§ 160-d. Powers of the board. 1. The board shall adopt rules and
regulations in aid or furtherance of this article and shall have the
following powers and duties:

a. To define, with respect to each category of state certified real
estate appraisers, state licensed real estate appraisers, and state
licensed real estate appraiser assistants, the type of educational
experience, appraisal experience and equivalent experience that will
meet the statutory requirements of this article, provided, however, that
in no event shall the experience, education and examination requirements
adopted by the board be less than the minimum criteria established by
the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council or by the Appraiser Qualification Board of the
Appraisal Foundation as referred to in title XI of the Financial
Institutions Reform, Recovery and Enforcement Act of 1989;

b. To establish examination specifications consistent with the
standards of the Appraisal Qualifications Board of the Appraisal
Foundation for state licensed real estate appraiser assistants, state
licensed real estate appraisers and each category of state certified
real estate appraisers, to provide or procure appropriate examination
questions and answers and to establish procedures for grading
examinations;

c. To define, with respect to state licensed real estate appraiser
assistants, state licensed real estate appraisers and each category of
state certified real estate appraisers, the continuing education
requirements for the renewal of a license or a certification that will
meet the statutory requirements provided in this article;

d. To review the standards for the development and communication of
real estate appraisals provided in this article and to adopt regulations
explaining and interpreting such standards, provided, however, that such
standards must, at a minimum, conform to the uniform standards of
professional appraisal as promulgated by the Appraisal Standards Board
of the Appraisal Foundation; and

e. To prescribe the scope of practice for state licensed real estate
appraiser assistants, state licensed real estate appraisers and each
category of state certified real estate appraisers, provided, however,
that in no event shall the scope of practice prescribed by the board be
less than the scope of practice established by the Appraisal
Subcommittee of the Federal Financial Institutions Examination Council
or by the Appraiser Qualification Board of the Appraisal Foundation as
referred to in title XI of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989;

f. To perform such other functions and duties as may be necessary in
carrying out the provisions of this article.

2. The board shall promulgate rules and regulations prescribing the
form and content of each appraisal report. Such rules and regulations
shall include but are not limited to the following requirements:

a. Each appraisal report shall clearly and accurately disclose any
extraordinary assumption or limited condition that directly affects an
appraisal.

b. Each written appraisal report shall comply with the following
specific reporting guidelines:

(1) Identify and describe the real estate being appraised;

(2) Identify the real property being appraised;

(3) Define the opinion that is the purpose of the appraisal and
describe the scope of the appraisal;

(4) Set forth the effective date of the opinion and the date of the
appraisal report;

(5) Set forth the appraiser's opinion of the highest and best use of
the real estate being appraised when such an opinion is necessary and
appropriate;

(6) Set forth the appraisal procedure followed, the data considered
and the reasoning that supports the analyses, opinions and conclusions;

(7) Set forth all assumptions and limiting conditions that affect the
analyses, opinions and conclusions in the appraisal report; and

(8) Set forth any additional information that may be appropriate to
show compliance with, and identify permitted departures from, the
requirements for the development of appraisals as provided in this
article or as established by the board.

3. The board shall establish standards of developing an appraisal.
Such standards shall, among other things, state the following
guidelines:

a. All state certified or licensed real estate appraisers conducting
certified or licensed appraisals, performing appraisal service or
issuing an appraisal shall:

(1) Be aware of, understand and correctly employ those recognized
appraisal methods and techniques that are necessary to produce a
credible analysis, opinion or conclusion;

(2) Not commit a substantial error or omission of commission which
results from a significant departure from the recognized appraisal
methods and techniques;

(3) Not commit a substantial error or omission of commission that
significantly affects an analysis, opinion or conclusion;

(4) Identify the real estate and real property under consideration,
define the opinion that is the purpose of the appraisal, consider the
scope of the appraisal service and identify the effective date of the
opinion;

(5) Identify and consider the appropriate procedures and market data
required to perform the appraisal service, where appropriate;

(6) Consider the effect on use and value of the following factors:
existing land use regulations, reasonably probable modifications of land
use regulations, economic demand, the physical adaptability of the
property, neighborhood trends and the highest and best use of the
property;

(7) Consider the effect on the property being appraised of anticipated
public or private improvements, located on or off the site, to the
extent that market actions reflect the anticipated improvements as of
the effective appraisal date;

(8) Recognize that land may be appraised as though vacant and avail-
able for development and that the appraisal of improvements is based on
their actual contributions to the site;

(9) Appraise proposed improvements only after examining and having
available for future examination plans, specifications or other
documentation sufficient to identify the scope and character of the
proposed improvements, evidence indicating the probable time of
completion of the proposed improvements, and reasonably clear and
appropriate evidence supporting development costs, anticipated earnings,
occupancy projections and the anticipated competition at the time of
completion; and

(10) Base estimates of anticipated future rent and expenses for the
real estate and real property being appraised on reasonably clear and
appropriate evidence.

b. In addition to the foregoing, an appraiser shall define the value
being considered. If the value estimate is a statement or estimate of
market value, he or she shall clearly indicate whether the statement or
estimate is the most probable price in terms of cash or financial
arrangements equivalent to cash or other terms as may be precisely
defined. If an estimate of value is based on submarket financing or
financing with unusual conditions or incentives, the terms of such a
typical financing shall be clearly set forth, their contributions to, or
negative influence on value shall be described and estimated, and the
market data supporting the valuation estimate shall be described and
explained.

c. For each real property appraisal analysis, opinion or conclusion
that contains an estimate of value, a state certified or licensed real
estate appraiser shall observe all of the following specific real
property appraisal guidelines:

(1) Consider whether an appraised fractional interest, physical
segment or partial holding contributes pro rata to the value of the
whole;

(2) Identify any personal property or other items that are not real
estate but are included with or considered in connection with real
estate being appraised and contribute to the total value estimate or
conclusion;

(3) Consider and analyze any current agreement of sale, option or
listing of the real estate and real property being appraised, if the
information is available to the person in the normal course of business;

(4) Consider and analyze any prior sales of the property being
appraised that occurred within one year;

(5) When estimating the value of a leased fee estate or a leasehold
estate, analyze and consider the effect on value, if any, of the terms
and conditions of the lease; and

(6) Give careful consideration to the effect on value, if any, of the
assemblage of the various estates or component parts of an estate and
refrain from estimating the value of the whole solely by adding together
the individual values of its various estates or component parts.

d. In developing a review appraisal, a state certified or licensed
real estate appraiser shall observe all of the following specific
appraisal guidelines:

(1) Identify the appraisal report being reviewed, the real estate
being appraised, the real property being appraised, the effective date
of the opinion in the original report, the date of the original report
and the date of the review;

(2) Identify the scope of the review process to be conducted,
including a determination of whether or not it is appropriate or
essential to inspect the appraised property and the data presented;

(3) Form an opinion as to the adequacy and relevance of the data used
and the propriety of any adjustment made;

(4) Form an opinion as to whether or not the appraisal methods and
techniques used were appropriate and, if not, the reasons for the
person's disagreement with the original appraisal; and

(5) Form an opinion as to whether or not the analyses, opinions or
conclusions in the report being reviewed are correct or appropriate and,
if not, state his or her analyses, opinions or conclusions and his or
her reasons for disagreement with the original appraisal.

e. In developing an appraisal for an employer or a client, a state
certified or licensed real estate appraiser shall carefully consider and
determine whether the appraisal service to be performed is intended to
result in an analysis, opinion or conclusion of a disinterested third
party and therefore would be classified as an appraisal assignment as
defined in subdivision two of section one hundred sixty-x of this
article. If the appraisal service to be performed is not intended to
result in an analysis, opinion or conclusion of a disinterested third
party, the person shall then carefully consider whether or not he or she
would be perceived by third parties or the public as acting as a
disinterested third party.

f. Prior to entering into an agreement to perform a real property
appraisal service, a state certified or licensed real estate appraiser
shall carefully consider the knowledge and experience that will be
required to complete the appraisal service competently and either:

(1) Have the knowledge and experience necessary to complete the
appraisal service competently; or

(2) Immediately disclose the lack of knowledge or experience to the
client and take all steps necessary to complete the appraisal service
competently.

g. A state certified or licensed real estate appraiser may enter into
an agreement to perform a real property appraisal service that calls for
something less than, or different from, the work that would otherwise be
required by the specific appraisal guidelines, provided that prior to
entering into the agreement, he or she has done all of the following:

(1) The state certified or licensed real estate appraiser has
determined that the appraisal service to be performed is not so limited
in scope that the resulting analysis, opinion or conclusion concerning
real estate or real property would tend to mislead or confuse the
client, the users of the appraisal report or the public; and

(2) The state certified or licensed real estate appraiser has advised
the client that the appraisal service calls for something less than, or
different from, the work required by the specific appraisal guidelines,
and therefore the appraisal report will include a qualification that
reflects the limited or differing scope of the appraisal service.