- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- North Carolina
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.