The State of South Dakota’s Appraisal Management Company Registration Program has been recently amended to require a South Dakota appraisal management company surety bond from EVERY registrant operating within the state. The new surety bond requirement is effective as of July 1st, 2014. The statute defines an appraisal management company as an entity or person that does any of the following: a.) Recruit, select, and retain appraisers. b.) Contract with licensed or certified appraisers to perform appraisal assignments. c.) Manage the process of having an appraisal performed, including providing administrative duties including receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and/or reimbursing appraisers for services performed. d.) Review and verify the work of appraisers for compliance with the Uniform Standards of Professional Appraisal Practice.
Pursuant to 36-21D-13, an appraisal management company shall continuously maintain the surety bond or irrevocable letter of credit required by § 36-21D-12 on file with the Department of Labor and Regulation in the amount of twenty-five thousand dollars ($25,000 bond) for the exclusive purpose of payment of the obligations listed in subdivision 36-21D-12(1). Upon termination, cancellation, or reduction of the surety bond or irrevocable letter of credit to less than twenty-five thousand dollars, the registered appraisal management company shall file a replacement surety bond or irrevocable letter of credit within the time period established by the department by rule or surrender the company’s registration to the department and cease operating as an appraisal management company.
The appraisal management company bond and application, or any questions about registration and bonding should be submitted as follows:
South Dakota Appraiser Certification Program
Appraisal Management Company Surety Bond
308 South Pierre Street
Pierre, SD 57501
email: appraisercertification@state.sd.us
South Dakota surety leader, Surety One, Inc. is a specialist in the bonding needs of the appraisal profession. We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a South Dakota appraisal management company surety bond application or information on ANY surety bonding need. También recuerden que nuestra asesoría está disponible en SU idioma.
