Texas § LG.271.9041 - APPRAISAL SERVICE CONTRACTS

§ LG.271.9041. APPRAISAL SERVICE CONTRACTS

APPRAISAL SERVICE CONTRACTS; INDEMNIFICATION LIMITATIONS; DUTIES OF APPRAISER. (a) In this section, "governmental agency" has the meaning assigned by Section 271.003 . (b) This section applies only to a contract for appraisal services for real property entered into by a licensed appraiser and a governmental agency. (c) A provision of a contract for appraisal services, or a promise in connection with the contract, is void and unenforceable if the provision requires a licensed appraiser to indemnify or hold harmless a governmental agency against liability for damage, other than damage to the extent the damage is caused by or results from an act of: (1) negligence; (2) intentional tort; (3) intellectual property infringement; or (4) failure to pay: (A) a subcontractor or supplier committed by the appraiser or the appraiser's agent; (B) a consultant under contract; or (C) another person over which the appraiser exercises control. (d) Except as provided by Subsection (e)(2), a provision of a contract for appraisal services, or a promise in connection with the contract, is void and unenforceable if the provision requires a licensed appraiser to defend a person against a claim based wholly or partly on the negligence or fault of, or breach of contract by: (1) the governmental agency that is a party to the contract; (2) an employee or agent of the governmental agency; or (3) another person over which the governmental agency exercises control, other than the appraiser or an employee, agent, or consultant of the appraiser. (e) A contract for appraisal services may require: (1) the reimbursement of a governmental agency's reasonable attorney's fees in proportion to an appraiser's liability; and (2) an appraiser to name a governmental agency as an additional insured under the appraiser's general liability insurance policy and provide any defense provided by the policy. (f) A contract for appraisal services must require a licensed appraiser to perform services: (1) with the professional skill and care ordinarily provided by competent appraisers under the same or similar circumstances and professional license; and (2) as expeditiously as is prudent considering the ordinary professional skill and care of a competent appraiser. (g) A provision of a contract for appraisal services establishing a different standard of care than a standard described by Subsection (f) is void and unenforceable. If a contract contains a void and unenforceable provision described by this subsection, the standard of care described by Subsection (f) applies. (h) This section does not prohibit a governmental agency from including in and enforcing a provision in a contract for appraisal services that relates to the scope, fees, and schedule of a project in the contract. Added by Acts 2023, 88th Leg., R.S., Ch. 162 (S.B. 1766 ), Sec. 1, eff. September 1, 2023.