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The North Carolina Professional Appraisers Coalition (NCPAC) is holding a meeting on Monday in Raleigh, NC and one of the topics to be covered is the new Landsafe Appraiser Services Agreement (ASA).  Many appraisers are concerned over some aspects of the agreement including the following: 1. Lower fees than what is considered "customary and reasonable" in North Carolina.  2. Carrying a higher minimum of E and O insurance than in previously agreed to agreements  3. Keeping appraisal records for 10 years (double what is required by USPAP). 4. Indemnity for many reasons.  5.  Open door policy where appraiser's office can be audited at any time.

I have read the agreement I have chosen not to sign the agreement at this time.  I am also concerned over these issues.  First, the published Landsafe fees are less than what appraiser's standard fees were in the 1990's.  The fees are lower than the published VA fees.  Any survey I have seen has shown higher fees then their published fees.  There are so many more requirements on appraisers now than in the 1990's.  In addition, inflation has occurred over time.  It appears appraisal fees which would be considered "customary and reasonable" should be higher now than in the 1990's.

Second, why would an AMC require more E and O insurance, require an appraiser to keep records for 10 years, and require the appraiser to submit their office and records for "auditing" at any time.  It sounds to me that they are preparing for future litigation with appraisers. 

I plan to attend the meeting and will report back with details.