Senate Bill 87 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Civil procedure; statute of limitations in civil actions against real estate appraisers established, statute of limitations for complaints to Board of Real Estate Appraisers established

Summary

SB87 would create a three-year discovery-based statute of limitations for civil actions based on real estate appraisals and curb board disciplinary actions to appraisals completed within the last five years, with separate time limits for complaints and a fraud exception.

What This Bill Does

Establishes a civil action deadline for real estate appraisal-based cases: suits must be filed within three years after discovery of the act or omission, and within five years after the appraisal date, with fraud-based actions exempt from this limit. Restricts disciplinary actions by the Alabama Real Estate Appraisers Board to appraisals completed within the last five years and adds a three-year lookback rule for complaints (appraisals completed more than three years before a complaint cannot be acted on), plus a five-year cap on disciplinary consideration for older appraisals. Expands and clarifies the board’s disciplinary options, including license revocation or suspension, fines (up to $500 per violation), required education, and reprimands (up to two private reprimands per appraiser) for specified misconduct, with a detailed list of grounds for discipline. Includes nonsubstantive, technical updates to current code language and sets the effective date at June 1, 2026.

Who It Affects

• Licensed/certified/registered real estate appraisers in Alabama and the Alabama Real Estate Appraisers Board; their potential civil actions and disciplinary actions are subject to new time limits and disciplinary rules.
• Consumers, clients, and other claimants who rely on appraisals; they gain defined deadlines to pursue civil actions or file board complaints related to appraisals.

Key Provisions

• Adds Section 6-2-42 establishing a statute of limitations for civil actions based on a real estate appraisal: action must be commenced within three years from discovery and within five years after the appraisal date, with a fraud exception.
• Amends Section 34-27A-20 to confirm the board's authority to investigate and sanction licensed appraisers (license suspension/revocation, fines, education requirements, and reprimands).
• Specifies grounds for discipline (e.g., fraud, misrepresentation, dishonesty, negligence, incompetence, failure to diligently develop or communicate an appraisal, etc.) and allows up to two private reprimands per appraiser.
• Imposes time-based limits: the board may not consider disciplinary complaints if the appraisal was completed more than five years ago, and the board may not consider complaints if the appraisal was completed more than three years before the complaint.
• Effective date: June 1, 2026, and includes nonsubstantive technical revisions to update code language.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure