Way Cleared for Suit Against Appraiser in Appeal Argued by Berk & Moskowitz, P.C.

The Arizona Court of Appeals has ruled, for the first time in an Arizona published opinion, that an appraiser hired by a lender owes a duty to the buyer/borrower in that transaction. In its decision issued April 30, 2009, the Court focused on the reality that the buyer would likely never hire a separate appraiser. For that and several other reasons, the appraiser owes a legal duty of care to the buyer/borrower.  Daphne Reaume of Berk & Moskowitz, P.C. argued the appeal for the buyer/borrower.

In this case, the buyer/borrower sued the appraiser for overvaluing the home because he used the incorrect square footage, among other things. The trial court had dismissed the action concluding, under two prior Court of Appeals decisions, that an appraiser hired by someone other than the buyer/borrower did not owe any duty to the buyer/borrower. In its unanimous decision, the Court of Appeals disagreed and allowed this case to proceed. The case opens the door for buyers to sue appraisers even when the appraiser was hired by the lender. Click here to see the Court's decision.*

Berk & Moskowitz, P.C. handles virtually all types of real estate disputes. If you have any questions or think that you or your company is the victim of an appraiser's or other professional's mistake or fraud, please contact us.

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* Note: Results in cases vary. Each case is different. Thus, the results in these matters do not indicate the likely result in any particular other matter.  Various of the foregoing cases settled after the referenced decision.