The proposed legislation, Senate Bill 25-035, seeks to establish specific timeframes for initiating legal actions against real estate appraisers in Colorado. This bill aims to provide clarity and consistency regarding the statute of limitations for such claims.
Key Provisions:
Standard Statute of Limitations:
Claims against real estate appraisers or individuals performing real estate appraisal practices must be filed within five years from the date the appraisal report is completed and delivered to the client.
Exceptions:
Fraud or Intentional Misrepresentation: Actions based on fraud or intentional misrepresentation are subject to the existing statute of limitations outlined in Section 13-80-101 of the Colorado Revised Statutes.
Discriminatory Housing Practices: Claims alleging discriminatory housing practices must be filed within the timeframe specified in Part 5 of Article 34 of Title 24 of the Colorado Revised Statutes or applicable federal law.
By defining these time limits, the bill aims to balance the rights of claimants with the need for legal certainty for professionals in the real estate appraisal industry.
Summary
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 within 5 years after the date the appraisal report is completed and transmitted to a client. The 5-year statute of limitations 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.
