Can a lender charge me for an appraisal they rejected?

I am refinancing and the lender ordered an appraisal, which has been since rejected as “too high”. Am I still obligated by law to pay for it? What is to prevent the lender from “rejecting” appraisals and charging multiple fees? This hardly seems fair, since the appraisal’s rejection had nothing to do with me or anything I had done.

Asked on June 8, 2012 under Real Estate Law, Washington


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You have a right to obtain a copy of the appraisal you paid for during your application. If the lender rejected it as too high, I am not sure what that means because appraisals should include comparables. Ultimately you may wish to speak with the lender's regulator and indicate that it is attempting to fix this loan and improperly. You will refuse to pay for another appraisal and you may simply wish to move on to another broker or lender.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I suggest that you carefully read the loan application that you presumably signed for the loan that you attempted to obtain but were unsuccessful with. Typically such loan applications contain language stating that the applicant is responsible for certain fees such as appraisal fees even if the loan is not approved.

If it does, then you are responsible for the appraisal fees.

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