HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 213 Limitation of Actions Involving Real Estate Appraisers and Appraisal
Management Companies
SPONSOR(S): Judiciary Committee, Civil Justice Subcommittee, Borrero
TIED BILLS: IDEN./SIM. BILLS: SB 398
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 18 Y, 0 N, As CS Mawn Jones
2) Regulatory Reform & Economic Development 11 Y, 0 N Wright Anstead
Subcommittee
3) Judiciary Committee 22 Y, 0 N, As CS Mawn Kramer
SUMMARY ANALYSIS
Part II of ch. 475, F.S., regulates Florida real estate appraisers and the provision of real estate appraisal
services. A real estate appraisal gives the current value of real property. This appraisal value is used to
establish the property’s fair market value, which information is useful to persons involved in real estate
transactions, including buyers, sellers, financiers, and insurers.
Persons who suffer damages as a result of an act or omission in the performance of appraisal services or
appraisal management services may have a cause of action against the person or party responsible for the act
or omission. Available causes of action may include an action founded on contract or tort, such as negligence
or fraud. Under Florida law, the statute of limitations for an action for professional malpractice, including
malpractice in the provision of appraisal services or appraisal management services, whether founded on
contract or tort, is generally two years, running from the time the cause of action is discovered or should have
been discovered with the exercise of due diligence; however, this statute of limitations applies only to persons
in privity – that is, in direct contract – with the professional. If the plaintiff is not in privity with the professional,
other statutes of limitations may apply, including a four-year statute of limitations for negligence and fraud.
CS/CS/HB 213 creates a two-year statute of limitations and a four-year statute of repose for a lawsuit to
recover damages from an appraiser or appraisal management company based on contract, tort, or other legal
theory for an act or omission in the performance of appraisal services or appraisal management services. The
statute of limitations runs from the date the alleged act or omission is discovered, or should have been
discovered, while the statute of repose runs from the date the appraisal services or appraisal management
services were performed, or should have been performed.
Further, the bill provides that it governs all actions for damages or other relief brought against an appraiser or
appraisal management company with respect to appraisal services or appraisal management services.
However, under the bill, the statutes of limitations and repose do not apply to any:
Administrative proceedings initiated by specified regulatory authorities.
Action alleging that an appraiser or appraisal management company committed fraud.
The bill also provides that the statutes of limitations and repose apply to any action commenced on or after
July 1, 2023, except that any action accruing before that date which would not have been barred before July 1,
2023, must be commenced by July 1, 2024, or else is barred.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0213e.JDC
DATE: 4/12/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Statutes of Limitations and Repose
A statute of limitations bars a lawsuit’s filing after a certain amount of time elapses following an injury.1
This time period typically begins to run when a cause of action accrues (that is, on the date of the
injury) but may also begin to run on the date the injury is discovered or on which it would have been
discovered with reasonable efforts.2 In other words, a statute of limitations bars the available civil
remedy if a lawsuit is not timely filed after an injury.
A statute of repose bars the filing of a lawsuit after a fixed period of time passes following a specific act,
which act is unrelated to the cause of action’s accrual or the injury’s discovery, even if this period ends
before the plaintiff is injured.3 Further, a statute of repose eliminates the underlying substantive right of
action, not just the available civil remedy, upon expiration of the statutorily-specified filing period.4
Courts construe a cause of action rescinded by a statute of repose as if the right to sue never existed,
which encourages diligence in the prosecution of claims, eliminates the potential for abuse resulting
from a stale claim, and fosters finality in liability.5
Real Estate Appraisers
Part II of ch. 475, F.S., regulates Florida real estate appraisers and the provision of real estate
appraisal services. “Appraisal” or “appraisal services,” as used in this part, means the services provided
by certified6 or licensed7 appraisers or registered trainee appraisers,8 including:
“Appraisal assignments,” denoting an engagement for which a person is employed or retained
to act, or could be perceived by third parties as acting, as an agent or a disinterested third party
in rendering an unbiased analysis, opinion, review, or conclusion relating to the nature, quality,
value, or utility of specified interests in, or aspects of, identified real property.
“Analysis assignments,” denoting appraisal services relating to the employer’s or client’s
individual objectives and includes specialized marketing, financing, and feasibility studies as
well as analyses, opinions, and conclusions given in connection with activities s uch as real
estate brokerage, mortgage banking, real estate counseling, or real estate consulting.
“Appraisal review assignments,” denoting the employment or retention of a person to opine
about the quality of another appraiser’s appraisal, appraisal report, or work, which review may
or may not contain the reviewing appraiser’s opinion of value. 9
1 Legal Information Institute, Statute of Limitations, https://www.law.cornell.edu/wex/statute_of_limitations (last visited April 11, 2023).
2
Id.
3 Legal Information Institute, Statute of Repose, https://www.law.cornell.edu/wex/statute_of_repose (last visited April 11, 2023); Kush v.
Lloyd, 616 So. 2d 415 (Fla. 1992).
4 Beach v. Great Western Bank, 692 So. 2d 146 (Fla. 1997).
5 Lamb By and Through Donaldson v. Volkswagenwerk Aktiengesellschaft, 631 F. Supp. 1144, 1148 (S.D. Fla. 1986), judgment aff'd,
835 F.2d 1369 (11th Cir. 1988).
6 A “certified appraiser” is either a “certified general appraiser” or a “certified residential appraiser.” A “certified general appraiser” is a
person who is certified by the Department of Business and Professional Regulation (“DBPR”) to issue appraisal reports for any type of
real property. A “certified residential appraiser” is a person who is certified by DBPR to issue appraisal reports for residential real
property of one to four residential units, without regard to transaction value or complexity, or real property as may be auth orized by
federal regulation. S. 475.611(1)(k) and (l), F.S.
7 A “licensed appraiser” is a person who is licensed by the department to issue appraisal reports for residential real property of one to
four residential units or on such real estate or real property as may be authorized by federal regulation. DBPR stopped issuing licenses
for “licensed appraisers” on July 1, 2003. S. 475.611(1)(t), F.S.
8 A “registered trainee appraiser” is a person who is registered with DBPR to perform appraisal services under the direct super vision of
a certified appraiser. A registered trainee appraiser may accept appraisal assignments only from her or his supervisory appraiser. S.
475.611(1)(v), F.S.
9 S. 475.611(1)(a), F.S.
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In other words, a real estate appraisal gives the current value of real property. This appraisal value is
used to establish the property’s fair market value, which information is useful to persons involved in real
estate transactions, including buyers, sellers, financiers, and insurers.
Regulation of Appraisers
Under Part II of ch. 475, the Florida Real Estate Appraisal Board (“Board”), housed within the
Department of Business and Professional Regulation’s (“DBPR”) Division of Real Estate, has full power
to regulate, by rule,10 the issuance of and the establishment of qualifications for appraiser licenses,
certifications, registrations, and permits; to discipline appraisers and appraisal management
companies 11 in any manner authorized in statute;12 to regulate approved courses; to establish real
estate appraisal standards; and to establish standards for and regulate supervisory appraisers. 13
Civil Actions Against Appraisers
Persons who suffer damages as a result of an act or omission in the performance of appraisal services
or appraisal management services may have a cause of action against the person or party responsible
for the act or omission. Available causes of action may include an action founded on contract or tort,
such as negligence14 or fraud.15
Under Florida law, the statute of limitations for an action for professional malpractice, including
malpractice in the provision of appraisal services or appraisal management services, whether founded
on contract or tort, is generally two years,16 running from the time the cause of action is discovered or
should have been discovered with the exercise of due diligence; however, this statute of limitations
applies only to persons in privity – that is, in direct contract – with the professional.17 If the plaintiff is not
in privity with the professional, other statutes of limitations may apply, including a four-year statute of
limitations for negligence and fraud.18
Effect of Proposed Changes
CS/CS/HB 213 creates a two-year statute of limitations and a four-year statute of repose for a lawsuit to
recover damages from an appraiser or appraisal management company based on contract, tort, or
other legal theory for an act or omission in the performance of appraisal services or appraisal
management services. The statute of limitations runs from the date the alleged act or omission is
discovered, or should have been discovered, while the statute of repose runs from the date the
appraisal services or appraisal management services were performed, or should have been performed.
Further, the bill provides that it governs all actions for damages or other relief brought against an
appraiser or appraisal management company with respect to appraisal services or appraisal
management services. However, under the bill, the statute of repose does not apply to any:
Administrative proceedings initiated by the Board or DBPR.
10
The Board may adopt rules pursuant to ss. 120.536(1) and 120.54, F.S., to implement its statutory duties. S. 475.614(1), F.S.
11 An “appraisal management company” is a person who, within a 12 -month period oversees an appraisal panel of more than 15 state -
certified or -licensed appraisers in a state, or 25 or more such appraisers in two or more states, and who performs appraisal
management services. “Appraisal management services” means the coordination or management of appraisal services for
compensation by: 1) employing, contracting with, or otherwise retaining one or more licensed or certified appraisers to perfo rm
appraisal services for a client; or 2) acting as an intermediary between a client and one or more licensed or certified appraisers to
facilitate the client’s employing, contracting with, or otherwise retaining the appraisers. S. 475.611(1)(c) and (d), F.S.
12 S. 475.624, F.S., provides for the discipline of appraisers, while s. 475.6245, F.S., provides for the discipline of appraisal
management companies.
13
S. 475.613(2), F.S.
14 Appraisal negligence occurs when an appraiser does not exercise the degree of care and skill that an ordinary appraiser would
exercise. Tony Sevelka, Appraisal Standards and Professional Negligence Claims, https://intval.com/articles/Appraisal-Standards-and-
Professional-Negligence-Claims.pdf (last visited April 11, 2023).
15
Appraisal fraud occurs when an appraiser makes an intentional and material misrepresentation relating to real property’s valu e.
Investopedia, Appraisal Fraud, https://www.investopedia.com/terms/a/appraisalfraud.asp (last visited April 11, 2023)
16 A different statute of limitations applies to medical malpractice claims. S. 95.11(4)(b), F.S.
17 S. 95.11(4)(a), F.S.
18 S. 95.11(3)(a) and (j), F.S.; Llano Financing Group, LLC v. Petit, 230 So. 3d 141 (Fla. 1st DCA September 27, 2017) .
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Action alleging that an appraiser or appraisal management company committed fraud.
The bill also provides that the statutes of limitations and repose apply to any action commenced on or
after July 1, 2023, except that any action accruing before that date which would not have been barred
before July 1, 2023, must be commenced by July 1, 2024, or else is barred.
The bill provides an effective date of July 1, 2023.
B. SECTION DIRECTORY:
Section 1: Creates s. 95.371, F.S., relating to actions against real estate appraisers and appraisal
management companies.
Section 2: Provides applicability.
Section 3: Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill limits the liability of appraisers and appraiser management companies by imposing a seven-
year statute of repose on actions for damages against such persons or companies for acts or
omissions in the performance of appraisal services or appraisal management services.
D. FISCAL COMMENTS:
None.
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III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
Due Process
The U.S. Constitution provides that no state shall “deprive any person of life, liberty, or property,
without due process of law.”19 Similarly, the Florida Constitution provides that “[n]o person shall be
deprived of life, liberty, or property without due process of law…” 20
Although the right to file a lawsuit is a valid and protected property interest, 21 a plaintiff has no vested
right in a statute of limitations or repose in effect when his or her cause of action accrues. 22 A statute
of limitations or repose may thus be either initially imposed or reduced by legislation and applied to
an existing cause of action so long as the plaintiff still has a reasonable amount of time left in which
to enforce his or her right to file a lawsuit.23
The bill attempts to address this issue by giving a plaintiff until July 1, 2024, to bring a suit for any act
or omission in the performance of appraisal services or appraisal management services if the
plaintiff’s cause of action accrued before July 1, 2023.
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On March 14, 2023, the Civil Justice Subcommittee adopted an amendment and reported the bill favorably
as a committee substitute. The committee substitute:
Deleted a provision of the bill creating a one-year statute of limitations for an action to recover
damages from an appraiser or appraisal management company based on contract, tort, or other
legal theory for an act or omission is the performance of appraisal services or appraisal
management services.
Increased the four-year statute of repose for such actions created by the bill to seven years.
Deleted a provision specifying that all actions for damages or other relief brought against an
appraiser or appraisal management company with respect to appraisal services or appraisal
management services would be governed exclusively by the section created by the bill.
Modified language addressing due process considerations.
On April 11, 2023, the Judiciary Committee adopted an amendment and reported the bill favorably as a
committee substitute. The committee substitute:
Created a two-year statute of limitations for an action to recover d