Vendor Agreement Controversies & Worst AMCs
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AMC Vendor Agreement Controversies – Bad, Worst & Ugly AMCs
And the winner is…
According to a recent non-scientific survey conducted by AppraiserNews, the World’s Worst AMC Alive is Clear Capital. Honorable Mention goes to Coester VMS and Streetlinks. And the Worst Vampire AMC title goes to AppraiserLoft which is no longer operational.
We’d also like to note the passion with which appraisers made their votes, describing the many ways that these AMCs deserved their titles!
One final remark: It is sad that so many appraisers still hesitate to go public with their comments about AMCs, (justifiably) fearing that they might lose business, even when that business involves fees that are not “customary and reasonable”.
AMC owns your Workfile…
We have come across some questionable AMC vendor agreements and would like to hear from other appraisers. Has anyone read Clear Capital’s Vendor Agreement or ServiceLink’s Trade Vendor Agreement? Is anyone concerned or is this business as usual?
WORK FOR HIRE: All findings, conclusions, work papers and/or files, and data and all inventions, discoveries, trade secrets, techniques, processes, and know-how, whether or not patentable, copyrightable or otherwise protectable, that are made by Vendor, either alone or with orders, in the performance of the Services or which result, to any extent, from use of Servicelink’s premises or property (collectively, “Work Product”) shall become the exclusive property of ServiceLink. Vendor hereby assigns, transfers and conveys to ServiceLink all of Vendor’s rights, title and interest in and to any and all Work Product, including the copyright thereon…
Here is another floating around…
Ownership and Retention of Work Product. All work product, reports, documentation and other materials created, developed or otherwise produced in connection with Appraiser’s services under this Agreement (collectively, “Work Product”) are works for hire and shall be the property of AMC, except to the extent that any part of the Work Product is owned by or assigned to a third-party such as AMC’s client. Appraiser, however, shall have the right to retain copies of all reports, documents or other information produced or utilized by Appraiser for the purpose of maintaining Appraiser’s work file as required pursuant to the recordkeeping requirements under USPAP, as may be required under any law or regulation, or as reasonably necessary for prudent recordkeeping on Appraiser’s part.
And finally the worst for last…
Clear Capital Vendor Agreement: Vendors shall permit Clear Capital as well as the intended user of the reports and applicable regulatory officials to perform audits at the Vendor’s office of the Vendors products, services and policies and procedures and for purpose of ensuring performance of this agreement and compliance with applicable laws.
No wonder Clear Capital was voted the world’s worst AMC alive. If there are other controversial AMC Vendor Agreements out there, comment and share your thoughts below.
Some good news in VaCAP weekly newsletter:
Interesting news comes from Mel Black. The North Carolina Court of Appeals upholds a trial court’s exclusion of a BPO. This is a very good story on the difference between an appraisal and a BPO. A definite win for appraisers! See the story here.