Real estate appraisals

AN ACT Relating to actions arising out of real estate appraisal 1
activity; reenacting and amending RCW 18.140.010; adding new sections 2
to chapter 18.140 RCW; adding a new section to chapter 4.16 RCW; and 3
adding a new section to chapter 18.310 RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 18.140 6
RCW to read as follows: 7
(1) Except as provided in subsection (2) of this section, any 8
claim or cause of action against a state-certified or state-licensed 9
real estate appraiser, state-registered appraiser trainee, appraisal 10
management company, or real estate appraisal company or business, 11
arising out of an appraisal report, must be brought within the 12
earlier of the two following periods: 13
(a) Within two years from the date of discovery of the act or 14
omission giving rise to the claim or cause of action; or15
(b) Within five years from the date the state-certified or state-16
licensed real estate appraiser or state-registered appraiser trainee 17
signs or affixes their signature electronically or otherwise to the 18
appraisal report. 19
H-2732.1
HOUSE BILL 2477
State of Washington 69th Legislature 2026 Regular Session
By Representatives Low, Goodman, and Barkis
Read first time 01/14/26. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 2477
(2) Subsection (1) of this section does not apply to any claim or 1
cause of action upon the grounds of fraud governed under RCW 2
4.16.080. 3
(3)(a) An appraisal report is deemed prepared at the request of 4
and exclusively for the benefit or use of: 5
(i) The client; 6
(ii) An intended user of the appraisal report as specified within 7
the appraisal report; and 8
(iii) If the client is a financial institution or mortgage 9
lender, then its immediate successor in interest if transferring the 10
appraisal report to another lender. 11
(b) An appraisal report is deemed prepared for the intended use 12
specified in the appraisal report. 13
(c) A state-certified or state-licensed real estate appraiser, 14
state-registered appraiser trainee, appraisal management company, or 15
real estate appraisal company or business, may not be held liable in 16
any court of law in any action arising out of an appraisal report to 17
any person or entity other than a person or entity described in (a) 18
of this subsection. 19
NEW SECTION. Sec. 2. A new section is added to chapter 18.140 20
RCW to read as follows: 21
Sections 1, 3, and 4 of this act apply to any claim or cause of 22
action against a state-certified or state-licensed real estate 23
appraiser, state-registered appraiser trainee, appraisal management 24
company, or real estate appraisal company or business, arising out of 25
an appraisal report completed on or after the effective date of this 26
section. 27
NEW SECTION. Sec. 3. A new section is added to chapter 4.16 RCW 28
to read as follows: 29
The statute of limitations and statute of repose in section 1 of 30
this act applies to claims and causes of action against a real estate 31
appraiser or trainee real estate appraiser certified, licensed, or 32
registered under chapter 18.140 RCW, an appraisal management company 33
licensed under chapter 18.310 RCW, or a real estate appraisal company 34
or business, arising out of an appraisal report. 35
NEW SECTION. Sec. 4. A new section is added to chapter 18.310 36
RCW to read as follows: 37
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The statute of limitations and statute of repose in section 1 of 1
this act applies to claims and causes of action against a real estate 2
appraiser or trainee real estate appraiser certified, licensed, or 3
registered under chapter 18.140 RCW, an appraisal management company 4
licensed under this chapter, or a real estate appraisal company or 5
business, arising out of an appraisal report. 6
Sec. 5. RCW 18.140.010 and 2016 c 144 s 1 are each reenacted and 7
amended to read as follows: 8
The definitions in this section apply throughout this chapter 9
unless the context clearly requires otherwise. 10
(1) "Appraisal" means the act or process of estimating value; an 11
estimate of value; or of or pertaining to appraising and related 12
functions. 13
(2) "Appraisal assignment" means an engagement for which an 14
appraiser is employed or retained to act, or would be perceived by 15
third parties or the public as acting, as a disinterested third party 16
in rendering an unbiased analysis, opinion, or conclusion relating to 17
the value of specified interests in, or aspects of, identified real 18
estate. The term "appraisal assignment" may apply to valuation work 19
and analysis work. 20
(3) "Appraisal management company" has the same meaning as in RCW 21
18.310.010.22
(4) "Appraisal report" means any communication, written or oral, 23
of an appraisal, review, or consulting service in accordance with the 24
standards of professional conduct or practice, adopted by the 25
director, that is transmitted to the client upon completion of an 26
assignment. 27
(((4))) (5) "Brokers price opinion" means an oral or written 28
report of property value that is prepared by a real estate broker or 29
salesperson licensed under chapter 18.85 RCW. 30
(((5))) (6) "Client" means any party for whom an appraiser 31
performs a service. 32
(((6))) (7) "Commission" means the real estate appraiser 33
commission of the state of Washington. 34
(((7))) (8) "Comparative market analysis" means a brokers price 35
opinion. 36
(((8))) (9) "Department" means the department of licensing.37
(((9))) (10) "Director" means the director of the department of 38
licensing. 39
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(((10))) (11) "Expert review appraiser" means a state-certified 1
or state-licensed real estate appraiser chosen by the director for 2
the purpose of providing appraisal review assistance to the director.3
(((11))) (12) "Federal department" means an executive department 4
of the United States of America specifically concerned with housing 5
finance issues, such as the department of housing and urban 6
development, the department of veterans affairs, or their legal 7
federal successors. 8
(((12))) (13) "Federal financial institutions regulatory agency" 9
means the board of governors of the federal reserve system, the 10
federal deposit insurance corporation, the office of the comptroller 11
of the currency, the national credit union administration, their 12
successors and/or such other agencies as may be named in future 13
amendments to 12 U.S.C. Sec. 3350(6). 14
(((13))) (14) "Federal secondary mortgage marketing agency" means 15
the federal national mortgage association, the government national 16
mortgage association, the federal home loan mortgage corporation, 17
their successors and/or such other similarly functioning housing 18
finance agencies as may be federally chartered in the future.19
(((14))) (15) "Federally related transaction" means any real 20
estate-related financial transaction that the federal financial 21
institutions regulatory agency or the resolution trust corporation 22
engages in, contracts for, or regulates; and that requires the 23
services of an appraiser. 24
(((15))) (16) "Financial institution" means any person doing 25
business under the laws of this state or the United States relating 26
to banks, bank holding companies, savings banks, trust companies, 27
savings and loan associations, credit unions, consumer loan 28
companies, and the affiliates, subsidiaries, and service corporations 29
thereof. 30
(((16))) (17) "Mortgage broker" for the purpose of this chapter 31
means a mortgage broker licensed under chapter 19.146 RCW, any 32
mortgage broker approved and subject to audit by the federal national 33
mortgage association, the government national mortgage association, 34
or the federal home loan mortgage corporation as provided in RCW 35
19.146.020, any mortgage broker approved by the United States 36
secretary of housing and urban development for participation in any 37
mortgage insurance under the national housing act, 12 U.S.C. Sec. 38
1201, and the affiliates, subsidiaries, and service corporations 39
thereof. 40
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(((17))) (18) "Real estate" means an identified parcel or tract 1
of land, including improvements, if any. 2
(((18))) (19) "Real estate-related financial transaction" means 3
any transaction involving: 4
(a) The sale, lease, purchase, investment in, or exchange of real 5
property, including interests in property, or the financing thereof;6
(b) The refinancing of real property or interests in real 7
property; and 8
(c) The use of real property or interests in property as security 9
for a loan or investment, including mortgage-backed securities.10
(((19))) (20) "Real property" means one or more defined 11
interests, benefits, or rights inherent in the ownership of real 12
estate. 13
(((20))) (21) "Review" means the act or process of critically 14
studying an appraisal report prepared by another. 15
(((21))) (22) "Specialized appraisal services" means all 16
appraisal services that do not fall within the definition of 17
appraisal assignment. The term "specialized appraisal service" may 18
apply to valuation work and to analysis work. Regardless of the 19
intention of the client or employer, if the appraiser would be 20
perceived by third parties or the public as acting as a disinterested 21
third party in rendering an unbiased analysis, opinion, or 22
conclusion, the work is classified as an appraisal assignment and not 23
a specialized appraisal service. 24
(((22))) (23) "State-certified general real estate appraiser" 25
means a person certified by the director to develop and communicate 26
real estate appraisals of all types of property. A state-certified 27
general real estate appraiser may designate or identify an appraisal 28
rendered by him or her as a "certified appraisal."29
(((23))) (24) "State-certified residential real estate appraiser" 30
means a person certified by the director to develop and communicate 31
real estate appraisals of all types of residential property of one to 32
four units without regard to transaction value or complexity and 33
nonresidential property having a transaction value as specified in 34
rules adopted by the director. A state-certified residential real 35
estate appraiser may designate or identify an appraisal rendered by 36
him or her as a "certified appraisal." 37
(((24))) (25) "State-licensed real estate appraiser" means a 38
person licensed by the director to develop and communicate real 39
estate appraisals of noncomplex one to four residential units and 40
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complex one to four residential units and nonresidential property 1
having transaction values as specified in rules adopted by the 2
director. 3
(((25))) (26) "State-registered appraiser trainee," "trainee," or 4
"trainee real estate appraiser" means a person registered by the 5
director under RCW 18.140.280 to develop and communicate real estate 6
appraisals under the immediate and personal direction of a state-7
certified real estate appraiser. Appraisals are limited to those 8
types of properties that the supervisory appraiser is permitted by 9
their current credential, and that the supervisory appraiser is 10
competent and qualified to appraise. By signing the appraisal report, 11
or being identified in the certification or addenda as having lent 12
significant professional assistance, the state-registered appraiser 13
trainee accepts total and complete individual responsibility for all 14
content, analyses, and conclusions in the report. 15
(((26))) (27) "Supervisory appraiser" means a person holding a 16
currently valid certificate issued by the director as a state-17
certified real estate appraiser providing direct supervision to 18
another state-certified, state-licensed, or state-registered 19
appraiser trainee. The supervisory appraiser must be in good standing 20
in each jurisdiction that he or she is credentialed. The supervisory 21
appraiser must sign all appraisal reports. By signing the appraisal 22
report, the supervisory appraiser accepts full responsibility for all 23
content, analyses, and conclusions in the report. 24
NEW SECTION. Sec. 6. If any provision of this act or its 25
application to any person or circumstance is held invalid, the 26
remainder of the act or the application of the provision to other 27
persons or circumstances is not affected.28
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