This is a common question that I’m asked by because many lawsuits against appraisers are filed years after the appraisal, sometimes 10 or more years later. The reason for this is that the plaintiff suing an appraiser may not have known there was a problem with the appraisal at the time it was received or may not have suffered any damages as a result of the alleged appraisal error until a loan default or other event has occurred years down the road. This plaintiff might be a lender who recently foreclosed on a loan or might be a borrower who believes they paid too much or borrowed too much based on an allegedly deficient appraisal.
The applicable statute of limitations for an appraisal-related claim will vary based on the nature of the claim (for example, whether it is for negligence, fraud or breach of contract), the state whose law will apply to the claim, and even in a few cases, who is making the claim. Based on these factors, the time period might be as short as one year or longer than 10. And, then there’s the discovery rule . . ..
It’s such a complicated and state-by-state issue that I’ve created a chart covering the statute of limitations for appraiser negligence claims in all 50 states. It’s available here on this page of my website: https://www.valuationlegal.com/limitations/.