This was published 13 years ago
Property valuers face negligence lawsuits
By Vanda Carson
THE nation's banks, financiers and mortgage insurers are pursuing property valuers for negligence claiming their inflated values triggered more than $100 million in losses in both residential and commercial property since the start of the global financial crisis.
In one example, BankWest has sued CB Richard Ellis and two of its valuers, claiming $2.1 million in damages over a commercial property in Kogarah, New South Wales; in a second case, residential mortgage backed securities provider Resimac is suing Megaw and Hogg National Valuers claiming a $258,000 loss due to a negligent valuation. The BankWest suit claims CB Richard Ellis valued the Kogarah property at $4.1 million in July 2007. It was sold in April 2010 for $1.05 million. The Resimac suit claims that Megaw and Hogg valued the Brisbane home at $850,000 in April 2007, but the lender claims it was only worth $575,000 at the time.
DLA Phillips Fox partner Lindsay Joyce, whose firm is defending CB Richard Ellis in the BankWest case, says a defence to this action will be filed this week.
BankWest, CB Richard Ellis and Megaw and Hogg declined to comment about their cases.