Master Engagement Agreement for Appraisal Services
Parties:
This Agreement is made between
AppraiserVendor.com LLC, located at 3195 W. Fairview Road, Suite A., Greenwood IN 46142 ("AppraiserVendor "), and
the Appraisal Firm and all appraisers within the firm who acknowledges the Agreement below (“Appraiser”)
on the executed date below (“effective date”).
1. Appraisal Services. AppraiserVendor from time to time may request Appraiser to perform services described in a subsequent separate request, order, engagement form, or other similar written manner of engaging the services of Appraiser under the terms and conditions of this Agreement and under the Standard Engagement Terms and Conditions and Appraisal Guidelines (“Terms and Conditions”) of the individual engagements, which Terms and Conditions (as the same may exist from time to time) are agreed to be integrated into this Agreement as if restated herein in their entirety.
2. AMC State Registration. AppraiserVendor’s current State Appraisal Management Company (“AMC”) license number information may be found on AppraiserVendor order details page.
3. Appraiser License. Appraiser warrants and represents that Appraiser (and as applicable, assistants and subcontractors of Appraiser) have the ability, experience, and required and appropriate licenses, permits, and certifications to perform services related to this Agreement as well as individual engagements of services by AppraiserVendor. AppraiserVendor may require Appraiser to furnish proof of licenses at any time. Appraiser agrees to report to AppraiserVendor any revocation, cancellation, non-renewal, voluntary forfeiture, lawsuit against or other similar actions related to licenses that limit or reflect on the ability to perform appraisals in any State, district, or territory, and agrees to report to Property Interlink actions by other entities, including without limitation GSEs, HUD, FHA, and lenders, that limit ability to perform appraisals for lending related purposes. Such reporting by Appraiser must be in writing to AppraiserVendor upon discovery or knowledge of.
4. Information Provided. The Appraiser certifies that information communicated by Appraiser regarding coverage areas and geographic competence, product knowledge and competence, methodology competency in: Sales Comparison, Income Approach, and Cost Approach, experience, work samples, qualifications, licensure, and all other information provided to Property Interlink on Appraiser’s application and all other documents and communications are factual and correct.
5. Compliance with Laws and Rules. At all times while performing services pursuant to this Agreement, Appraiser (and as applicable, assistants and subcontractors of Appraiser) will comply with and perform assignments in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”), Appraisal Independence Requirements under Dodd-Frank and related rules and regulations, Fair Housing Act, Real Estate Settlement Procedures Act, Truth in Lending Act, and all other federal, state, and local laws, rules, standards, and codes that are applicable to Appraiser.
6. Background Checks. AppraiserVendor may require Appraiser to submit criminal background checks in accordance with applicable laws.
7. Convictions – Appraiser must report to AppraiserVendor if they have ever been convicted of or currently under investigation of a felony offense.
8. Appraiser to disclose any and all disciplinary actions, state warnings, and reprimands to AppraiserVendor before panel approval and at anytime after an action occurs. Failure to comply may result in removal from the panel.
9. Performance of Services. Services under this Agreement must be performed by Appraiser or assistants supervised by Appraiser within the limits of laws and the USPAP. Appraiser may not subcontract assignments without express prior written permission from AppraiserVendor. Appraiser is not prohibited from retaining secretarial, clerical, or data-entry personnel.
10. Code of Conduct and Professionalism. In all cases when performing services, Appraiser (and as applicable, assistants and subcontractors of Appraiser) agrees to:
- maintain an appropriate and professional dress code;
- act and communicate in a respectful and appropriate manner toward all individuals;
- respect borrowers’ and contacts’ time and property; and,
- adhere to state, federal, and all applicable laws, rules, and regulations.
11. Indemnification. Appraiser indemnifies AppraiserVendor for the acts or omissions of Appraiser. Appraiser will hold harmless and indemnify AppraiserVendor, its directors, officers, employees, agents, and representatives, as well as any client of AppraiserVendor for whom a service is being performed, against all loss, liability, penalty, damage, expense, cost, including attorney’s fees of any kind, to person, property, or both, arising out of any action or inaction of the Appraiser, related to this Agreement, including without limitation non-compliance with applicable laws and regulations. Appraiser is not responsible for acts or omissions of AppraiserVendor or a AppraiserVendor client.
12. Confidentiality.
1. Information may be provided to Appraiser that is “Confidential Information”, which is information that is proprietary, private, or confidential to AppraiserVendor or its clients including but not limited to non-public personal information related to consumer and/or customers of AppraiserVendor’s clients. Confidential Information is not information that is otherwise available to the public, was already known by Appraiser (with written evidence) at the time of disclosure of that information, was or becomes available to Appraiser from a source other than the owner if the source would normally be legally allowed to share the information, or Appraiser independently develops the information.
2. Appraiser agrees to keep Confidential Information with strict safeguards, to not copy, reproduce, sell, market, license, transfer, or give Confidential Information to third parties, and to use Confidential Information only in a manner appropriate for the purposes of completing the services under this Agreement. Appraiser agrees to protect the security and confidentiality of all non-public personal information in accordance with the Gramm-Leach-Bliley Act and other applicable laws, regulations, and rules related to the confidentiality of information.
13. Insurance.
1. Appraiser shall at all times under this Agreement maintain its own professional liability insurance (i.e., errors and omissions Insurance) covering damages arising from the services delivered by Appraiser under this Agreement. Appraiser’s E & O Insurance shall have a minimum liability limit of $500,000 per claim and $1,000,000 in aggregate for all claims (or the per-claim and aggregate limits required by law, whichever are greater), and be issued by an insurance carrier having a Best’s Financial Strength rating of A- or better. The E & O Insurance policy shall not contain a “regulatory agency exclusion” or any other exclusion for defense or damages relating to claims arising out of failed financial institutions or claims made by the Federal Deposit Insurance Corporation or any other state or federal regulator or insurer of banks, mortgage lenders, or other financial institutions.
2. Under this Agreement, Appraiser will have the E & O Insurance provider provide a certificate of insurance coverage evidencing Appraiser’s current E & O Insurance and providing for 30 days advance notice of cancellation or termination to AppraiserVendor.
3. Appraiser may change insurance carriers but must keep prior acts or retroactive coverage covering the dates under which services were provided to AppraiserVendor.
4. Appraiser must maintain coverage or have extended reporting period coverage (or “tail coverage”) for a period of 3 years after Appraiser’s last service for AppraiserVendor.
14. Termination. AppraiserVendor and Appraiser have the right to terminate this Agreement at any time with written notice. In the event of termination, AppraiserVendor will be liable to Appraiser for undisputed fees for completed services rendered up to the date of termination. In the event of termination, the following three sections survive and remain in full force and effect: Indemnification, Confidentiality, and Insurance sections. AppraiserVendor may terminate this Agreement and consequently not select Appraiser for future engagement if Appraiser fails to meet any terms of this Agreement (or individual assignment engagements); in such cases, AppraiserVendor will provide written notice to Appraiser, identifying the reasoning and describing a rebuttal process.
15. Competency. By accepting this written Agreement, Appraiser certifies that Appraiser satisfies the Competency Rule of the USPAP and will ensure and certify for each assignment accepted that Appraiser
- is competent in appraising the property type of a subject property;
- is competent in the geographic area in which a subject property is located;
- has access to appropriate data sources that are necessary for the assignment;
- will immediately notify AppraiserVendor if Appraiser later determines he or she is not competent; and,
- is aware that misrepresenting his or her competence may be subject to mandatory reporting by AppraiserVendor.
16. Compensation. Fees for individual assignments will be disclosed and agreed upon at the time of engagement. Payment will be made to Appraiser within 45 forty-five days after Appraiser delivers to AppraiserVendor the final completed appraisal report that meets requirements of the engagement (or as required by law or rule, whichever is longer). Appraiser will not invoice or collect funds from the lender or any other parties. THIS SECTION 14 DOES NOT APPLY TO EMPLOYEE-APPRAISERS OF AppraiserVendor. SEPARATE PAYMENT ARRANGEMENTS ARE DOCUMENTED FOR EMPLOYEE APPRAISERS.
17. Independent Contractor. Appraisal Firm and all appraisers within the firm will act solely as an independent contractor in the performance of its services under this Agreement, and nothing contained or implied herein shall at any time be construed to create a relationship of employer and employee, partnership, principal and agent, or joint venture partner between Appraiser, AppraiserVendor or any client of AppraiserVendor. Appraisal Firm and all appraisers within the firm is expected to regularly contract with other businesses besides AppraiserVendor to provide the same types of real estate appraisal services under this Agreement. Firm further understands and agrees that it is free, and expected, to maintain its own clientele and to provide services to other customers, including direct competitors to AppraiserVendor without any restrictions from AppraiserVendor. THIS SECTION 15 DOES NOT APPLY TO EMPLOYEE-APPRAISERS OF AppraiserVendor (AN APPRAISER IS AN EMPLOYEE-APPRAISER ONLY IF OTHER SEPARATE DOCUMENTATION HAS BEEN AGREED TO BY THE APPRAISER AND AppraiserVendor).
18. Agreement. This Agreement (including any exhibits, addendums, attachments, or similar engagement or communications) supersedes any and all oral or written agreements as to the subject matter of the agreements. This Agreement may be changed only in writing accepted by both parties.
19. Acceptance. AppraiserVendor’s delivery of a request for Appraiser to perform services as described in a separate request, order, engagement form, or other similar manner of engaging the services of Appraiser after the effective date by AppraiserVendor indicates Appraiser’s acceptance of this Agreement.
20. Severability. If any provision in this Agreement is found invalid or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated. Headings are for reference purposes only and in no way define, limit, or describe the scope or extent of sections.
21. Arbitration. If any controversy or claim arises out of or related to this Agreement, and if the parties cannot settle the claim or controversy through negotiation, then upon notice by either party to the other, the parties shall settle the controversy or claim, together with any counterclaim(s) which would be compulsory under the Indiana Rules of Trial Procedure, by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The place of the arbitration shall be Johnson County, Indiana. An arbitrator mutually acceptable to the parties shall handle the arbitration. The arbitrator may not make any ruling, finding, or award inconsistent with this Agreement. Neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration proceeding. The award of the arbitrator shall include a reasoned opinion.
22. Amendments and Changes. This Agreement may be changed by written or electronic methods, including without limit acknowledgements via a website or portal.
23. I certify that I am geographically competent in the coverage area(s) and types of properties listed on my vendor profile, and that I am competent in Sales Comparison, Income Approach, and Cost Approach methodologies.
This Agreement is executed by Appraiser and AppraiserVendor, via physical or electronic signature below or via electronic website/portal acknowledgement.