After the HVCC implemented new rules in the middle of 2009, many appraisers realized they had to work with appraisal management companies they had ignored or avoided before that. Before the rules changed in 2009, appraisers tended to stay away from companies providing Appraisal Management Dallas Texas, or AMCs, and the bad reputations they had. However, with the change of rules, AMC's quickly became the major source of income for many appraisers.
Indemnity Clause- One of the biggest problems in AMC contracts are the indemnity, or "hold harmless" clauses. Because of the mess the industry has gotten itself into, everyone is trying to protect themselves from lawsuits and settlements. What does this mean for the appraiser? If there is a problem with any portion of the appraisal process, the fault will lay on the appraiser's shoulders. The indemnity clause can state that the appraiser will pay all legal fees for the management company as well as their own.
Just as with any legally binding contract, there are stipulations to watch out for. These stipulations can include clauses that benefit the appraisal management companies and leave the appraiser holding the financial bag. If an appraiser is aware of these stipulations, he or she can protect him or herself and still use the AMCs as a viable source of income.
One of these stipulations would be the indemnity clause, which holds the AMC harmless if a problem arises with any part of the assessment. This clause makes the appraiser responsible for the problem and financial responsibility for any legal cost suffered by the AMC, as well as any suffered by the appraiser. Many appraisers seeking to offset any legal costs have bought E&O Insurance. This type of insurance is reasonably priced and offers protection for peace of mind. However, E&O Insurance does not cover any form of an indemnity clause.
Other AMCs have appraisers on staff to review the evaluation reports while others have individuals who are not trained appraisers reviewing evaluations for compliance with lender requirements. These activities often add several days between when an appraisal is delivered to the AMC, and when the AMC delivers the report to the lender. Technology Fees- In addition to taking a cut of the fee for an evaluation, many AMCs also change the appraiser a "technology fee" in order to receive an order.
That is when the appraisal management contract comes in. Your E&O insurance is still in place, so you are covered for anything you did. However, now because of the "hold harmless clause, " you now have to cover all legal costs of the AMC as well.
The best form of protection an appraiser has is knowledge. Since word of the indemnity clause has circulated, a great number of AMCs have changed the contract to make it fairer for the appraiser. If an appraiser is careful, he or she can work with the AMC to utilize their services for a very comfortable income.
What You Should Do? For most appraisers, it is necessary to sign up with AMC's if you are going to stay in business. Read the fine print, and if necessary, hire a professional to help you understand what you are signing. If you are uncomfortable with signing... Don't!
Indemnity Clause- One of the biggest problems in AMC contracts are the indemnity, or "hold harmless" clauses. Because of the mess the industry has gotten itself into, everyone is trying to protect themselves from lawsuits and settlements. What does this mean for the appraiser? If there is a problem with any portion of the appraisal process, the fault will lay on the appraiser's shoulders. The indemnity clause can state that the appraiser will pay all legal fees for the management company as well as their own.
Just as with any legally binding contract, there are stipulations to watch out for. These stipulations can include clauses that benefit the appraisal management companies and leave the appraiser holding the financial bag. If an appraiser is aware of these stipulations, he or she can protect him or herself and still use the AMCs as a viable source of income.
One of these stipulations would be the indemnity clause, which holds the AMC harmless if a problem arises with any part of the assessment. This clause makes the appraiser responsible for the problem and financial responsibility for any legal cost suffered by the AMC, as well as any suffered by the appraiser. Many appraisers seeking to offset any legal costs have bought E&O Insurance. This type of insurance is reasonably priced and offers protection for peace of mind. However, E&O Insurance does not cover any form of an indemnity clause.
Other AMCs have appraisers on staff to review the evaluation reports while others have individuals who are not trained appraisers reviewing evaluations for compliance with lender requirements. These activities often add several days between when an appraisal is delivered to the AMC, and when the AMC delivers the report to the lender. Technology Fees- In addition to taking a cut of the fee for an evaluation, many AMCs also change the appraiser a "technology fee" in order to receive an order.
That is when the appraisal management contract comes in. Your E&O insurance is still in place, so you are covered for anything you did. However, now because of the "hold harmless clause, " you now have to cover all legal costs of the AMC as well.
The best form of protection an appraiser has is knowledge. Since word of the indemnity clause has circulated, a great number of AMCs have changed the contract to make it fairer for the appraiser. If an appraiser is careful, he or she can work with the AMC to utilize their services for a very comfortable income.
What You Should Do? For most appraisers, it is necessary to sign up with AMC's if you are going to stay in business. Read the fine print, and if necessary, hire a professional to help you understand what you are signing. If you are uncomfortable with signing... Don't!
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Get a summary of the things to keep in mind when picking a residential appraisal management Dallas Texas company and more information about a reliable company at http://www.southtexasappraisalmanagement.com/services now.
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