What is an appraiser's liability?

An appraiser's liability refers to the potential legal responsibility that an appraiser has regarding the accuracy and integrity of their appraisal reports. When appraisers prepare reports, they are expected to adhere to professional standards and ethics. If an appraiser makes an error or omission in their report, they may be held accountable for any consequences that arise from this mistake, including financial losses incurred by clients or third parties relying on the appraisal.

This liability encompasses various situations where an appraisal might be challenged, such as during legal disputes or when clients claim that the appraisal did not meet industry standards. As a result, appraisers must conduct their work with a high degree of professionalism to mitigate the risk of litigation or complaints. By understanding this concept, appraisers can appreciate the importance of thorough research, accurate reporting, and compliance with relevant regulations and standards to safeguard themselves against potential legal issues.