Florida Regulations 5I-7.009: Appraisal Procedures, Report Requirements and Determining Maximum Amounts
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(1) The Department shall only use appraisers and review appraisers licensed or certified in accordance with Florida Statutes Chapter 475 The Department is authorized to contract directly with qualified appraisers and review appraisers pursuant to Florida Statutes Chapter 287
(2) Specific Project Appraiser Selection. Appraisers to be solicited for appraisal assignments will be those with competency in the area of specialization required by the proposed appraisal assignment, with additional consideration given to production time, cost efficiency, and contemplation of additional appraisal services in a specific Project area.
(3) For increased time and cost efficiency, for recurring needs for additional appraisal services in a specific project area or for a specific parcel, use of the same appraisers used for these previous services is allowed.
(4) The development and reporting of all appraisal services by the appraiser and review appraiser shall be in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP), Supplemental Standards, as adopted in subsection 18-1.002(23), F.A.C., this rule (Fl. Admin. Code Chapter 5I-7), and the Department’s specific assignment to the appraiser.
(5) The Department shall make available to the appraiser all pertinent title information developed, 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 a certified survey or appraisal map.
(6) The appraisal report shall state any extraordinary assumption or hypothetical condition made by the appraiser in determining market value and shall document and adequately support the appraiser’s estimate or conclusion as to value.
(7) The appraisal report shall be accompanied by a sales history of the parcel for the prior five years. Such sales history shall include all parties and considerations with the amount of consideration verified, if possible.
(8) When two appraisals are required under Section 270.715(1)(b)1., F.S., a third appraisal shall be obtained if the two appraisals differ significantly. Two appraisals shall be considered to differ significantly if the higher of the two values exceeds 120% of the lower value. However, a third appraisal shall not be obtained if the decision is made by the Department to attempt to negotiate an acquisition price of no more than 120% of the lower of the two appraisals.
(9) Determining the maximum amount:
(a) The maximum amount that may be paid for a Perpetual Easement shall be the value indicated in a single approved appraisal if only one appraisal is required. If two appraisals are obtained and approved when only one is required by law, the maximum value shall be the higher of the appraisals, regardless of their divergence.
(b) If two appraisals are required by law and their values do not differ significantly, the maximum amount that may be paid for the parcel shall be the higher value indicated in the two approved appraisals.
(c) If a third appraisal is obtained and approved, the maximum amount that may be paid for the parcel shall be the value contained in the higher of the two closest appraisals as 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 value.
(10) Appraisal Reviews:
(a) Appraisal reviews will be conducted for each parcel by qualified review appraisers in accordance with USPAP requirements. Appraisals and appraisal review reports shall be submitted to the Department for the purpose of determining maximum amounts that may be paid for perpetual easements.
(b) For parcels with values greater than $500,000 an appraisal review will be developed and reported according to the requirements of Standard 3 of the USPAP, the Supplemental Standards, and the specific requirements of the assignment. For parcels with values of $500,000 or less, a cursory review by a qualified appraiser will be conducted for assurance that requirements of the assignment were met.
(11) All appraisers will be required to submit an affidavit, pursuant to Section 570.715(1)(b)2., F.S., substantiating that they have no vested or fiduciary interest in any property for which appraisal services will be awarded.
(12) Contract appraisal fees shall be paid by the Department.
Rulemaking Authority 570.07(23), 570.71(10), 259.105(3)(i) FS. Law Implemented 570.71, 570.715, 259.105(3)(i) FS. History—New 11-3-08, Amended 4-14-15, 6-12-23.
Terms Used In Florida Regulations 5I-7.009
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
(3) For increased time and cost efficiency, for recurring needs for additional appraisal services in a specific project area or for a specific parcel, use of the same appraisers used for these previous services is allowed.
(4) The development and reporting of all appraisal services by the appraiser and review appraiser shall be in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP), Supplemental Standards, as adopted in subsection 18-1.002(23), F.A.C., this rule (Fl. Admin. Code Chapter 5I-7), and the Department’s specific assignment to the appraiser.
(5) The Department shall make available to the appraiser all pertinent title information developed, 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 a certified survey or appraisal map.
(6) The appraisal report shall state any extraordinary assumption or hypothetical condition made by the appraiser in determining market value and shall document and adequately support the appraiser’s estimate or conclusion as to value.
(7) The appraisal report shall be accompanied by a sales history of the parcel for the prior five years. Such sales history shall include all parties and considerations with the amount of consideration verified, if possible.
(8) When two appraisals are required under Section 270.715(1)(b)1., F.S., a third appraisal shall be obtained if the two appraisals differ significantly. Two appraisals shall be considered to differ significantly if the higher of the two values exceeds 120% of the lower value. However, a third appraisal shall not be obtained if the decision is made by the Department to attempt to negotiate an acquisition price of no more than 120% of the lower of the two appraisals.
(9) Determining the maximum amount:
(a) The maximum amount that may be paid for a Perpetual Easement shall be the value indicated in a single approved appraisal if only one appraisal is required. If two appraisals are obtained and approved when only one is required by law, the maximum value shall be the higher of the appraisals, regardless of their divergence.
(b) If two appraisals are required by law and their values do not differ significantly, the maximum amount that may be paid for the parcel shall be the higher value indicated in the two approved appraisals.
(c) If a third appraisal is obtained and approved, the maximum amount that may be paid for the parcel shall be the value contained in the higher of the two closest appraisals as 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 value.
(10) Appraisal Reviews:
(a) Appraisal reviews will be conducted for each parcel by qualified review appraisers in accordance with USPAP requirements. Appraisals and appraisal review reports shall be submitted to the Department for the purpose of determining maximum amounts that may be paid for perpetual easements.
(b) For parcels with values greater than $500,000 an appraisal review will be developed and reported according to the requirements of Standard 3 of the USPAP, the Supplemental Standards, and the specific requirements of the assignment. For parcels with values of $500,000 or less, a cursory review by a qualified appraiser will be conducted for assurance that requirements of the assignment were met.
(11) All appraisers will be required to submit an affidavit, pursuant to Section 570.715(1)(b)2., F.S., substantiating that they have no vested or fiduciary interest in any property for which appraisal services will be awarded.
(12) Contract appraisal fees shall be paid by the Department.
Rulemaking Authority 570.07(23), 570.71(10), 259.105(3)(i) FS. Law Implemented 570.71, 570.715, 259.105(3)(i) FS. History—New 11-3-08, Amended 4-14-15, 6-12-23.