Legal Question in Real Estate Law in Washington

Do I owe for services?

I recently changed lenders midst an FHA refi from an unsavory broker. I switched to a retail lender. Prior to my switch the broker assigned an appraiser to my property. Upon arrival the appraiser asked how he was going to be paid. We called and confirmed with the broker it was to be paid at closing. The appraiser did not request or provide me with any documentation such as a work order or an invoice regarding payment or anything regarding his credentials...nothing at all. I asked my new lender to assume his apprasial and that I pay him for it to expidite matters. My new lender says they cannot assume it because he is not a licenced apprasier in our state. Now the appraiser is demanding payment from me and is threatening (repeatedly) me to place a lien on my property. I have replied by asking him to provide documentation regarding his legiticimacy as an apprasier to my lender and some proof of my aggrement to pay him of for his services. He not provided nothing but more threats. Do I owe this person for his services which I doubt are legitimate or usable? Also, what should I do if he files a lein against my property?

Thanks in advance. Lori


Asked on 5/29/08, 2:39 am

1 Answer from Attorneys
Amir John Showrai The Pacific Law Firm, PLLC

Re: Do I owe for services?

Lori,

You have a very difficult situation to contend with, and I hope that whomever reads this uses it as a lesson. When dealing with appraisers, makes sure that you ask for their license and credential information up front, or at least make sure that you work with your loan broker or bank to make sure that they know and trust and have prior experience with the appraiser, otherwise this exact situation can crop up.

I am going to give you the legal perspective as I see it and then give you a practical (albeit not good news) perspective as well. Legally, if he had no license or training to engage in appraisals, then I'd say you have a fraud and breach of contract claim against this guy. If he places a lien upon your home, you'd also have a claim for "color of title" or defamation of title. Meaning he placed an illegitimate lien on the home. If he is not licensed, you are likely to pummel him in court.

What I would do is file a police report, indicating that he has threatened to do, and that he is essentially threatening to hold up your refinance for the sake of his illegitimate activities- its extortion really. In any case, if the cops visit him, they can let him know to go away and that will probably scare his shorts into yellow and brown.

The bad news or practical view is that if the copy can't or won't help, and you are in the midst of a sale or refinance, you'll likely have tens or hundreds of thousands of dollars at stake versus his $300-$500 bill. By the time you hire a lawyer or take time out of your day to pursue this little bugger, even if you win, you're out more than you'd get back.

So, if I were you, I'd pay this unsavory character if he records a lien, so that you can get your re-finance through without hassle. Then, once you are done with that, and if you are still smarting over what happened, you can sue the pants off this guy for fraud, breach of contract, violation of the state consumer protection act (which can yield attorney's fees), and I would definitely file a police report about his activities if you have not already done so.

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Answered on 5/29/08, 1:52 pm


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