Assigned to JUD FOR
COMMITTEE
Assigned to JUD FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
statute; limitations; appraisers; appraisal services
Purpose
Creates a two-year statute of limitations for actions brought against specified appraisal related professionals and companies.
Background
A state-licensed or state-certified appraiser is a person who develops and communicates appraisals and who holds a current, valid license or certificate issued by the Department of Financial Institutions (DFI). A registered trainee appraiser is a person who: 1) is registered with DFI and meets the Appraiser Qualifications Board's standards to perform appraisal services under the direct supervision of a certified appraiser who has supervisorial qualifications; and 2) accepts assignments only from the registered trainee appraiser's supervisory appraiser (A.R.S. § 32-3601). A state-certified residential real estate appraiser is specifically certified for appraisal or appraisal review of one to four residential units without regard to value or complexity (A.R.S. § 32-3612).
A two-year limitations period applies to claims for breach of fiduciary duty, professional negligence and negligent misrepresentation. (See A.R.S. § 12-542; Coulter v. Grant Thornton, LLP, 241 Ariz. 440, (App. 2017), review denied (Aug. 30, 2017)). Further, under the court's discovery rule, a plaintiff's cause of action does not begin to accrue until the party bringing the action knew or reasonably should have known the facts underlying the cause of action (See Gust, Rosenfeld & Henderson v. Prudential Ins. Co. of Am., 182 Ariz. 588 (1995)).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Establishes a two-year statute of limitations for actions based on an appraisal or appraisal-related services that are brought against any of the following:
a) a state-licensed appraiser;
b) a state-certified residential real estate appraiser;
c) a state-certified appraiser;
d) a registered trainee appraiser;
e) an agent, firm, employee or employer of a state-licensed appraiser, state certified residential real estate appraiser, state-certified appraiser or registered trainee appraiser;
f) an appraisal management company; or
g) a mortgage lender.
2. Stipulates that the cause of action must be brought within two years of the date on which either:
a) the appraisal giving rise to the action was completed or should have been completed; or
b) the appraisal-related service giving rise to the action was performed or should have been performed.
3. Excludes causes of action that are based on claims alleging knowing or intentional fraud or knowing or intentional misrepresentation made during the performance of the appraisal or when providing an appraisal related service from the two-year statute of limitations.
4. Defines registered trainee appraiser, state-certified appraiser, state-certified residential real estate appraiser and state-licensed appraiser.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2018
JA/lat