The Michigan Board of Real Estate Appraisers was created under Article 26 of Public Act 299 of 1980, as amended, to license and regulate the services of real estate appraisers in Michigan. Article 26 defines a real estate appraiser as an individual engaged in, or offering to engage in, the development and communication of appraisals of real property. An Appraisal is defined as an opinion, conclusion, or analysis relating to the value of real property.

The legal requirement for the licensing of real estate appraisers went into effect on January 1, 1992. Any person in Michigan who issues an evaluation, opinion, conclusion, or analysis relating to the value of real property must be licensed as a Limited Real Estate Appraiser, State Licensed Real Estate Appraiser, Certified Residential Real Estate Appraiser, or Certified General Real Estate Appraiser. Licensing is not required for:

1. a market analysis performed by a person licensed as a real estate broker or salesperson solely for the purpose of assisting a customer or potential customer in determining the potential sale, purchase, or listing price of real property or the rental rate of real property as long as a fee or any other valuable consideration is not charged for that analysis.

2. an assessment of the value of real property performed on behalf of a local unit of government authorized to impose property taxes when performed by a certified assessor, or an individual employed in an assessing capacity.

3. a market analysis of real property for a fee when performed by a licensed broker or associate broker which does not involve a federally related transaction.

Article 26 requires that an appraiser do all of the following:

1. Include, in any appraisal or report provided to clients, that licensing is required of appraisers and regulated by the Michigan Department of Consumer & Industry Services.

2. Maintain an actual place of business which shall be used as the licensee's address and in all advertising. A Post Office Box alone is not sufficient.

3. Maintain a cross-reference set of books and records which shall be available for inspection by the Department.

4. Advertise only the services for which the appraiser is properly licensed and qualified to perform.

5. State the level of license held in all advertising. Merely stating that the person is licensed does
not satisfy the provisions of this subrule.

6. Place his or her license number on all reports and shall produce evidence of licensing upon request.

An appraiser is subject to the penalties set forth in Article 6, MCL 339.602 for violations including, but not limited to:

1. Violation of the USPAP

2. Failure or refusal, without good cause, to exercise reasonable diligence in developing or communicating an appraisal. Demonstrating incompetence in developing or communicating an appraisal.

3. Failure to make books and records required to be kept available to the Department.

4. Performing, attempting to perform, or offering to perform appraisal services for which the individual is not properly licensed.

5. Failure of a Limited real estate appraiser to disclose to a client, prior to making an appraisal, that the appraisal cannot be used in a federally related financial transaction.*

*Source: Michigan Department Of Consumer & Industry Services, Licensing Division.