Judge Rules Appraiser/Lender Owe no duty of care

[Huds_Harm]

As for checking major "unseen" components for their soundness....that's on you.

• Safety: The home should protect the health and safety of the occupants.
• Security: The home should protect the security of the property.
• Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.

All the APPRAISER'S responsibility.

 

[Dublin ohio]

aveat venditor is a Latin term meaning “let the seller beware,” in contrast to the more widely known saying caveat emptor (let the buyer beware). The principle of caveat venditor cautions that the seller is responsible for any problem that the buyer might encounter with a service or product.

Now you decide to use "hypotheticals".

 

[Fernando]

It was not disclosed until pointed out and updated accordingly. She was not my agent.

In estate sales, it's sold "as is" so listing agent normally has no idea of issues with the property.
Didn't your buyer's agent advised you on needing more due diligence?

 

[Huds_Harm]

Why aren't you after the real estate agent. The agent should know what to look for in protecting buyer in the purchase.
Relying on an appraisal which was not intended for the buyer is not due diligence especially when appraiser is not an expert in septic tanks. Heck, I never seen a septic tank.

Because my loan was contingent upon AN APPRAISAL BY AN APPRAISER determining if the property met all FHA minimum property requirements.

1. APPROVAL OF FINANCING: Approval for the financing described above will be deemed to have been obtained when Buyer Approval and Property Approval are obtained.
2. PROPERTY APPROVAL: If Buyer’s lender determines that the Property does not satisfy lender’s underwriting requirements for the loan (including but not limited to appraisal, insurability, and lender required repairs) Buyer, not later than 3 days before the Closing Date, may terminate this contract by giving Seller: (i) notice of termination; and (ii) a copy of a written statement from the lender setting forth the reason(s) for lender’s determination. If Buyer terminates under this paragraph, the earnest money will be refunded to Buyer. If Buyer does not terminate under this paragraph, Property Approval is deemed to have been obtained.

 

[Huds_Harm]

Now you decide to use "hypotheticals".

Not a hypothetical.

 

[Dublin ohio]

Safety: The home should protect the health and safety of the occupants.

Obviously the septic was functional at the time of purchase. Since the problems did not appear for 3 months

Security: The home should protect the security of the property.

Not a septic issue

Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.

Were there any?

 

[Fernando]

If you're vested in 3% of the price of the property and you said it will cost $100,000, why not give property back to the lender. Lender will take a huge loss.
You leveraged with 3% but lender basically was buying the property for 97%.
You must really like the property to continue to find parties to compensate you.

 

[George Hatch]

Because it is an unreasonable burden and too stringent for an appraiser to check the correct box.

Nobody said that, nobody implied that, nobody meant that.

Because my loan was contingent upon AN APPRAISAL BY AN APPRAISER determining if the property met all FHA minimum property requirements.

The LOAN was made. You got your financing. What you didn't get was a warranty on the septic. Whatever damages FHA and the lender incur are between them and the appraiser.

 

[Raven59]

Because it is an unreasonable burden and too stringent for an appraiser to check the correct box.

I've never encountered a situation where a purchaser specifically stated they would not consider a property if the septic and well were within a certain number of feet of each other. In reality, the proximity of the well and septic systems typically becomes a concern for lending purposes, not for the buyer's decision to purchase the home.

The well and septic systems were not the determining factors in your decision to buy the house; they only mattered because of the lending requirements. If you were using a conventional loan without those specific conditions, you most likely would have proceeded with the purchase.

The appraiser’s checkbox regarding the well and septic did not influence your decision to buy the house. It was a factor in securing financing, particularly under FHA guidelines, but it would not have impacted a conventional loan. This distinction is crucial in understanding the roles and responsibilities of each party in your transaction.

 

[Huds_Harm]

Obviously the septic was functional at the time of purchase. Since the problems did not appear for 3 months


Not a septic issue


Were there any?

Wrong, the home did not meet FHA minimum distance requirements between a homes water and source of pollution.