Bill > SB035

This bill establishes a five-year statute of limitations for legal actions against real estate appraisers and individuals performing real estate appraisal practices, with some important exceptions. Specifically, the bill states that most actions must be brought within five years from the date of the appraisal report, which is defined as the date when the report is completed and transmitted to the client. The five-year limitation does not apply to actions brought by the original consumer party to a residential mortgage loan or real estate transaction, or by a mortgage originator who must repurchase a loan due to a defect in the appraisal. The bill also preserves existing time limitations for actions involving fraud, intentional misrepresentation, or discriminatory housing practices. "Real estate appraisal practice" is broadly defined to include real estate valuation services performed by an appraiser, such as appraisals and appraisal reviews. The bill clarifies that it does not create a new private right of action and will take effect after the standard legislative review period, with a potential voter referendum in November 2026 if challenged.

Business and Industry

https://leg.colorado.gov/bills/sb25-035