Nebraska Real Estate Appraisal Bond

Nebraska state legislatures have recently been working on legislation concerning real estate appraisal companies and surety bond requirements. A new law was enacted, named LB 410, which requires real estate appraisal management companies to acquire a $25,000 surety bond to operate within the state legally; and this bond must be from a state authorized surety company. The surety company’s liability is equivalent to the bond amount itself, in this case $25,000. Should a claim go out on the bond, the surety company is responsible for up to $25,000 of reimbursement for faulty services performed by the principal who obtained the bond. As a result of the claim, the surety company will then go back to the principal for reimbursement. The company who obtains the real estate appraisal bond must keep the bond active one year after the business closes its doors.