2023 Texas Statutes › Local Government Code › Title 8 - Acquisition, Sale, or Lease of Property › Subtitle C - Acquisition, Sale, or Lease Provisions Applying to More Than One Type of Local Government › Chapter 271 - Purchasing and Contracting Authority of Municipalities, Counties, and Certain Other Local Governments › Subchapter Z. Miscellaneous Provisions › Section 271.9041. Appraisal Service Contracts; Indemnification Limitations; Duties of Appraiser

Sec. 271.9041.  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.