Adoption of PAREA Gains Momentum in the States
The incorporation of the Practical Applications of Real Estate Appraisal, known as PAREA, into state laws and regulations is gaining momentum. PAREA is an alternative method to satisfy experience requirements for residential appraiser licensing.
Thirty-five states have indicated that they will accept PAREA to some degree, with 27 of those indicating they will accept it to satisfy 100% of experience requirements. Additionally, the laws in six states fully incorporate the Real Property Appraiser Qualification Criteria by reference, and because RPAQC includes PAREA, it should be fully accepted in those states. California and Kansas have indicated acceptance of PAREA, but only to satisfy 50% of the experience requirements. They based their lower level of acceptance on a previous RPAQC allowance wherein only 50% of a trainee’s valuation work used for experience credit can be performed without a typical client or be obtained via a practicum program. The allowance has been changed to 100%.
During the past few months, laws and regulations regarding PAREA have been proposed or finalized in Florida, Louisiana, Michigan, New Jersey, South Dakota, Texas and Utah. Appraiser regulatory authorities in several other states are reviewing PAREA as an acceptable alternative for appraiser licensure.
The Appraisal Institute continues working with regulators to ensure universal acceptance of PAREA when it becomes available in 2023.
Review the compilation of state laws and regulations regarding PAREA.