The appraisal firm allegedly decided it should be valued under the “conversion scenario.” Accordingly, the 2016 appraisal allegedly opined that Terravant’s 507,681 gallons of wine could be converted into case goods within a one-month period and sold over a six-month period for a total value of $17.3 million. I. Appraisal negligence is when an appraiser does not exercise the degree of care and skill that an ordinary appraiser would exercise. The appraisal firm Great American is a subsidiary of B. Riley Financial, a publicly traded company. For instance, if a property was appraised for a value that was higher than its true value, and consequently over financed, a subsequent foreclosure on the mortgage could result in a foreclosure sale price substantially less than the mortgage balance. That experience allows him to understand and approach real property issues from a different view point, not just from a lawyer’s perspective. The applicable statute of limitations for an appraisal-related claim will vary based on the nature of the claim (for example, whether it is for negligence, fraud or breach of contract), the state whose law will apply to the claim, and even in a few cases, who is making the claim. The appraisal was said to contain false, inaccurate or misleading information and that it grossly overvalued the property. In defending a real estate appraiser, Detroit litigation attorneys have successfully argued that the limiting conditions and certifications set forth in the appraisers' reports can, under the right circumstances, protect the appraiser from liability. The name pretty much gives it away.Separate the two words and you get “desktop” and “appraisal.” You can see where I’m going with this.A desktop appraisal is an Lender Blames $6.8 Million Loan Loss on Allegedly Botched Appraisal of 500,000 Gallons of Wine. The reason for this is that the plaintiff suing Read more…, Cases – Professional Negligence And Other Tort Claims, Cases – Commercial Rent Arbitration and Litigation, Cases – Appraiser Employment and Wage/Hour Issues, Statutes of Limitations for Appraiser Negligence, Current Legislation Concerning Valuation Services, Independent Contractors (Cal. It’s not only real estate appraisals and business valuations that lead to lawsuits alleging professional negligence and violations of practice standards. A suit from a disgruntled borrower occupies a gray area. In most states, the parties who can sue are those the appraisers knew would use the appraisal or ought to know would use it. The appraiser was held not liable even though the appraiser’s negligence caused the borrower to be ineligible for a VA loan and forced the borrower to obtain more expensive conventional financing. Personal property appraisers receive their fair share of claims too – often with interesting Read more…. I am an attorney and principal of the Christensen Law Firm. The result is borrowers  are misled as to the true value of the properties they were buying all in an effort to generate profits. November 21, 2012 Nevada Allows Private Negligence Suits against Appraisers. Office Location. The book is laced with illustrative examples and citations to the court reports. 234 Lewis Wharf Boston, MA 02110 617.720.0332. USPAP is not always in exact conformity to a state’s law regarding appraisals, and who has the legal standing to sue the appraiser varies by state, Christensen explains. In Barkley, the plaintiffs were a group of investors in a syndicated mortgage. There is no one else left to sue other than the appraiser. Federally chartered banks or savings and loan institutions must have an accurate appraisal of a property's value to real estate appraiser can be liable to buyer on purchase money mortgage for negligence in performing appraisal Buyer offered to purchase seller's home subject to an appraisal. Couple this with the common misunderstanding among review appraisers that their risk is less than the author of the original report, and you get a burgeoning new area of litigation. according to the court, Sharestates filed its lawsuit against the appraisers about 5 months too late, after expiration of New York’s appraiser-friendly 3-year statute of limitations. For example, the appraiser may use outdated sales comparisons or improperly adjust for the value of the subject property (for items such as location, square footage, and property age) to establish value. Determine the cost for coverage for items such as title insurance and homeowners and insurance. 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