Comments on: Statute of Limitations Against an Appraiser https://appraisersblogs.com/appraisal/the-statute-of-limitations-for-a-claim-against-an-appraiser/ Appraisal News and Tips for Real Estate Appraisers Mon, 10 Jun 2024 22:34:38 +0000 hourly 1 https://wordpress.org/?v=7.0 By: Russell Isbell https://appraisersblogs.com/appraisal/the-statute-of-limitations-for-a-claim-against-an-appraiser/#comment-42660 Mon, 10 Jun 2024 22:34:38 +0000 http://appraisersblogs.com/?p=5122#comment-42660 I am being sued by a borrower who claims I prepared a negligent appraisal report. The key issues are as follows:
1) He purchased the house “As Is”.
2) He had a Home Inspection by a licensed home inspector prior to my appraisal date. The Home inspector found several issues of structural and mechanical issues. All of the home inspectors discoveries were either in the attic or on the roof of the subject property. VA requires me to only view the attic from a “Head and Shoulders” vantage point when access is readily available, and to view the roof from ground elevation.
3) The borrowers agent recommended to the buyer that he “Amend the contract to have the seller agree to perform the repairs of damages discovered by the home inspector, which he did not do!
4) I was not provided with a copy of the home inspectors report hence I made no requirements that repairs be made as all discoveries were not readily visible.
5) The buyer actually waived his right to view the appraisal report prior to closing on the purchase of the subject property, and actually signed documents required by the title company stating he approved the repairs, which were done post my appraisal and paid for by his / the buyers agent.
6) Over two years past since the date of my appraisal and I got served by his attorney claiming negligence.
7) My report clearly names the Lender and Client(s) as the mortgage company and The Department of Veterans Affairs, with a following statement that use of this report by any third party is Strictly Prohibited.
8) First Issue is that I have No Duty to the borrower as the report was to determine if the estimate of value justified the loan the borrower was seeking for the Lender and if it met VA Minimal Property Requirements. The house had just been update with pretty much all new everything including a composition roof, appliances, floor coverings, Int. & Ext. painting.

I was served two years ago as were every other party in the transaction: Both Real Estate Agents, The Lender, Title Company, Roofer who installed the new composition roof just prior to purchase, the seller and other parties. I’m getting creamed with my attorney fees.

I’m hoping someone will know of a “Quick Fix” so I can end this.

]]> By: Mike Ford https://appraisersblogs.com/appraisal/the-statute-of-limitations-for-a-claim-against-an-appraiser/#comment-10994 Thu, 01 May 2014 20:34:57 +0000 http://appraisersblogs.com/?p=5122#comment-10994 I can see a new limiting condition in my reports henceforth:

“Use of this appraisal report for any purpose constitute express consent that the agreed statute of limitations and /or time limit for bringing any cause of action against the appraiser in connection with the preparation or presentation of the results of this appraisal in any form, is limited to two years from the date of signature.” It is further explicitly agreed by any use of this report for any purpose that, due diligence obligations of the client must be timely. For the purposes of this limiting condition that means that any quality compliance reviews must be performed within ninety days (90 days) of the signature date of the appraisal report. No claims of negligence or fraud may be alleged at a later date to extend the explicitly agreed time limits. Use of this report constitutes affirmation that the time limits noted above are reasonable and adequate for all lawful purposes.”

Don’t know if that will fully cover me, but I’m going to start using it anyway.

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