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 act requires a claimant to bring an action against a real estate appraiser (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 for a defective appraisal report or service if the action is brought by:

• A consumer who is an original party to a residential mortgage loan or residential real estate transaction; or
• A mortgage originator who must repurchase a loan.

The 5-year limitation also does not apply to an action for fraud, for misrepresentation, or for a discriminatory housing practice brought against an appraiser.

(Note: This summary applies to this bill as enacted.)