Bill would narrow potential liability for appraisers; sponsors cite workforce decline

House Bill 2,477, presented to the Consumer Protection and Business Committee, would require causes of action against appraisers, trainees, appraisal companies, and appraisal management companies arising from an appraisal report to be brought within a new statutory period — as briefed, staff described a 2‑year rule for most claims while preserving a longer discovery rule for fraud.

Peter Klotfelter, committee staff, told members the bill would also deem an appraisal report prepared for the client and intended user named in the report and limit liability to those categories plus lenders in appropriate circumstances. "Under the bill, an appraiser, trainee, or appraisal company may not be held liable in any court in any action arising out of an appraisal report to any person other than those 3 categories of clients, intended users, and lenders," staff said.

Prime sponsor Representative Sam Lowe (39th District) said appraiser numbers are falling and that the absence of a clear statute of limitations imposes long recordkeeping and insurance costs that deter new entrants. Kathy Walsh, president of the Appraisers Coalition of Washington, testified that licenses have decreased about 20% in three years and trainee counts fell from roughly 450 in 2022 to about 150, and she urged protections for appraisers as a way to preserve the profession.

Committee members asked technical questions about insurance tail coverage and how the proposed limitations would interact with existing Washington limitation periods for contract and property claims. Staff explained fraud-related causes remain governed by the longer discovery rule. The committee did not take a final vote on HB 2,477 in this session.