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SB87 ENGROSSED
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SB87
TBSC495-2
By Senator Albritton
RFD: Judiciary
First Read: 13-Jan-26
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First Read: 13-Jan-26
A BILL
TO BE ENTITLED
AN ACT
Relating to commencement of actions; to add Section
6-2-42 to the Code of Alabama 1975; to establish a statute of
limitations for actions based upon a real estate appraisal; to
amend Section 34-27A-20, Code of Alabama 1975, to establish a
statute of limitations for filing a complaint with the Alabama
Real Estate Appraisers Board against an appraiser; and to make
nonsubstantive, technical revisions to update the existing
code language to the current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 6-2-42 is added to the Code of
Alabama 1975, to read as follows:
§6-2-42
(a) A civil action based on a real estate appraisal
completed by a person who is or was licensed, certified, or
registered under Chapter 27A of Title 34, on the date of the
appraisal must be commenced against the appraiser no more than
three years from a person's discovery of the act or omission
giving rise to the action but no more than five years after
the date the appraisal was completed.
(b) This section is inapplicable to any action arising
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(b) This section is inapplicable to any action arising
from a real estate appraisal where the real estate appraiser
fraudulently inflated the value of the property or colluded
with others to fraudulently inflate the value of the property.
Section 2. Section 34-27A-20, Code of Alabama 1975, is
amended to read as follows:
"§34-27A-20
(a) The board may investigate the actions of a licensed
real property appraiser on complaint or on its own motion,
and, either when a complaint is filed against the appraiser or
by initiating an investigation on its own. Based upon their
findings, the board may: (i) revoke or suspend the appraiser's
license ,; (ii) levy fines as provided in subsection (c) ,;
(iii) require completion of education courses ,; or discipline
by public and no more than iv) issue public and private
reprimands, with a limit of two private reprimands per
licensed real property appraiser for any of the following acts
or omissions:
(1) Procuring Obtaining or attempting to procure obtain
a license or certificate pursuant to this article by knowingly
making a false statement, submitting false information,
refusing to provide complete information in response to a
question in an application for a license, or through any form
of fraud or misrepresentation.
(2) Failing to meet the minimum qualifications
established by this article.
(3) Paying money other than authorized by this article
to any member or employee of the board to procure obtain a
license under this article.
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license under this article.
(4) A conviction, including a conviction based upon a
plea of guilty or nolo contendere, of a crime which is
substantially related to the qualifications, functions, and
duties of a person developing real estate appraisals and
communicating real estate appraisals to others, or a
conviction involving moral turpitude.
(5) An act or omission involving dishonesty, fraud, or
misrepresentation with the intent to substantially benefit the
certificate holder or another person substantially , or with
the intent to substantially injure another person.
(6) Violation of any of the standards for the
development or communication of real estate appraisals as
provided in this section.
(7) Failure or refusal without good cause to exercise
reasonable diligence in developing an appraisal, preparing an
appraisal, in preparing an appraisal report, or in
communicating an appraisal.
(8) Negligence or incompetence in developing an
appraisal, in preparing an appraisal report, or in
communicating an appraisal.
(9) Willfully disregarding or violating this article or
the regulations of the board for the administration and
enforcement of this article.
(10) Accepting an appraisal assignment, as defined in
Section 34-27A-24, when the employment itself is contingent
upon (i) the appraiser reporting a predetermined estimate,
analysis, or opinion, or (ii) where the fee to be paid is
contingent upon the opinion, conclusions, or valuation
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contingent upon the opinion, conclusions, or valuation
reached, or upon (iii) the consequences resulting from the
appraisal assignment.
(11) Violating the confidential nature of governmental
records to which he or she gained access through employment or
engagement as an appraiser by a governmental agency.
(12) Entry of a final civil judgment against the person
on grounds of fraud, misrepresentation, or deceit in the
making of any appraisal of real property.
(13) Presenting to the board, as payment for a fee or
fine, a check that is returned unpaid.
(14) Failing to keep for at least five years, a
complete record or file of appraisal or specialized
assignments regulated under this article, in accordance with
Uniform Standards of Professional Appraisal Practice and
Section 34-27A-26.
(15) Failing within a reasonable time to provide
information within a reasonable time or providing false
information in response to a request by the board during an
investigation or after a formal complaint has been filed.
(16) Failing to pay by required deadlines, fees or
fines levied by the board by required deadlines .
(17) Failing to notify the board within a reasonable
time of the filing of any civil action related to the
appraisal practice or of any criminal prosecution filed
against the appraiser.
(b) The board shall not consider a complaint for
disciplinary action against a real estate appraiser if the
complaint relates to an appraisal that was completed more than
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complaint relates to an appraisal that was completed more than
five years before the complaint was submitted.
(c) In a disciplinary proceeding based upon a civil
judgment, the real property appraiser shall be afforded an
opportunity allowed to present matters in mitigation and
extenuation, but may not collaterally attack the civil
judgment.
(c) (d) In addition to the disciplinary powers granted
in subsection (a), the board may levy administrative fines of
not more than five hundred dollars ($500) for each serious
violations violation of this article or the rules and
regulations of the board of not more than $500 for each
violation ."
Section 3. This act shall become effective on June 1,
2026.
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2026.
Senate
Read for the first time and referred
to the Senate committee on Judiciary
................13-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................03-Feb-26
Read for the third time and passed
as amended
Yeas 33
Nays 0
Abstains 0
................24-Feb-26
Patrick Harris,
Secretary.
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