New Jersey Assembly Bill 1973, which was passed on May 11, 2017, requires companies involved in real estate appraisal to post a $25,000 surety bond in order to become registered. The State Real Estate Appraiser Board will adopt the bill on September 11, 2017, and appraisal management companies will need to be officially registered by November 11, 2017.
What other costs are involved in registration?
Companies seeking registration will also need to pay an application fee of no more than $2,500. Appraisal management companies seeking a renewal of registration may also be subject to a processing fee.
How long will the registration be effective?
Any registration granted by the State Real Estate Appraiser Board in accordance with this new law is effective for one year and may be renewed annually for as long as the appraisal management company wishes to conduct real estate appraisals in the state of New Jersey.
Are real estate appraisal bonds common?
New Jersey will become the twenty-first state to require an appraisal management bond in order to become licensed and registered.
What will the surety bond do?
The purpose of a surety bond is to reimburse those who suffer a loss or damage as a result of companies not meeting the requirements of a bond. In the case of loss or damage, a claim may be filed against the bond and the surety will pay the restitution up to the face value of the bond, in this case $25,000. Then, if a claim is made and the surety has to pay for the loss or damage, the principal (or the company that obtained the bond) must pay back the surety.
How do I get an appraisal management bond?
Our experts at SuretyBonds.com have the knowledge and experience with appraisal management bonds to make the bonding process quick and easy. For questions about New Jersey real estate appraisal management bonds, call 1 (800) 308-4358 or click below for your free, no obligation quote.