Actions against real estate appraisers or appraisal management companies; statute of limitations.
Impact
This legislation is expected to modify the existing legal framework surrounding real estate appraisals by standardizing the time frame in which individuals or entities can seek relief through legal action. By setting a definitive five-year limit, the bill seeks to provide clarity for appraisers and appraisal management companies, reducing the potential for ongoing liability over extended periods. Moreover, it aligns the statute of limitations for these actions with similar provisions in other areas of law, promoting uniformity in legal proceedings related to real estate.
Summary
House Bill 53 aims to establish a statute of limitations on actions against real estate appraisers and appraisal management companies for malpractice or negligence. The bill stipulates that any lawsuit alleging malpractice, negligence, or errors in appraisals must be filed within five years from the date of the alleged incident. This includes actions based on errors, mistakes, or breaches in an appraisal or appraisal report. However, the bill makes exceptions for cases involving allegations of fraud.
Contention
Debate regarding HB 53 may center on the balance between protecting appraisers from undue legal exposure and ensuring that consumers have adequate time to address grievances related to appraisal practices. Proponents of the bill argue that establishing a clear timeline will help protect professional appraisers from outdated claims that could arise long after an appraisal has been completed. Conversely, opponents may express concern that a five-year limit could unduly restrict the ability of aggrieved parties to seek justice, especially in cases where damages are not discovered until years later.