Leadership in the NC Chapter of the Appraisal Institute and the NC Professional Appraisers Coalition continue to work together to oppose Senate Bill 690.  In fact, today, NCAI President Kelli Mayhew, MAI, SRA, and NCPAC President Linda G. Nelson, submitted a letter to Senator Danny Earl Britt, Jr.; Senator Todd Johnson; and Senator Eddie D. Settle of the Committee on Commerce and Insurance concerning SB 690 (see the letter below).

The chapter is immensely grateful to the tireless efforts of NCAI Government Relations Committee Chair Shep Overton, and Scott DiBiasio, Director of Government Affairs for the Appraisal Institute, for leading our legislative push to protect NC appraisers from the unintended consequences of multiple bills introduced this spring, including SB 690.

Many thanks to Mike Elwell, MAI, SRA; Kelli Mayhew, MAI, SRA; Greyson Morgan, MAI; Brian Crowder, MAI, SRA; and Nathan Pippin, SRA, for their support of GRC.  And special thanks to NCAI chapter member Linda Nelson, who is currently serving as the 2025 President of NCPAC and has been acting as the liaison between NCAI and NCPAC for this initiative. 

Joint letter to Senator Danny Earl Britt, Jr.; Senator Todd Johnson; and Senator Eddie D. Settle of the Committee on Commerce and Insurance

April 21, 2025

Senator Danny Earl Britt, Jr.
Senator Todd Johnson
Senator Eddie D. Settle
Committee on Commerce and Insurance
300 North Salisbury Street
Raleigh, NC 27603

RE: Strong Opposition to SB 690 – “Modifying Licensing Real Estate Appraisers”

Dear Chairs Britt, Johnson, Settle, and Distinguished Committee Members:

The North Carolina Chapter of the Appraisal Institute (NCAI) and the North Carolina Professional Appraisers Coalition (NCPAC) respectfully and strongly urge you to oppose SB 690, “Modifying Licensing Real Estate Appraisers.” As written, this legislation threatens to undermine a critical pathway into the appraisal profession and poses serious consequences for North Carolina’s real estate market and economy.

PAREA – A Modern, Essential Solution

The Practical Applications of Real Estate Appraisal (PAREA) was developed to address a long-standing barrier in our profession: the difficulty many aspiring appraisers face in securing a supervisor to train them. PAREA provides a modern, technology-driven alternative — approved by the national Appraiser Qualifications Board (AQB) — offering real-world appraisal scenarios in a virtual environment that equip aspiring appraisers with the skills and experience they need to become qualified appraisers.

North Carolina adopted PAREA in 2023, recognizing its value to ensure the continued viability of the appraisal profession. However, the effective date of the North Carolina Appraisal Board’s (NCAB) rules to implement PAREA were delayed until December 31, 2025 by SL 23-137. Now SB 690’s proposed significant state-specific restrictions threaten to render this tool ineffective, especially for those seeking the Certified Residential (CR) credential. The bill would force PAREA participants to obtain a Licensed Residential (LR) credential first, complete 50 reviewed in-state appraisals, or work as an LR for five years—effectively eliminating PAREA as a viable path for certification. No other state has imposed burdensome additional requirements on aspiring appraisers choosing to utilize the PAREA pathway, as would be the case in NC if SB 690 is enacted.

This is not progress—it’s a step backward for the appraisal profession and for North Carolina!

Proven Success with PAREA

The Appraisal Institute (AI) launched the first AQB-approved PAREA program in 2023. Already, 29 aspiring appraisers have completed the program, with 19 passing the National Uniform Licensing Exam on their first attempt—a pass rate that surpasses traditional training models. At least one of these individuals has obtained a credential in North Carolina through reciprocity, which SB 690 proposes to eliminate. An additional 153 aspiring appraisers are currently working through PAREA’s practice and final assignments, and we have a waiting list of 296 aspiring appraisers wanting to get into the program.

Participants in PAREA are thoroughly challenged, tested, and prepared. The evidence is clear: PAREA works. Aspiring appraisers who complete PAREA are every bit as competent— if not more so— than those trained through the traditional supervisor model. There is no valid reason to impose significant additional experience requirements upon aspiring appraisers wishing to obtain the CR credential. The additional requirements are simply unnecessary, and this bill is a protectionist stunt requested by a very small group of disaffected North Carolina appraisers pulling the wool over the eyes of a large, and powerful, statewide real estate organization. Notably, the aforementioned real estate organization has not opposed PAREA in ANY other jurisdiction. Why is this group opposing PAREA in NC? No one knows, and they cannot provide an acceptable answer other than “We had to do it the traditional way, therefore everyone else should be required to do it that way as well.”

National Momentum, Local Resistance

Across the country, 51 jurisdictions have adopted, or are in the process of adopting, PAREA without imposing unnecessary barriers on aspiring appraisers. Only one state has added state-specific requirements—and even those pale in comparison to the burdens proposed in SB 690.

North Carolina should be leading, not lagging.

Reciprocity – Protecting Access to Specialized Talent

SB 690 also risks cutting North Carolina off from highly qualified appraisers across state lines. By tying reciprocal licensing to "substantially similar" requirements—including PAREA restrictions no other state imposes—the bill would effectively block reciprocal licensing, especially for commercial and specialized appraisal services.

This harms North Carolina businesses and property owners who rely on experienced, out-of-state appraisers for complex assignments. Worse, it raises serious constitutional concerns. The bill’s reciprocity provisions may violate the Interstate Commerce Clause and federal law (12 USC 3351(b)), which mandates that states recognize out-of-state appraisers who meet national qualifications. North Carolina cannot impose its own requirements for reciprocity that conflict with federal law.

The Bottom Line

SB 690 is unnecessary, unproductive, and potentially unconstitutional. It creates new barriers where none are needed, stifles innovation in the profession, and limits access to qualified professionals at a time when the real estate market demands flexibility and expertise.

We urge this Committee to reject SB 690 and reaffirm North Carolina’s commitment to fair, modern, and forward-thinking appraiser licensure practices.

Thank you for considering our position. Should you have questions or wish to discuss further, please feel free to contact me at (803) 407-6446 or [email protected], Linda Nelson at [email protected] or Scott DiBiasio, Appraisal Institute Director of Government Affairs at (202) 298-5593 or [email protected].

Sincerely,