Gay

Michael H. Gay appeals from a judgment of dismissal entered July 19, 1979, following the sustaining of a demurrer to his first amended complaint without leave to amend.

The first amended complaint sets forth three causes of action which we summarize:

First Cause of Action

In March 1978, Gay, a veteran, applied for a home loan on property on Devon Court in San Diego. The application was made to Home Federal Savings and Loan Association and the loan was to be guaranteed by the Veterans Administration, an agency of the United States. Upon such application the Veterans Administration has a statutory duty to make an appraisal of the property and may appoint a designated fee appraiser to do so. Michael A. Broder, a designated fee appraiser, entered into an agreement with the Veterans Administration to make the appraisal to determine the amount of the loan to be guaranteed. This agreement was made for Gay’s benefit. Broder submitted a bill for $95 which Gay paid. The Veterans Administration performed its agreement with Broder. Broder held himself out to be a qualified appraiser. He submitted an appraisal and negligently set the value of the property at $85,000, although the…