The Appraisal Board Process

Filing of the Complaint

What happens:

• All complaints must be in writing. The Board does not investigate verbal or anonymous complaints.

• In some cases, the Board may open a complaint on its own motion (for example, based on information it receives from another source).

• Once received, the Board determines whether the matter falls within its jurisdiction—for instance, whether it involves an NC-licensed or certified appraiser and whether it concerns conduct the Board regulates.

• The Board also considers whether the complaint is actually a request for advice or clarification, rather than a disciplinary matter.

• The Complainant receives a letter acknowledging receipt, but they are not a party to the case and have no control over its outcome.

• If the complaint is opened, the Respondent (the appraiser) receives a Letter of Inquiry and a copy of the complaint. The Board usually requests a copy of the appraisal report and work file.

What you should do:

• Gather and preserve all appraisal-related materials, including your work file, notes, communications, and relevant data.

• Do not alter or add to your files after the fact.

• Contact an attorney experienced in NC licensing defense before submitting your response. An attorney can help you organize your materials and frame your response effectively.

Predetermination Committee Review

What happens:

• If staff determines that a complaint should not be opened for investigation, the matter is reviewed by the Predetermination Committee.

• The Committee decides whether to close the matter or direct the Board to open an investigation.

What you should do:

• If you’ve received an inquiry but no investigation has been announced, your attorney can help prepare a response that demonstrates compliance and discourages escalation.

Investigation Phase

What happens:

• Once opened, the scope of the investigation depends on the nature of the complaint.

• Board staff focus on the specific allegations but have authority to expand the investigation if additional potential violations (especially USPAP-related) emerge.

• In certain cases, the Board may order a comprehensive investigation into other appraisal work—typically where there is evidence of fraud or a pattern of negligence.

• Investigators may request more documents, review appraisal files, interview witnesses, and sometimes travel to the subject property’s location to gather evidence.

• The investigation results are then summarized and presented to the Board.

What you should do:

• Cooperate fully but carefully. Provide requested materials promptly and accurately.

• Avoid informal communication with investigators without counsel.

• Keep your attorney updated on all correspondence and document requests.

Probable Cause Determination

What happens:

• At a regular Board meeting, the results of the investigation are presented anonymously to Board members.

• The Board reviews the facts, potential violations, and staff recommendations.

• Board members who may have prior knowledge or bias recuse themselves.

• At this stage, the Board may:

  • Dismiss the case outright,

  • Dismiss with a warning letter,

  • Dismiss with conditions (such as requiring additional education),

  • Request further investigation, or

  • Find probable cause and move forward to a hearing.

• Both the Respondent and Complainant are notified of the Board’s decision.

What you should do:

• If probable cause is found, prepare immediately for a potential hearing.

• Review the investigation summary with your attorney and develop your defense strategy.

Formal Hearing or Settlement

What happens:

• If probable cause exists, the matter proceeds toward a hearing before the Board.

• Before a hearing, Board counsel often attempts to resolve the matter through a Consent Order (a negotiated settlement).

• If settlement is not reached, a Notice of Hearing—listing the facts and alleged violations—is sent at least 15 days before the hearing.

• The Board allows reasonable continuances, especially for a first request.

• During this stage, further investigation, subpoenas, or depositions may occur.

• If a settlement is reached, the proposed Consent Order is presented in closed session at the next Board meeting, where the Board may accept, reject, or modify it.

What you should do:

• Work closely with your attorney to explore settlement options early; many cases resolve by consent.

• If proceeding to hearing, prepare thoroughly—organize exhibits, identify witnesses, and refine your testimony.

Final Decision and Publication

What happens:

• If the case is settled or heard, the Board announces its final decision in open session.

• Disciplinary actions that result in a reprimand or greater are published in the Board’s Appraisereport newsletter.

• If the Board issues an adverse decision after a hearing, you have the right to appeal to Superior Court.

What you should do:

• If you receive a proposed Consent Order, review it carefully before signing. Your attorney can help negotiate terms or conditions.

• If a final order imposes discipline, consider whether there are valid grounds for appeal (such as lack of evidence, procedural errors, or due process violations).