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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
appraiser; claims; time limitation
Purpose
Limits the amount of time within which a person can initiate an action against a real estate appraiser to four years from the date of the report, or the applicable statute of limitations for the type of claim that is being pursued if it is less than four years from the date of the report, whichever comes first.
Background
A homeowner who has a cause of action for damages against a certified home inspector must commence the action within four years after the cause of action accrues and an action for specific performance of a contract for the conveyance of real property must be commenced within four years after the cause of action accrues. For personal injury to another or their property, including injuries due to medical malpractice, trespass for injury done to the estate or the property of another and for detaining the personal property of another and converting such property to one's own use, the statute of limitations is two years after the cause of action accrues. A cause of action must be commenced within three years after the cause of action accrues for relief on the ground of fraud or mistake, for which the cause of action must not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud or mistake (A.R.S. §§ 12-530; 12-542; 12-543 and 12-546).
The Uniform Standards of Professional Appraisal Practice (USPAP), as
published by the Appraisal Standards Board, are the standards for the appraisal
practice in Arizona unless the deputy director objects. Appraisal Standards
Board (ASB) means the ASB appointed by the board of trustees of the Appraisal
Foundation to develop, interpret and amend the USPAP (A.R.S.
§§ 32-3601
and 32-3610).
The USPAP is the generally recognized ethical and performance standards
for the appraisal profession in the United States. USPAP was adopted
by Congress in 1989, and contains standards for all types of appraisal
services, including real estate, personal property, business and mass
appraisal. Compliance is required for state-licensed and
state-certified appraisers involved in federally-related real estate
transactions (Appraisal
Foundation).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a person who has a cause of action for damages against a real estate appraiser as outlined to commence the action before the earlier of:
a) the expiration of the applicable statute of limitations for the type of claim that is being pursued if the length of time after the report date to the expiration of the statute of limitations does not exceed four years; or
b) four years after the date on which the appraisal-related service giving rise to the action was performed or should have been performed.
2. Defines report date as the date the real estate appraisal giving rise to the action was completed or should have been completed.
3. Specifies that the statute of limitations does not apply to a claim that alleges an appraiser knowingly and intentionally committed fraud or made a gross misrepresentation when performing a real estate appraisal or an appraisal-related service.
4. Defines real estate appraiser as:
a) a state-licensed appraiser;
b) a state-certified residential appraiser;
c) a state-certified general appraiser;
d) a state-registered trainee appraiser; and
e) any agent, employee or firm of a person as previously listed.
5. Becomes effective on the general effective date.
House Action
RA 2/08/23 DP 6-0-0-1
3rd Read 2/22/23 58-2-0
Prepared by Senate Research
March 7, 2023
ZD/KS/sr