Effective February 1, 2015, appraisal management companies (AMCs) in Virginia must obtain a $100,000 surety bond from the Virginia Department of Professional and Occupational Regulation to legally operate in the state. All appraisal management companies must also receive an approved license from the Real Estate Appraiser Board effective February 1. The purpose of this new legislation is to enforce stricter regulation of appraisal management companies to help ensure the compliance with state law and faithful business practices.

What are the new bond requirements?

• $100,000 bond
• Holds principal responsible if there is failure to comply with Title 54.1, Chapter 20.2 of the Code of Virginia
• Aggregate liability of surety cannot exceed penal sum of bond ($100,000)
• Valid until AMC license expires, at which bond automatically renews for additional 2-year licensure periods unless the surety notifies the Real Estate Appraiser Board at least 60 days prior to expiration that it wishes to cancel the bond

What are the licensing requirements?

• Name, business address, phone contact and email for individual or entity applying for licensure
• Name, address and contact information for any owner with at least 10% in the company
• If the entity is not located in Virginia, proof that the entity is registered with the Virginia State Corporation Commission
• Proof that the entity has a system in place to ensure compliance with the Uniform Standards of Professional Appraisal Practice
• Proof that the entity maintains detailed record of:
  • every request for an appraisal service the AMC receives
  • the name of every appraiser that conducts appraisal
  • addresses of subject property
  • name of AMC’s clients
  • amount paid to the appraiser
  • amount paid to the AMC
• Proof that the entity has a system in place to ensure compliance with Section 129E of the Truth in Lending Act

The license application for AMCs in Virginia is available here. All appraisal management companies must receive approved licenses from the Real Estate Appraiser Board by February 1, 2015.

What’s the Next Step?

Since these regulations went into effect February 1, you must secure your bond as soon as possible in order to meet legal requirements for doing business in Virginia as an appraisal management company. Ensure you obtain licensure by contacting a reliable surety provider. The surety experts at SuretyBonds.com are available to answer any questions you might have at 1 (800) 308-4358 and can get your bond application processed today. You can also submit an application request online here.