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:

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The location of the most significant accident in U.S. commercial nuclear power plant history, occurring in 1979, which initiated widespread changes in nuclear industry regulation and operational practices.

Productivity

A measure of the efficiency of production, often calculated as the ratio of output (goods and services) produced per unit of input (labor, materials, energy) used.

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The compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.