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May 22, 2019

Oregon Laws Address Statutes of Limitations, Evaluations

Oregon Gov. Kate Brown signed two pieces of legislation affecting the valuation profession. On May 13, she signed HB 3218, which updates the state’s existing statute of limitations on civil suits against real estate appraisers, and on May 20, she signed SB 109, which allows state-licensed and state-certified appraisers to provide evaluations to financial institutions.
HB 3218 shortens the timeframe for filing claims against appraisers from no more than six years to no more than five years from the date the subject appraisal activity or appraisal review was completed. Plaintiffs must take legal action within two years of when they knew or should have known the facts on which their lawsuit is based. The law also extends the protections of the statute of limitations to appraisers subject to disciplinary action from the Oregon Appraiser Certification and Licensure Board. The Appraisal Institute’s Oregon Chapter lobbied hard for passage of the law.
SB 109 will allow state-licensed and state-certified appraisers to provide evaluations to financial institutions beginning Jan. 1. 
The new law clarifies that a person who is licensed or certified as an appraiser is not engaged in real estate appraisal activity when providing an evaluation that includes a required disclaimer and is not required to, but may choose to, comply with the Uniform Standards of Professional Appraisal Practice when providing evaluation services to financial institutions. Providing evaluations is not considered a real estate appraisal activity, and therefore appraisers are not subject to the jurisdiction of the Oregon Appraiser Certification and Licensure Board. 
SB 109 also clarifies that financial institutions may utilize evaluations provided by third parties, and such activity does not constitute real estate appraisal activity. Currently, an evaluation is only exempt from the definition of “real estate appraisal activity” if it is prepared by the financial institution.  
In testimony supporting the legislation, the Coalition of Oregon Real Estate Appraisers stated, “We believe Oregon’s citizens and financial institutions would be best served and protected by allowing appraisers to perform evaluation services.” COREA concluded, “We are not opposed to qualified nonā€appraisers performing evaluations, however, [sic] we strongly feel that it is in the best interest of Oregonians that those most qualified to perform evaluations (appraisers) not be prohibited from doing so.”

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