512. Measure of damages in claim by mortgage lender.

Where a valuer negligently values a property and a lender consequently agrees to advance money on the security of that property, the lender will not be able to recover damages greater than the amount by which the property has been overvalued because, in the absence of fraud, the valuer is responsible only for the foreseeable consequences of the valuation being wrong, and not for all the consequences of the loan having been made1. Where the lender would not have lent if he had known the property's actual value, and suffers losses because the value of the property falls after