SENATE BILL 25-035
BY SENATOR(S) Frizell and Michaelson Jenet, Amabile, Mullica;
also REPRESENTATIVE(S) Clifford and Weinberg, Bradley, Gonzalez R.,
Keltie.
C
ONCERNING ESTABLISHING A LIMITATION OF ACTIONS AGAINST AN
INDIVIDUAL PERFORMING A REAL ESTATE APPRAISAL PRACTICE
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 13-80-105.5 as
follows:
13-80-105.5. Limitation of actions against a real estate appraiser
- definitions. (1) N
OTWITHSTANDING ANY STATUTORY PROVISION TO THE
CONTRARY
, AN ACTION AGAINST A REAL ESTATE APPRAISER OR INDIVIDUAL
PERFORMING A REAL ESTATE APPRAISAL PRACTICE MUST BE BROUGHT
WITHIN FIVE YEARS AFTER THE DATE OF REPORT
.
(2) (a) T
HE LIMITATION SET FORTH IN SUBSECTION (1) OF THIS
SECTION DOES NOT APPLY TO AN ACTION AGAINST A REAL ESTATE APPRAISER
OR INDIVIDUAL PERFORMING A REAL ESTATE APPRAISAL PRACTICE IF THE
ACTION IS BROUGHT BY
:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (I) A CONSUMER WHO IS AN ORIGINAL PARTY TO THE RESIDENTIAL
MORTGAGE LOAN OR RESIDENTIAL REAL ESTATE TRANSACTION FOR WHICH
THE REAL ESTATE APPRAISER OR INDIVIDUAL PERFORMING A REAL ESTATE
APPRAISAL PRACTICE COMPLETED AN APPRAISAL REPORT OR PERFORMED AN
APPRAISAL SERVICE THAT FORMS THE BASIS OF THE ACTION
; OR
(II) A MORTGAGE ORIGINATOR WHO MUST REPURCHASE A LOAN
FROM AN ENTITY HOLDING THE LOAN OR THE MORTGAGE SECURITY
, AND A
DEFECT IN THE COMPLETED APPRAISAL REPORT OR THE APPRAISAL SERVICE
PERFORMED AS PART OF THE MORTGAGE ORIGINATION PROCESS FORMS THE
BASIS OF THE ACTION
.
(b) S
UBSECTION (2)(a)(I) OF THIS SECTION DOES NOT CREATE A NEW
PRIVATE RIGHT OF ACTION
.
(3) N
OTWITHSTANDING ANY STATUTORY PROVISION TO THE
CONTRARY
, AN ACTION FOR FRAUD OR KNOWING AND INTENTIONAL
MISREPRESENTATION BROUGHT AGAINST A REAL ESTATE APPRAISER OR AN
INDIVIDUAL PERFORMING A REAL ESTATE APPRAISAL PRACTICE MUST BE
BROUGHT WITHIN THE TIME PROVIDED IN SECTION
13-80-101.
(4) N
OTWITHSTANDING ANY STATUTORY PROVISION TO THE
CONTRARY
, AN ACTION FOR A DISCRIMINATORY HOUSING PRACTICE
BROUGHT AGAINST A REAL ESTATE APPRAISER OR AN INDIVIDUAL
PERFORMING A REAL ESTATE APPRAISAL PRACTICE MUST BE BROUGHT
WITHIN THE TIME PROVIDED IN PART
5 OF ARTICLE 34 OF TITLE 24 OR IN
APPLICABLE FEDERAL LAW
.
(5) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "D
ATE OF REPORT" MEANS THE DATE WHEN AN APPRAISAL
REPORT IS COMPLETED AND TRANSMITTED TO THE CLIENT
.
(b) "R
EAL ESTATE APPRAISAL PRACTICE " MEANS REAL ESTATE
VALUATION SERVICES PERFORMED BY AN INDIVIDUAL ACTING AS AN
APPRAISER
, INCLUDING, BUT NOT LIMITED TO, APPRAISAL AND APPRAISAL
REVIEW
.
PAGE 2-SENATE BILL 25-035 SECTION 2. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
November 2026 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
James Rashad Coleman, Sr. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 3-SENATE BILL 25-035