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June 07, 2017

Oregon Establishes Statute of Limitations on Appraiser Liability

Oregon Gov. Kate Brown on May 25 signed HB 2189, legislation that establishes a statute of limitations on civil actions against appraisers and appraisal firms over real estate appraisal activity. The law takes effect Jan. 1 and applies only to appraisals performed after that date. 

Oregon joins Tennessee and Minnesota in enacting appraiser-specific statutes of limitations during the 2017 legislative session. 

The law will require that any civil action against an appraiser or an appraisal firm commence within six years after the date of the “act or omission giving rise to the action.” The limitations will not apply to actions that allege fraud or misrepresentation. 

The Appraisal Institute’s Greater Oregon Chapter requested introduction of the bill and lobbied for its passage. Chapter President Owen Bartels, MAI, testified Feb. 27 before the Oregon House Business and Labor Committee, stating, “Exposure to liability for an unlimited duration leads to increased costs for appraisers, especially residential appraisers, and constitutes a barrier to the field.” He also stated, “HB 2189 would affect a commonsense solution in marrying liability on that activity to the USPAP Record Keeping Rule.”

AI’s Washington office also testified in favor of HB 2189, stating, “A statute of limitations that is specific to claims against real estate appraisers and appraisal firms will provide the certainty of knowing the time-period during which a suit may be filed, and the appraiser or appraisal firm will be better able take appropriate risk management steps.”

Learn more about HB 2189.

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