This Appraiser Independent Contractor Agreement (the “Agreement”) is made and entered on _________________, 20___, by and between Certified Appraisal Source, Inc. (the “Company”) and ______________________________ (“Contractor”), who currently holds a state certification issued by the State of Colorado, (collectively referred to as the “Parties”).  This Agreement must be executed by both Parties prior to Contractor’s engagement with the Company and before any assignments are completed and/or payment of services.

 

The Parties agree as follows:

 

1.        SERVICES: The Company shall engage Contractor to provide appraisal services and Contractor shall render the service and deliver the reports, according to the terms of this Agreement. Contractor may pursue other business opportunities within and outside the appraisal industry, so long as there is no conflict of interest with the Company pursuant to Section 7 of this Agreement, entitled “Covenant Not to Compete (Non-Compete Agreement).”

 

Contractor shall determine the method, details, and means of performing the Services. In addition, Contractor shall be responsible for managing appraisal files as follows:

 

It is Contractor’s responsibility to keep a copy of the appraisal file for Contractor’s individual files as required by Uniform Standards of Professional Appraisal Practices (USPAP).

2.        TERM: Contractor shall provide services to the Company pursuant to this Agreement for a term of one year beginning on _______________________ and ending on _________________________________ (the “Agreement Term”).

 

3.        Compensation:  Fees invoiced to the client and paid to Contractor for appraisal services are determined by the Company.  Contractor must agree to and sign the Fee Schedule attached hereto as Exhibit B.  As a Colorado State Certified Appraiser, Contractor’s fee shall be 100% of the appraisal fee collected from the client providing that the Contractor is in good standing with the Company and up to date on annual membership. Note that the appraisal fee does not include the client’s appraisal assignment fee paid to the company.

 

Contractor will be compensated by the 25^th of the month following the date the appraisal has met final approval and the Company has received payment.  Contractor will be responsible for payment of all income taxes associated with income from the Company and will receive a 1099 from the Company within the timeframe that is required by the IRS.

4.         EXPENSES AND EQUIPMENT: Contractor shall bear all expenses incurred in the performance of this Agreement.

 

As such, Contractor will be expected to provide, at their own expense, all materials, equipment and operating supplies necessary for the performance of their duties. This includes, but is not limited to: computer, appropriate appraisal software (including licensing and service contracts), multiple listing service(s), digital camera, telephone, office supplies, and a dependable vehicle. Vehicle insurance, maintenance, fuel, and other vehicle expenses are the sole responsibility of Contractor. The Company shall not reimburse expenses incurred by the Contractor.

 

Fees associated with obtaining and/or renewing Contractor’s Colorado State issued appraisal license (registration, license or, certification), educational and/or continuing education requirements are the sole responsibility of Contractor and will not be reimbursed by the Company.

 

Contractor shall carry and provide to the Company evidence of Errors and Omissions (E & O) Insurance at Contractor’s own expense. The Company shall not reimburse Contractor for these expenses.  A copy must be provided to Company of Contractor's E & O insurance which reflects coverage amount adequate to cover losses.

 

5.        INDEPENDENT CONTRACTOR: Contractor is an independent contractor and not an employee of the Company, and, unless otherwise stated in this Agreement, is not entitled to any of the benefits normally provided to the employees of the Company.  The Contractor agrees to perform the Services hereunder solely as an Independent Contractor.  The Parties to this Agreement recognize that this Agreement does not create any actual or apparent agency, partnership, franchise, or relationship of employer and employee between the parties.  The Contractor is not authorized to enter into or commit the Company to any agreements, and the Contractor shall not represent itself as the agent or legal representative of the Company.

 

6.         CONFIDENTIALITY: Contractor acknowledges that he/she may have access to the Company’s confidential and proprietary information. Such confidential information may include, without limitation: i) business and financial information, ii) business methods and practices, iii) technologies and technological strategies, iv) marketing strategies and v) other such information as the Company may designate as confidential (“Confidential Information”). Contractor agrees to not disclose to any other person (unless required by law) or use for personal gain any Confidential Information at any time during or after the Agreement Term, unless the Company grants express, written consent of such a disclosure. In addition, Contractor will use his/her best efforts to prevent any such disclosure. Confidential information will not include information that is in the public domain, unless such information falls into public domain through Contractor’s unauthorized actions.

 

7.         COVENANT NOT TO COMPETE (NON-COMPETE AGREEMENT): Contractor may pursue other business opportunities within and outside the appraisal industry, so long as there is no conflict with the Company pursuant to this Agreement. Contractor agrees that unless approved in writing by the Company, that from the date of this Agreement which is signed by both parties, and continuing for a period of one year from the date of termination of the relationship between Contractor and the Company, Contractor shall not pursue a business relationship in Contractor’s capacity as a Real Estate Appraiser soliciting or performing real estate appraisals, with clients of the Company, or prospective clients of the Company who were introduced by your association with the Company within this one year term. Contractor shall not engage in such relationship with clients of the Company either for their own business, any third party or competitive business, directly nor indirectly. Further, Contractor agrees they will not hire any employee who has left the Company, nor solicit or encourage such employee to cease work with the Company.

 

8.         REMEDIES: The Company shall have the right to enforce this Agreement and in the event Contractor breaches this Agreement, the Company reserves the right to have Section 6 and Section 7 specifically enforced and/or demand the payment of liquidated damages and any attorneys fees incurred in the enforcement of this Agreement.

 

9.        OTHER RULES AND POLICIES: Contractor agrees to abide by any other rules, policies and procedures as communicated by the Company.

 

10.       TERMINATION: Either party may terminate this Agreement for any reason, by providing 30 days written notice.  Upon termination, all written and tangible material provided by Company to Contractor in connection with Agreement must be returned to Company.  Membership fee is not prorated and is not refundable.

 

11.       COMPANY NOT LIABLE FOR DAMAGES AND/OR INJURIES: Contractor agrees to perform assignments for the Company at Contractor’s own risk. Damages incurred to Contractor’s equipment and/or vehicle while performing assignments (including, but not limited to, travel to and from field locations) is Contractor’s sole responsibility. The Company accepts no responsibility for any personal injury and/or health issues associated with appraisal assignments (including, but not limited to, travel to and from field locations). Contractor will not be compensated or reimbursed by the Company for expenses related to damages or injury while performing activities related to assignments given by the Company. The Company does not provide nor offer any type of health, disability or liability insurance for Independent Contractors.

 

12.       HOLD HARMLESS/INDEMNIFICATION:  The Contractor represents and warrants that:

(a)  The Services shall be performed in accordance with, and shall not violate applicable laws, rules or regulations and standards prevailing in the industry.

(b)  The Contractor hereby indemnifies and holds harmless the Company, its subsidiaries, and affiliates, and their officers and employees, for any damages, claims, liabilities and costs, including reasonable attorney's fees, or losses of any kind or nature whatsoever, including loss of property, personal injury or loss of life, ("Loss") which may in any way arise from the Services performed by the Contractor hereunder, the work of employees of the Contractor while performing the Services of the Contractor hereunder, or any breach or alleged breach by Contractor of this Agreement, including the warranties set forth herein.  The Company shall retain control over the defense of, and any resolution or settlement relating to such Loss.  The Contractor will cooperate with the Company and provide reasonable assistance in defending any such claim.

(c)  The purpose of the appraisal report is to provide the lender/client with an accurate and adequately supported opinion of the market value of the subject property.  Further use of this report, the intended users and uses are unknown to the Company and the Company makes no representations or warranties as to the accuracy of the information contained in the appraisal reports provided by Contractor.  As such, Contractor remains liable to the end users of the appraisal for the accuracy of all matters set forth in said appraisal and the hold harmless provisions herein shall also extend to such liability.

 

13.       CERTIFICATION:  Contractor certifies that he/she is licensed through the State of Colorado, Department of Regulatory Agencies, Division of Real Estate and holds an active Certified Residential Appraiser and/or Certified General Appraiser license.  Contractor certifies that he/she is not under suspension or discipline in the State of Colorado or in any other jurisdiction.  Contractor certifies that during the term of this Agreement he/she will maintain said license in good standing and in active status.  Any suspension or discipline of the Contractor regarding said license shall be immediately reported to Company and is grounds for immediate termination of this Agreement.

 

14.       FACSIMILE/ELECTRONIC TRANSMISSION:  This Agreement may be transmitted as an "electronic record" containing an "electronic signature" as those terms are defined in applicable federal and or state laws (excluding audio and video recordings).  Electronic record or a facsimile transmission of the Agreement shall be as effective, enforceable and valid as if a paper version of the Agreement were delivered containing an original hand written signature.  

 

15.       MEMBERSHIP FEE:  An annual membership fee shall be paid by Contractor to Company.  Said membership maintains the Contractor as a member of the Company's panel of appraisers who may serve as contractors.

 

16.       NOT ASSIGNABLE:  This Agreement is not assignable by Contractor except by written approval from the Company and can only be amended or changed by written agreement signed by both Parties.

 

17.       CONTINUING OBLIGATIONS: Notwithstanding the termination of this Agreement for any reason, the provisions of paragraph 6 and paragraph 7 of this Agreement will continue in full force and effect following such termination.

 

18.      BINDING EFFECT: The covenants and conditions contained in the Agreement shall apply to and bind the Parties and their heirs, legal representatives, successors and permitted assigns of the Parties.

 

 

 

22.         ENTIRE AGREEMENT: This Agreement, along with Exhibit A and Exhibit B, and any other rules, policies and procedures as communicated by the Company, constitutes the entire Agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement.  This Agreement may be modified in writing and must be signed by both the Company and Contractor.  

 

23.      NOTICE: Any notice required or otherwise given pursuant to this Agreement shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, addressed as follows: 

 

The Company:

Certified Appraisal Source, Inc.

12303 Airport Way, Suite 200

Broomfield, CO 80021

 

Contractor:

________________________________

________________________________

________________________________

 

 

Either party may change addresses occasionally by providing notice as set forth above.

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year first written above.

 

 

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As a cooperative appraisal assignment company, we have pre-screened all appraisers prior to acceptance into our membership, and you have been identified as one of the best of the best in Colorado. We regard you as a professional and will treat you as such. However, we strive to provide fast and accurate service to our clients just as you do. Although we will not be conducting reviews on every appraisal, we will be conducting at a minimum random quarterly appraisal reviews, and we’ve developed the following appraiser requirements and standing system:

 

Appraiser Standing System is based on 1-3 with 1 being best and 3 being worst. The following describes the system:

 

#1 – To earn a #1, you will be polite with all parties, communicate assignment acceptance, inspection appointment date and time, and, any delays. We expect you to meet deadlines, communicate problems and or delays with scheduling and completion. Additionally, we expect a courteous and prompt response to any revisions.

 

#2 – We understand that delays occur and we expect timely communication. However, if we consistently receive delayed reports, your standing will be dropped to #2  

 

#3 – If we receive a valid complaint from a client, or discover through our random review system blatant errors of logic, inconsistencies or omissions, your standing will be dropped to #3. We may recommend education or mentorship to assist you with this. If we receive 3 or more complaints or discover 3 or more instances of blatant error of logic, inconsistencies or omissions, you will be excused from our membership. Please note that should this occur, your membership fee is non-refundable.

 

 

Please accept or reject assigned orders within 24 hours, make an attempt to schedule within 24 hours of acceptance, and send completed reports as a PDF document within 48 hours of inspection with attention to the client’s specific due date. If this is not possible, communicate any delays immediately. Respond regarding any revision requests promptly and courteously.    Reports must be submitted via our website in PDF format. Invoices must be submitted separately and billed to Certified Appraisal Source, Inc. for the quoted fee.

 

If for any reason you are unable to accept an order due to workload, vacation time, geographic or any other incompetence, contact us immediately.

 

Please proof read, run spell check and your internal review master before signing and sending your report.

 

 

Appraisers are required to contact Certified Appraisal Source, Inc. via the website, email or by phone at any point in the appraisal process if they encounter any delays, cancellations, problems with contacts for entry, missed appointments, property issues such as zoning, condition, highest and best use, etc., and/or delays in meeting the report delivery deadline.

 

Do not communicate directly with loan officers or any other person directly associated with the client in order to protect the lender from potential coercion liability and to ensure accurate and unbiased valuations. Immediately report communication attempts by any such person to Certified Appraisal Source, Inc. at AppraisalIndependence@CertifiedAppraisalSource.com.

 

If the Appraiser has been pressured by any person or affiliate of the Client, any individual involved with the real estate transaction, or an employee of Certified Appraisal Source, Inc. to obtain a predetermined value or engage in any form of unethical behavior, Appraiser shall report the behavior to the Certified Appraisal Source, Inc. at AppraisalIndependence@CertifiedAppraisalSource.com.

 

 

Do not accept any form of payment from the property owner, borrower, any employee or agent of the lender, or anyone involved in the real estate transaction. If a homeowner has questions regarding fees or payment, please give them Certified Appraisal Source, Inc.’s phone number and direct them to contact us. Invoice Certified Appraisal Source, Inc. directly for any and all services no later than thirty days after receipt of the final appraisal report. Certified Appraisal Source, Inc. distributes payment for services on the 25^th day of the month following the month in which the final appraisal report is received provided that the company has received payment from the client.

 

 

IN WITNESS WHEREOF, the parties have caused this Exhibit A of the Appraiser Independent Contractor Agreement to be executed the day and year first written above.

 

 

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EXHIBIT B:

 

 

The above fees are effective July 1, 2010 for the Denver Metropolitan Area, and may be adjusted at any time without notice.  Properties outside this area, unique properties or complex appraisals, and properties with a gross living area above 3500 square feet may be subject to an additional fee.  

 

IN WITNESS WHEREOF, the parties have caused this Exhibit B of the Appraiser Independent Contractor Agreement to be executed the day and year first written above.

 

 

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