Master Engagement Agreement for Appraisal Services
Parties:
This Agreement is made between
Ace Value Management located at 695 S Harvard 2nd Flr, Los Angeles CA 90005 ("Ace Value Management"), and the appraiser who acknowledges the Agreement below (“Appraiser”) on the executed date below (“effective date”).
1. Appraisal Services. Ace Value Management 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 terms and conditions of the individual engagements.
2. AMC State Registration. Ace Value Management’ current State AMC license number information is found on Ace Value Management 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 and individual engagements of services. Ace Value Management may require Appraiser to furnish proof of licenses at any time. Appraiser agrees to report to Ace Value Management 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 us 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 Ace Value Management 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, experience, work samples, qualifications, licensure, and all other information provided to us 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, 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. Ace Value Management may require Appraiser to submit criminal background checks, drug screenings, and/or credit checks in accordance with applicable laws.
7. 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 Ace Value Management Appraiser is not prohibited from retaining secretarial, clerical, or data-entry personnel.
8. Code of Conduct and Professionalism. In all cases when performing services, Appraiser (and as applicable, assistants and subcontractors of Appraiser) will
- 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.
9. Indemnification. Appraiser indemnifies Ace Value Management for the acts or omissions of Appraiser only. Appraiser will hold harmless and indemnify Ace Value Management, its directors, officers, employees, agents, and representatives, and any client of Ace Value Management 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 only, related to this Agreement, including without limitation non-compliance with applicable laws and regulations. Appraiser is not responsible for acts or omissions of Ace Value Management or a Ace Value Management client.
10. Confidentiality.
1. Information may be provided to Appraiser that is “Confidential Information”, which is information that is proprietary, private, or confidential to Ace Value Management or its clients including but not limited to non-public personal information related to consumer and/or customers of Ace Value Management’ 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.
11. Insurance.
1. Appraiser shall at all times under this Agreement maintain professional liability insurance (aka, E & O 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 Ace Value Management.
3. Appraiser may change insurance carriers, but must keep prior acts or retroactive coverage covering the dates under which services were provided to Ace Value Management.
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 Ace Value Management.
12. Termination. Ace Value Management and Appraiser have the right to terminate this Agreement at any time with written notice. In the event of termination, Ace Value Management 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. Ace Value Management 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, Ace Value Management will provide written notice to Appraiser, identifying the reasoning and describing a rebuttal process.
13. 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 Ace Value Management 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 Ace Value Management.
14. Compensation. Fees for individual assignments will be disclosed and agreed upon at the time of engagement. Payment will be made to Appraiser within 30 thirty days after Appraiser delivers to Ace Value Management the final completed appraisal report that meets requirements of the engagement (or as required by law or rule, whichever is longer). Since Ace Value Management will pay Appraiser, Appraiser will not invoice or collect funds from the lender or other parties. THIS SECTION 14 DOES NOT APPLY TO EMPLOYEE-APPRAISERS OF Ace Value Management. SEPARATE PAYMENT ARRANGEMENTS ARE DOCUMENTED FOR EMPLOYEE APPRAISERS.
15. Independent Contractor. Appraiser 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, Ace Value Management or any client of Ace Value Management. THIS SECTION 15 DOES NOT APPLY TO EMPLOYEE-APPRAISERS OF Ace Value Management (AN APPRAISER IS AN EMPLOYEE-APPRAISER ONLY IF OTHER SEPARATE DOCUMENTATION HAS BEEN AGREED TO BY THE APPRAISER AND Ace Value Management).
16. 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.
17. Acceptance. Ace Value Management’ 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 Ace Value Management indicates Appraiser’s acceptance of this Agreement.
18. 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.
19. Governing Law. This Agreement shall be governed and interpreted in accordance with the laws of the State of California.
20. Amendments and Changes. This Agreement may be changed by written or electronic methods, including without limit acknowledgements via a website or portal.
This Agreement is executed by Appraiser and Ace Value Management, via physical or electronic signature below or via electronic website/portal acknowledgement.