Legal Question in Real Estate Law in Arizona
Appraisal Fee Question
Late last year I was looking into purchasing a condo. I found a condo I liked, went to a mortgage agent, agreed to terms of the mortgage (3% down payment) with the mortgage agent, and had an appraisal done on the property after getting verbal assurance that there would be no problem getting the loan approved. After the appraisal was done, the mortgage company denied the loan (instead requiring a 10% down payment, which was unacceptable to me). Who is responsible for the appraisal fee? I feel that because the agreed upon contract was not fulfilled by the mortgage company, the mortgage company should be responsible. Had I known the loan would not be acceptable I would never have agreed to go ahead with the appraisal. They feel I should be held responsible for the fee, but I feel that they should bear the responsibility here for jumping the gun on the appraisal? Any help would be appreciated.
1 Answer from Attorneys
Re: Appraisal Fee Question
The answer to your question depends on additional facts. Was there anything in writing where the broker represented he could obtain the loan with 3% down? Did you arrange for the apprial directly or was it arranged by the broker? Did you sign any agreement with the broker which says the broker will obtain the appraisal at your expense? Is there anything in writing addressing what happens if the loan cannot be obtained? If the appraiser was hired by the broker and you did not authorize the broker to contract on your behalf and if you did not agree to pay regardless of whether the loan was turned down or the broker represented he could obtain a loan with 3% down, you probably do not owe the money. This answer is a hypothetical answer based on assumed facts. A review of the complete documents and facts would be necessary to answer your specific question.
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