Arizona Appraisal Management Company Bond

In the state of Arizona, all appraisal management companies (AMC) must register with the Arizona Department of Financial Institutions (AZDFI). To do so, you must file an application, get a background check, and secure a $20,000 Appraisal Management Company Bond.

This surety bond is also commonly referred to as an AMC Bond.

An Arizona Appraisal Management Company Bond is a financial guarantee that an AMC will conduct business ethically and lawfully. After the recession in 2008, this bond was put in place to regulate AMCs, deter fraud, and protect the public's financial well-being.

How the Bond Works: If an AMC fails to follow the state laws and regulations outlined in the Arizona Revised Statutes, Title 32, the bond compensates the affected person or party.

Every AZ Appraisal Management Bond is a contract between three parties:

1. Principal – the AMC that needs to get bonded.
2. Obligee – the organization requiring the bond (Arizona Department of Financial Institutions)
3. Surety – the surety company issuing and financially backing the bond (Ex. Lance Surety Bonds). If a valid claim is made against the bond, the surety pays it initially. However, the AMC is then required to pay them back in full.

Reasons a claim can be made against the bond include but aren't limited to the AMC failing to uphold contractual agreements, not paying appraisers for agreed-upon services, not paying court demands resulting from negligence, improper appraisals, etc.  

All appraisal management companies operating in Arizona need an AMC Bond. This surety bond is a prerequisite to becoming a licensed appraisal management company with the AZDFI. See AZ Rev Stat § 32-3663 for exemptions.

An Arizona AMC Bond costs as little as $100 annually. While the full bond amount needed is $20,000, you only need to pay a low flat rate to get bonded. This is known as your bond rate or bond premium.

While a surety bond's cost is often scaled based on your credit score, this one is available at a low rate to all applicants.

Get a Free Bond Quote Today

1. Fill Out a Form

Our online bond application form takes only a few minutes to complete, and it provides an instant free quote. Plus, it's available 24/7.

This form only requires basic information, such as:

• Bond Name (Appraisal Management Company Bond)
• Bond Amount ($20,000)
• Your Contact Information

2. Check Your Email

Your free bond quote will go directly to the email address listed on your application. This usually only takes a few minutes to come in. Please check your Junk Mail.

3. Buy Your Surety Bond

Follow the email's instructions to purchase your bond. This process can all be done online, including payment. Once payment clears, you are good to go—an electronic copy of the bond will be emailed to you. Upon request, we can forward the bond to the AZDFI on your behalf.

AZ AMC License: If it is your first time getting an Arizona Appraisal Management Company License through the AZDFI, it is valid one year after the date of issuance. Renewals are valid for two years. Note that you must have an active bond on file at all times to keep your registration valid.

AMC Bond Renewal: Unless you have a multi-term bond or are on a monthly payment plan, your bond must be renewed annually. We send notices for bond renewal 1 – 2 months ahead of expiration. Renewal can be done entirely online in a couple of minutes.

Who Is Exempt from the Arizona AMC Bond Requirement?

Per AZ Rev Stat § 32-3663, federally regulated appraisal management companies are exempt from licensing. Therefore, they are exempt from bonding. Other exemptions include:

• A business that employs real estate appraisers exclusively on an employer and employee basis. Specifically, to perform real property appraisal services for the normal course of its business.
• A department within a US government-regulated financial institution that receives a request for real estate appraisals from said financial institution. They then assign such requests to an appraiser who is part of the financial institution's appraiser panel.
• Relocation management companies in the course of employee relocation.

How long is an Appraisal Management Company Bond valid?

An Appraisal Management Company Bond is continuous until canceled but needs to be renewed annually in most cases. The exception is if you opt for a multi-year bond term, which only needs to be renewed every 2 - 4 years.

Can the bond be canceled?

Yes, this bond can be canceled. You will need to contact your surety company to do so. Note that you must provide the AZDFI a 30-day notice for your bond cancellation.

Can you get a refund?

Yes, at Lance Surety Bonds, we offer a refund for your bond in many cases. For example, if you cancel, you can get a refund for the remainder of your bond period.

Thomas got a $20,000 bond from us before realizing he didn't need to be bonded. He figured this out within a week of his bond being issued, so we were able to cancel his bond and give him a full refund.

If you have questions regarding refunds, getting bonded, or anything else, don't hesitate to contact our surety experts.

Appraisal Management Company. (n.d.). In DIFI. Retrieved April 9, 2025, from
https://difi.az.gov/industry/appraisal-management-companies

Appraisal Management Company Bond. (n.d.). In Lance Surety Bonds. Retrieved April 9, 2025, from
https://www.lancesuretybonds.com/license-bonds/appraisal-management-company-bond

Arizona Revised Statutes. (n.d.). In www.azleg.gov. Retrieved April 9, 2025, from
https://www.azleg.gov/arsDetail/?title=32