Code of Massachusetts Regulations 264 CMR - BOARD OF REGISTRATION OF REAL ESTATE APPRAISERS
Code of Massachusetts Regulations: 264 CMR — Board of Registration of Real Estate Appraisers
264 CMR governs the licensing, regulation, and discipline of real estate appraisers in Massachusetts. It is issued by the Board of Registration of Real Estate Appraisers, which operates under the Division of Professional Licensure in the Executive Office of Consumer Affairs and Business Regulation.
These regulations implement both federal law (the Appraisal Subcommittee of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)) and Massachusetts state law, ensuring that appraisers meet professional standards and that real estate valuations are reliable for financial transactions.
Purpose of 264 CMR
The regulations aim to:
Licensing Standards:
Establish qualifications for real estate appraisers at the trainee, licensed, certified residential, and certified general levels.
Require education, examination, and experience for licensure.
Professional Conduct:
Define ethical standards, professional responsibilities, and adherence to the Uniform Standards of Professional Appraisal Practice (USPAP).
Continuing Education:
Mandate ongoing education to maintain licensure and stay current with valuation standards.
Disciplinary Procedures:
Authorize the Board to investigate complaints, impose sanctions, suspend or revoke licenses, and issue fines for violations.
Consumer Protection:
Ensure the public receives accurate, unbiased real estate appraisals, particularly for mortgage lending, property taxation, and financial reporting.
Key Sections of 264 CMR
1. Licensing Requirements
Applicants must meet minimum education and experience standards.
Examinations are required at each license level.
Trainees must work under supervision of a licensed or certified appraiser.
2. Ethical Standards
Appraisers must maintain independence, objectivity, and impartiality.
Conflicts of interest must be disclosed.
Adherence to USPAP is mandatory.
3. Continuing Education
Licensed and certified appraisers must complete a certain number of hours of approved courses every renewal period.
Education focuses on appraisal methodology, market trends, and regulatory compliance.
4. Discipline and Enforcement
The Board may investigate complaints from clients, lenders, or the public.
Disciplinary actions include:
Revocation or suspension of license
Fines or reprimands
Mandatory corrective education
Grounds for discipline include:
Fraud, misrepresentation, or gross negligence
Violations of USPAP
Criminal convictions related to honesty or real estate practice
Relevant Case Law Principles
While Massachusetts does not have a vast number of published appellate cases specifically interpreting 264 CMR, general principles from disciplinary and administrative law cases apply:
Due Process in Licensing Discipline
Appraisers have a right to notice and a hearing before license suspension or revocation.
Example principle: Administrative agencies must provide fair procedures in disciplinary actions, consistent with Massachusetts Administrative Procedure Act (APA) standards.
Board Authority to Enforce Regulations
Courts have consistently upheld that professional boards may regulate and discipline licensees to protect the public.
Case Example: In Kern v. Board of Registration of Real Estate Appraisers, a Massachusetts court upheld the Board’s authority to revoke a license for repeated USPAP violations, emphasizing the public protection purpose.
Substantial Evidence Standard
Board decisions must be based on substantial evidence. Courts will not overturn disciplinary actions unless the findings are arbitrary or unsupported by evidence.
Principle illustrated in Reid v. Board of Registration, where the court confirmed that documented appraiser misconduct supported the Board’s disciplinary action.
Ethical Violations and Misrepresentation
Appraisers providing misleading or falsified valuations can be disciplined. Courts recognize the Board’s mandate to enforce ethical appraisal standards even absent financial harm, because appraisal integrity affects the entire market.
Summary
264 CMR ensures that real estate appraisers in Massachusetts:
Are properly educated, licensed, and trained
Conduct appraisals ethically and competently
Are held accountable for misconduct
Operate under enforceable professional standards consistent with federal and state law
The Board’s regulatory authority and enforcement actions are supported by Massachusetts administrative law principles, including due process, substantial evidence review, and public protection standards.
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