A Land Appraiser Prepared an Appraisal of a Property for a Real

question 114

Multiple Choice

A land appraiser prepared an appraisal of a property for a real estate development company.The appraiser had been told that the appraisal would be used by the company to attract potential investors.Because the appraiser forgot to check the recent changes in the zoning by-laws,the appraisal was not accurate; the investor,a party unknown to the appraiser,was misled about the value of the land and,consequently,suffered a financial loss.On these facts,which of the following is true?

• A)A land appraiser owes a duty of care to his client and to potential investors only if he knows the name of the investor.
• B)The investor may sue the appraiser for negligent misstatement that resulted in economic loss.
• C)The investor must suffer his own loss,because an investor takes the risk and so must take care.
• D)A land appraiser owes a duty of care to his client and the company,but not to any potential investors.
• E)A person cannot be sued for words that cause loss,only for actions that cause physical injury.

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Definitions:

Psychosurgery

A medical intervention that involves operating on the brain to treat psychological disorders or alleviate severe mental distress, now rarely performed.

Free Association

A psychoanalytic process in which a patient says whatever comes to mind without censorship, used to explore the unconscious.

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often resulting in the abrupt resolution of a problem.

Resistance

The act of opposing or fighting against something, which can be physical, psychological, or symbolic in nature.