Dear Readers,

To say that appraisers have adjusted to many changes implementing new
procedures regarding how they complete their assignments over the last several
months would be an understatement.

From a legal standpoint, appraisers also must be cautious as to how they go about
their procedures knowing that potential lawsuits stemming from the pandemic
conditions could be lurking in the background. And claims can be filed by many
people representing a number of organizations.

“Most lawyers would likely agree that it’s legally plausible that appraisers
potentially could pursue claims against homeowners in relation to the appraiser
becoming ill with COVID-19 following an inspection of a home — if the
homeowner did something like fail to disclose that a person was sick within the
home. Or, the reverse, a homeowner could plausibly claim an appraiser gave them
the virus. Such hypothetical claims could also plausibly involve lenders and AMCs
as defendants. But while these claims may be plausible, proving them is another
matter entirely,” Valuation Legal’s Peter Christensen told attendees during a
presentation at this year’s virtual Valuation 20/20 conference.

Christensen noted that the evidence and facts appraisers (and others) need to prove
these kinds of claims are very difficult to show. Those who are reckless in their
actions and potentially spread the virus about in public while knowing they were sick
or potentially sick can certainly be held liable for negligence and other legal claims.
It’s just that “proving the claims is very difficult,” Christensen said. “The appraiser
making that type of a claim where he/she got sick at the occupant’s property and
then suing that owner is tough because they have to prove that (the owner’s property)
is exactly where they contracted the virus and got sick. It’s equally difficult for the
borrower to make such a claim against the appraiser,” he added.

Claims about sickness may lead to some of the most common questions concerning
liability, but what about traditional appraisal liability in concern with the valuation
or the appraisal report itself? Here, Christensen said “no appraiser will be sued as
a result of not having a ‘magical’ or ‘lengthy’ disclaimer concerning COVID-19
in the appraisal report.” What appraisers should have within their reports in terms
of “covering themselves” is good analysis of current market conditions and the
addition of a few plain English sentences to describe matters that are affecting their
analysis or the information they are relying on in completing the appraisal report in
light of COVID-19.

Keep me informed about your businesses. Stay safe and healthy!

Your valued editor,
Mike Holzheimer
Editor
Valuation Review