can be severe. Therefore, consulting an appraiser license defense lawyer to defend your license is critical to successfully fighting against misconduct allegations.
Licensing and Certification by the TALCB
TALCB qualifies individuals to work as Appraiser Trainees, the first step toward becoming a licensed or certified Appraiser. An Appraiser Trainee can upgrade to a Licensed Residential, Certified Residential, or Certified General Appraiser by undergoing a background check and completing certain other requirements. The education, examinations, and experience requirements for each licensing or certification depend on your chosen license or certification. The distinctions between the various appraiser license and certification classifications are as follows:
- Appraiser Trainee – These individuals are working toward becoming licensed or certified residential or general appraisers. A Certified General or Residential Appraiser must sponsor, direct, and supervise an Appraiser Trainee.
- Licensed Residential Appraiser – These appraisers can appraise non-complex residential properties containing one to four units valued at less than $1 million. They also can appraise complex federally-related transactions (FRTs) and non-FRTs valued at less than $400,000.
- Certified Residential Appraiser – These individuals may perform all residential real property appraisals, regardless of their complexity or value.
- Certified General Appraiser – These appraisers can appraise all types of real property, regardless of their complexity or value, including FRTs and non-FRTs.
Furthermore, TALCB registers Appraisal Management Companies (AMCs). AMCs are intermediaries between lenders, borrowers, realtors, mortgage brokers, and appraisers.
Complaints Against Appraisers and the TALCB
Anyone can file a complaint against a licensed or certified appraiser with the TALCB. Complainants may include members of the public, who are usually individuals involved in a real estate transaction, as well as TALCB staff or board members. TALCB has jurisdiction to handle complaints against appraisers that allege violations of the Texas Occupations Code and TALCB rules. If the complaint does not allege this type of violation, TALCB may not handle the complaint. For instance, the following types of complaints do not follow within TALCB’s jurisdiction:
- Valuation disputes;
- Property tax assessments;
- Business practices, such as customer service issues;
- Broker price opinions; or
- Regulation of evaluations.
When TALCB receives a complaint, staff members determine whether the allegations constitute a high risk of public harm under 22 Tex. Admin. Code § 153.24(b). These allegations include the following types of violations, which evidence serious deficiencies when done with knowledge, deliberately, willfully, or with gross negligence:
- Fraud;
- Identity theft;
- Unlicensed activity;
- Ethical violations;
- Violations of appraiser independence; or
- Other conduct determined by TALCB that poses a significant risk of public harm.
If the conduct alleged in the complaint poses a high risk of public harm, TALCB staff will escalate the complaint to the high-risk team. That team will assess the need for a temporary suspension hearing in the case of a continuing threat to public welfare. Otherwise, if there is sufficient evidence of a potential violation, TALCB staff will assign the complaint to an investigator to open a file and thoroughly investigate the allegations raised in the complaint.
Investigation of TALCB Complaints
If TALCB finds that further investigation into the complaint is necessary, staff will notify the appraiser by sending them a copy of the complaint and any supporting materials, a questionnaire, and instructions about responding. The appraiser has 20 days to respond to the complaint.
Throughout the investigation, the complaining party and the appraiser will receive updates at least every 90 days until TALCB has resolved the complaint. The investigator can gather evidence from the complaining party, the appraiser, and any other parties involved in the transaction. Following completion of the investigation, the investigator prepares a written report containing a recommended disposition based on the TALCB rules and penalty matrix found in 22 Tex. Admin. Code §159.204(m)(3).
Next, the investigative report goes to the Peer Investigative Committee (PIC) for review within seven days of the report’s date. A PIC is made up of two Board members and an investigator. After reviewing the report, the PIC must present a determination to the TALCB Commissioner within five days, either agreeing or disagreeing with the investigator’s recommendation and recommending whether to pursue enforcement action against the appraiser.
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Disciplinary Actions: Disposition of Complaints
If the PIC recommends enforcement action, the complaint goes to the legal staff for review and disposition. If a TALCB staff attorney finds that the appraiser has committed a violation, they make a recommendation to the TALCB Director as to the appropriate remedy, either through a non-disciplinary method or a disciplinary sanction.
Non-Disciplinary Remedies
Non-disciplinary remedies result in the dismissal of the complaint and do not create a disciplinary record. Examples of these remedies include an immediate dismissal, a dismissal with a non-disciplinary warning letter, a contingent dismissal, or a dismissal based on the appraiser completing specific conditions.
Disciplinary Sanctions
However, if the investigation reveals serious or minor deficiencies with certain aggravating circumstances, the investigator may recommend formal disciplinary sanctions. These sanctions could include any of the following:
- Remedial measures:
- Required adoption of written preventative policies or procedures;
- Probationary period with provisions for monitoring an appraiser’s practice;
- Restrictions on supervising trainees;
- Restrictions on scope of practice;
- Administrative penalty;
- Refund;
- Period of Suspension; or
- Revocation.
Conclusion
The Texas Appraiser Licensing & Certification Board (TALCB) plays a pivotal role in overseeing and regulating various appraisers, ensuring compliance with state laws and regulations. Given the potential severity of disciplinary proceedings and sanctions for violations, seeking guidance from an experienced appraiser license defense lawyer is crucial to effectively combatting allegations of misconduct. TALCB’s licensing and certification process, coupled with its handling of complaints, underscores the importance of adhering to professional standards and the gravity of disciplinary actions. Through diligent investigation and review, TALCB strives to uphold public trust while safeguarding the integrity of the appraisal profession. By engaging legal representation and navigating the process with diligence and care, appraisers can protect their licenses and uphold the standards of their profession, ensuring accountability and excellence in their practice.
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We Will Represent Your Interests in Your Disciplinary Proceedings
We know how important it is to continue working in your chosen field. A simple misstep or oversight can lead to disciplinary proceedings threatening your license and livelihood. The experienced appraiser license defense attorney at Bertolino LLP, will advocate on your behalf to help you protect your license and career. Together, we will work to put you in the best position possible to maintain your license and professional future. Call us at (512) 515-9518 or contact us online.
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