Florida Regulations 62-817.007: Appraisal Procedures, Appraisal Report Requirements and Determination of Maximum Approved Purchase Price
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(1) The party responsible for acquisition activities shall contract with the approved appraiser(s) qualified to appraise real property that is like the project site, according to contract requirements of the recipient or the Trust, whichever is responsible for acquisition activities.
(2) Techniques and methods used by the appraiser shall substantially conform to the Uniform Standards of Professional Appraisal Practice, as defined in Florida Statutes Chapter 475
(3) The party responsible for acquisition activities shall provide to the appraiser all pertinent title information developed in the title report, a specification of the rights to be acquired, a list of items, if any, considered to be noncompensable, minimum appraisal requirements that apply, required appraisal forms or formats, and an appraisal map or certified survey.
(4) An appraiser shall be approved whose name appears on the list of approved appraisers of the Florida Communities Trust. The Florida Communities Trust shall include on its list of approved appraisers any appraiser who is on the list of approved appraisers on file with the Division of State Lands, Department of Environmental Protection. The list of approved appraisers shall be on file for public examination in the offices of the Trust.
(5) Section 125.355(1)(a), F.S., for counties, and Section 166.045(1)(a), F.S., for municipalities, require that in any case in which a county or municipality, pursuant to the provisions of this section, seeks to acquire by purchase any real property for a public purpose, every appraisal must be in writing.
(6) The party responsible for acquisition activities shall obtain at least one appraisal by an approved appraiser for each purchase in an amount less than $500,000.00. For each purchase in an amount greater than $500,000.00, the party responsible for acquisition activities shall obtain at least two appraisals by approved appraisers.
(7) Determination of Maximum Approved Purchase Price.
(a) For purposes of calculating the Trust and the recipient shares of the purchase price paid for real property, a maximum approved purchase price shall be determined. The Trust grant approval agreement will describe financial participation by the Trust and the recipient on a percentage basis. The Trust considers that the maximum purchase price in which it will participate shall be the maximum approved purchase price. If the recipient or its agent negotiates a purchase price higher than the maximum approved purchase price, the recipient shall pay all the purchase price amount over the maximum approved purchase price, in addition to the local match percentage share of the maximum approved purchase price.
(b) Appraisals shall be reviewed by a review appraiser who is employed by or under contract to the Trust. The review appraiser must meet the same qualifications as appraisers who conduct the appraisals. The review appraiser must certify to the Trust that the appraisals have been conducted substantially in accordance with this rule chapter and with correct appraisal standards and methods, and must certify the appraised value(s) of the subject real property. This certified value shall be referred to hereinafter as “”the maximum approved purchase price.””
(c) The maximum approved purchase price shall be the value indicated in a single reviewed and approved appraisal if only one appraisal is required. If two appraisals are obtained and approved when only one is required by this rule chapter, the maximum approved purchase price shall be the higher value indicated in the appraisals, so long as the higher appraisal value is not greater than 120% of the lower appraisal value.
(d) The maximum approved purchase price of a project site or parcel within a project site shall not exceed the higher value indicated in the two appraisals that have been reviewed and approved by the review appraiser.
(e) If two appraisals are required and their values do not differ significantly, the maximum approved purchase price shall be the higher value indicated in the two appraisals. The two appraisals, shall be considered to differ significantly if the higher of the two values exceeds 120% of the lower value.
(f) When two appraisals required under subsection (6), above, differ significantly, the following steps shall be taken:
1. The review appraiser shall request that the two appraisers review the differences in their respective reports to attempt to rectify their value conclusions so that the two value conclusions are not significantly different,
2. A third appraisal shall be obtained if the two appraisals differ significantly and the differences cannot be rectified as in the above paragraph,
3. A third appraisal shall not be obtained if the decision is made by the party responsible for acquisition activities to negotiate an acquisition price of no more than 120% of the lower of the two reviewed and approved appraisals,
4. If a third appraisal is obtained and reviewed and approved, the maximum approved purchase price shall be the value contained in the higher of the two closest appraisals, so long as the two closest appraisals do not differ significantly. If the two closest appraisals differ significantly, 120% of the lower of the two appraisals shall be the maximum approved purchase price.
Rulemaking Authority Florida Statutes § 380.507(11). Law Implemented 259.101, 375.045, 380.501-.515 FS. History-New 7-7-94, Formerly 9K-6.007.
Terms Used In Florida Regulations 62-817.007
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(3) The party responsible for acquisition activities shall provide to the appraiser all pertinent title information developed in the title report, a specification of the rights to be acquired, a list of items, if any, considered to be noncompensable, minimum appraisal requirements that apply, required appraisal forms or formats, and an appraisal map or certified survey.
(4) An appraiser shall be approved whose name appears on the list of approved appraisers of the Florida Communities Trust. The Florida Communities Trust shall include on its list of approved appraisers any appraiser who is on the list of approved appraisers on file with the Division of State Lands, Department of Environmental Protection. The list of approved appraisers shall be on file for public examination in the offices of the Trust.
(5) Section 125.355(1)(a), F.S., for counties, and Section 166.045(1)(a), F.S., for municipalities, require that in any case in which a county or municipality, pursuant to the provisions of this section, seeks to acquire by purchase any real property for a public purpose, every appraisal must be in writing.
(6) The party responsible for acquisition activities shall obtain at least one appraisal by an approved appraiser for each purchase in an amount less than $500,000.00. For each purchase in an amount greater than $500,000.00, the party responsible for acquisition activities shall obtain at least two appraisals by approved appraisers.
(7) Determination of Maximum Approved Purchase Price.
(a) For purposes of calculating the Trust and the recipient shares of the purchase price paid for real property, a maximum approved purchase price shall be determined. The Trust grant approval agreement will describe financial participation by the Trust and the recipient on a percentage basis. The Trust considers that the maximum purchase price in which it will participate shall be the maximum approved purchase price. If the recipient or its agent negotiates a purchase price higher than the maximum approved purchase price, the recipient shall pay all the purchase price amount over the maximum approved purchase price, in addition to the local match percentage share of the maximum approved purchase price.
(b) Appraisals shall be reviewed by a review appraiser who is employed by or under contract to the Trust. The review appraiser must meet the same qualifications as appraisers who conduct the appraisals. The review appraiser must certify to the Trust that the appraisals have been conducted substantially in accordance with this rule chapter and with correct appraisal standards and methods, and must certify the appraised value(s) of the subject real property. This certified value shall be referred to hereinafter as “”the maximum approved purchase price.””
(c) The maximum approved purchase price shall be the value indicated in a single reviewed and approved appraisal if only one appraisal is required. If two appraisals are obtained and approved when only one is required by this rule chapter, the maximum approved purchase price shall be the higher value indicated in the appraisals, so long as the higher appraisal value is not greater than 120% of the lower appraisal value.
(d) The maximum approved purchase price of a project site or parcel within a project site shall not exceed the higher value indicated in the two appraisals that have been reviewed and approved by the review appraiser.
(e) If two appraisals are required and their values do not differ significantly, the maximum approved purchase price shall be the higher value indicated in the two appraisals. The two appraisals, shall be considered to differ significantly if the higher of the two values exceeds 120% of the lower value.
(f) When two appraisals required under subsection (6), above, differ significantly, the following steps shall be taken:
1. The review appraiser shall request that the two appraisers review the differences in their respective reports to attempt to rectify their value conclusions so that the two value conclusions are not significantly different,
2. A third appraisal shall be obtained if the two appraisals differ significantly and the differences cannot be rectified as in the above paragraph,
3. A third appraisal shall not be obtained if the decision is made by the party responsible for acquisition activities to negotiate an acquisition price of no more than 120% of the lower of the two reviewed and approved appraisals,
4. If a third appraisal is obtained and reviewed and approved, the maximum approved purchase price shall be the value contained in the higher of the two closest appraisals, so long as the two closest appraisals do not differ significantly. If the two closest appraisals differ significantly, 120% of the lower of the two appraisals shall be the maximum approved purchase price.
Rulemaking Authority Florida Statutes § 380.507(11). Law Implemented 259.101, 375.045, 380.501-.515 FS. History-New 7-7-94, Formerly 9K-6.007.