Limitation of Actions Against Appraisers

Under current law, the statute of limitations to bring certain claims against a real estate appraiser does not start until the party filing the claim has discovered, or should have discovered, an alleged defect in the appraisal.

The bill requires a claimant to bring an action against a real estate appraiser or individual performing a real estate appraisal practice (appraiser) within 5 years after the date the appraisal report is completed and transmitted to a client. The 5-year limitation does not apply to an action against an appraiser if the action is brought by:

• A consumer who is an original party to the residential mortgage loan or residential real estate transaction for which the appraiser completed an appraisal report or service that forms the basis of the action; or
• A mortgage originator who must repurchase a loan, and a defect in the appraisal report or service performed as part of the mortgage origination process forms the basis of the action.

The 5-year statute of limitations also does not apply to an action for fraud, for misrepresentation, or for a discriminatory housing practice brought against a real estate appraiser or individual performing a real estate appraisal practice an appraiser .

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)