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How much does a Virginia appraisal management company cost?
The Department of Professional and Occupational Regulation – Real Estate Appraiser Board requires appraisal management companies to submit a $100,000 surety bond or irrevocable letter of credit (ILOC) as part of their application in order to receive a license within the state.
Because the required bond amount is so great, it is perceived to be more risky to issue by surety companies. Therefore, applicants for this bond are subject to strict underwriting. For those with exceptional credit, the premium of this bond may be as little as 1.5%—or $1,500—for the entire length of the term.
When the bond’s renewal comes up, underwriters will take another look at the credit of all owners of the company. If credit has improved during the previous term, the principal may qualify for a lower rate.
If you’re ready to get your free, no-obligation quote, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form!
Why do I need this bond?
Providing the board with a bond is part of the licensing requirement for all Virginia appraisal management companies. By submitting a bond, the appraisal management company is acknowledging that they will operate in accordance with all applicable rules and regulations, specifically those established by 54.1-20.2 of the Code of Virginia. Several acts that are prohibited of appraisal management companies include:
- Entering into a contract with an unlicensed independent real estate appraiser
- Prohibiting an appraiser from disclosing fees charged for appraisal services
- Influencing the development, reporting, result, or review of a real estate appraisal by any means
If it is found that an appraisal management company has engaged in any acts defined in section 20.2, including those listed above, a claim of up to $100,000 may be brought against the company’s bond. If it is determined that the claim is valid, the surety will pay to reach a settlement. Once the claim has been settled, it becomes the responsibility of the principal to reimburse the surety for all expenses incurred during the claims process, including the cost of the claim.
Submit a bond request to apply for a Virginia appraisal management company bond today!
How long do I need this bond?
Virginia appraisal management company bonds are issued for two-year terms to run concurrently with the principal’s license and are automatically renewed biennially for as long as the company wishes to keep its license active. However, the surety may opt not to renew the bond by providing written notice to the board, as long as they do so at least 60 days prior to the bond’s renewal date.
If a surety does opt to renew a bond for an appraisal management company, the company must contact another surety ASAP so as to avoid penalization for not having a surety bond.
Appraisal Management Company Bonds Available Nationwide
Many appraisal management companies are licensed to work in multiple states, meaning they are must adhere to different license and bonding requirements. For more information about appraisal management company bonds in other states, visit the SuretyBonds.com Guide to Appraisal Management Company Bonding or select a state from the list below to view each state’s AMC bond requirements.