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Torturious Interference

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Thomas R. Merrill

Freshman Member
Joined
Sep 23, 2002
Originally posted by MHMerriman@Jun 15 2003, 05:21 AM
In theory, couldn't he sue you also?? I mean, you did assist him in negotiation the sales price that he had to pay, which you have admitted was above the market value of the house. You knew the risks of possibly finding a number hitter who made the deal happen, and that means your appraisal clause is a no go......

Did you do your "due diligence" as an agent for the buyer by advising him to offer more than the property is worth?? I don't think so......

In an agency relationship there is the client [the head of the body] and the agent [who is the arms and legs]. I was the agent for the buyer in this transaction. He was fully aware of my opinion of value when I gave him my CMA before we/he wrote the contract. He was fully informed. He instructed me as to the course of action to be taken. I followed every fiduciary duty :Obedience, confidentaility, Loyalty, disclosure, accounting, reasonable care and due diligence fully. He knows that and so do I. Actually he found the mtg broker, inspectors, etc. all I did was let them in the property. The listing agent was there for the inspections as well.

As far as the appraisal clause being "no good" its virtually the same as the FHA/VA contract promulgated form by the state. The only difference is that the deal is not off if the appraisal comes in lower than the sales price. It was written by a real estate law firm of the highest reputation that my client is a partner in. It has been found to be legal in several cases in the past.

Let me be perfectly clear. The buyer client/attorney set the course regarding the purchase money offer from the sales price offered to the clauses that were added. I do my due diligence as prescribed by law.

thom
 

Ghost Rider

Senior Member
Joined
Apr 27, 2003
Professional Status
Banking/Mortgage Industry
State
Connecticut
My point is this.......

We as appraisers, don't do the appraisal to protect the buyers interest. In appraisal theory, I don't care what the sales price of the property is. I simply give my opinion of value for the subject property. All my reports state celarly that the client is "XYZ mortgage company" and that the report is intended for the pruposes of a mortgage finance transation ONLY. In no way, shape, or form is the report there to help or hinder a buyer from getting a loan. I've done MANY deals where an appraisal comes in higher than a contract sales price, or lower than a contract sales price, or right on the price........no big deal to me. If the buyer doesn't get his loan because the appraisal came in low, then he cam come up with cash, or realize that he's overpaying for the house.

I don't doubt that the appraisal in question may be fraudulent. If it is, then I hope, as everyone else, that he gets his license pulled. From the whole "trainee did it, supervisor signed it, trainee signature nowhere to be found" issues, to the going out of area for comps. Thats all well and good, but the reason your attorney is pissed is because he agreed to a price he knew was higher than the value of the house, thinking (maybe on your advice) that the appraisal would come low, and he could negotiate from that. He was wrong. If he'd really wanted out badly enough, he could have gotten someone from a mortgage company to decline him for some reason and get out on the mortgage contigency clause that I assume was in the contract.

My point is, the appraiser has no responsibility to the borrower, and in that way, the borrower should have no grounds to sue the appraiser. Of course, this is a THEORETICAL discussion - I assume that the attorney is a good one, and will be able to argue this to no end, and probably win.......I do think that a good attorney for the appraiser *should* be able to argue that he did not do damage to the borrower - if anything, he did damage to the lender.

Just my $.02
 

Soar Ohio

Sophomore Member
Joined
May 8, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Thomas,
I hope you turn your client into the state bar for entering into a fraudulent contract. I hope you slap yourself on the hands for playing along in his attempts to commit fraud. Yes, I think that offering more than market value to stop other offers and hoping for a low appraisal to lower the sale price is fraud. By the numbers you reported there is only a 7% difference in his value and yours. To close to call it fraud. You said that your client was well informed and acting in his own best interest, sounds like a ligit market value to me. Even if the appriaser had the whole contract to read, only you and your client knew of the fraud that was being attempted.
 

David S. Roberson

Senior Member
Gold Supporting Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Don't get me wrong, I hate Number Hitters as much as anyone here, but your friend the lawyer has just reinforced my opinion of the scum
bas%^$ds in his profession.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
Originally posted by Thomas R. Merrill@Jun 14 2003, 02:36 PM
This attorney doesn't have to do stings to make money. He's absolutley brillant in the law arena. He has all the business he can handle.
Then why did he? Sounds like he's laying the groundwork and research for a class action suit. This is how all that mold mess started.

All parties in this mess need to take a look in the mirror.

Hopefully the broker and appraiser get wind of this so at least it will be a level playing field.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
So how does he do that...legally that is?

Even Fannie mae appraisal guidelines do not require an appraiser who is supervisory only to inspect a property.

We allow an unlicensed or uncertified appraiser who works as an employee or sub-contractor of a licensed or certified appraiser to perform a significant amount of the appraisal (or the entire appraisal if he or she is qualified to do so)-as long as the appraisal report is signed by a licensed or certified "supervisory" or "review" appraiser and is acceptable under state law.

This attorney doesn't have to do stings to make money

If he makes a living by tort then everything he does is a sting or, more frequently is a fraud which he can prey upon the E & O of the small fry who must settle quickly or go out of business anyway. It is an unsubtle method of legal extortion. He can hurt a lot of people trying to squeeze a buck out of only a few.

I find it quite alarming to find an appraiser who does not attempt to get the copy of the Offer. Many are complex with numerous small concessions, limitations, etc. I want mine in file. Often I find these are unsigned, undated, or otherwise not complete...good time to add the caveat that the copy provided is assumed to be the actual terms of the final contract.
ter
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
We know NOTHING about this market.

Perhaps people are lining up to bid and offers coming in way over list price(this happens)
Perhaps there were concessions in offer, we dont know. Sales price appear to be within 5%.

Where is the fraud??

If appraisers stuck to your "Fraud" rules home prices would still be that of 1940 era homes. Home values have doubled in most areas in the past 5 years.. Have you noticed that.

People in glass globes shouldnt throw rocks..
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Thomas ~

I love the phrase "torturious interference." As in torture...

But I think you'll find it's tortious interference.

Best o'luck.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
This obviously was a sham contract and should be reported to the real estate commission and the legal ethics board - both violations. You should also be reported for supporting a sham contract.

While I'm not defending the appraiser, the borrower/attorney is obviously more interested in suing people than in buying a home.

"First thing we do, we kill all the lawyers."

Roger
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
The one thing I don't understand is why this smart attorney didn't have a clause in there calling for an appraisal done solely for HIS benefit. You both knew, or should have, that the appraisal called for in a typical P/A is done for the LENDER, not the buyer.
 
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