Does a Buyer Have Standing to Sue an Appraiser in Florida for Negligence?

[George Hatch]

I'll put it this way; whatever the facts are about the property rights being appraised they should have been accurately summarized in an appraisal report so it's users can understand what is and what isn't.

 

[KHS445]

based on my experience anyone reviewing the title commitment should have noticed that this was a different type animal and called attention to it. It almost sound like the full time occupancy restriction has to do with the association. Sure the association will collect its monthly fee, but if owner occupied they don’t receive their cut of the rental fee. Would be interesting to know if the appraisal included both the sales and income approach. If so should have been another red flag to the client.

 

[glenn walker]

We can't stop anyone from asking, but we can be smart enough not to answer !

The only answer is tell them to ask an attorney.

I am not an attorney, I just play one on TV.

But I fail to understand how a condo hotel can prevent a unit owner from occupying their own unit ! ( though anything is possible ). The ones I am aware of, the owners have an option to put their unit into a rental pool, and then the management, for a fee, treats it like a hotel unit renting it out by the night, week, or month depending - each building can have its own rules around the rental pool, length of occupancy etc but seems odd they can prevent an owner from living in their owned condo .

As far as if the lender was not aware it was a condo hotel that is between lender and appraiser if it is an issue - sounds like this is a borrower on a warpath of their own.

I give legal advice to attorneys sometimes , because unless they practice real estate law most have no idea what they are doing : ) LOL

 

[George Hatch]

based on my experience anyone reviewing the title commitment should have noticed that this was a different type animal and called attention to it. It almost sound like the full time occupancy restriction has to do with the association. Sure the association will collect its monthly fee, but if owner occupied they don’t receive their cut of the rental fee. Would be interesting to know if the appraisal included both the sales and income approach. If so should have been another red flag to the client.

At this point we don't know what the situation is with the occupancy. Or if the appraiser actually omitted any pertinent info on the issue in their report. Maybe so, maybe not.

As for the mistakes that may occur in underwriting that wouldn't protect an appraiser in the event there's a significant and avoidable error or omission by the appraiser in the report.

 

[TD Morgan]

That is not TRUE- The facts are VA doesn't even make loans on Condo-Hotels and Every Condo they insure loans on has to be on their Condo-Approved list and there are no Condo-Hotels on there approved list, so if it was placed on their approved list then its a regular CONDO or it was a previous Condo-Hotel that changed it self to a regular project.

The lenders Underwriter is also required to order a Condominium-Certification, which lays out how many units, how many owner occupied and HOA dues etc. SO it would not matter what the VA appraiser called the Zoning or Land Use. ALSO the VA buyer would have to be blind and deaf or both to not know he/she was looking at a Condo-Hotel. You walk in the front receptionist area and it's often like a Ritz Carlton Hotel, Front , desk, snacks and a nice friendly person signing you in and out. As far as a Realtor they have no liability and are not involved in the loan.

THE BOTTOM line is there is a lot more to this story then we are being told and my gut feeling is the appraiser has a disgruntled BUYER who now wants out of the deal. None of this adds up and like previously Stated VA does not loan on -Non-Owner Occupied purchases , Units or Condo-Hotels. Also that is total BS the buyer cannot live in it full time , on a Condo-Hotel an-owner decides if he wants to live in it or have the unit rented out for him. The stupid buyer probably alreday contacted his REL and they told He?she owns a regular condo and to go pound salt. Now his last ditch attempt is to try and blame the appraiser. It's evident the borrower/buyer is getting advice from an-outside party, maybe some Back water attorney who is assisting him on a fishing expedition. And from having attorneys in the family I can assure the Borrower that nobody sues VA because they have unlimited Federal Funds and a VA buyer does not have the resources to pay for expert witnesses , administrative law attorenys, and NO attorneys don't take these Pro-Bono- Or on contingencies, its hard cash up front or get lost. As far as the VA Appraiser he/she needs to contact their E & O legal department and give them a Head Up that a NUT JOB is making waves. Personally I would tell the borrower to go screw himself and to sue me and then laugh : ) LMAO

I contacted the zoning officials who are adamant that a hotel unit cannot be a permanent residence. The property is certainly a condo-hotel and the VA certainly did guarantee the mortgage. Not sure why you are making assertions outside of the facts that I have presented.

 

[TD Morgan]

based on my experience anyone reviewing the title commitment should have noticed that this was a different type animal and called attention to it. It almost sound like the full time occupancy restriction has to do with the association. Sure the association will collect its monthly fee, but if owner occupied they don’t receive their cut of the rental fee. Would be interesting to know if the appraisal included both the sales and income approach. If so should have been another red flag to the client.

Only the Sales Comparison Approach was utilized. It is the the zoning department that states the unit cannot be a permanent residence, because hotels only allow up to six months of residency and no longer.

 

[TD Morgan]

At this point we don't know what the situation is with the occupancy. Or if the appraiser actually omitted any pertinent info on the issue in their report. Maybe so, maybe not.

As for the mistakes that may occur in underwriting that wouldn't protect an appraiser in the event there's a significant and avoidable error or omission by the appraiser in the report.

The appraiser did not mention legal uses of the property and simply stated that the Highest and Best Use of the property as unimproved is Multi-family.

 

[ramrcdk]

“North Carolina is a 'Buyer Beware' state, meaning it is your responsibility as a buyer to do your due diligence and know everything possible about what you are buying… the seller is under no obligation based on our NC Purchase contract to .........

#11 & #15
AND Likely there IS lots more pertinent information Necessary prior ruling.
So where #15 is found true... wonder if the Lender Rep' providing a VA -LOAN has been fired yet??
It is a complicated order.

 

[J Grant]

I contacted the zoning officials who are adamant that a hotel unit cannot be a permanent residence. The property is certainly a condo-hotel and the VA certainly did guarantee the mortgage. Not sure why you are making assertions outside of the facts that I have presented.

But a hotel unit is not the same as a "condo hotel" unit -a hotel unit is owned as one of many in bulk by the hotel wheres "condo- tel or condo hotel) is a legal condo unit individually owned with a deed

Far as I know, "condo hotel" is a slang word/ term UW uses because these buildings rarely call themselves that. They have a name like
"Surfiside Arms" ( or whatever ) then like any other condo , docs, deeds , ownership of % and use of common areas, difference is typically the building filed for and got legal permission or variance and then their own docs allow the unit owners option to put their unit into a rental pool and allowed to rent out X times a year ( however they structure it ), some are low key about it , others can have a sign out front, a check in desk and can have hotel like amenities and services..

I am not presenting above as legal advice or expert but from the few I have appraised or come across in appraisals - idk but the way zoning officials refer to permitted use and what the actual docs say is permitted within a condo building might vary -

 

[ramrcdk]

Once I called Zoning. Zoning is a Big word. The personnel I spoke with said "No, does not comply with zoning." Since there were other-a few in the same area, I called back and ask a different person at the Zoning Office to forward the respective ordinances, etc. because I could not find online & needed.
Turns out personnel #1 was not UP on the current information as same had been RE-zoned to allow many years prior.
Sounds like our Tax Dept. where permitted changes rarely are changed-updated from the initial permit.