Appraisal Management Bond

Appraisal management bonds provide a financial guarantee that companies will fulfill their duties according to laws that regulate their state's appraisal industry. When necessary, these bonds are used to reimburse those who are damaged by companies that fail to do so. Because appraisal management bonds are fairly new to the surety market, those in the appraisal industry should educate themselves about their use.

Appraisal Management Bond Costs

SuretyBonds.com can approve 99% of applicants who apply for an appraisal management bond. The needed surety bond amount (or penal sum) will impact how much a company pays for its bond. Appraisal management bond amounts vary by state. To date, premiums for these bonds are calculated similarly to other license and permit bonds, which is about 1% of the bond amount for applicants with strong financial credentials. SuretyBonds.com also offers premium financing options to those who might need help paying their premium.

State-specific Appraisal Management Bonds

To date, 10 states require appraisal management companies to file surety bonds with the state agency that regulates the industry. Those who plan to operate appraisal management companies across multiple states must get a separate bond for each state that requires one. As such, they should understand all applicable bonding regulations for the states that require them.

Arkansas Appraisal Management Bonds

Section 17-14-406(b) of the Arkansas Code Annotated requires those intending to operate appraisal management companies to file a $20,000 surety bond, deposit of cash or deposit of security with the Arkansas Appraiser Licensing and Certification Board.

An Arkansas appraisal management bond guarantees the faithful performance of the companyıs obligations. The bond amount can be used to benefit claims against the company if necessary. Consumer claims are given priority in recovering the bond.

Download the Arkansas Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

Arkansas Appraiser Licensing and Certification Board
101 E. Capitol, Ste. 430
Little Rock, AR 72201

Arizona Appraisal Management Bonds

Under section 32-3667 of the Arizona Revised Statutes, those intending to operate appraisal management companies must file a $20,000 surety bond with the Arizona Board of Appraisal during the license and registration process.

Download the Arizona Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

Arizona Board of Appraisal
1400 W. Washington, Ste. 360
Phoenix, AZ 85007

Georgia Appraisal Management Bonds

Under section 43-39A-11 of the Official Code of Georgia Annotated, the Georgia Real Estate Appraisers Board has the right to establish rules or regulations that require appraisal management companies to provide proof of financial responsibility. As such, the Georgia Real Estate Appraisers Board requires applicants registering appraisal management companies to maintain a $20,000 Georgia surety bond.

Download the Georgia Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

Georgia Real Estate Appraisers Board
1000 International Tower
229 Peachtree Street NE
Atlanta, Georgia 30303

Kentucky Appraisal Management Bonds

On July 15, 2011, Kentucky Governor Steven L. Beshear enacted an emergency administrative regulation that requires appraisal management companies to file a $500,000 surety bond with the Kentucky Real Estate Appraisers Board. The bond will reimburse any person who is damaged by companies who fail to provide appraisal management services according to state law.

The Kentucky Appraisal Management Bond is not currently available for download.

For information on the Kentucky Appraisal Management Bond, applicants may contact:

Kentucky Real Estate Appraisers Board
135 W. Irvine Street, Ste. 301
Richmond, KY 40475
(859) 623-1658

Missouri Appraisal Management Bonds

The unanimously passed Missouri Appraisal Management Company Registration and Regulation Act requires appraisal management companies in Missouri to post a $20,000 surety bond as of January 1, 2011. The law was enacted to provide a standard of conduct for Missouri appraisers, further protect the consumer and establish increased accountability. The changes aim to eliminate conflicts of interest on mortgage appraisals.

The Missouri Appraisal Management Bond is not currently available for download.

For information on the Missouri Appraisal Management Bond, applicants may contact:

Missouri Division of Professional Registration
Real Estate Appraisers Commission
P.O. Box 1335
Jefferson City, MO 65102
(573) 751-0038

Nebraska Appraisal Management Bonds

Under the Nebraska Appraisal Management Company Registration Act that goes into effect January 1, 2012, appraisal management companies must file a $25,000 surety bond. The bond will benefit of any person who is damaged by any violation of the law.

The Nebraska Appraisal Management Bond is not currently available for download.

For information on the Nebraska Appraisal Management Bond, applicants may contact:

Nebraska Real Property Appraiser Board
P.O. Box 94963
Lincoln, NE 68509
(402) 471-9015

New Mexico Appraisal Management Bonds

Under section 16.65.2.8(G) of the New Mexico Statutes Annotated, appraisal management companies must file a $10,000 appraisal management bond or cash collateral worth $10,000 with the New Mexico Real Estate sAppraisers Board. Payments from a bond claim can only be used to cure violations caused by the company after being confirmed by the board.

Download the New Mexico Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

New Mexico Real Estate Appraisers Board
P.O. Box 25101
Santa Fe, NM 87504

Oregon Appraisal Management Bonds

Under section 3 of the 2010 Oregon Laws Chapter 87, appraisal management companies must file a $25,000 Oregon surety bond with the Department of Consumer and Business Services. The bond protects against negligent or improper real estate appraisal activity by an appraisal management company in accordance with section 3 of the 2010 Oregon Laws Chapter 87.

Download the Oregon Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

Oregon Department of Consumer and Business Services
Division of Finance and Corporate Securities
P.O. Box 14480
Salem, OR 97309

Tennessee Appraisal Management Bonds

Section 1255-08-.01 of the Rules of Tennessee Real Estate Appraiser Commission requires applicants to provide a $20,000 surety bond when applying to operate an appraisal management company. Tennessee appraisal management bonds guarantee the performance of the companyıs professional obligations by accruing to the state for the benefit of potential claimants.

Download the Tennessee Appraisal Management Bond.

Applicants will mail the original copy of their completed bond to:

Appraisal Management Company Registration
Department of Commerce and Insurance
500 James Robertson Pkwy.
Nashville, TN 37243

Washington Appraisal Management Bonds

According to section 18.310 of the Revised Code of Washington, appraisal management companies are expected to post a $25,000 appraisal management bond.

The Washington Appraisal Management Bond is not currently available for download.

The Washington State Department of Licensing will make appraisal management company registration forms available for download during November 2011.

For information on the Washington Appraisal Management Bond, applicants may contact:

Appraisal Management Company Program
Department of Licensing
P.O. Box 9021
Olympia, WA 98507
(360) 664-6504

Maintaining an appraisal management bond as required by law is crucial. Failing to to so is just cause for revocation of an appraisal management company's license. Furthermore, if the bond is canceled, expires or otherwise becomes ineffective during the required bonding period, the appraisal management company should immediately inform whatever government agency required the bond.