HB 24-1085

House Bill 24-1085, which has been signed into law, sets a clear deadline for when someone can sue a real estate appraiser if they think the appraisal was faulty. Under this new law, people have up to three years from receiving an appraisal report to file a lawsuit against the appraiser. If any issues are discovered after those three years but within five years of getting the report, they then have two more years to take legal action. However, if someone suspects fraud, there's no time limit for when they can sue. This affects anyone who gets an appraisal and might need to challenge it later on. Since the bill has been signed, it is now law in Colorado.

Official Summary

Under current law, the statute of limitation to bring a claim against a real estate appraiser does not commence until the party filing the claim discovers, or should discover, 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 3 years after the date of report; except that, if a cause of action arises during the third year after the date of report, the action must be brought within 2 years after the date the cause of action arose 5 years after the date of report. The bill does not apply to actions for fraud brought against a real estate appraiser or individual performing an appraisal practice. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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