Arizona and Florida Enact Appraiser Statutes of Repose
Efforts to limit real estate appraiser liability are advancing in the states as Arizona Gov. Katie Hobbs signed HB 2230 on April 18 and Florida Gov. Ron DeSantis signed HB 213 on June 12. Both bills limit the length of time during which a civil action can be initiated against an appraiser. The states became the 12th and 13th, respectively, to enact appraiser-specific statutes of repose.
In Arizona, the law establishes a four-year limitation on lawsuits against appraisers for legal claims such as negligent misrepresentation, professional malpractice and breach of the standard of care. The four-year period is calculated beginning from the date on which the real estate appraisal or appraisal service giving rise to the action was completed or should have been completed. The limitations established by HB 2230 do not apply to claims alleging fraud or gross misrepresentation.
The Florida law requires that any action to recover damages against an appraiser or appraisal management company must be filed within two years of the date that the alleged act or omission giving rise to the suit is discovered or should have been discovered. But in no case may an action be initiated more than four years from the date the appraisal services or appraisal management services were performed. The provisions do not apply to any action alleging fraud. The new limitations will apply to appraisals and appraisal management services performed on or after July 1, 2023; any action that accrued before that date must be filed by July 1, 2024.
The Florida law took effect July 1, and the Arizona law will take effect Aug. 11.