505. Valuation for mortgage purposes.

A valuer who reports on a property for a prospective mortgagee, knowing that a prospective purchaser is likely to rely on his report when deciding whether or not to buy the property, owes a duty of care to that purchaser1. The purchaser may rely on a valuer's report which is shown to him, and on a report which is not shown to him where it is reasonable for him to assume from the offer of a loan on mortgage that the property has been valued at no less than the amount of the loan2. Where, however, the existing owner