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Real Estate Advisors Defense Institute

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 MEMBER RESOURCES

Risk Reviews

In this section, READI's advisors evaluate various contracts, products and services pertaining to appraisers and provide frank information about the potential liability risks that appraisers may face. Our team has evaluated hundreds of appraiser contracts, AMC agreements and new valuation products over the last two decades. We look forward to sharing that expertise with READI members.

The review below was first published on April 22, 2011. In mid-June 2011, LandSafe released a very slightly revised version of its contractor agreement. As far as our review, the only relevant change is the addition of the wording "except as otherwise prohibited by law" at the beginning of section 14.1 regarding indemnification and some very minor edits. The new wording in section 14.1 enables LandSafe to contend that this section of the agreement no longer violates [More]
This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. Many lenders are requiring that AMCs provide extensive representations and warranties in appraisal service agreements in order to receive appraisal work. These “reps and warrants” may involve the AMC contractually promising to the lender that appraisals delivered by the AMC’s panel appraisers will co... [More]
This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. Appraisers and the AMCs they contract with are being put at risk by new “no frills” E&O insurance policies sold to appraisers as “E&O tickets.” The central problem is that these policies provide no coverage for most of the claims that appraisers are now facing. While advertisements for this t... [More]
WARNING: THE REVIEW BELOW IS OUTDATED. LSI HAS SINCE CHANGED ITS STANDARD CONTRACTOR AGREEMENT.  AMONG OTHER THINGS, LSI'S NEW AGREEMENT CONTAINS A ONE-SIDED INDEMNIFICATION CLAUSE. This review of the LSI Appraisal Independent Contractor Agreement is as of August 14, 2011.  It is provided solely for LIA insured appraisers and READI members.  If you are reading this review on a site other than readimember.org, then you are reading a version of the article that has been republished... [More]
We have reviewed the independent contractor agreement and appraiser engagement materials of StreetLinks Lender Solutions for the purpose of providing information to LIA’s insured appraisers and READI members about liability risks and related professional liability (E&O) insurance concerns. This review is of the materials as of March 29, 2011.  The documents we reviewed are those included in StreetLinks’ standard appraiser engagement package and consist of a letter from Stre... [More]