A Bill for an Act
Page 1, Line 101Concerning establishing a limitation of actions against an
Page 1, Line 102individual performing a real estate appraisal practice.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
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.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 13-80-105.5 as follows:
Page 2, Line 313-80-105.5. Limitation of actions against a real estate
Page 2, Line 4appraiser - definitions. (1) Notwithstanding any statutory
Page 2, Line 5provision to the contrary, an action against a real estate
Page 2, Line 6appraiser or individual performing a real estate appraisal
Page 2, Line 7practice must be brought within five years after the date of report.
Page 2, Line 8(2) (a) The limitation set forth in subsection (1) of this
Page 2, Line 9section does not apply to an action against a real estate
Page 2, Line 10appraiser or individual performing a real estate appraisal practice if the action is brought by:
Page 2, Line 11(I) A consumer who is an original party to the residential
Page 2, Line 12mortgage loan or residential real estate transaction for which
Page 2, Line 13the real estate appraiser or individual performing a real estate
Page 2, Line 14appraisal practice completed an appraisal report or performed an appraisal service that forms the basis of the action; or
Page 2, Line 15(II) A mortgage originator who must repurchase a loan
Page 2, Line 16from an entity holding the loan or the mortgage security, and
Page 2, Line 17a defect in the completed appraisal report or the appraisal
Page 2, Line 18service performed as part of the mortgage origination process
Page 2, Line 19forms the basis of the action.
Page 3, Line 1(b) Subsection (2)(a)(I) of this section does not create a new private right of action.
Page 3, Line 2(3) Notwithstanding any statutory provision to the
Page 3, Line 3contrary, an action for fraud or knowing and intentional
Page 3, Line 4misrepresentation brought against a real estate appraiser or an
Page 3, Line 5individual performing a real estate appraisal practice must be brought within the time provided in section 13-80-101.
Page 3, Line 6(4) Notwithstanding any statutory provision to the
Page 3, Line 7contrary, an action for a discriminatory housing practice
Page 3, Line 8brought against a real estate appraiser or an individual
Page 3, Line 9performing a real estate appraisal practice must be brought
Page 3, Line 10within the time provided in part 5 of article 34 of title 24 or in applicable federal law.
Page 3, Line 11(5) As used in this section, unless the context otherwise requires:
Page 3, Line 12(a) "Date of report" means the date when an appraisal report is completed and transmitted to the client.
Page 3, Line 13(b) "Real estate appraisal practice" means real estate
Page 3, Line 14valuation services performed by an individual acting as an
Page 3, Line 15appraiser, including, but not limited to, appraisal and appraisal review.
Page 3, Line 16SECTION 2. Act subject to petition - effective date. This act
Page 3, Line 17takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 18ninety-day period after final adjournment of the general assembly; except
Page 3, Line 19that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 20of the state constitution against this act or an item, section, or part of this
Page 3, Line 21act within such period, then the act, item, section, or part will not take
Page 4, Line 1effect unless approved by the people at the general election to be held in
Page 4, Line 2November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.