Property Appraisal Bonds
A Property Appraisal Bond is required for licensed property appraisers to ensure compliance with state laws and regulations. This bond protects clients and the public by guaranteeing that appraisers perform their duties ethically, accurately, and professionally.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected]
Why You Need a Property Appraisal Bond
Property Appraisal Bonds are necessary to:
- Comply with state licensing regulations
- Protect consumers and clients from financial harm
- Demonstrate professional credibility
- Maintain an active appraisal license
- Avoid fines, penalties, or license suspension
Without a valid bond, an appraiser may be prohibited from legally performing appraisals.
Property Appraisal Bond FAQs
These are some of the most common questions asked about Property Appraisal Bonds and how they work.
A Property Appraisal Bond is a surety bond mandated by many states for professional property appraisers. It guarantees that the appraiser will follow state appraisal laws, act honestly, and properly manage client and public interests.
If an appraiser engages in fraud, misrepresentation, or violates licensing regulations, a claim may be filed against the bond to recover losses.
The cost of a Property Appraisal Bond is a small percentage of the total bond amount, usually 1%–10% annually, depending on:
Bond amount required by the state
Applicant’s credit and financial history
Professional experience
Claims history
For example, a $50,000 bond may cost $500–$5,000 per year based on underwriting factors.
A Property Appraisal Bond is a three-party agreement:
Principal: The property appraiser or appraisal firm
Obligee: The state regulatory or licensing authority
Surety: The bonding company issuing the bond
If a valid claim is filed due to fraud, negligence, or noncompliance, the surety pays up to the bond limit. The appraiser or firm must reimburse the surety for any claims paid.
A Property Appraisal Bond is typically required for:
- Licensed residential appraisers
- Licensed commercial appraisers
- Appraisal management companies (AMCs)
- Independent appraisal firms
Each state sets specific bond amounts and requirements to ensure compliance with professional and ethical standards.
Call us at 407-786-7770 or email us at [email protected]