Section 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.