SB 25-035

Senate Bill 25-035 limits the time frame for filing claims against real estate appraisers in Colorado. Under this law, anyone who wants to sue an appraiser must do so within five years of receiving the appraisal report. However, there are exceptions for consumers involved in residential mortgage loans or transactions and mortgage originators required to repurchase a loan, as well as cases involving fraud, misrepresentation, or discriminatory housing practices. Since the bill has been signed into law, it is now enforceable and will affect how claims against appraisers are handled in the state.

Official 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 act requires a claimant to bring an action against a real estate appraiser (appraiser) within 5 years after the date the appraisal report is completed and transmitted to a client. The 5-year limitation does not apply to an action against an appraiser for a defective appraisal report or service if the action is brought by: A consumer who is an original party to a residential mortgage loan or residential real estate transaction; or A mortgage originator who must repurchase a loan. The 5-year limitation also does not apply to an action for fraud, for misrepresentation, or for a discriminatory housing practice brought against an appraiser. (Note: This summary applies to this bill as enacted.)

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