Mike Kennedy
Elite Member
- Joined
- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
Washington Court Limits Appraiser Liability
The Washington State Court of Appeals on July 7 ruled in favor of an appraiser and her employer over liability for soured real estate investments.
In the case before the court, the appraiser performed two appraisals for loans by a bank to a commercial investment/development entity. Over time, the investments soured and the investment entities sued, claiming that in making their purchase decision, they relied on the appraiser’s reports prepared for the bank. The reports, however, stated they could only be used by the bank for the bank’s internal lending considerations. The trial court found, and the appellate court agreed, that the appraiser owed no legal duty to the investors.
The court stated, “An appraiser’s liability for negligent misrepresentation is limited to the person or one of a limited group of persons for whose benefit and guidance he or she intended to supply the appraisal report or knew the recipient intended to supply it.”
Read the decision in the case of RockRock Group, LLC vs. Value Logic, LLC.
The Washington State Court of Appeals on July 7 ruled in favor of an appraiser and her employer over liability for soured real estate investments.
In the case before the court, the appraiser performed two appraisals for loans by a bank to a commercial investment/development entity. Over time, the investments soured and the investment entities sued, claiming that in making their purchase decision, they relied on the appraiser’s reports prepared for the bank. The reports, however, stated they could only be used by the bank for the bank’s internal lending considerations. The trial court found, and the appellate court agreed, that the appraiser owed no legal duty to the investors.
The court stated, “An appraiser’s liability for negligent misrepresentation is limited to the person or one of a limited group of persons for whose benefit and guidance he or she intended to supply the appraisal report or knew the recipient intended to supply it.”
Read the decision in the case of RockRock Group, LLC vs. Value Logic, LLC.