Legal Question in Real Estate Law in California
dispute over appraisal and appraisal review
On a V.A. loan, a lender does a staff appraisal review.In doing the rewiew the V.A. states'' Accurate value estimates based on proper appraisal reviews are essential to the viability of the V.A. loan guaranty program and have a direct effect on the interest of the Government, veterans , and lenders.
In doing a review the V.A. requires that they identify all property-related conditions and requirements, the review must identify all conditions that do not meet the V.A. minimum property standards, and the standards of the Appraisal Foundation.
If the reviewer failed to identify such conditions,and the loan went through, then at a later date the borrower found out that conditions that should have been identified are going cost more to repair than the value of the home. Do they have a cause of action against the lender.
Also if the Appraiser failed to conform with the FIRRA Act of 89, The V.A. requirements, and the Appraisal Foundation standards, in that there were visable conditions that would not meet the minimum property standards, and further made claims regarding the condition of the property that were not true. Does the buyer have a cause of action against the appraiser?
1 Answer from Attorneys
Re: dispute over appraisal and appraisal review
This is a fairly technical question, and would require some research.
There could definitely be some liability of the appraiser to the VA, and you may be considered a third party beneficiary of that liability.
You may also have a case against the seller and the real estate agents (if there were any) in this matter.
The big issue would be for you to prove that the appraiser could have discovered the problem based on the limits of the appraisal.
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