By Howard Fischer
Capitol Media Services/Arizona Business Gazette
If you’d like to discuss real estate matters, contact Rose Law Group Founder Jordan Rose, jrose@roselawgroup.com
Appraisers hired by property owners can be sued by lenders who contend they lost money because of a misleading report, the state Court of Appeals has ruled.
The judges acknowledged that, generally speaking, an appraiser’s duty is solely to the person who hired him or her. In this case, that was the seller of the property.
But Judge Philip Espinosa, writing for the court, said there are situations where an appraiser owes a “duty of care” not only to the person who is footing the bill but to anyone else likely to rely on the report.
Court records show that Belen Loan Investors and Los Lunas Investors collectively loaned about $5.6million for the purchase and development of various unimproved residential lots in New Mexico.
The borrowers provided promissory notes, security interest in the property and a personal guarantee.
