Assigned to JUD FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2230
appraiser; claims; time limitation
Purpose
Limits the amount of time within which a person can initiate an action against a real estate
appraiser to four years from the date of the report, or the applicable statute of limitations for the
type of claim that is being pursued if it is less than four years from the date of the report, whichever
comes first.
Background
A homeowner who has a cause of action for damages against a certified home inspector
must commence the action within four years after the cause of action accrues and an action for
specific performance of a contract for the conveyance of real property must be commenced within
four years after the cause of action accrues. For personal injury to another or their property,
including injuries due to medical malpractice, trespass for injury done to the estate or the property
of another and for detaining the personal property of another and converting such property to one's
own use, the statute of limitations is two years after the cause of action accrues. A cause of action
must be commenced within three years after the cause of action accrues for relief on the ground of
fraud or mistake, for which the cause of action must not be deemed to have accrued until the
discovery by the aggrieved party of the facts constituting the fraud or mistake (A.R.S. §§ 12-530;
12-542; 12-543 and 12-546).
The Uniform Standards of Professional Appraisal Practice (USPAP), as published by the
Appraisal Standards Board, are the standards for the appraisal practice in Arizona unless the deputy
director objects. Appraisal Standards Board (ASB) means the ASB appointed by the board of
trustees of the Appraisal Foundation to develop, interpret and amend the USPAP (A.R.S.
§§ 32-3601 and 32-3610). The USPAP is the generally recognized ethical and performance
standards for the appraisal profession in the United States. USPAP was adopted by Congress in
1989, and contains standards for all types of appraisal services, including real estate, personal
property, business and mass appraisal. Compliance is required for state-licensed and
state-certified appraisers involved in federally-related real estate transactions (Appraisal
Foundation).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires a person who has a cause of action for damages against a real estate appraiser as
outlined to commence the action before the earlier of:
a) the expiration of the applicable statute of limitations for the type of claim that is being
pursued if the length of time after the report date to the expiration of the statute of
limitations does not exceed four years; or FACT SHEET
H.B. 2230
Page 2
b) four years after the date on which the appraisal-related service giving rise to the action was
performed or should have been performed.
2. Defines report date as the date the real estate appraisal giving rise to the action was completed
or should have been completed.
3. Specifies that the statute of limitations does not apply to a claim that alleges an appraiser
knowingly and intentionally committed fraud or made a gross misrepresentation when
performing a real estate appraisal or an appraisal-related service.
4. Defines real estate appraiser as:
a) a state-licensed appraiser;
b) a state-certified residential appraiser;
c) a state-certified general appraiser;
d) a state-registered trainee appraiser; and
e) any agent, employee or firm of a person as previously listed.
5. Becomes effective on the general effective date.
House Action
RA 2/08/23 DP 6-0-0-1
3
rd
Read 2/22/23 58-2-0
Prepared by Senate Research
March 7, 2023
ZD/KS/sr