There is a possibility that I will be sued over an appraisal that was performed 2-and-a-half years ago? I am an appraiser in Indiana and have never experienced this dilemna.Is there a statute of limitations concerning when a mortgage lender can refute an appraisal report?
It depends on what they sue your for. Presumably, they are claiming your appraisal was no good and they suffered loss as a result. If they say you breached a representation in a contract, it arguably could fall under the rules for contracts, which vary. If it is fraud, it is 6 years from the alleged fraud. For negligence, it is 2 years from the discovery of the negligence. Personally, my money is on the negligence, since they'll likely claim you failed to perform your appraisal consistently with your professional duty. Your insurance should cover it, and you should read your policy about your duty to notify them of possible claims.
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