Surety Bond to Be Required from NJ Real Estate Appraisal Management Companies
As of November 11, 2017, real estate appraisal management companies in New Jersey are required to obtain a surety bond in order to remain licensed. This change came into effect after Assembly Bill 1973 was passed in early May.
NJ has joined at least 20 other states requiring the Real Estate Appraisal Management Companies to be bonded. The bond amount required is $25,000. The surety bond guarantees the appraiser will comply with the regulations laid out in the license agreement. This includes doing business honestly. If a company is found to be in breach of state laws, and has acted dishonestly by misleading its clients, a claim may be filed against the surety bond. If a claim is paid by the surety company, the real estate appraisal management company will be required to indemnify the surety company. A claim will also most likely result in the cancellation of the bond by the surety and make it extremely difficult to find a surety company to take on the risk. Bottom line is – avoid surety claims if you wish to remain in business.
Click here if you wish to apply for the surety bond: Apply