South Carolina Appraisal Management Companies Need a Surety Bond

Determining the value of a home is an important step for many home owners and home buyers, and an experienced appraisal management company is needed for everyone to receive a fair assessment.

Reasons for needing a home appraisal include:

• To determine fair market value of the property when selling a house
• For a lender to determine if the value of the house is worth the money they are lending
• Refinancing a home
• Obtaining a home equity line of credit
• Collateral for a business loan
• Tax reassessment

Appraisal management companies are a third party in the home buying or refinance process. They develop an opinion of a home's true value, and the results can have a big effect on homeowners. An inefficient appraisal could cause transactions to fall through, or result in property owners paying more in taxes. An appraisal that is too high could result in lenders lending more money than the house is actually worth.

South Carolina's Real Estate Appraisers Board is under the state's Department of Labor, Licensing and Regulation. The board regulates the appraisal industry in order to protect the public's real estate transactions. One of the registration requirements for Appraisal Management Companies is to obtain a $50,000 surety bond or other form of security.

Obligee and Surety Bond Requirements

South Carolina's Real Estate Appraiser's Board is the obligee that requires Real Estate Appraisal Management Companies to obtain a $50,000 surety bond or another form of security. A surety bond must be purchased from a surety company that is licensed in South Carolina. SuretyGroup.com is licensed to write all surety bonds in South Carolina and fulfills this requirement.

The surety bond ensures that real estate management companies operate legally and ethically. The bond covers payment for administrative or judicial penalties, or any loss to a person as a result of a violation by the appraisal management company.

Application/Registration Requirements Include:

• Provide contact information
• Provide corporate documents
• Obtain a $50,000 surety bond
• Provide proof that:
  • the company has a system in place for hiring licensed or certified appraisers who are in good standing in the state
  • the company has a system to review the work of independent appraisers that ensure their services are conducted according to professional standards
  • the company has a system in place that requires appraisals to be conducted independently and honestly
• A criminal background check of all controlling persons and individuals who own 10% or more of the company

How Much Does This Bond Cost?

The premium you pay for a South Carolina Appraisal Management Company Surety Bond is dependent on the owner's credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

South Carolina Appraisal Management Companies must register with the South Carolina Real Estate Appraisers Board.

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