On December 19, 2019, I am presenting a free video webinar about the essential elements of California AB 5 in specific relation to AMCs and their contractual relationships with appraisers and appraisal firms.
When it comes to E&O insurance, all appraisers should take the time to understand the concepts of “claims made” and “prior acts” coverage in their policies. Let’s start with this basic fact — all E&O insurance sold to appraisers and similar professions is “claims made” insurance coverage. To understand how claims made Read more…
Note: Readers can now find cases, laws and articles relating to appraiser independent contractor classification in the “AB 5 Center.” California’s AB 5 and the ABC test are creating new challenges for the retention of appraisers as independent contractors by appraisal management companies (AMCs) and appraisal firms. I don’t expect Read more…
I’ve had many questions from appraisers, appraisal management companies (AMCs) and attorneys about independent contractor classification of appraisers under AB 5, California’s new “gig worker law,” and in relation to my earlier article on the subject. Is the work of independent contractor appraisers outside the “usual course of business” of Read more…
Note: Readers can now find cases, laws and articles relating to appraiser independent contractor classification in the “AB 5 Center.” Appraisal firms and appraisal management companies utilizing independent contractor appraisers in California need to get familiar with Assembly Bill 5 (AB 5) – California’s new “gig worker” law. As was Read more…
Thank you to the Appraisal Institute and its team for publishing my book Risk Management for Real Estate Appraisers and Appraisal Firms. The book gives practical guidance about liability risk associated with appraisal work and the operation of appraisal firms. The topics range from appraisal negligence to non-compete agreements, appraiser Read more…
This is a common question that I’m asked by because many lawsuits against appraisers are filed years after the appraisal, sometimes 10 or more years later. The reason for this is that the plaintiff suing an appraiser may not have known there was a problem with the appraisal at the Read more…
Overtime class actions by residential real estate appraisers have ravaged large appraisal firms and management companies for the last six years. The first signs that overtime litigation under the federal Fair Labor Standards Act (FLSA) would become a widespread and significant legal problem for appraisal firms and AMCs came in Read more…
Today, the California Court of Appeal, Third Appellate District certified for publication its recent decision in a case entitled Tindell v. Murphy. The case involved mortgage borrowers who sued a real estate appraiser blaming the appraiser for a purchase they made in 2005 at the peak of the real estate bubble. The trial Read more…
Classifying “staff appraisers” as independent contractors, rather than as employees, is a very common business practice among real estate appraisal firms. And, of course, appraisal management companies (AMCs) use a business model that depends entirely on panels of independent contractor appraisers who fulfill orders for appraisals that managed by the Read more…