New Jersey Appraisal Management Company (AMC) Bonds
What is a New Jersey Appraisal Management Company (AMC) Bond?
An Appraisal Management Company Bond is a type of surety bond required of appraisal management companies (AMCs) by the NJ Real Estate Appraiser Board for all licensees and new applicants in accordance with Assembly Bill 1973. The coverage amount of the bond is $25,000 and the purpose is to protect customers and the state of New Jersey from financial damages incurred as a result of the bonded AMC's violation of state laws or the regulations set out by the New Jersey Real Estate Appraiser Board.
Appraisal Management Company Bonds And Getting Your New Jersey Business License/Registration
A real estate appraisal is an independent and unbiased estimate of the value of real property. An appraiser is hired by a consumer or lender (usually a mortgage company or a bank) to estimate the value of a property. The appraisal can be used to determine if the value of the property is adequate to support a proposed loan. A lender hires an appraiser when the consumer is applying for a primary mortgage or home equity loan.
The New Jersey Legislature created the State Real Estate Appraiser Board to regulate the appraisal management profession and evaluate the credentials of applicants for licensure and certification. The Board issues licenses in the following categories; real estate appraisers, residential appraisers, certified general appraisers and apprentice appraisers. Only licensed or certified appraisers are permitted to appraise real estate in New Jersey. The following is a list of key steps required to obtain New Jersey Appraisal Management Company License.
- Complete the pre-registration education course
- Pay the application fee
- Meet experience requirements set forth by the State Real Estate Appraiser Board
- Pass a real estate appraiser certification examination
- Furnish surety bond in a penal sum of $25,000