Since becoming effective in August of 2011, the Appraisal Management Company Registration Act has served as a method for establishing and maintaining regulations for appraisal management companies (AMCs). One very important element stated in the Act that has frequently been overlooked by applicants in Illinois is the necessity of posting a $25,000 surety bond as a form of financial security for consumers.
According to Section 50 of the Act, AMC licenses and surety bonds are supposed to run parallel to each other within the same timeframe. Recent reports have indicated that a shockingly small amount of registered AMCs in Illinois actually abide by that regulation. Obtaining the proper license in order to practice lawful appraisal services is both required and significant, but posting a surety bond holds equal importance.
Acquiring a license or another form of registration proves to consumers that the AMC has been approved to perform the requested services and is considered to be in good standing with the state. However, it does not necessarily reinforce the protection of consumers against fraudulent or unethical business practices conducted by principals. That is where the purpose of a surety bond comes into play.
By requiring individuals to post a surety bond in order to legally conduct appraisal practices, the Act holds principals accountable to perform services in an honest and respectable manner so that consumers will not suffer financial or other relevant damages committed by the AMC.
A few examples of unprofessional actions that consumers hold immunity against are as follows
- Failing to maintain appropriate recordkeeping
- Operating without approved or designated personnel
- Withholding information about an increase or decrease in property value
- Requesting a peer appraiser to transmit an unsigned document of assignment results
For further information or additional examples, please refer to Section 1452.190 of the Act.
Both licenses and bonds should expire on December 31 of even-numbered years. If it is discovered that registered AMCs do not have a surety bond in their possession while practicing, the revocation or cancellation of licenses can result at any time.
SuretyBonds.com prides itself on successfully working one-on-one with clients in order to guarantee the issuance of the bonds they need both quickly and easily. If you are a current or prospective AMC and need to adjust your existing bond or get a new one that is in compliance with these new regulations in the state of Illinois, please contact one of our agents today. We are available 7 a.m. – 7 p.m. CST Monday through Friday to answer any questions or take your application over the phone for this bond. Call 1 (800) 308-4358 or fill out a bond request form online now.