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Addressing Your Concerns

The Appraisal Institute of Canada (AIC) is committed to ensuring that consumers and clients understand the appraisal process and the roles, responsibilities and expectations of a professional appraiser. AIC is a self-regulated designating organization and has established a standards-based Professional Practice model that is responsive, transparent and accountable to the public.

Any concerns regarding the work product or the conduct of a member of AIC can be directed to AIC at 1-888-551-5521 (toll-free) or via email at Protected Email.

Complaint Resolution Process

The AIC Complaint Resolution Process is focused on maintaining the excellence of the appraisal profession and the services AIC members provide to the public. A complaint must be submitted in writing by completing the Complaint Form included in the Consumer’s Guide to AIC Professional Practice. An AIC complaint investigation focuses on compliance with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).

1 Limits to the AIC Complaint Resolution Process

The AIC will not investigate anonymous complaints.

An AIC complaint investigation will not:

  • Arbitrate the final opinion of value provided in a report
  • Provide an opinion on the final opinion of value presented in a report
  • Be a technical review of a report
  • Recommend financial compensation
  • Order financial compensation to be paid to the complainant
  • Review a member’s fees or disbursements

The AIC cannot:

  • Act as a court of law,
  • Order the refund of monies,
  • Award damages,
  • Enforce contractual agreements,
  • Compel an appraiser to redo their report
  • Give legal advice, or
  • Arbitrate value.
2 Timing

Depending on the nature of the complaint and the seriousness of the allegations, the AIC investigation may take several months or longer depending on how far through the process the matter proceeds.

3 Privacy

The identity of the complainant will be provided to the member

The complainant will be provided with the findings and any resulting Sanctions relating to the substance of their complaint provided in:

  • a Sanction Consent Agreement,
  • the final decision reached by an Adjudicating Sub-Committee, or
  • the final decision reached by an Appeal Sub-Committee hearing panel
4 Status update requests

In order to protect the integrity of the investigation, limited information on the progress of an investigation can be provided.

5 More information

More information about the AIC Complaint Resolution Process can be found in the AIC Complaint Resolution Process Guide.

Professional Practice: Summary of Completed Complaint Files

It is the AIC’s goal to provide as much guidance as possible on the complaint resolution process and with this in mind, the following Professional Practice Case Studies of completed complaint files are presented below.

NB: Every effort has been made to protect the identity of individuals in these summaries. In particular files, however, a Professional Practice deciding body has ordered the publication; in which case, the Member has been named.


2022 CASE SUMMARIES

Case Summary: 2022-01

The matter was brought to the attention of the AIC by a provincial association. The Member submitted an application to AIC in mid-2015 in which they certified and pledged there were no material challenges to their good moral character or integrity and failed to disclose information in the Declaration relating to a criminal record or fraud. The Member failed to declare information pertaining to alleged criminal activity involving fraud in Canada in 2010. The complaint file was opened as an issue arising by the AIC in accordance with AIC Consolidated Regulations.

The Member resigned when contacted by the Counsellor with a question about the alleged criminal activity. The complaint file was brought before an Adjudicating Sub- Committee hearing panel for a final decision in accordance with AIC Consolidated Regulations.

Case Summary: 2022-03

This complaint is in relation to the actions of a Candidate Member and their CRA-designated
Member Co-signer.

The AIC Complaint investigation uncovered no evidence to support an allegation of fraud.
Recovery of financial losses and/or reimbursement of fees fall outside of the scope of an AIC
Complaint investigation.

Case Summary: 2022-05

The AACI-designated Member completed two appraisal reports on the same property. The
first was completed early in 2018 and the second near the end of that year.
The complainant implied that there might have been some undue influence on the Member.

Case Summary: 2022-07

The complaint was made by a consumer in relation to a report on a vacant parcel of land located
in a small city completed by an AACI-designated Member. The subject property consists of a 10+
acre site with approximately 400+ feet frontage along a major road. The land has two different
Commercial zoning designations.

Case Summary: 2022-09

A consumer submitted a complaint related to a report on a residential property with a WRWaterfront Residential zoning.
The Member was able to satisfactorily explain the procedure they employed to take photos
without accessing the property. No privacy appeared to be compromised as a result of the
taking of photographs.
The complainant was not identified as the client in the report and as such, the member was not
able to discuss the report with the complainant without the client’s authorization.

Case Summary: 2022-11

The Appraisal Institute of Canada received a formal complaint against Karel W. Baayen P. App,
AACI (the Member) regarding an Appraisal Report, completed on a single-family dwelling.
The AIC review of the Complaint revealed that the Member prepared a report for his client (a
mortgage broker) and that later, at the request of a second mortgage broker, the Member
subsequently authorized another Lender to also rely on the same Appraisal Report without the
permission of his original Client.

The subsequent authorization was via a Reliance Letter signed by the Member. The signature
of the signer of the Report (an AIC Candidate Member) was not included.

The Member fully cooperated with the AIC investigation of the complaint and provided a
written response acknowledging his actions and taking responsibility for them.

The Advocate and the Member signed a Settlement Agreement that was accepted by the
Adjudicating Sub-Committee Hearing Panel.

Case Summary: 2022-13

This file was opened on behalf of the AIC as an issue arising in order to investigate conduct that
may be deserving of a Sanction that may otherwise not have been submitted to the Institute.

The Member sent a response to an AIC communiqué related to a voluntary survey about Equity, Diversity and Inclusion issues in the appraisal industry in a direct email to AIC staff and also posted on the AIC Forum.

This response employed language that was both unprofessional and inappropriate.

Case Summary: 2022-15

On March 18, 2022, the National Office of the AIC received a faxed message from Legal Counsel for Mr. Joshua Kitsul P. App, AACI (the “Member”) that provided a copy of a Conditional Sentence and Probation Order (12 months) from the British Columbia Court dated March 2, 2022. The Conditional Sentence and Probation Order (12 months) relate to the Member’s conviction of possession of child pornography. The Conditional Sentence and Probation Order, amongst other things, requires the Member to retain internet use records and does not allow the Member to communicate, or attempt to communicate, online with any person under the age of 18 years. Given the seriousness of the issue and in the public interest, a complaint file was opened as an issue arising and the AIC Adjudicating Sub-Committee issued an Interim Order for Suspension of the Member on June 6, 2022, for a period of up to one year, pending completion of a Complaint Review and a final decision. The Member cooperated fully with the AIC complaint investigation. The Member acknowledged that he breached the Ethics Standard Rules listed below and has accepted full responsibility for his actions. The Member is taking steps to ensure that he does not repeat the actions. The Member has provided expert reports on the likelihood of recidivism and the expert opinion is that the Member is not likely to repeat the offences. A Settlement Agreement dated October 31, 2022 was subsequently provided to the Adjudicating Sub-Committee. The Adjudicating Sub-Committee reviewed and approved the Settlement Agreement entered into by the Member and the Professional Practice Advocate.

Case Summary: 2022-02

This complaint arose from an appraisal report completed for mortgage financing purposes. An appraisal report for the subject property was completed by the AACI-designated Member. The complainant later discovered that the Member had a professional mentor/mentee relationship with the owner of the subject property. The complainant noted that this relationship had not been disclosed. The complainant also expressed concerns about the final value expressed in the report. This complaint issue is outside of the scope of an AIC Complaint investigation.

Case Summary: 2022-04

This complaint was submitted by the subject property owner and was related to an appraisal
report completed by an AACI-designated Member for property tax purposes that was
presented as evidence at an assessment appeal hearing.

Case Summary: 2022-06

This is a matter that arose from a consumer inquiry that did not evolve into a formal written
complaint. The matter was referred to a Counsellor for review to determine if there was
conduct that may be deserving of a Sanction that may otherwise not have been submitted to
the AIC in accordance with AIC Consolidated Regulations.

The Counsellor determined that there were issues arising from the inquiry and an AIC
complaint file was opened.

The Appraisal Report, completed by a CRA-designated Member, describes the subject
property as an older, detached single-family dwelling located in a downtown core, on a 0.10-
acre site that is zoned C4 Street-Oriented Commercial.

Case Summary: 2022-08

A CRA-Designated Member completed and signed an appraisal report on a subject property that was co-signed by an AACI-Designated Member.
The intended use identified in the report was for Matrimonial Separation.

Case Summary: 2022-10

An inquiry raised concerns relating to appraisal reports being prepared for subject properties
on the same date, with the same effective date, but with significantly different adjustments,
comparable sales data and estimate of market value. The inquiry did not lead to the submission
of a formal complaint.

A complaint file was opened by the AIC as an issue arising in accordance with AIC Consolidated
Regulations 2020 in order to investigate conduct that may be deserving of a Sanction that may
otherwise not have been submitted to the AIC.
A Candidate Member of the AIC, co-signed by an AACI-Designated Member, completed
appraisal reports on the subject properties, the intended use was for first mortgage financing.
In both cases, it appears that after a report was initially completed, another report was
completed on the property with the same date of report, same effective date, and with either
completely new market data or with the same market data but with significantly changed
information in the Cost and Direct Comparison Approaches.

In both cases the estimate of market value was not the same, and in the case of the second
property it was significantly different.

Case Summary: 2022-12

This complaint file was reviewed as an issue arising from a withdrawn complaint. The AACI-designated Member believed that they had an oral agreement with another appraisal
firm permitting the Member to issue appraisal reports and correspondence using that firm’s
name and letterhead. The appraisal firm later contacted the Member to advise them to cease
issuing these reports and denied having made this agreement. The Member immediately ceased
issuing reports using that firm’s name and letterhead.

The Member agreed that relying on an oral agreement and failing to document the agreement in writing fell below the standards expected of a professional appraiser in these circumstances.

The Member further agreed that they should have known at the time that the way the reports
were written and the correspondence with clients could be seen to be misleading to the
recipients of the reports concerning the nature of the member’s relationship with the appraisal
firm. The Member consented to a Reprimand and a fine of $1,000 as a sanction for this conduct. A
Settlement Agreement reached between the Professional Practice Advocate and the Member
was submitted to an Adjudicating Sub-Committee Hearing Panel for their consideration and
decision.

Case Summary: 2022-14

An AIC Member submitted a complaint about an AACI-designated Member who had completed
an Appraisal Review of Complainant Member’s Appraisal Report on a commercial recreational
property for the company that owned the property in 2016. In 2017, the Member produced a retrospective Appraisal Report on the property with an effective date in 2014 that identifies the
company as the client.

The Advocate and the Member discussed the complaint issues and the allegations of breaches
to CUSPAP and the Member conceded that there are technical issues with the report. The
Advocate and the Member agreed that the breaches warranted a Reprimand and a Fine and a Settlement Agreement was signed.
This Settlement Agreement was submitted to an Adjudicating Sub-Committee Hearing Panel.
The Panel deemed the terms of Settlement Agreement to be an appropriate resolution to the
Complaint and made an Order to ratify the Settlement Agreement.