Real Estate Appraiser Commission Letter of Good Standing Request

What Is a Letter of Good Standing?

A Letter of Good Standing (often abbreviated as LGS) is an official document issued by the state licensing board confirming that a realestate appraisers license is active, that the appraiser has complied with all continuing education requirements, and that there are no disciplinary actions pending. Lenders, title companies, and government agencies frequently require this letter before allowing an appraiser to participate in a transaction or before issuing a commission payment.

Why Is It Needed for Commission Payments?

• Compliance Assurance: The letter proves the appraiser meets state regulatory standards.
• Risk Management: Lenders reduce the risk of using an appraiser who may be suspended or revoked.
• Payment Eligibility: Many loan programs (e.g., FHA, VA) explicitly require a current LGS before releasing fees.
• Audit Trail: The document creates a clear record for future audits or investigations.

When Should You Request the Letter?

Timing is critical. Request a Letter of Good Standing:

1. Before submitting a loan file that includes your appraisal.
2. When you receive a new assignment that specifically asks for an LGS.
3. At least 30 days prior to a commission disbursement deadline, to allow processing time.
4. Whenever you renew your license, as the board may only issue the letter after renewal is complete.

How to Request the Letter

1. Gather Required Information

• Full name as it appears on the license.
• License number and state of issuance.
• Contact information (email, phone, mailing address).
• Purpose of the request (e.g., lender commission payment, audit).

2. Choose a Submission Method

Most state appraisal licensing boards provide at least two ways to request an LGS:

• Online Portal: Log into the boards licensing system, select Request Letter of Good Standing, upload any required forms, and pay the nominal fee (usually $10$25).
• Mail or Fax: Complete a paper request form, attach a check for the fee, and send it to the boards address. Include a selfaddressed stamped envelope for the return.

3. Pay the Fee

Fees vary by state but are generally modest. Accepted payment forms often include credit cards (online), checks, or money orders (mail).

4. Await Processing

Processing times range from 24hours (online) to 710 business days (mail). If you need the letter urgently, many boards offer an expedited service for an additional charge.

5. Receive and Store the Letter

The LGS is usually sent as a PDF attachment via email or as a hard copy by mail. Keep a digital copy in a secure folder and retain the original for any future verification.

Sample Request Letter

Below is a brief template you can adapt for a mailed or emailed request:

[Your Name][Your Business Name][Street Address][City, State ZIP][Phone] | [Email][Date][State Appraisal Board][Board Address][City, State ZIP]Re: Request for Letter of Good Standing  License # ___________To Whom It May Concern,I am writing to request a Letter of Good Standing for my realestate appraisal license listed above. The letter is required to satisfy a lenders commissionpayment condition for the appraisal completed on [date] for the property located at [address].Enclosed/attached are: A completed request form (if applicable) A check for $____ (or payment confirmation) A selfaddressed stamped envelope (if mailing)Please send the completed letter to the address provided above or electronically to [your email].Thank you for your prompt attention to this matter.Sincerely,[Signature][Printed Name]        

Common Mistakes to Avoid

• Using an outdated address: The board will mail the letter to the address on file. Update your contact information before requesting.
• Omitting the fee: Requests without payment are returned unopened.
• Failing to specify the purpose: Some lenders require a letter that explicitly states it is for commission payment eligibility.
• Requesting too early: If your license is set to expire within 30 days, the board may refuse to issue the letter until renewal is complete.

What to Do If the Letter Is Declined

If the board informs you that the letter cannot be issued, take the following steps:

1. Review the reasoncommon issues include unpaid fees, missing continuingeducation credits, or pending disciplinary action.
2. Resolve any outstanding requirements (pay fees, complete required courses, submit missing documentation).
3. Contact the boards customer service for clarification and to confirm when the issue will be resolved.
4. Once resolved, submit a new request immediately to avoid further delays.

Key Takeaways

• A Letter of Good Standing verifies that an appraisers license is active and in good standing.
• Most lenders require the letter before releasing appraisal commissions.
• Request the letter earlyideally 30 days before the commission due date.
• Follow your state boards specific procedures, pay the fee, and keep copies for your records.