Master Engagement Agreement for Services
Parties:
This Agreement is made between
Financial Asset Services, Inc., hereinafter referred to as [“FAS”] who is located at 17752 Mitchell North, Suite A, Irvine CA 92614, and
The Appraiser or Real Estate Agent | Broker who acknowledge the Agreement below, are hereinafter referred to as [“Appraiser”] or Real Estate Agent | Broker, hereinafter referred to as [“Agent”] on the executed date below (“effective date”).
1. Appraisal Services. FAS 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. FAS is licensed as a national Appraisal Management Company. It’s current State AMC license number is found on the Financial Asset Services order details page / engagement letter.
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. Financial Asset Services requires Appraisers to furnish proof of licenses as part of the boarding process and reserves the right to make such a request at any time thereafter.
Whereas, Appraiser agrees to report to FAS 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 the state agency they are licensed by, FHA and/or any GSEs, lenders, that limit the Appraiser’s ability to perform appraisal services. Such reporting by Appraiser must be in writing to Financial Asset Services upon discovery or knowledge thereof.
3(a) Agent represents that he/she is versed and familiar with the subject property market area.
3(b) Agent represents that he/she will prepare the BPO in a professional manner and follows the guidance referenced in the BPO Standards and Guidelines [“BPOS&G”] issued by the National Associations of Broker Price Opinion Professionals.
4. Agent | Broker Declaration | Real Estate Agent(s) or Broker(s) who engage in providing Broker’s Price Opinion [“BPO”] will provide licensing information as part of the Agent/Broker boarding process as well as appropriate insurance coverage.
4(a) Insurance | Appraiser or Agent shall at all times maintain professional liability insurance [“E&O Insurance”] covering damages arising from the services delivered by Appraiser or Agent under this Agreement. 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.
4(b) Under this Agreement, Appraiser / Agent will have the E&O Insurance provider provide a certificate of insurance coverage evidencing current E&O Insurance and providing for 30-days advance notice of cancellation or termination to FAS.
4(c) Appraiser / Agent may change insurance carriers but must keep prior acts or retroactive coverage covering the dates under which services were provided to FAS.
4(d) Appraiser / Agent must maintain coverage or have extended reporting period coverage (or “tail coverage”) for a period of 3 years after Appraiser’s last service for FAS.
4(e) FAS reserves the right to request updated documentation any time.
5. 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 Property Interlink on Appraiser’s application and all other documents and communications are true and correct.
6. 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 [“AIR”] as promulgated by federal and state law, and related rules and regulations, Fair Housing Act, Real Estate Settlement Procedures Act [“RESPA”], Truth in Lending Act [“TILA”], and all other applicable federal, state, and local laws, rules, standards, codes and industry best practices.
7. Background Checks. FAS will require licensing information for the sole purpose of conducting a background check to ensure the appraiser is active and in good standing with the state board in which the subject property is situated in.
8. Performance of Services. Services under this Agreement must be performed by Appraiser or assistants supervised by Appraiser within requirements set forth by USPAP, GSE standard as well as any relevant federal or state mandates. Appraiser may not subcontract assignments without express prior written permission from FAS. Appraiser is not prohibited from retaining secretarial, clerical, or data-entry personnel to assist in the preparation of the appraisal report.
9. Code of Conduct and Professionalism. In all cases when performing services, Appraiser (and as applicable, assistants and subcontractors of Appraiser) will
- 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.
10. Indemnification. Appraiser and/or Agent hereby indemnifies FAS for the acts or omissions of Appraiser and/or Agent only. Appraiser and/or Agent will hold harmless and indemnify FAS, its directors, officers, employees, agents, and representatives, and any client of Financial Asset Services 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 FAS or an FAS client.
11. Confidentiality.
1. Information may be provided to Appraiser and/or Agent that is “Confidential Information”, which is information that is proprietary, private, or confidential to Financial Asset Services or its clients including but not limited to non-public personal information related to consumer and/or customers of FAS clients. Confidential Information is not information that is otherwise available to the public, was already known by Appraiser and/or Agent (with written evidence) at the time of disclosure of that information, was or becomes available to Appraiser / Agent from a source other than the owner if the source would normally be legally allowed to share the information, or Appraiser / Agent independently develops the information.
2. Appraiser / Agent 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 / Agent agrees to protect the security and confidentiality of all non-public personal information in accordance with the Gramm-Leach-Bliley Act [“GLBA”] and other applicable laws, regulations, and rules related to the confidentiality of information.
12. Termination. FAS and Appraiser / Agent have the right to terminate this Agreement at any time with written notice. In the event of termination, FAS will be liable to Appraiser/ Agent 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. FAS may terminate this Agreement and consequently not select Appraiser / Agent for future engagements if Appraiser / Agent fails to meet any terms of this Agreement (or individual assignment engagements); in such cases, FAS will provide written notice to Appraiser / Agent identifying the reasoning and describing a rebuttal process.
13. Competency. By accepting this Agreement, Appraiser certifies that he/she satisfies the USPAP Competency Rule and will ensure and certifies for each assignment accepted that the Appraiser
- is competent in appraising the property type of a subject property,
- is competent in the geographic area in which a subject property is situated,
- has access to appropriate data sources that are necessary for the assignment,
- will immediately notify FAS if Appraiser later determines he/ she is not competent, and
- is aware that misrepresenting his or her competence may be subject to mandatory reporting by FAS.
13(a). By accepting this Agreement, Agent certifies that he/she is comp[tent in the preparation of a BPO and will adhere to the guidance promulgated by the aforementioned BPOS&G.
Whereby Agent represents he/she will notify FAS immediately and withdraw from the assignment if he/she is not competent and/or familiar with the subject property market area.
14. Compensation. Fees for individual assignments will be disclosed and agreed upon at the time of engagement. Payment will be made to Appraiser within 60 Sixty days after Appraisal or BPO is delivered to FAS. The final completed appraisal report that meets requirements of the engagement (or as required by law or rule, whichever is longer). Appraiser or agent will not invoice or collect funds from the lender, Consumer or other parties.
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, Financial Asset Services or any client of Financial Asset Services.
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. FAS delivery of a request for Appraiser or BPO to perform services as described in a separate request, order, engagement form, or other similar manner of engaging the services of Appraiser or Agent after the effective date by FAS indicates Appraiser’s or Agent’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 or Agent and FAS, via physical or electronic signature below or via electronic website/portal acknowledgement.