"Many licensed appraisers become confused and believe the term complex is relative to their individual competence as an appraiser. As a result they take on appraisal assignments of complex one-to-four family properties thinking it is proper as they believe they are qualified to undertake the assignment. As a result, they face sanction for completing an assignment which is out of the scope of practice allowed by their license.”

“As part of the scope of practice limits on a licensed appraiser, the licensed appraiser may appraise non-complex residential one-to-four family properties with a “transaction value” of less than $1,000,000 but may not appraise complex one-to-four family residential properties with a transaction value of $250,000 or more.”

-Excerpt from the Oregon Appraiser’s Certification and Licensure Board Summer 2005 Newsletter

Here is the definition of a complex one-to-four family residential property as taken directly from Oregon Administrative Rules: “Complex one-to-four family residential property appraisal” means an appraisal in which the property to be appraised, market conditions, or form of ownership is atypical."

For example, atypical factors may include, but are not limited to:  Architectural style;  Age of improvements;  Size of improvements;  Size of lot;  Neighborhood land use;  Potential environmental hazard liability;  Property interests;  Limited readily available comparable sales data; or Other unusual factors.

Recognize while the definition provides an objective standard based on the subject’s and market characteristics, the definition has gray areas. There may be disagreement among professionals as to what constitutes a complex one-to-four family residential property. You should exercise professional caution if you have any doubt if a property falls outside the scope of practice limits of your appraiser’s license.