Get An Instant Quote on Washington State Appraisal Management Company Bonds Now
| Washington State Appraisal Management Company (Sole Proprietor) $100,000 Bond |  |
| Washington State Appraisal Management Company (Partnership) $100,000 Bond | |
| Washington State Appraisal Management Company (Corporation) $100,000 Bond | |
Introduction
A Washington State Appraisal Management Company (AMC) is a business entity that administers a network of licensed real estate appraisers to provide appraisal services for real estate transactions involving mortgages. These companies act as intermediaries between lenders and appraisers to ensure independent, unbiased property valuations and compliance with federal and state regulations.
To protect consumers, appraisers, and financial institutions, Washington law requires AMCs to post a surety bond (typically $100,000), which serves as a financial guarantee that the AMC will follow applicable laws and contractual duties.
Explanation: Washington State Appraisal Management Company Bond
A Washington State Appraisal Management Company (AMC) Bond is a type of surety bond required by the Washington State Department of Licensing (DOL) for entities that operate as appraisal management companies within the state. This bond serves as a financial guarantee that the AMC will adhere to all applicable state laws and professional regulations governing real estate appraisals and appraisal management practices.
Purpose of the AMC Bond
The main purpose of the bond is to:
-
Ensure compliance with Chapter 18.310 of the Revised Code of Washington (RCW), which regulates AMCs.
-
Provide a mechanism for the state or affected parties to file claims in the event of violations, such as:
-
Non-payment to independent appraisers.
-
Breach of ethical duties or contractual obligations.
-
Misrepresentation or fraud.
-
Bond Requirements
According to RCW 18.310.040, appraisal management companies must:
-
Maintain a $100,000 surety bond as a condition of licensing.
-
Submit proof of the bond to the Department of Licensing during initial application and at each license renewal.
-
Keep the bond active and valid at all times to avoid suspension or revocation of the AMC license.
Need a Washington State Master Esthetician School Bond.
Parties Involved
-
Principal: The appraisal management company (the bond purchaser).
-
Obligee: Washington State Department of Licensing.
-
Surety: The bonding company that issues the bond and guarantees payment in the event of a claim.
Claims and Liability
If an AMC violates the law or fails to meet contractual obligations, a claim may be filed against the bond. If the claim is found valid:
-
The surety pays damages up to the bond amount.
-
The AMC is legally responsible to reimburse the surety.
Find a Washington State Appraisal Management Company (Partnership) $100,000 Bond.
Step-by-Step Guide to Obtaining a Washington State AMC Bond
Ensure Eligibility for AMC Licensing
Before applying for the bond, confirm that your company meets the Washington State Department of Licensing (DOL) requirements:
-
Possess a valid business license through the Business Licensing Service.
-
Appoint a Designated Controlling Person responsible for compliance.
-
Implement procedures to verify that appraisers on your panel hold valid Washington licenses.
-
Establish a system for periodic review of appraisal work.
-
Maintain detailed records of service requests and appraisal reports.
Complete the Bond Application
Provide necessary information, which may include:
-
Company details (name, address, type of entity).
-
Personal and financial information of owners with 10% or more ownership.
-
Credit history and financial statements.
Obtain the $100,000 Surety Bond
Upon approval, the surety company will issue the bond. Ensure that the bond form is correctly completed and signed by both the principal (your company) and the surety. The bond must comply with the requirements set forth in RCW 18.310.
Submit the Bond with Your License Application
Include the original signed bond with your AMC license application. You can apply:
-
Online
-
By Mail
Await License Approval
The DOL will review your application, including the bond and background checks. Once approved, your AMC license will be issued. Note that the license is valid for one year and must be renewed annually.
Get a Washington State Franchisor $100,000 Bond.
Conclusion
Obtaining the bond is a key part of the licensing process through the Washington Department of Licensing (DOL). It demonstrates your company’s financial responsibility and commitment to maintaining industry standards. Working with a licensed surety bond provider—such as Swiftbonds—can simplify the process by offering competitive rates and fast approval, especially for qualified applicants.
Failure to maintain this bond may result in license suspension or revocation, underscoring the importance of timely renewal and ongoing compliance. By securing and maintaining your AMC bond, you reinforce your company’s credibility and legal standing within Washington’s real estate and appraisal industry.
Frequently Asked Questions (FAQs):
How long is the bond valid?
The bond is typically valid for one year and must be renewed annually to remain compliant with Washington DOL requirements.
Where can I purchase this bond?
You can obtain it through a licensed surety bond provider such as Swiftbonds, which offers online applications and competitive rates.
Can the bond be canceled?
Yes, surety companies can cancel the bond by providing 60 days’ written notice to the Department of Licensing, giving the AMC time to replace or renew the bond to stay in good standing.
Is the bond refundable?
No, bond premiums are generally non-refundable, even if the business closes or discontinues operations before the bond term ends.
Is personal credit checked when applying for the bond?
Yes, most surety providers will evaluate the owner’s personal credit as part of the underwriting process. Good credit typically leads to lower bond premiums.
Can I get this bond with bad credit?
Yes, but expect to pay a higher premium rate—often in the range of 5% to 15% of the bond amount. Swiftbonds and similar providers offer programs for applicants with challenged credit.
Does the bond replace insurance?
No. A surety bond is not the same as liability insurance. The bond guarantees regulatory compliance and financial accountability but does not cover general business liabilities.