{"id":370,"date":"2017-12-11T16:51:18","date_gmt":"2017-12-11T16:51:18","guid":{"rendered":"http:\/\/www.performancesuretybonds.com\/blog\/?p=370"},"modified":"2022-01-24T16:04:28","modified_gmt":"2022-01-24T16:04:28","slug":"surety-bonds-required-new-jersey-real-estate-appraisal-management-companies","status":"publish","type":"post","link":"https:\/\/www.performancesuretybonds.com\/blog\/surety-bonds-required-new-jersey-real-estate-appraisal-management-companies\/","title":{"rendered":"Surety Bonds Required for New Jersey Real Estate Appraisal Management Companies"},"content":{"rendered":"

\"new-jersey-real-estate-bond\"<\/p>\n

As of November 11, 2017, any business operating as a real estate appraisal management company in New Jersey<\/a> was required to have a surety bond in place to become officially registered with the Real Estate Appraiser Board. This change is due to the adoption of Assembly Bill 1973, which was passed in May 2017 and was officially adopted on September 11, 2017. The bill allowed a 60-day period for businesses to become compliant with the new regulations.<\/p>\n

How Will These New Regulations Impact Real Estate Appraisal Management Companies in New Jersey?<\/h2>\n

The biggest change appraisal management companies will see is the introduction of surety bonds as a requirement of the registration process. Up until now, appraisal management companies were not required to provide any form of financial security in order to operate in New Jersey. The new regulations require all AMCs to secure a $25,000 surety bond in order to apply for registration. This surety bond will need to be maintained for the duration of the registration period, which is generally one year. The surety bond and registration with the Real Estate Appraisal Board will need to be renewed annually.<\/p>\n

The registration process is becoming stricter in a number of other ways including the requirement of applicants to pass a pre-registration education course and real estate appraiser certification exam. Applicants will also need to meet a set of experience standards and pay an application\/renewal fee.<\/p>\n

Understanding How Real Estate Appraisal Management Company Surety Bonds Work<\/h2>\n

For many appraisal management company owners, this may be the first time they\u2019ve had to purchase a surety bond so it\u2019s essential that they learn what is a surety bond<\/a> and how it can affect their business. In the case of the bond required for appraisal management companies, this is a type of license and permit bond<\/a>.<\/p>\n

A surety bond is a contract between three parties:<\/p>\n

    \n
  1. The\u00a0principal<\/strong><\/a>\u00a0who is the business or individual purchasing the bond<\/li>\n
  2. The\u00a0obligee<\/strong><\/a>\u00a0who is the agency, business or individual who requires the bond<\/li>\n
  3. The\u00a0surety<\/a><\/strong>\u00a0who is the underwriter of the bond<\/li>\n<\/ol>\n

    The surety bond provides a form of financial security that can be claimed against if the appraisal management company fails to follow state and federal regulations that result in financial loss to another party. If a successful claim is made the surety will pay compensation up to the amount of the bond, which in this case is $25,000. However, it is important to understand that surety bonds are not insurance and if a claim is made against the bond, appraisal management company will be responsible for repaying the claim amount to the surety.<\/p>\n

    Staying Up-To-Date with Current Regulations is Essential to Running a Successful Business<\/h2>\n

    Changing industry regulations can have a huge impact on your business, especially when it comes to financial obligations. Finding the right surety bond at an affordable price can help keep your business moving forward. Viking Bond<\/a> Service President, Mike Herranen, and his team of licensed agents closely follow all changes in bonding requirements to ensure that they can help you find the best bond for your business. Call us today for help finding the bond you need for your real estate appraisal management company.<\/p>\n

    Source:<\/strong><\/p>\n

    http:\/\/www.njbiz.com\/article\/20171112\/INDINSIGHTS\/171119981\/surety-bond-to-be-required-from-nj-real-estate-appraisal-management-companies<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    As of November 11, 2017, any business operating as a real estate appraisal management company in New Jersey was required to have a surety bond in place to become officially registered with the Real Estate Appraiser Board.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[71,72,69,8],"class_list":["post-370","post","type-post","status-publish","format-standard","hentry","category-blog","tag-new-jersey","tag-real-estate-bonds","tag-surety-bond-news","tag-surety-bonds"],"yoast_head":"\nSurety Bonds Required for NJ Real Estate Appraisal Mgmt Companies<\/title>\n<meta name=\"description\" content=\"As of 11\/11\/17, any business operating as a real estate appraisal management company in New Jersey was required to have a surety bond in place.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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