The proposed bill adds Section 6-2-42 to the Code of Alabama 1975, establishing a statute of limitations for civil actions based on real estate appraisals. Under this new section, individuals must commence actions against appraisers within three years of discovering the act or omission that led to the complaint, but no later than five years after the appraisal was completed. Notably, this statute does not apply to cases where the appraiser fraudulently inflated property values.

Additionally, the bill amends Section 34-27A-20, modifying the procedures for the Alabama Real Estate Appraisers Board to investigate complaints against appraisers. The amendment removes the phrase "on complaint or on its own motion" and replaces it with "either when a complaint is filed against the appraiser or by initiating an investigation on its own." It also introduces new provisions regarding the board's disciplinary actions, including the ability to issue public and private reprimands, and sets a five-year limit for considering complaints related to appraisals. The bill is set to take effect on June 1, 2026.

Statutes affected:
Introduced: 34-27A-20
Engrossed: 34-27A-20