Claims for damages against us can only be considered at all if the client is able to prove that an appraisal report was actually prepared with gross errors and that this caused them a concrete, quantifiable financial loss.
Professional margins of discretion in valuation, such as the selection of comparable properties or the weighting of property-specific characteristics, do not in themselves establish liability, as long as they are objectively justifiable.
For court-appointed valuers, special liability rules also apply, limiting liability to grossly negligent or intentional conduct. An existing professional liability insurance policy also protects both parties in the rare event of a claim.
In practice, this means that two professionally justifiable but differing assessments of the same valuer on peripheral issues do not, in themselves, give rise to a claim for damages.
Only when it can be demonstrably shown that recognized valuation principles were grossly disregarded, for example through clearly unsuitable comparable properties or calculation errors, can liability be seriously considered.
Please note: the content of this article is provided for general information only and does not constitute legal, tax, financial or investment advice. It is not a substitute for individual advice from a licensed lawyer, tax adviser or financial adviser. Despite careful research, we accept no liability for the accuracy, completeness or currency of the information provided. For specific legal or tax questions, please consult a qualified professional adviser.
