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Nj Appraisal Company Bond Requirement

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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Makes you wonder if they bond doctors and dentists, lawyers and accountants, Realtors and mortgage brokers. Otherwise, it sounds like an anti-competitive tax that will not enhance the availability of bringing new people into the industry.

:shrug:
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Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
The purpose of these bonds is to offer protection to the state as well as to appraisal management companies’ clients. Bonds stand to guarantee that appraisers will comply with the conditions laid out in the bond, which are typically the same as those specified in state laws.

This includes doing business honestly, such as performing appraisals in an objective and independent way. If such a company is found to be in breach of state laws, and has acted dishonestly by misleading its clients, the latter may file a claim against the company’s bond.

The surety which backs the bond can provide the compensation if the appraisal company refuses to or cannot do so. For this reason, it is always best to avoid the possibility of giving rise to a claim. In other words, the purpose of the bond is also to serve as a deterrent and ensure that bonded businesses remain compliant.

The bullseye on the chest of every Appraiser in NJ - just got MUCH larger. Evidently a Million$ dollar E&O policy is insufficient.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
The purpose of these bonds is to offer protection to the state as well as to appraisal management companies’ clients. Bonds stand to guarantee that appraisers will comply with the conditions laid out in the bond, which are typically the same as those specified in state laws.

This includes doing business honestly, such as performing appraisals in an objective and independent way. If such a company is found to be in breach of state laws, and has acted dishonestly by misleading its clients, the latter may file a claim against the company’s bond.

The surety which backs the bond can provide the compensation if the appraisal company refuses to or cannot do so. For this reason, it is always best to avoid the possibility of giving rise to a claim. In other words, the purpose of the bond is also to serve as a deterrent and ensure that bonded businesses remain compliant.

The bullseye on the chest of every Appraiser in NJ - just got MUCH larger. Evidently a Million$ dollar E&O policy is insufficient.


Yeah BS.

Not all appraisers work for AMCs, yet, the bond is not limited to only appraisers working for AMCs.

It's anti-competitive, excuse tax BS.

Appraiser licensing fees already pay the state to enforce the state laws against appraisers.

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glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
More desperate states ---come to California everything is passed to protect people- appraisers are an-easy hit they have no political support and everyone hates :)
 

Carlos Danger

Member
Joined
Jul 25, 2015
Professional Status
Certified General Appraiser
State
New Jersey
The bond is for appraisal management companies, not appraisers.
 

Carlos Danger

Member
Joined
Jul 25, 2015
Professional Status
Certified General Appraiser
State
New Jersey
I read the article and I believe it is wrong. The bill (1973) requires real estate appraisal management companies to register and post a $25,000 surety bond.
 
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