If you think your liability is limited to 5 years.

[Couch Potato]

The five year rule is merely the limit on the local appraisal board being able to get you for not having files. It is totally unrelated to possible civil or criminal prosecution. Consult a local attorney for the appropriate limits on such prosecutions.

I know in FL appraisers got some relief a couple years ago when appraising was officially classified as a profession. The advantage was a decrease in the length of the liability period from virtually limitless to just a few years.

 

[Mr Rex]

CP, I bow to your superior knowledge. Is it true that there is no statute of limitations for fraud, or deliberate acts of omission or commission?

 

[Steve Metz]

It all depends on the state. I am working on some fraud cases and the statute of limitations for these cases is 4 years in Georgia. In some states it is as short as two years.

Laywers look for people with money to file a lawsuite against. A judgment is usless unless you can collect. In looking at these cases mortgage brokers that did the fraud have no money to speak of a couple of them have gone bankrupt. The appraiser that did the appraisals still is working and the lawyers are going after him and mostly his E&O insurance.

 

[Couch Potato]

I believe the limit on fraud in NC is 3 years and professional liability is 2 years. However, the time at which the claim of harm is made affects when the time starts running. Professional liability is limited to 4 years from the time service was given, but I believe a fraud that came to light after 10 years and caused harm could still be prosecuted as long as it is reasonable that it went undetected.

 

[Restrain]

Depends if its a State or Federal indictment. Also, consider RICO laws, etc for a pattern of fraud.

 

[Terrel L. Shields]

Is it true that there is no statute of limitations for fraud, or deliberate acts of omission or commission?

No. But if a fraud is hidden, then the statues of limitations can be "tolled", that is, extended.

In my state the SoL is 3 years. That did not stop a party from suing me under RICO statutes, Fraud and Conspiracy to commit fraud statues six years after the report was prepared. I was sued along with a bank and a poultry company.

The Tort lawyer - some incompetents from Tulsa, OK (thankfully very moronic) - tried to make the case that the local town was in fear of the bankers and a curtain of secrecy hid the facts from their hapless clients. Totally untrue and the judge thru it out. They appealed to Federal Court who ruled they didn't present anything but speculation about it being hid. The borrower had every right to the report from the day it was printed. No toll.

 

[Mike Boyd]

Statute of limitations starts from the date of DISCOVERY. I don't think there is any time limitation for fraud.

 

[Terrel L. Shields]

the date of DISCOVERY

Due diligence suggests the borrower has an obligation to not ignore anything that was obvious and since they have the right to obtain the appraisal at the time of the sale the clock starts then. Fraud SOL varies by state and is 3 years in Arkansas. Anything filed in a state court or local Fed. court relies upon the local SOL usually. In my case the RICO and conspiracy charges had to be dropped and the plaintiffs refiled simple fraud against me and fraud and Stockyard & Packers Act charges against the bank and company. Both thrown out for the SOL issue and the fact the plaintiffs plead only allegations and could present no hard evidence of a tort.

 

[Karl]

Statute of limitations starts from the date of DISCOVERY. I don't think there is any time limitation for fraud.

& Mike wins per the IRS Investigators.

 

[Terrel L. Shields]

Mike wins

He won't in Arkansas. "Discovery" does require due diligence. You cannot just come up 10 yr. later and say, yah' know. I just read that appraisal they told me I could have at closing and its got problems." Not gonna happen here. You have 3 years to 'discover' it or you haven't done your due diligence. Only in the case where the report was unavailable or in a case where you went back a couple years later and assured the HO that they got a bargain would fraud be tolled.
[Author Bio: Stephen E. Kesselman is a partner in the Professional Liability and Litigation & Appeals Practice Groups.

Under federal common law, a statute of limitations may be tolled due to the defendant's fraudulent concealment if the plaintiff establishes that: (1) the defendant wrongfully concealed material facts relating to defendant's wrongdoing; (2) the concealment prevented plaintiff's 'discovery of the nature of the claim within the limitations period'; and (3) the plaintiff exercised due diligence in pursuing the discovery of the claim during the period plaintiff seeks to have tolled.

Holding that the investor plaintiffs in connection with an alleged tax shelter fraud scheme could not demonstrate the second two of the "equitable tolling" elements (i.e., plaintiffs' lack of knowledge of the nature of claim and plaintiff's lack of due diligence), Judge Leonard Sand in 131 Main St. v. Manko, [3] granted summary judgment and dismissed plaintiffs' claims as time- barred.