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Current as of January 01, 2024 | Updated by FindLaw Staff
(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.
Cite this article: FindLaw.com - Texas Local Government Code - LOC GOV'T § 271.9041. Appraisal Service Contracts; Indemnification Limitations; Duties of Appraiser - last updated January 01, 2024 | https://codes.findlaw.com/tx/local-government-code/loc-gov-t-sect-271-9041/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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