How much does an Appraisal Management Company Bond cost in Missouri?

The Appraisal Management Company Bond (also known as the Appraisal Bond or Management Company Bond) in Missouri is a financial guarantee that most appraisal management companies must obtain to operate their business in Missouri. This bond protects consumers and the state from fraudulent activities, contract breaches, or other issues related to the operations of appraisal management companies in Missouri.

Key points about the Appraisal Management Company Bond

License Requirement: In most U.S. states, including Missouri, appraisal management companies are required to provide a bond as part of the process of obtaining a business license.
Consumer Protection: If an appraisal management company violates the law, provides false information, or infringes on consumer rights, clients or the state of Missouri may file a claim against the bond to recover damages.
Bond Amount: Depending on the state and business type, the bond amount may vary. In Missouri, appraisal management companies typically require a bond amount of $20,000. Companies pay only a portion of this amount as a premium for the bond, similar to an insurance premium.
Appraisal Management Company Obligations: Appraisal management companies must comply with all laws and regulations governing their operations. Violations may result in claims against the bond.

What does an Appraisal Management Company do?

An Appraisal Management Company coordinates and manages the appraisal process, working with appraisers, banks, and financial institutions to provide independent property appraisals.

Example: Boris and his Appraisal Management Company

Boris is an experienced businessman who owns an appraisal management company in Missouri. His company manages the appraisal process for banks and mortgage companies, helping them evaluate the value of properties for loans and deals. However, Boris’s company once violated regulatory requirements by providing an inaccurate appraisal. Clients filed a complaint with the state of Missouri, resulting in a claim against Boris’s bond. As a result, Boris lost his financial guarantee and faced legal consequences.

How much does an Appraisal Management Company Bond cost in Missouri?

The bond cost for an Appraisal Management Company in Missouri is $50 per year for a bond amount of $20,000. The standard rate is 1.000% of the bond amount. Discounts are available for multi-year contracts, with savings of up to 25% for subsequent years.

Example: How Boris lost his bond

Boris, the owner of an appraisal management company, made mistakes in his appraisal reports, resulting in a claim against his bond. As a result, Boris lost his financial guarantee and faced legal and financial repercussions.

Frequently Asked Questions

How much does an Appraisal Management Company Bond cost in Missouri?

The bond cost varies from $50 per year for a bond amount of $20,000. Companies can receive discounts for multi-year contracts.

Do I need a bond to run an Appraisal Management Company in Missouri?

Yes, a bond is required to obtain a business license in Missouri for appraisal management companies.

How can agents arrange a bond for Appraisal Management Companies in Missouri?

Agents can arrange a bond for Appraisal Management Companies in Missouri through the agent’s online portal here.

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Execution Notes
Bond is electronically signed by the Surety Attorney in Fact.

Filing Method
Executed bond must be filed with the obligee by agent/principal.
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