{"id":29997,"date":"2014-03-26T03:08:06","date_gmt":"2014-03-26T07:08:06","guid":{"rendered":"https:\/\/www.aicanada.ca\/fr\/cpv-issue\/2008-volume-52-book-4\/"},"modified":"2014-03-26T03:09:06","modified_gmt":"2014-03-25T23:09:06","slug":"2008-volume-52-book-4","status":"publish","type":"issue","link":"https:\/\/www.aicanada.ca\/fr\/cpv-issue\/2008-volume-52-book-4\/","title":{"rendered":"2008 &#8211; Volume 52 &#8211; Tome 4"},"content":{"rendered":"<p>REAL VALUE EXPERTS  |  EXPERTS EN \u00c9VALUATION<\/p>\n<p>Member Survey results<br \/>\nProfessionalism &#8211; an unwavering<br \/>\nconstant in an evolving marketplace<\/p>\n<p>PM<br \/>\n #<\/p>\n<p>40<br \/>\n00<\/p>\n<p>82<br \/>\n49<\/p>\n<p>Will the<br \/>\nsub-prime crisis head<\/p>\n<p>north? <\/p>\n<p>Canadian Property<\/p>\n<p>VALUATION \u00c9VALUATION<br \/>\n Immobili\u00e8re au Canada<\/p>\n<p>VOLUME  52  |  BOOK 4  |  2008THE OFFICIAL PUBLICATION OF THE APPRAISAL INSTITUTE OF CANADA<\/p>\n<p>Appraisal Websites<\/p>\n<p>Domain Names<\/p>\n<p>E-Mail Accounts<\/p>\n<p>Management Reports<\/p>\n<p>Online Ordering &#038; Tracking<\/p>\n<p>AppraisersChoice.comTHE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>The Premier Appraisal Software<br \/>\nfrom the 30-year Industry Leader<\/p>\n<p>Call Today! 800.234.8727 <\/p>\n<p>Package Includes<br \/>\nOne CRAL Install including:   \u203a<br \/>\nAppraisal Forms Library<br \/>\nOrder Tracking<br \/>\nPhoto Management<br \/>\nComps Database<\/p>\n<p>ACI Sketch\u2122 \u203a<br \/>\nDigital Signature \u203a  (One)<br \/>\nMapPoint  \u203a (1 year)<\/p>\n<p>Free PDF Creator \u203a<br \/>\nPremier Plus Service   \u203a<br \/>\n(1 year subscription) <\/p>\n<p>Includes Support &#038; Updates<\/p>\n<p>Visit appraiserschoice.com<br \/>\nor call 800-234-8727 to<br \/>\nrequest your free demo.<\/p>\n<p>ACI and its products are trademarks or registered trademarks of ACI. Copyright \u00a9 2008 ACI<br \/>\nOther brand and product names are trademarks or registered trademarks of their respective owners.<\/p>\n<p>CRAL2009\u2122<br \/>\nCollection for Windows<\/p>\n<p>I<\/p>\n<p>*  Payable in US Dollars<\/p>\n<p>Visit ACI365.com to learn more<br \/>\nand view actual appraisal office websites built <\/p>\n<p>entirely with ACI365\u2122.<\/p>\n<p>ACI365\u2122 Websites<br \/>\nStarting at $249*<br \/>\nACI365\u2122 Websites &#038; Worksites<br \/>\nGet both for as little as $1* per day<\/p>\n<p>CRAL  integration included at no additional cost<\/p>\n<p>Worksites<br \/>\nManage your appraisal orders with ACI365\u2122.<br \/>\nPriced as low as $1* per day, ACI365\u2122 provides<br \/>\na website &#038; worksite and includes:<\/p>\n<p>Unlimited Features  \u203a<br \/>\nUnlimited Logins \u203a<br \/>\nOnline Ordering and Tracking \u203a<br \/>\nEasy-to-generate Management Reports \u203a<\/p>\n<p>Website<\/p>\n<p>Customiza<br \/>\nble<\/p>\n<p>Template<br \/>\ns<\/p>\n<p>Websites<br \/>\nGet started with an appraisal company website<br \/>\nfor only $249*.  No prior web programming<br \/>\nknowledge is required. Price includes:<\/p>\n<p>Company Website \u203a<br \/>\nDomain Name \u203a<br \/>\nE-Mail Accounts \u203a<br \/>\nUnlimited Online Ordering \u203a<br \/>\nPre-loaded Appraisal Content \u203a<br \/>\nImage Library \u203a<\/p>\n<p>*  Payable in US Dollars<\/p>\n<p>ACI365\u2122 Empowers Appraisers<br \/>\nAppraisal Website &#038; Online Office Management Solution<\/p>\n<p>ACI365\u2122\u2014Worksites and Websites for Appraisal Professionals\u2014offers a comprehensive system for managing<br \/>\nappraisal orders and records as well as communicating with clients and office personnel regarding order status. <\/p>\n<p>Empower your appraisal business with a web presence completely created and controlled by you. ACI365\u2019s<br \/>\naffordability, easy setup, and simple navigation will guide you effortlessly through a new, paperless workflow.<\/p>\n<p>New Features!<br \/>\nPower Toolbar \u203a<br \/>\nHelp Contents \u203a<br \/>\nComp Side-by-Side View \u203a<br \/>\nVertical Split View \u203a<br \/>\nFull Addendum Editing \u203a<br \/>\nACISketch\u2122 \u203a<br \/>\nMapPoint Updates \u203a<br \/>\nGeolocator Support \u203a<br \/>\nPDF Printing \u203a<br \/>\nSystem Utility Updates \u203a<br \/>\nUpdated Website \u203a<\/p>\n<p>New Forms!<br \/>\nERC 2003 Form \u203a<br \/>\nUSPAP 2006   \u203a<br \/>\nCompliance Addendum<br \/>\nUpdated AIC Full  \u203a<br \/>\nAppraisal<br \/>\nUpdated CERC  \u203a<br \/>\n2002 Form<\/p>\n<p>Introductory<br \/>\nPricing<\/p>\n<p>$495*<\/p>\n<p>Form300  10\/08<\/p>\n<p>C<br \/>\nR<\/p>\n<p>A<br \/>\nL<\/p>\n<p> C<br \/>\nollection for W<\/p>\n<p>indow<br \/>\ns<\/p>\n<p>80<br \/>\n0<\/p>\n<p>-234-8727<\/p>\n<p>24 Old Kings Road North<br \/>\nPalm Coast, Florida 32137t 800-234-8727 f 386-246-3811AppraisersChoice.com<\/p>\n<p>THE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>THE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>CRAL2009\u2122 Collection for Windows<\/p>\n<p>A<br \/>\np<\/p>\n<p>p<br \/>\nraisersC<\/p>\n<p>ho<br \/>\nice.co<\/p>\n<p>m<\/p>\n<p>http:\/\/www.appraiserschoice.com<\/p>\n<p>Appraisal Websites<\/p>\n<p>Domain Names<\/p>\n<p>E-Mail Accounts<\/p>\n<p>Management Reports<\/p>\n<p>Online Ordering &#038; Tracking<\/p>\n<p>AppraisersChoice.comTHE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>The Premier Appraisal Software<br \/>\nfrom the 30-year Industry Leader<\/p>\n<p>Call Today! 800.234.8727 <\/p>\n<p>Package Includes<br \/>\nOne CRAL Install including:   \u203a<br \/>\nAppraisal Forms Library<br \/>\nOrder Tracking<br \/>\nPhoto Management<br \/>\nComps Database<\/p>\n<p>ACI Sketch\u2122 \u203a<br \/>\nDigital Signature \u203a  (One)<br \/>\nMapPoint  \u203a (1 year)<\/p>\n<p>Free PDF Creator \u203a<br \/>\nPremier Plus Service   \u203a<br \/>\n(1 year subscription) <\/p>\n<p>Includes Support &#038; Updates<\/p>\n<p>Visit appraiserschoice.com<br \/>\nor call 800-234-8727 to<br \/>\nrequest your free demo.<\/p>\n<p>ACI and its products are trademarks or registered trademarks of ACI. Copyright \u00a9 2008 ACI<br \/>\nOther brand and product names are trademarks or registered trademarks of their respective owners.<\/p>\n<p>CRAL2009\u2122<br \/>\nCollection for Windows<\/p>\n<p>I<\/p>\n<p>*  Payable in US Dollars<\/p>\n<p>Visit ACI365.com to learn more<br \/>\nand view actual appraisal office websites built <\/p>\n<p>entirely with ACI365\u2122.<\/p>\n<p>ACI365\u2122 Websites<br \/>\nStarting at $249*<br \/>\nACI365\u2122 Websites &#038; Worksites<br \/>\nGet both for as little as $1* per day<\/p>\n<p>CRAL  integration included at no additional cost<\/p>\n<p>Worksites<br \/>\nManage your appraisal orders with ACI365\u2122.<br \/>\nPriced as low as $1* per day, ACI365\u2122 provides<br \/>\na website &#038; worksite and includes:<\/p>\n<p>Unlimited Features  \u203a<br \/>\nUnlimited Logins \u203a<br \/>\nOnline Ordering and Tracking \u203a<br \/>\nEasy-to-generate Management Reports \u203a<\/p>\n<p>Website<\/p>\n<p>Customiza<br \/>\nble<\/p>\n<p>Template<br \/>\ns<\/p>\n<p>Websites<br \/>\nGet started with an appraisal company website<br \/>\nfor only $249*.  No prior web programming<br \/>\nknowledge is required. Price includes:<\/p>\n<p>Company Website \u203a<br \/>\nDomain Name \u203a<br \/>\nE-Mail Accounts \u203a<br \/>\nUnlimited Online Ordering \u203a<br \/>\nPre-loaded Appraisal Content \u203a<br \/>\nImage Library \u203a<\/p>\n<p>*  Payable in US Dollars<\/p>\n<p>ACI365\u2122 Empowers Appraisers<br \/>\nAppraisal Website &#038; Online Office Management Solution<\/p>\n<p>ACI365\u2122\u2014Worksites and Websites for Appraisal Professionals\u2014offers a comprehensive system for managing<br \/>\nappraisal orders and records as well as communicating with clients and office personnel regarding order status. <\/p>\n<p>Empower your appraisal business with a web presence completely created and controlled by you. ACI365\u2019s<br \/>\naffordability, easy setup, and simple navigation will guide you effortlessly through a new, paperless workflow.<\/p>\n<p>New Features!<br \/>\nPower Toolbar \u203a<br \/>\nHelp Contents \u203a<br \/>\nComp Side-by-Side View \u203a<br \/>\nVertical Split View \u203a<br \/>\nFull Addendum Editing \u203a<br \/>\nACISketch\u2122 \u203a<br \/>\nMapPoint Updates \u203a<br \/>\nGeolocator Support \u203a<br \/>\nPDF Printing \u203a<br \/>\nSystem Utility Updates \u203a<br \/>\nUpdated Website \u203a<\/p>\n<p>New Forms!<br \/>\nERC 2003 Form \u203a<br \/>\nUSPAP 2006   \u203a<br \/>\nCompliance Addendum<br \/>\nUpdated AIC Full  \u203a<br \/>\nAppraisal<br \/>\nUpdated CERC  \u203a<br \/>\n2002 Form<\/p>\n<p>Introductory<br \/>\nPricing<\/p>\n<p>$495*<\/p>\n<p>Form300  10\/08<\/p>\n<p>C<br \/>\nR<\/p>\n<p>A<br \/>\nL<\/p>\n<p> C<br \/>\nollection for W<\/p>\n<p>indow<br \/>\ns<\/p>\n<p>80<br \/>\n0<\/p>\n<p>-234-8727<\/p>\n<p>24 Old Kings Road North<br \/>\nPalm Coast, Florida 32137t 800-234-8727 f 386-246-3811AppraisersChoice.com<\/p>\n<p>THE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>THE APPRAISER\u2019S CHOICE\u2122<\/p>\n<p>CRAL2009\u2122 Collection for Windows<\/p>\n<p>A<br \/>\np<\/p>\n<p>p<br \/>\nraisersC<\/p>\n<p>ho<br \/>\nice.co<\/p>\n<p>m<\/p>\n<p>http:\/\/www.appraiserschoice.com<\/p>\n<p>6 Professionalism: an unwavering<br \/>\nconstant in an evolving<br \/>\nmarketplace<\/p>\n<p>8 Professionnalisme : une<br \/>\nconstante in\u00e9branlable dans un<br \/>\nmarch\u00e9 en \u00e9volution     <\/p>\n<p>10 Report on 2008 Member Survey<\/p>\n<p>13 Rapport sur le sondage men\u00e9<br \/>\naupr\u00e8s des membres de l\u2019ICE<br \/>\nen 2008<\/p>\n<p>16 AACI (Hon) Members<br \/>\nrecognized for outstanding<br \/>\ncontributions to profession<\/p>\n<p>18 Will the US<br \/>\nsub-prime<br \/>\ncrisis head<br \/>\nnorth?<\/p>\n<p>25 Revised<br \/>\nRegulations<br \/>\ntake fresh<br \/>\napproach to range<br \/>\nof sanctions<\/p>\n<p>26 Environmental assessments are<br \/>\nnot covered by your insurance<\/p>\n<p>29 Spotlight on continuing<br \/>\nprofessional development<\/p>\n<p>4<\/p>\n<p>403-200 Catherine Street,<br \/>\nOttawa, ON  K2P 2K9 <\/p>\n<p>Phone: (613) 234-6533 Fax: (613) 234-7197<br \/>\nWeb site: www.aicanada.ca<\/p>\n<p>Contact us at: info@aicanada.ca <\/p>\n<p>Board of Directors<br \/>\nConseil d\u2019administration<\/p>\n<p>President \u2013 Pr\u00e9sident<br \/>\nGeorge Maurice, AACI, P. App., Ontario<\/p>\n<p>President Elect \u2013 Pr\u00e9sident d\u00e9sign\u00e9<br \/>\nSheila Young, AACI, P. App., Alberta<\/p>\n<p>Immediate Past-president \u2013<br \/>\nPr\u00e9sident sortant<\/p>\n<p>Gordon Tomiuk, AACI, P. App., Fellow, Manitoba<\/p>\n<p>Vice-Presidents \u2013 Vice-pr\u00e9sidents<br \/>\nCraig Soderquist, AACI, P. App., Alberta<\/p>\n<p>Grant Uba, AACI, P. App., Ontario<\/p>\n<p>Directors \u2013 Directeurs<br \/>\nGerald McCoombs, AACI, P. App., New Brunswick <\/p>\n<p>Paul Olscamp, AACI, P. App., Fellow, Prince Edward Island<br \/>\nBeverley Girvan, AACI, P. App., Nova Scotia<\/p>\n<p>Michel Colgan, AACI, P. App., Qu\u00e9bec<br \/>\nJohn Yannacopoulos, AACI, P. App., British Columbia<\/p>\n<p>George Ward, AACI, P. App., British Columbia<br \/>\nKimberly Maber, AACI, P. App., Saskatchewan<\/p>\n<p>Michael Mendela, AACI, P. App., Ontario<br \/>\nGregory Bennett, AACI, P. App., Newfoundland &#038; Labrador <\/p>\n<p>Chief Executive Officer<br \/>\nGeorges Lozano, MPA, Ottawa<\/p>\n<p>Director of Marketing &#038; Communications<br \/>\nJoanne Charlebois, Ottawa<\/p>\n<p>Managing Editor \u2013<br \/>\nR\u00e9dacteur administratif<\/p>\n<p>Craig Kelman, Winnipeg<\/p>\n<p>Assistant Editor \u2013<br \/>\nR\u00e9dacteur en chef adjoint<\/p>\n<p>Cheryl Parisien, Winnipeg<\/p>\n<p>Editorial Board<br \/>\nAIC would like to thank the following  <\/p>\n<p>individuals for their assistance and support:<br \/>\nGrant Uba, AACI, P. App. \u2013 Chair<\/p>\n<p>John Peebles, AACI, P. App<br \/>\nAndr\u00e9 Beaudoin, CRA<\/p>\n<p>David Lopatka, AACI, P. App<br \/>\nJoanne Hayes,  AACI, P. App<\/p>\n<p>Jane Londerville, B.Sc., M.B.A.,<br \/>\nAssociate Professor, University of Guelph<\/p>\n<p>Publication management, design and production by:<\/p>\n<p>The articles printed in this issue represent authors\u2019 opinions only and are not neces-<br \/>\nsarily endorsed by the APPRAISAL InSTITUTe OF CAnADA. Copyright 2008 by the<br \/>\nAPPRAISAL InSTITUTe OF CAnADA. All rights reserved. Reproduction in whole or<br \/>\nin part without written permission is strictly prohibited. Subscription, $40.00 per<br \/>\nyear. Printed in Canada. Les articles imprim\u00e9s dans ce num\u00e9ro ne rep\u00e9sentent que<br \/>\nl\u2019opinion de leur auteur respectif, mais ne sont pas n\u00e9ces\u2013sairement endoss\u00e9s par<br \/>\nL\u2019InSTITUT CAnADIen DeS \u00c9vALUATeURS. Tous droits reserv\u00e9s 2008 par L\u2019InSTITUT<br \/>\nCAnADIen DeS \u00c9vALUATeURS. La reproduction totale ou partielle sous quelque form<br \/>\nque se soit sans authorisation \u00e9crite est absolument interdite. Abonnement $40.00<br \/>\npar ann\u00e9e. Imprim\u00e9 au Canada.<\/p>\n<p>Indexed in the Canadian Business Index and available on-line in the Canadian<br \/>\nBusiness &#038; Current Affairs database.<\/p>\n<p>ISSN 0827-2697<\/p>\n<p>3rd Floor \u2013 2020 Portage Avenue<br \/>\nWinnipeg, MB R3J 0K4<\/p>\n<p>Phone: 866-985-9780 \u2022 Fax: 866-985-9799<br \/>\nE-mail: info@kelman.ca \u2022 Web: www.kelman.ca<\/p>\n<p>Design\/Layout: Jackie Vitug<br \/>\nAdvertising Manager: Kris Fillion<\/p>\n<p>Advertising Co-ordinator: Lauren Campbell<\/p>\n<p>Publication Mails Agreement #40008249.<br \/>\nReturn undeliverable Canadian addresses to: Appraisal Institute of Canada,<br \/>\n403-200 Catherine St., Ottawa, On  K2P 2K9. email: info@aicanada.ca <\/p>\n<p>Published by the<br \/>\nVolume 52, Book 4, 2008<\/p>\n<p>Contents<\/p>\n<p>31 Notice of AIC Annual General<br \/>\nMeeting\/Avis d\u2019assembl\u00e9e<br \/>\nG\u00e9n\u00e9rale Annuelle<\/p>\n<p>32 AIC 2009 Conference\/ICE 2009<br \/>\nConf\u00e9rence<\/p>\n<p>34 Primer on<br \/>\nInternational<br \/>\nValuation<br \/>\nStandards <\/p>\n<p>36 Use of<br \/>\nextraordinary<br \/>\nassumptions and<br \/>\nhypothetical conditions<\/p>\n<p>37 Limiting assignments to your<br \/>\nscope of training and expertise<\/p>\n<p>38 Letters of transmittal\/<br \/>\nreliance \u2013 business<br \/>\nopportunities and risks<\/p>\n<p>40 AMCs and appraiser<br \/>\nindependence<\/p>\n<p>43 News<\/p>\n<p>44 Designations\/Candidates\/<br \/>\nStudents<\/p>\n<p>45 PGCV graduates<\/p>\n<p>46 Calendar of Events<\/p>\n<p>46 Advertiser Information Centre<br \/>\nDo your part for the environment \u2013 reuse and recycle.<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada4<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"G2dINs0Bmr\"><p><a href=\"https:\/\/www.aicanada.ca\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Home&#8221; &#8212; Appraisal Institute of Canada\" src=\"https:\/\/www.aicanada.ca\/embed\/#?secret=Z2GtFNrxHB#?secret=G2dINs0Bmr\" data-secret=\"G2dINs0Bmr\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><br \/>\nmailto:info@aicanada.ca<br \/>\nmailto:info@aicanada.ca<br \/>\nmailto:info@kelman.ca<br \/>\nhttp:\/\/www.kelman.ca<\/p>\n<p>Want to save time and money?<\/p>\n<p>Interested in importing your<br \/>\nexisting in-house database into<\/p>\n<p>AppraisalGIS.com?<\/p>\n<p>We may be able to help!<\/p>\n<p>a bound corporation<br \/>\nCommercial &#038; Residential Appraisals, Real Estate Sales,<br \/>\nLand Surveying, Geographic Information Systems<br \/>\n1-888-6 A BOUND (1-888-622-6863)<br \/>\nwww.abound.ca<\/p>\n<p>Depending on your in-house database, we may be able to map<br \/>\nyour existing data fields to ours and import it directly&#8230;<\/p>\n<p>saving you valuable time in data entry.<br \/>\nContact us today for details.<\/p>\n<p>Click HERE to return to Table of Contents<\/p>\n<p>http:\/\/www.abound.ca<\/p>\n<p>he market for real property valuation<br \/>\nservices is changing and expand-<br \/>\ning in ways that no one could have <\/p>\n<p>foreseen a few years ago.<br \/>\nTraditional point-in-time appraisal now <\/p>\n<p>competes with a number of alternatives<br \/>\nincluding risk assessment services, title and<br \/>\nmortgage value insurance products, auto-<br \/>\nmated valuations, and appraiser-assisted<br \/>\nautomated valuations, to name a few.<\/p>\n<p>Lenders, in particular, are embracing these<br \/>\nproducts, with the aim of reducing turnaround<br \/>\ntime in the mortgage lending process while<br \/>\ncutting costs.<\/p>\n<p>In addition, a number of institutions are<br \/>\nfurther customizing the value confirma-<br \/>\ntion process by asking appraisers to take<br \/>\non assignments with specific conditions or<br \/>\nrequirements. Whether these assignment<br \/>\ninstructions are issued by lenders or appraisal<br \/>\nmanagement firms is of less importance than<br \/>\nthe nature of these requirements and, more<br \/>\nimportantly, whether they could cause a<br \/>\nbreach of the CUSPAP standards.<\/p>\n<p>When undertaking any assignment,<br \/>\nappraisers must first and foremost ensure that<br \/>\nthey are complying with CUSPAP, that they do<br \/>\nnot violate the professional code of conduct,<br \/>\nthat the work performed is done in a com-<br \/>\npetent manner, and that all due diligence has<br \/>\nbeen applied.<\/p>\n<p>There may be instances where accepting<br \/>\nthe assignment as presented is not appropri-<br \/>\nate. For example, a lender\/client asks you to<br \/>\nappraise a property \u201cas if five acres,\u201d where<br \/>\nthe subject property has 10 acres and the <\/p>\n<p>minimum new lot size in the subject\u2019s zoning<br \/>\ndistrict is 10 acres. If the appraiser properly<br \/>\nexplains this to the lender\/client, he or she<br \/>\nwill typically agree that it makes no sense<br \/>\nto use a hypothetical condition that is not<br \/>\nallowed under the jurisdiction\u2019s zoning<br \/>\nordinance. However, in cases where five-acre<br \/>\nlots are allowed by zoning, a hypothetical<br \/>\ncondition can often, but not always, be used.<\/p>\n<p>George Maurice<br \/>\nAACI, P. App., AIC President<\/p>\n<p>T<\/p>\n<p>Professionalism: an unwavering<br \/>\nconstant in an evolving marketplace<\/p>\n<p>6<\/p>\n<p>President\u2019s message<\/p>\n<p>The best way to avoid problems is to<br \/>\nfollow a systematic approach to undertaking<br \/>\nthe assignment and delivering the required<br \/>\nservice. This begins with understanding and<br \/>\ncommunicating the scope. By scope, we<br \/>\nmean the extent of the process of collecting,<br \/>\nconfirming, and reporting data. If clients pro-<br \/>\nvide special instructions that limit the scope<br \/>\nof the assignment, then appraisers should<br \/>\nmake this clear in the report, so that there is<br \/>\nno misinterpretation as to what was asked<br \/>\nand what was delivered. <\/p>\n<p>One of the best ways to communicate<br \/>\nthis information is through a letter of<br \/>\nengagement. Another important way to<br \/>\nensure that there is no misunderstanding<br \/>\nis through disclosure and the setting out of<br \/>\nlimiting conditions. With respect to disclo-<br \/>\nsures, it must be kept in mind that these<br \/>\ndo not necessarily form part of the contract<br \/>\nbetween parties, unless both parties agree to<br \/>\nthem. Ideally, the scope of the appraisal and<br \/>\nany unusual aspects thereof would be appar-<br \/>\nent to the appraiser at the outset. However,<br \/>\nthis is not always the case and the appraiser<br \/>\nmay have to add the relevant disclosure<br \/>\nstatements to the standard engagement<br \/>\nletter as a schedule or appendix. Special<br \/>\nconditions of any assignment should always<br \/>\nbe reiterated, whenever the final opinion or<br \/>\nconclusion is stated.<\/p>\n<p>In addition to the letter of engagement,<br \/>\nappraisers should prepare and provide a<br \/>\nletter of transmittal to clients when they<br \/>\nsubmit their final report. Letters of engage-<br \/>\nment should be succinct, and clearly sum <\/p>\n<p>\u201cWhen undertaking<br \/>\nany assignment,<br \/>\nappraisers must <\/p>\n<p>first and foremost<br \/>\nensure that they <\/p>\n<p>are complying with<br \/>\nCUSPAP, that they<br \/>\ndo not violate the <\/p>\n<p>professional code of<br \/>\nconduct, that the work <\/p>\n<p>performed is done in<br \/>\na competent manner, <\/p>\n<p>and that all due<br \/>\ndiligence  <\/p>\n<p>has been applied.\u201d<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents6<\/p>\n<p>up the scope of the assignment and the work<br \/>\ndelivered. The letter should also identify<br \/>\nany extraordinary assumptions and limiting<br \/>\nconditions.<\/p>\n<p>The above-mentioned steps are essential<br \/>\nto ensuring that the report complies with<br \/>\nCUSPAP. The standards make it clear that an<br \/>\nappraiser\u2019s responsibility includes:<br \/>\n\u2022\t communicating\tthe\tappraisal\tclearly\tand\t<\/p>\n<p>accurately;<br \/>\n\u2022\t not\tmisleading;<br \/>\n\u2022\t\t disclosing\tall\trelevant\tfactors\trelated\tto\tthe\t<\/p>\n<p>appraisal, including any departures from<br \/>\naccepted appraisal practice;<\/p>\n<p>\u2022\t\t adhering\tto\tthe\tstandards;\tand<br \/>\n\u2022\t\t taking\tfull\tresponsibility\tfor\tany\treport\tthat\t<\/p>\n<p>the appraiser signs.<\/p>\n<p>Appraisers face the danger of breaching<br \/>\nthe standards when they do not take pause to<br \/>\nreview the scope of the assignment and what<br \/>\nis being asked by the client. <\/p>\n<p>Clearly, appraisers are constantly under<br \/>\npressure to deliver reports in short order, all<br \/>\nthe while facing competitive fee pressures.<br \/>\nnonetheless, professionalism must take prece-<br \/>\ndence over market pressures, and fast-tracking<br \/>\nwork or otherwise cutting corners must be<br \/>\navoided at all times. If you were to be sued,<br \/>\nyour fee would not make any difference, since<br \/>\nyour professional obligation was to render<br \/>\nappraisal services in a competent manner.<\/p>\n<p>An important aspect of professionalism is<br \/>\nthe consultative focus that professionals bring<br \/>\nto the marketplace. As professionals, apprais-<br \/>\ners cannot be unquestioning order takers, but <\/p>\n<p>must take on work on the basis of a mutual<br \/>\nunderstanding between the client and the<br \/>\nappraiser of what needs to be achieved in<br \/>\ncontrast with what the client might have<br \/>\nrequested at the outset.<\/p>\n<p>In taking on such assignments, appraisers<br \/>\nneed to be mindful of the value they bring<br \/>\nto the table and the complexity of the work<br \/>\nbeing undertaken when they establish their<br \/>\nprofessional fees. Such fees should be distinct<br \/>\nfrom ancillary costs incurred in undertaking<br \/>\nthe work. Such costs should be identified and<br \/>\nbilled for separately as disbursements. When<br \/>\nfaced with assignment conditions that would<br \/>\nresult in a breach of professional standards<br \/>\nor ethics, appraisers need to be prepared to<br \/>\nbring those issues to the client\u2019s attention<br \/>\nand ultimately turn down such assignments.<\/p>\n<p>Whether a form report is prepared or the<br \/>\nassignment calls for a narrative report, due<br \/>\ndiligence should be exercised at all times.<br \/>\nReview of the assumptions, limiting condi-<br \/>\ntions and disclosures in the report is neces-<br \/>\nsary to ensure that the appraiser\u2019s profes-<br \/>\nsional obligations are met. Appraisers should<br \/>\nensure that disclosures are clearly written in<br \/>\nunambiguous language that the client can<br \/>\nunderstand.<\/p>\n<p>In some cases, appraisers will be asked<br \/>\nto use a form supplied by the client. In such<br \/>\ncases, appraisers should be vigilant that the<br \/>\nform does not mislead and that any gaps in<br \/>\nsuch forms are covered off by an appropri-<br \/>\nate addendum. Once again, the disclosures,<br \/>\nassumptions and limiting conditions must be<br \/>\nreviewed to ensure that they are clear and <\/p>\n<p>\u201cAs professionals, appraisers cannot be unquestioning order takers,<br \/>\nbut must take on work on the basis of a mutual understanding between  <\/p>\n<p>the client and the appraiser of what needs to be achieved.\u201d<\/p>\n<p>easily understood by clients. CUSPAP sets the<br \/>\nminimum requirements for content, but does<br \/>\nnot specify which forms are acceptable.<\/p>\n<p>Appraisers can run into trouble when<br \/>\nthey fail to take into account the purpose<br \/>\nof a report, and do not clearly identify the<br \/>\nassumptions made in its preparation, along<br \/>\nwith any conditions and limitations that<br \/>\nimpact the value conclusion. <\/p>\n<p>The above applies to appraisal reviewers<br \/>\nand supervising appraisers, who must ensure<br \/>\nthat the work complies with the standards<br \/>\nat all times. It is important to remember that<br \/>\ndesignated members of the Institute, who<br \/>\nco-sign Candidate reports, must ensure that<br \/>\nthe Candidates are registered with them in<br \/>\nthe Institute\u2019s Candidate Registry.  <\/p>\n<p>Increasingly, appraisers will find them-<br \/>\nselves working with or assisted by automated<br \/>\nvaluation models. These may range from<br \/>\nsimple paper models to sophisticated valu-<br \/>\nation software. The standards state that you<br \/>\nmust possess the requisite competence when<br \/>\nundertaking an assignment. If you are unfa-<br \/>\nmiliar with computer programming or the<br \/>\nalgorithms computer modeling use, or how<br \/>\nthey select and use data, then some further<br \/>\nprofessional development should be pursued<br \/>\nbefore you accept such an assignment.<\/p>\n<p>The AIC program of professional studies<br \/>\ncovers statistical modeling and mass appraisal<br \/>\nin some of its courses, and there is a wide<br \/>\nrange of training available on the subject.<br \/>\nAppraisers would be well advised to consider<br \/>\ntaking such courses as part of their continuing<br \/>\nprofessional development.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 7<\/p>\n<p>George Maurice<br \/>\nAACI, P. App., Pr\u00e9sident de l\u2019ICe<\/p>\n<p>message du Pr\u00e9sident<\/p>\n<p>e march\u00e9 des services d\u2019\u00e9valuation immo-<br \/>\nbili\u00e8re conna\u00eet des transformations et une<br \/>\nexpansion que personne n\u2019aurait pu pr\u00e9voir <\/p>\n<p>il y a \u00e0 peine quelques ann\u00e9es.<br \/>\nL\u2019\u00e9valuation traditionnelle doit maintenant <\/p>\n<p>livrer concurrence \u00e0 diverses solutions de rechange,<br \/>\ny compris les services d\u2019\u00e9valuation du risque,<br \/>\nles produits d\u2019assurance de titres et de valeurs<br \/>\nhypoth\u00e9caires, les \u00e9valuations automatis\u00e9es et les<br \/>\n\u00e9valuations automatis\u00e9es assist\u00e9es par \u00e9valuateur,<br \/>\npour n\u2019en nommer que quelques-unes.<\/p>\n<p>Les pr\u00eateurs se tournent de plus en plus<br \/>\nvers ces produits dans le but de r\u00e9duire le d\u00e9lai<br \/>\nd\u2019ex\u00e9cution du processus de pr\u00eat hypoth\u00e9caire,<br \/>\ntout en r\u00e9duisant les co\u00fbts.<\/p>\n<p>De plus, diverses institutions personnalisent<br \/>\nencore davantage le processus de confirmation<br \/>\nde la valeur en demandant aux \u00e9valuateurs de<br \/>\ns\u2019acquitter de t\u00e2ches comportant des conditions<br \/>\nou exigences sp\u00e9cifiques. Que ces instructions<br \/>\nd\u2019affectation soient \u00e9mises par les pr\u00eateurs ou<br \/>\npar les entreprises de gestion de l\u2019\u00e9valuation<br \/>\nimporte moins que la nature de ces exigences et<br \/>\nencore moins que la possibilit\u00e9 que ces affecta-<br \/>\ntions constituent une d\u00e9rogation par rapport aux<br \/>\nnormes retrouv\u00e9es dans les RUPPEC. <\/p>\n<p>Quand ils entreprennent une affectation,<br \/>\nles \u00e9valuateurs doivent, d\u2019abord et avant tout,<br \/>\ns\u2019assurer qu\u2019ils se conforment aux RUPPEC, qu\u2019ils<br \/>\nne contreviennent pas au code d\u2019\u00e9thique de la<br \/>\nprofession, que le travail accompli est effectu\u00e9<br \/>\navec comp\u00e9tence et que la diligence raisonnable<br \/>\na \u00e9t\u00e9 appliqu\u00e9e.<\/p>\n<p>Il peut se pr\u00e9senter des cas o\u00f9 l\u2019acceptation<br \/>\nd\u2019une affectation telle que pr\u00e9sent\u00e9e soit inac-<br \/>\nceptable.  Par exemple, un pr\u00eateur\/client vous <\/p>\n<p>demande d\u2019\u00e9valuer une propri\u00e9t\u00e9 \u00ab comme si<br \/>\nelle avait 5 acres \u00bb alors qu\u2019elle en a vraiment 10<br \/>\net que la taille minimum des nouveaux lots dans<br \/>\nle district de zonage aff\u00e9rent est de 10 acres. Si<br \/>\nl\u2019\u00e9valuateur explique correctement cette situation \u00e0<br \/>\nson pr\u00eateur\/client, ce dernier conviendra probable-<br \/>\nment qu\u2019il est illogique d\u2019appliquer une condition<br \/>\nhypoth\u00e9tique qui n\u2019est pas permise selon les<br \/>\nordonnances de zonage des autorit\u00e9s ayant juridic-<br \/>\ntion. Cependant, dans les cas o\u00f9 le zonage permet<br \/>\ndes lots des 5 acres, une condition hypoth\u00e9tique<br \/>\npeut souvent, mais pas toujours, \u00eatre utilis\u00e9e.<\/p>\n<p>Le meilleur moyen d\u2019\u00e9viter des probl\u00e8mes<br \/>\nconsiste \u00e0 adopter une approche syst\u00e9matique <\/p>\n<p>dans l\u2019ex\u00e9cution des affectations et dans la pres-<br \/>\ntation des services requis. La premi\u00e8re \u00e9tape sera<br \/>\nde comprendre et de communiquer la port\u00e9e de<br \/>\nla t\u00e2che. Par port\u00e9e, nous entendons l\u2019envergure<br \/>\ndu processus de collecte, de confirmation et de<br \/>\nd\u00e9claration des donn\u00e9es. Si les clients fournissent<br \/>\ndes instructions sp\u00e9ciales qui limitent la port\u00e9e<br \/>\nde l\u2019affectation, les \u00e9valuateurs doivent alors<br \/>\nl\u2019indiquer clairement dans le rapport de sorte \u00e0<br \/>\n\u00e9viter toute erreur d\u2019interpr\u00e9tation par rapport \u00e0<br \/>\nce qui a \u00e9t\u00e9 demand\u00e9 et \u00e0 ce qui a \u00e9t\u00e9 livr\u00e9. <\/p>\n<p>Une des meilleures fa\u00e7ons de communiquer<br \/>\ncette information est par lettre d\u2019engagement. Un<br \/>\nautre moyen important d\u2019\u00e9viter tout malentendu<br \/>\nest par divulgation et \u00e9nonc\u00e9 des conditions<br \/>\nlimitatives.  en ce qui a trait aux divulgations, on<br \/>\ndoit se rappeler que ces derni\u00e8res ne font pas<br \/>\nn\u00e9cessairement partie du contrat entre les parties<br \/>\n\u00e0 moins que celles-ci n\u2019en conviennent. Id\u00e9ale-<br \/>\nment, la port\u00e9e de l\u2019\u00e9valuation et de tous les<br \/>\naspects inusit\u00e9s qui s\u2019y rattachent serait apparente<br \/>\n\u00e0 l\u2019\u00e9valuateur d\u00e8s le d\u00e9but.  Cependant, il n\u2019en<br \/>\nest pas toujours ainsi et l\u2019\u00e9valuateur peut devoir<br \/>\njoindre, en annexe ou appendice, des d\u00e9clarations<br \/>\npertinentes \u00e0 sa lettre d\u2019engagement standard. Les<br \/>\nconditions sp\u00e9ciales de toute affectation devraient<br \/>\ntoujours \u00eatre r\u00e9it\u00e9r\u00e9es chaque fois qu\u2019une opinion<br \/>\nou conclusion d\u00e9finitive est \u00e9nonc\u00e9e.<\/p>\n<p>Outre la lettre d\u2019engagement, les \u00e9valuateurs<br \/>\ndevraient pr\u00e9parer et fournir une lettre de trans-<br \/>\nmission aux clients lorsqu\u2019ils soumettent leur<br \/>\nrapport final. Les lettres d\u2019engagement devraient<br \/>\n\u00eatre succinctes et r\u00e9sumer clairement la port\u00e9e<br \/>\nde l\u2019affectation et le travail livr\u00e9. La lettre devrait<br \/>\naussi pr\u00e9ciser toutes les hypoth\u00e8ses extraordi-<br \/>\nnaires et les conditions limitatives.<\/p>\n<p>L<\/p>\n<p>Professionnalisme : une constante<br \/>\nin\u00e9branlable dans un march\u00e9 en \u00e9volution <\/p>\n<p>\u00ab Quand ils entreprennent<br \/>\nune affectation, les <\/p>\n<p>\u00e9valuateurs doivent,<br \/>\nd\u2019abord et avant <\/p>\n<p>tout, s\u2019assurer qu\u2019ils se<br \/>\nconforment aux RUPPEC,<br \/>\nqu\u2019ils ne contreviennent <\/p>\n<p>pas au code d\u2019\u00e9thique de<br \/>\nla profession, que le travail<br \/>\naccompli est effectu\u00e9 avec <\/p>\n<p>comp\u00e9tence et que la<br \/>\ndiligence raisonnable  <\/p>\n<p>a \u00e9t\u00e9 appliqu\u00e9e. \u00bb<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents8<\/p>\n<p>Pour s\u2019assurer que le rapport est conforme aux<br \/>\nRUPPEC, les \u00e9tapes susmentionn\u00e9es sont essenti-<br \/>\nelles. Les normes font ressortir clairement que les<br \/>\nresponsabilit\u00e9s de l\u2019\u00e9valuateur comprennent :<br \/>\n\u2022\t la\ttransmission\tde\tl\u2019\u00e9valuation\tavec\tclart\u00e9\tet\t<\/p>\n<p>exactitude;<br \/>\n\u2022\t ne\tpas\tinduire\ten\terreur;<br \/>\n\u2022\t divulguer\ttous\tles\tfacteurs\tpertinents\trelatifs\t<\/p>\n<p>\u00e0 l\u2019\u00e9valuation, y compris tout \u00e9cart aux<br \/>\npratiques d\u2019\u00e9valuation accept\u00e9es;<\/p>\n<p>\u2022\t adh\u00e9rer\taux\tnormes;<br \/>\n\u2022\t prendre\tl\u2019enti\u00e8re\tresponsabilit\u00e9\tde\ttout\trap-<\/p>\n<p>port sign\u00e9 par l\u2019\u00e9valuateur.<\/p>\n<p>Les \u00e9valuateurs courent le danger de cont-<br \/>\nrevenir aux normes quand ils ne prennent pas le<br \/>\ntemps d\u2019examiner la port\u00e9e de l\u2019affectation et ce<br \/>\nque demande le client. <\/p>\n<p>Il ressort clairement que les \u00e9valuateurs sont<br \/>\nconstamment sous pression, devant livrer leurs<br \/>\nrapports dans de courts d\u00e9lais tout en ayant \u00e0<br \/>\nmaintenir des honoraires comp\u00e9titifs. n\u00e9an-<br \/>\nmoins, le professionnalisme doit avoir pr\u00e9s\u00e9ance<br \/>\nsur les pressions du march\u00e9 et on doit \u00e9viter<br \/>\nen tout temps les mesures exp\u00e9ditives et les<br \/>\nraccourcis. Si on vous poursuit, les honoraires que<br \/>\nvous avez per\u00e7us sont non avenus parce que vous<br \/>\n\u00e9tiez dans l\u2019obligation professionnelle de rendre<br \/>\ndes services d\u2019\u00e9valuation avec comp\u00e9tence.<\/p>\n<p>Une marque importante de professionnal-<br \/>\nisme est la dimension consultative que les vrais<br \/>\nprofessionnels contribuent sur le march\u00e9.  \u00c0 titre<br \/>\nde professionnels, les \u00e9valuateurs ne doivent<br \/>\npas \u00eatre des ex\u00e9cutants serviles, mais plut\u00f4t des<br \/>\nconsultants qui acceptent un travail sur la base<br \/>\nd\u2019une entente entre le client et l\u2019\u00e9valuateur de <\/p>\n<p>ce qui doit \u00eatre r\u00e9alis\u00e9 et non de ce que le client<br \/>\npourrait avoir demand\u00e9  \u00e0 l\u2019origine.  <\/p>\n<p>Au d\u00e9but de telles affectations, les \u00e9valu-<br \/>\nateurs doivent tenir compte de la valeur ajout\u00e9e<br \/>\nqu\u2019ils mettent \u00e0 contribution et de la complexit\u00e9<br \/>\ndu travail \u00e0 accomplir quand ils \u00e9tablissent<br \/>\nleurs honoraires professionnels. Ces honoraires<br \/>\ndevraient \u00eatre distincts des  frais connexes<br \/>\nencourus dans la r\u00e9alisation du travail. Ces frais<br \/>\ndevraient \u00eatre ventil\u00e9s et factur\u00e9s s\u00e9par\u00e9ment<br \/>\nau chapitre des d\u00e9penses. Face \u00e0 des conditions<br \/>\nd\u2019affectation qui entra\u00eeneraient une infraction<br \/>\naux normes professionnelles ou d\u2019\u00e9thique, les<br \/>\n\u00e9valuateurs doivent \u00eatre pr\u00eats \u00e0 porter ces ques-<br \/>\ntions \u00e0 l\u2019attention du client et, en cas d\u2019impasse, \u00e0<br \/>\nrefuser un tel travail. <\/p>\n<p>Que l\u2019affectation exige un rapport type ou un<br \/>\nrapport narratif, on devrait faire preuve de dili-<br \/>\ngence raisonnable en tout temps. Il est n\u00e9cessaire<br \/>\nde passer en revue les hypoth\u00e8ses, conditions<br \/>\nlimitatives et divulgations dans le rapport afin<br \/>\nde s\u2019assurer que les obligations professionnelles<br \/>\nde l\u2019\u00e9valuateur soient respect\u00e9es. Les \u00e9valuateurs<br \/>\ndevraient s\u2019assurer que les divulgations sont<br \/>\n\u00e9crites clairement dans un langage non ambigu<br \/>\nque le client peut comprendre.<\/p>\n<p>Dans certains cas, le client demandera \u00e0<br \/>\nl\u2019\u00e9valuateur d\u2019utiliser un formulaire fourni par le<br \/>\nclient.  en pareils cas, les \u00e9valuateurs devraient<br \/>\nveiller \u00e0 ce que le formulaire ne porte pas \u00e0<br \/>\nconfusion et que toutes les lacunes dans de tels<br \/>\nformulaires soient couvertes par addendum.<br \/>\nencore une fois, les divulgations, hypoth\u00e8ses et<br \/>\nconditions limitatives doivent \u00eatre \u00e9tudi\u00e9es pour<br \/>\ns\u2019assurer qu\u2019elles sont claires et faciles \u00e0 com-<br \/>\nprendre. Les  RUPPeC \u00e9tablissent les exigences <\/p>\n<p>minimales de contenu, mais elles ne pr\u00e9cisent pas<br \/>\nles formulaires qui sont acceptables.<\/p>\n<p>Les \u00e9valuateurs s\u2019exposent \u00e0 des probl\u00e8mes<br \/>\nquand ils ne tiennent pas compte du but d\u2019un<br \/>\nrapport et qu\u2019ils n\u2019identifient pas clairement les<br \/>\nhypoth\u00e8ses appliqu\u00e9es au cours de la pr\u00e9paration du<br \/>\nrapport ainsi que les conditions limitatives qui ont<br \/>\nune incidence sur la valeur pr\u00e9sent\u00e9 en conclusion. <\/p>\n<p>Cette mise en garde s\u2019applique \u00e9galement aux<br \/>\nr\u00e9viseurs et superviseurs d\u2019\u00e9valuateurs qui ont<br \/>\nle mandat de s\u2019assurer que le travail respecte les<br \/>\nnormes en tout temps. Il importe de se rappeler<br \/>\nque les membres agr\u00e9\u00e9s de l\u2019Institut qui cosig-<br \/>\nnent les rapports des stagiaires doivent s\u2019assurer<br \/>\nque ces stagiaires sont inscrits avec eux dans le<br \/>\nRegistre des stagiaires de l\u2019Institut.  <\/p>\n<p>De plus en plus, les \u00e9valuateurs seront appel\u00e9s<br \/>\n\u00e0 utiliser des mod\u00e8les d\u2019\u00e9valuation informatis\u00e9s<br \/>\nou \u00e0 collaborer avec de tels mod\u00e8les.  Ces mod\u00e8les<br \/>\npeuvent aller d\u2019un simple mod\u00e8le papier \u00e0 un<br \/>\nlogiciel tr\u00e8s perfectionn\u00e9.  Les normes stipulent<br \/>\nque vous devez poss\u00e9der les comp\u00e9tences<br \/>\nrequises quand vous entreprenez une affectation.<br \/>\nSi vous ne connaissez pas l\u2019informatique ou les<br \/>\nalgorithmes utilis\u00e9s par la mod\u00e9lisation informa-<br \/>\ntique ou comment l\u2019ordinateur choisit et utilise les<br \/>\ndonn\u00e9es, vous devriez probablement suivre des<br \/>\ncours de perfectionnement professionnel avant<br \/>\nd\u2019accepter de telles affectations.<\/p>\n<p>Le programme d\u2019\u00e9tudes professionnelles de<br \/>\nl\u2019ICe couvre, dans certains de ses cours, la mod\u00e9lisa-<br \/>\ntion statistique et l\u2019\u00e9valuation de masse et il existe<br \/>\nun large \u00e9ventail de cours dans ce domaine. Les<br \/>\n\u00e9valuateurs auraient int\u00e9r\u00eat \u00e0 envisager de suivre<br \/>\nde tels cours dans le cadre de leur programme de<br \/>\nperfectionnement professionnel continu. <\/p>\n<p>\u00ab \u00c0 titre de professionnels, les \u00e9valuateurs ne doivent pas \u00eatre des<br \/>\nex\u00e9cutants serviles, mais plut\u00f4t des consultants qui acceptent un travail sur la base <\/p>\n<p>d\u2019une entente entre le client et l\u2019\u00e9valuateur de ce qui doit \u00eatre r\u00e9alis\u00e9. \u00bb<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 9<\/p>\n<p>ast summer, Appraisal Institute of Canada<br \/>\n(AIC) members were randomly selected<br \/>\nand invited to participate in a survey <\/p>\n<p>aimed at better understanding membership needs,<br \/>\nin order to improve the services that AIC offers to<br \/>\nits members. Including AACIs, CRAs and Candi-<br \/>\ndates, 1,009 active members responded to the<br \/>\nsurvey, providing reliable data that is statistically<br \/>\nrepresentative of the entire membership within an<br \/>\ninterval of +\/- 2.5% at the 95% confidence level<br \/>\n(i.e., 19 times out of 20).<\/p>\n<p>The survey was designed, in part, as a follow<br \/>\nup to the 2004 new Horizons Survey. A number<br \/>\nof questions were the same.<\/p>\n<p>Just over 70% of the respondents indi-<br \/>\ncated that they do point-in-time appraisal<br \/>\nwork similar to the responses received four <\/p>\n<p>years earlier. Work other than point-in-time<br \/>\nappraisal included administration, manage-<br \/>\nment, consulting, and providing strategic<br \/>\nadvice, among others. While AIC demographics<br \/>\nare well known, and the aging membership is<br \/>\na challenge, the survey highlighted this. The<br \/>\nresponses suggested that, in the next 5-10<br \/>\nyears, 42% of the members plan to retire.<\/p>\n<p>Compared to the 2004 new Horizons Survey, in<br \/>\nthis survey more members reported that they had<br \/>\nan undergraduate degree\/diploma (56.8% versus<br \/>\n49%) and fewer reported that they had some col-<br \/>\nlege or university courses (25.1% versus 34%). <\/p>\n<p>Sixty percent of the respondents indicated<br \/>\nthat their annual income was between $60,000<br \/>\nand $150,000. Compared to the new Horizons<br \/>\nSurvey, in this survey fewer members report <\/p>\n<p>annual income of less than $30,000 (1.8% versus<br \/>\n7%) and between $30,000 and $50,000 (22.9%<br \/>\nversus 34%).  Also, more members in this survey<br \/>\nreport earnings of $250,000 and over (8.5%<br \/>\nversus 1%).<\/p>\n<p>Also similar to the previous survey, members<br \/>\nindicated that the top threats to their livelihood<br \/>\nwere other real estate appraisal organizations,<br \/>\nprice competition from inside the profession,<br \/>\nappraisal management firms, automated valua-<br \/>\ntion models, and competition from outside the<br \/>\nprofession.<\/p>\n<p>The one threat that stood out as notice-<br \/>\nably different was \u201cother real estate appraisal<br \/>\norganizations.\u201d In 2004, 19% of the respondents<br \/>\nsaw other real estate appraisal organizations as<br \/>\na threat, while 52.4% of the respondents this <\/p>\n<p>Report on 2008 AIC Member Survey  <\/p>\n<p>L<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents10<\/p>\n<p>time indicated they are a threat. Though less<br \/>\nnoticeably, three other categories are also<br \/>\ndifferent in the 2004 survey compared to this<br \/>\none: appraisal management firms (28% versus<br \/>\n40.6%); real estate agents (11% versus 25.5%);<br \/>\nand quantity surveyors (1% versus 15.8%). <\/p>\n<p>The main purpose of the survey was to find<br \/>\nout what members like and did not like with<br \/>\nrespect to member services and a series of<br \/>\nquestions were asked in this respect. Member<br \/>\nindicated that, generally, they are satisfied<br \/>\nwith their dealings with the Institute and its<br \/>\nstaff, finding that they get the information they<br \/>\nneed in a timely manner.<\/p>\n<p>Respondents indicated that the top AIC ser-<br \/>\nvices they like most are, in order of popularity:<br \/>\n1. education and networking, including <\/p>\n<p>providing conferences, seminars, training<br \/>\nand courses, meetings, research, university<br \/>\naffiliations, magazine, and FAQs<\/p>\n<p>2. The AIC website and online services and<br \/>\nresources, including providing the online<br \/>\nlibrary, the LUM library, web reports,<br \/>\nmember directory, regular emails, notices,<br \/>\nupdates, links to other services, the forum<br \/>\nonline; and offering the option of making<br \/>\npayments for membership dues online<\/p>\n<p>3. Member services and resources such as<br \/>\nproviding the Designated Members Source<br \/>\nGuide, the Counselor of Professional<br \/>\nPractice, providing marketing information,<br \/>\nposting employment opportunities and<br \/>\nRenOvA,  <\/p>\n<p>These three member service areas<br \/>\naccounted for 73.6% of all the responses to this<br \/>\nquestion.<\/p>\n<p>Respondents were asked, in general, what<br \/>\ntwo improvements could AIC make to the<br \/>\nexisting services it provides that would help<br \/>\nyou do your job better? The improvements<br \/>\nidentified as most important were:<br \/>\n1. Offer better courses and materials, includ-<\/p>\n<p>ing providing more online courses and<br \/>\nopportunities for acquiring mandatory<br \/>\ncredits for the CPD program, more courses<br \/>\nduring the winter, more courses offered <\/p>\n<p>locally, more courses offering technical<br \/>\ncontent and examples, more quick tips and<br \/>\nbest practices, more case studies, more<br \/>\nFAQs, and more resources for valuation.<\/p>\n<p>2. Offer better customer service, including<br \/>\nhaving a live person answer the phone<br \/>\nrather than voicemail, providing more<br \/>\ntimely responses, better and more timely<br \/>\nupdates, better advertisement of what<br \/>\nservices AIC offers members and of dead-<br \/>\nlines and requirements, providing more<br \/>\nmember information online and speeding<br \/>\nup the complaint process, strive for better<br \/>\ncommunication between the provincial and<br \/>\nnational offices; reduce any duplication of<br \/>\nservices. <\/p>\n<p>3. Increase advocacy, promotion and market-<br \/>\ning, including providing better promotion of<br \/>\nmembers to financial institutions, explain-<br \/>\ning the need for professional appraisers to<br \/>\nthe public and banks, and sharing CUSPAP<br \/>\nrequirements with the public and the banks.<\/p>\n<p>4. elevate standards, designations, and<br \/>\ndiscipline, including support for a fairer<br \/>\nand more relevant examination process;<br \/>\noffer better monitoring of the mentoring<br \/>\nprogram, closer oversight of appraisal firms <\/p>\n<p>and more clarity online for designation<br \/>\nrequirements; provide more mentors and<br \/>\nmore penalties for bad appraisers; initiate a<br \/>\nmandatory peer review; set a standard fee<br \/>\nstructure (or a range) for services mem-<br \/>\nbers provide; provide more consistency in<br \/>\npolicies; and more examples of appropriate<br \/>\nreporting <\/p>\n<p>These four top areas for improvement<br \/>\naccounted for 72.8% of all the comments to<br \/>\nthis question.<\/p>\n<p>The survey asked respondents what two<br \/>\nadditional services could AIC provide that<br \/>\nwould help you in your job. The top three<br \/>\nadditional services identified were<br \/>\n1. enhanced website with more information, <\/p>\n<p>including provide more comprehensive and<br \/>\ncollaboratively-developed databases; offer<br \/>\nmore information on major trend-setting<br \/>\ntransactions, general marketing trends and<br \/>\ndifficult cases; provide more FAQs; provide<br \/>\na more comprehensive online reference<br \/>\nlibrary; offer better search features; offer<br \/>\nmore information on the numbers and<br \/>\ntypes of AIC members and listings of<br \/>\nappraisal companies.  <\/p>\n<p>What three services that AIC provides do you like most? <\/p>\n<p>education\/networking *1<\/p>\n<p>AIC Website\/<br \/>\nOnline Services and Resources *2<\/p>\n<p>Staffing\/Member Services,<br \/>\nResources and Support *3<\/p>\n<p>Standards\/Designations\/<br \/>\nethics\/Disciplines *4<\/p>\n<p>Insurance *5<\/p>\n<p>Promotion\/Lobbying\/Advocacy *6<\/p>\n<p>0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%<\/p>\n<p>6.3%<\/p>\n<p>7.7%<\/p>\n<p>12.3%<\/p>\n<p>17.8%<\/p>\n<p>21.5%<\/p>\n<p>34.3%<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 11<\/p>\n<p>2. More educational opportunities including<br \/>\noffer more \u2018real world\u2019 case studies, more<br \/>\nup-to-date courses, more online courses<br \/>\nfor CPD credits and more courses offered<br \/>\nlocally; provide more practical and best<br \/>\npractices articles in the magazine; offer<br \/>\nmore sample reports and more forums; <\/p>\n<p>provide examples for different applications<br \/>\nof valuation principles; and provide improved<br \/>\neducation on international practices.<\/p>\n<p>3. enhanced standards, discipline and designa-<br \/>\ntions, including promote unity across the<br \/>\nprofession; arbitrate between appraisers as<br \/>\nneeded; reduce academic requirements; set <\/p>\n<p>baseline fee schedules; provide less compli-<br \/>\ncated and more intuitive standards formats<br \/>\nand start a peer review program; consider<br \/>\njoining OReA or CReA and establish more<br \/>\nmutually-beneficial partnerships; provide<br \/>\nmore monitoring of appraisal firms; and<br \/>\ndevelop a better mentoring program<\/p>\n<p>Overall, the survey revealed that members<br \/>\nwho have had dealings with AIC staff found<br \/>\nthe experience to be congenial and helpful.<br \/>\nAlso, members appreciated the educational<br \/>\nand networking opportunities, the website and<br \/>\nonline resources, as well as the member services<br \/>\nthat AIC provides. In general, AIC members rated<br \/>\nthe services that they received well. Also, most<br \/>\nmembers praised the educational opportunities,<br \/>\nthe AIC website and online services, and the<br \/>\nmember services they received.<\/p>\n<p>The survey revealed a number of areas for<br \/>\nimprovement, including educational opportunities.<br \/>\nThis was mentioned both as one of the key aspects<br \/>\nthat respondents liked about AIC services and as an<br \/>\narea that needed to be improved. These improve-<br \/>\nments included offering more courses, more<br \/>\nonline courses, more local courses, and offering<br \/>\nmore courses during the winter months. Though<br \/>\nrespondents rated customer service as one of the<br \/>\nservices they appreciated, they felt this was also an<br \/>\narea that needed to be improved. Specifically, they<br \/>\nwould like to receive more timely responses to their<br \/>\nqueries, would like more timely updates, and sug-<br \/>\ngest that a live person should answer the phone.<\/p>\n<p>Respondents indicated that more must be<br \/>\ndone to promote the professions. While they<br \/>\nappreciated the existing online services, includ-<br \/>\ning the online library, the LUM library and web<br \/>\nreports, they felt strongly that these services<br \/>\nshould be enhanced.<\/p>\n<p>Communications was identified as an area<br \/>\nfor continuous improvement, especially since the<br \/>\nappraisal profession is experiencing significant<br \/>\nchanges. Respondents felt that it is vital for the<br \/>\nInstitute to communicate with its members<br \/>\nfrequently and in a number of formats about the<br \/>\nchanges that are happening and the reasons for<br \/>\nthese changes. <\/p>\n<p>11.8%<\/p>\n<p>15.5%<\/p>\n<p>22.5%<\/p>\n<p>23.0%<\/p>\n<p>27.3%<\/p>\n<p>0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%<\/p>\n<p>enhanced Website\/<br \/>\nMore Information *1<\/p>\n<p>More educational Opportunities *2<\/p>\n<p>enhanced Standards\/<br \/>\nDiscipline\/Designations *3<\/p>\n<p>More Promotion\/<br \/>\nLobbying\/Advocacy *4<\/p>\n<p>Better Customer Service *5<\/p>\n<p>In general, what two additional services could AIC provide that would help you in your job?<\/p>\n<p>In general, what two improvements could AIC make to the existing services it provides that<br \/>\nwould help you do your job better?<\/p>\n<p>0.7%<\/p>\n<p>3.7%<\/p>\n<p>8.5%<\/p>\n<p>14.2%<\/p>\n<p>15.3%<\/p>\n<p>16.4%<\/p>\n<p>18.8%<\/p>\n<p>22.3%<\/p>\n<p>0.0% 5.0% 10.0% 15.0% 20.0% 25.0%<\/p>\n<p>Offer Better Courses\/<br \/>\nBetter Magazine and Materials *1<\/p>\n<p>Better Customer Service\/More Staffing *2<\/p>\n<p>Increased Advocacy\/<br \/>\nPromotion\/Marketing\/Awareness *3<\/p>\n<p>elevate Standards\/Designations\/Discipline *4<\/p>\n<p>Better Access to Information Online *5<\/p>\n<p>Lower Fees and Course Requirements\/<br \/>\nMore Flexibility *6<\/p>\n<p>Less Change\/More Flexibility\/Better Use of<br \/>\nResources *7<\/p>\n<p>Better and Cheaper Insurance *8<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents12<\/p>\n<p>Rapport sur le sondage men\u00e9<br \/>\naupr\u00e8s des membres de l\u2019ICE en 2008  <\/p>\n<p>\u00e9t\u00e9 dernier, des membres de l\u2019Institut<br \/>\ncanadien des \u00e9valuateurs ont \u00e9t\u00e9 s\u00e9lec-<br \/>\ntionn\u00e9s au hasard et ont \u00e9t\u00e9 invit\u00e9s \u00e0 <\/p>\n<p>participer \u00e0 un sondage visant \u00e0 mieux comprendre<br \/>\nles besoins des membres et am\u00e9liorer les services<br \/>\nque leur offre l\u2019ICe. Un total de 1009 membres<br \/>\nactifs, dont des membres AACI, des membres CRA<br \/>\net des stagiaires, ont r\u00e9pondu au sondage et ont<br \/>\nfourni des donn\u00e9es fiables qui sont statistiquement<br \/>\nrepr\u00e9sentatives de la totalit\u00e9 des membres dans un<br \/>\nintervalle de plus ou moins 2,5 %, soit 19 fois sur<br \/>\n20 (limite de pr\u00e9cision de 95 %).<\/p>\n<p>Le sondage a \u00e9t\u00e9 con\u00e7u, en partie, pour faire<br \/>\nsuite au sondage nouveaux Horizons, qui a \u00e9t\u00e9<br \/>\nmen\u00e9 en 2004. Un certain nombre de questions<br \/>\n\u00e9taient les m\u00eames.<\/p>\n<p>Un peu plus de 70 % des r\u00e9pondants ont<br \/>\nindiqu\u00e9 qu\u2019ils effectuent des \u00e9valuations tradi-<br \/>\ntionnelles semblablement aux r\u00e9ponses re\u00e7ues<br \/>\nquatre ans auparavant. Les travaux autres que les<br \/>\n\u00e9valuations traditionnelles comprenaient, entre<br \/>\nautres, l\u2019administration, la gestion, la consulta-<br \/>\ntion et la prestation de conseils strat\u00e9giques. Le<br \/>\nsondage a soulign\u00e9 le d\u00e9fi que constitue le vieil-<br \/>\nlissement des membres, bien que les donn\u00e9es<br \/>\nsur les membres de l\u2019ICe soient bien connues. Les <\/p>\n<p>r\u00e9ponses ont sugg\u00e9r\u00e9 que, au cours des cinq \u00e0<br \/>\ndix prochaines ann\u00e9es, 42 % des membres ont<br \/>\nl\u2019intention de prendre leur retraite.<\/p>\n<p>Comparativement au sondage nouveaux<br \/>\nHorizons men\u00e9 en 2004, un plus grand nombre<br \/>\nde membres ont signal\u00e9 dans ce sondage qu\u2019ils<br \/>\nposs\u00e9daient un grade de premier cycle ou un<br \/>\ndipl\u00f4me (56,8 % par opposition \u00e0 49 %) et<br \/>\nun plus petit nombre de membres ont affirm\u00e9<br \/>\nqu\u2019ils avaient suivi quelques cours coll\u00e9giaux ou<br \/>\nuniversitaires (25,1 % par opposition \u00e0 34 %). <\/p>\n<p>Un total de 60 % des r\u00e9pondants ont<br \/>\nmentionn\u00e9 que leur revenu annuel se situait<br \/>\nentre 60 000 $ et 150 000 $. Comparativement<br \/>\nau sondage nouveaux Horizons, un plus petit<br \/>\nnombre de membres ont d\u00e9clar\u00e9, dans ce sond-<br \/>\nage, avoir un revenu annuel inf\u00e9rieur \u00e0 30 000 $<br \/>\n(1,8 % par opposition \u00e0 7 %) ou se situant entre<br \/>\n30 000 $ et 50 000 $ (22,9 % par opposition \u00e0<br \/>\n34 %). De plus, un nombre plus \u00e9lev\u00e9 de mem-<br \/>\nbres ont pr\u00e9cis\u00e9 dans ce sondage qu\u2019ils gagnaient<br \/>\n250 000 $ et plus (8,5 % par opposition \u00e0 1 %).<\/p>\n<p>Tout comme dans le sondage pr\u00e9c\u00e9dent, les<br \/>\nmembres ont soulign\u00e9 que les principales menaces<br \/>\nli\u00e9es \u00e0 leur gagne-pain sont les autres organismes<br \/>\nd\u2019\u00e9valuation immobili\u00e8re, la concurrence dans les <\/p>\n<p>prix au sein de la profession, les cabinets de gestion<br \/>\nen \u00e9valuation, les mod\u00e8les informatis\u00e9s d\u2019\u00e9valuation<br \/>\net la concurrence \u00e0 l\u2019ext\u00e9rieur de la profession.<\/p>\n<p>Les autres organismes d\u2019\u00e9valuation immobil-<br \/>\ni\u00e8re constituent une menace consid\u00e9r\u00e9e comme<br \/>\nnettement diff\u00e9rente des autres. en 2004, 19 %<br \/>\ndes r\u00e9pondants percevaient les autres organismes<br \/>\nd\u2019\u00e9valuation immobili\u00e8re comme une menace,<br \/>\ntandis que 52,4 % des r\u00e9pondants ont sp\u00e9cifi\u00e9<br \/>\ncette fois-ci qu\u2019ils sont une menace. Bien qu\u2019elles<br \/>\nsoient moins \u00e9videntes, trois autres cat\u00e9gories<br \/>\nsont aussi diff\u00e9rentes dans ce sondage compara-<br \/>\ntivement \u00e0 celui men\u00e9 en 2004 : les cabinets<br \/>\nde gestion en \u00e9valuation (28 % par opposition<br \/>\n\u00e0 40,6 %), les agents immobiliers (11 % par<br \/>\nopposition \u00e0 25,5 %) et les m\u00e9treurs (1 % par<br \/>\nopposition \u00e0 15,8 %). <\/p>\n<p>Le principal objectif du sondage consistait<br \/>\n\u00e0 d\u00e9couvrir ce que les membres aimaient et<br \/>\nn\u2019aimaient pas relativement aux services qui leur<br \/>\n\u00e9taient offerts et une s\u00e9rie de questions ont \u00e9t\u00e9<br \/>\npos\u00e9es \u00e0 cet \u00e9gard. Les membres ont indiqu\u00e9<br \/>\nqu\u2019ils \u00e9taient, en g\u00e9n\u00e9ral, satisfaits de leurs<br \/>\nrapports avec l\u2019Institut et le personnel, et qu\u2019ils<br \/>\ntrouvaient qu\u2019ils recevaient les renseignements<br \/>\ndont ils avaient besoin au moment opportun.<\/p>\n<p>L\u2019<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 13<\/p>\n<p>Les r\u00e9pondants ont soulign\u00e9 que leurs services<br \/>\npr\u00e9f\u00e9r\u00e9s offerts par l\u2019ICe sont les suivants, en ordre<br \/>\nde popularit\u00e9 :<br \/>\n1. L\u2019\u00e9ducation et le r\u00e9seautage, notamment les <\/p>\n<p>conf\u00e9rences, les s\u00e9minaires, la formation et<br \/>\nles cours, les r\u00e9unions, la recherche, les affili-<br \/>\nations avec les universit\u00e9s, la revue et la foire<br \/>\naux questions;<\/p>\n<p>2. Le site Web de l\u2019ICe et les services et res-<br \/>\nsources en ligne, notamment la biblioth\u00e8que<br \/>\nvirtuelle, la biblioth\u00e8que LUM, les rapports<br \/>\nsur le Web, le r\u00e9pertoire des membres, les<br \/>\ncourriels envoy\u00e9s r\u00e9guli\u00e8rement, les avis, les<br \/>\nmises \u00e0 jour, les liens vers d\u2019autres services, le<br \/>\ngroupe de discussion en ligne et l\u2019option de<br \/>\npayer les frais d\u2019adh\u00e9sion en ligne;<\/p>\n<p>3. Les services et ressources offerts aux<br \/>\nmembres tels que le Guide de r\u00e9f\u00e9rence des<br \/>\nmembres agr\u00e9\u00e9s, le Conseiller en pratique<br \/>\nprofessionnelle, l\u2019offre de renseignements sur<br \/>\nla commercialisation, l\u2019affichage des possibili-<br \/>\nt\u00e9s d\u2019emploi et RenOvA.  <\/p>\n<p>Ces trois cat\u00e9gories de services offerts aux<br \/>\nmembres repr\u00e9sentaient 73,6 % de toutes les<br \/>\nr\u00e9ponses \u00e0 cette question.<\/p>\n<p>On a demand\u00e9 aux r\u00e9pondants qu\u2019elles \u00e9taient,<br \/>\nen g\u00e9n\u00e9ral, les deux am\u00e9liorations que l\u2019ICe devrait <\/p>\n<p>apporter aux services qu\u2019elle offre actuellement<br \/>\nafin de les aider \u00e0 mieux ex\u00e9cuter leur travail? Les<br \/>\nam\u00e9liorations les plus importantes qui ont \u00e9t\u00e9<br \/>\nidentifi\u00e9es sont les suivantes :<br \/>\n1. Offrir de meilleurs cours et documents, <\/p>\n<p>comme un plus grand nombre de cours en<br \/>\nligne et de possibilit\u00e9s d\u2019acqu\u00e9rir des cr\u00e9dits<br \/>\nobligatoires pour le programme de PPC, des<br \/>\ncours d\u2019hiver, des cours offerts \u00e0 l\u2019\u00e9chelle<br \/>\nlocale, des cours pr\u00e9sentant un contenu et<br \/>\ndes exemples techniques, de petits trucs et<br \/>\ndes pratiques exemplaires, des \u00e9tudes de<br \/>\ncas, des foires aux questions et des res-<br \/>\nsources relatives \u00e0 l\u2019\u00e9valuation;<\/p>\n<p>2. Offrir un meilleur service \u00e0 la client\u00e8le,<br \/>\ncomme avoir une personne qui r\u00e9pond au<br \/>\nt\u00e9l\u00e9phone au lieu d\u2019une messagerie vocale,<br \/>\nfournir des r\u00e9ponses plus opportunes, faire<br \/>\ndes mises \u00e0 jour de meilleure qualit\u00e9 et plus<br \/>\nopportunes, faire une meilleure publicit\u00e9<br \/>\ndes services qu\u2019offre l\u2019ICe \u00e0 ses membres<br \/>\nainsi que des \u00e9ch\u00e9ances et des exigences,<br \/>\noffrir aux membres plus de renseignements<br \/>\nen ligne et acc\u00e9l\u00e9rer le processus de traite-<br \/>\nment des plaintes, s\u2019efforcer d\u2019am\u00e9liorer les<br \/>\ncommunications entre les bureaux national<br \/>\net provinciaux et r\u00e9duire le chevauchement<br \/>\ndes services; <\/p>\n<p>3. Accro\u00eetre la d\u00e9fense des int\u00e9r\u00eats, la promotion<br \/>\net la commercialisation, notamment mieux<br \/>\npromouvoir les membres aupr\u00e8s des institu-<br \/>\ntions financi\u00e8res, expliquer le besoin d\u2019avoir<br \/>\ndes \u00e9valuateurs professionnels au public et aux<br \/>\nbanques et partager les exigences des RUPPEC<br \/>\navec le public et les banques;<\/p>\n<p>4. Hausser les normes, les titres professionnels et<br \/>\nla discipline, notamment appuyer un processus<br \/>\nd\u2019examen plus juste et plus pertinent, mieux<br \/>\nsurveiller le programme de mentorat, surveiller<br \/>\nplus \u00e9troitement les cabinets d\u2019\u00e9valuation,<br \/>\nclarifier les exigences d\u2019accr\u00e9ditation en ligne,<br \/>\navoir un plus grand nombre de mentors et<br \/>\nimposer de plus grandes p\u00e9nalit\u00e9s aux mauvais<br \/>\n\u00e9valuateurs, mettre en \u0153uvre un examen par les<br \/>\npairs obligatoire, \u00e9tablir un bar\u00e8me tarifaire (ou<br \/>\nune fourchette de prix) pour les services fournis<br \/>\npar les membres, augmenter la coh\u00e9rence dans<br \/>\nles politiques et donner un plus grand nombre<br \/>\nd\u2019exemples sur les rapports appropri\u00e9s. <\/p>\n<p>Ces quatre secteurs \u00e0 am\u00e9liorer repr\u00e9sentaient<br \/>\n72,8 % de toutes les r\u00e9ponses \u00e0 cette question.<\/p>\n<p>Le sondage demandait aux r\u00e9pondants quels<br \/>\n\u00e9taient les deux services suppl\u00e9mentaires que l\u2019ICe<br \/>\ndevrait offrir pour les aider \u00e0 ex\u00e9cuter leur travail.<br \/>\nLes trois premiers services suppl\u00e9mentaires identi-<br \/>\nfi\u00e9s sont les suivants :<br \/>\n1. Am\u00e9liorer le site Web afin qu\u2019il contienne plus <\/p>\n<p>de renseignements et qu\u2019il offre des bases de<br \/>\ndonn\u00e9es plus compl\u00e8tes et \u00e9labor\u00e9es conjointe-<br \/>\nment, de plus amples renseignements sur les<br \/>\ntransactions d\u2019avant-garde importantes, sur les<br \/>\ntendances g\u00e9n\u00e9rales en mati\u00e8re de commerciali-<br \/>\nsation et les cas difficiles, une plus grande foire<br \/>\naux questions, une biblioth\u00e8que virtuelle de<br \/>\nr\u00e9f\u00e9rence plus compl\u00e8te, de meilleures fonctions<br \/>\nde recherche, de plus amples renseignements<br \/>\nsur le nombre et les types de membres de l\u2019ICe<br \/>\nainsi que la liste des cabinets d\u2019\u00e9valuation;  <\/p>\n<p>2. Offrir plus de possibilit\u00e9s d\u2019apprentissage,<br \/>\nnotamment offrir un plus grand nombre<br \/>\nd\u2019\u00e9tudes de cas r\u00e9els, de cours \u00e0 jour, de cours<br \/>\nen ligne permettant d\u2019obtenir des cr\u00e9dits pour<br \/>\nle PPC et de cours \u00e0 l\u2019\u00e9chelle locale, retrouver<br \/>\nun plus grand nombre d\u2019articles pratiques et<br \/>\nd\u2019articles sur les pratiques exemplaires dans la <\/p>\n<p>Quels sont les trois services offerts par l\u2019ICE que vous pr\u00e9f\u00e9rez? <\/p>\n<p>\u00c9ducation\/r\u00e9seautage *1<\/p>\n<p>Site Web de l\u2019ICe\/<br \/>\nservices et ressources en ligne *2<\/p>\n<p>Dotation\/ services, ressources<br \/>\net soutien aux membres *3<\/p>\n<p>normes\/titres professionnels\/<br \/>\n\u00e9thique\/disciplines *4<\/p>\n<p>Assurance *5<\/p>\n<p>Promotion\/lobbying\/d\u00e9fense des<br \/>\nint\u00e9r\u00eats et repr\u00e9sentation *6<\/p>\n<p>0,0 % 5,0 % 10,0 % 15,0 % 20,0 % 25,0 % 30,0 % 35,0 % 40,0 %<\/p>\n<p>6,3 %<\/p>\n<p>7,7 %<\/p>\n<p>12,3 %<\/p>\n<p>17,8 %<\/p>\n<p>21,5 %<\/p>\n<p>34,3 %<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents14<\/p>\n<p>revue, offrir un plus grand nombre de rapports-<br \/>\n\u00e9chantillons et de groupes de discussion, donner<br \/>\ndes exemples sur les diff\u00e9rentes applications des<br \/>\nprincipes d\u2019\u00e9valuation et offrir une formation<br \/>\nam\u00e9lior\u00e9e sur les pratiques internationales;<\/p>\n<p>3. Hausser les normes, la discipline et les d\u00e9signa-<br \/>\ntions, notamment promouvoir l\u2019unit\u00e9 au sein<br \/>\nde la profession, trancher entre les \u00e9valuateurs<br \/>\nau besoin, r\u00e9duire les exigences acad\u00e9miques,<br \/>\n\u00e9tablir des grilles tarifaires de r\u00e9f\u00e9rence, rendre<br \/>\nle format des normes moins compliqu\u00e9 et<br \/>\nplus intuitif, mettre sur pied un programme<br \/>\nd\u2019examen par les pairs, songer \u00e0 se joindre \u00e0<br \/>\nl\u2019OReA ou \u00e0 l\u2019ACI et \u00e9tablir des partenariats<br \/>\nplus avantageux de part et d\u2019autre, surveiller<br \/>\ndavantage les cabinets d\u2019\u00e9valuation et \u00e9laborer<br \/>\nun meilleur programme de mentorat.<\/p>\n<p>Dans l\u2019ensemble, le sondage a d\u00e9montr\u00e9<br \/>\nque les membres qui ont eu des rapports avec le<br \/>\npersonnel de l\u2019ICe ont trouv\u00e9 leur exp\u00e9rience agr\u00e9-<br \/>\nable et utile. De plus, les membres ont appr\u00e9ci\u00e9<br \/>\nles possibilit\u00e9s d\u2019apprentissage et de r\u00e9seautage,<br \/>\nle site Web et les ressources en ligne, ainsi que<br \/>\nles services que l\u2019ICe offre \u00e0 ses membres. en<br \/>\ng\u00e9n\u00e9ral, les membres de l\u2019ICe ont attribu\u00e9 une<br \/>\nbonne note aux services qu\u2019ils ont re\u00e7us. Aussi,<br \/>\nla majorit\u00e9 des membres ont fait l\u2019\u00e9loge des pos-<br \/>\nsibilit\u00e9s d\u2019apprentissage, du site Web de l\u2019ICe et<br \/>\ndes services en ligne, ainsi que des services qu\u2019ils<br \/>\nont re\u00e7us.<\/p>\n<p>Le sondage a mis en lumi\u00e8re un certain<br \/>\nnombre de domaines \u00e0 am\u00e9liorer, dont les possi-<br \/>\nbilit\u00e9s d\u2019apprentissage. Ces derni\u00e8res constituent \u00e0<br \/>\nla fois un des principaux aspects que les r\u00e9pon-<br \/>\ndants aimaient \u00e0 propos des services de l\u2019ICe et un<br \/>\ndomaine qui doit \u00eatre am\u00e9lior\u00e9. Parmi les am\u00e9lio-<br \/>\nrations, citons l\u2019offre d\u2019un plus grand nombre de<br \/>\ncours, de cours en ligne, de cours \u00e0 l\u2019\u00e9chelle locale<br \/>\net de cours pendant les mois d\u2019hiver. Bien que<br \/>\nle service \u00e0 la client\u00e8le fasse partie des services<br \/>\nappr\u00e9ci\u00e9s par les membres, ils ont l\u2019impression<br \/>\nqu\u2019il doit aussi \u00eatre am\u00e9lior\u00e9. Sp\u00e9cifiquement,<br \/>\nles membres demandent des r\u00e9ponses plus<br \/>\nsp\u00e9cifiques \u00e0 leurs questions ainsi que des mises \u00e0<br \/>\njour plus opportunes. Par ailleurs, ils ont propos\u00e9<br \/>\nqu\u2019une personne r\u00e9ponde au t\u00e9l\u00e9phone.<\/p>\n<p>Les r\u00e9pondants ont soulign\u00e9 qu\u2019il faut faire <\/p>\n<p>plus pour promouvoir les professions. Bien qu\u2019ils<br \/>\nappr\u00e9cient les services en ligne existants, dont la<br \/>\nbiblioth\u00e8que, la biblioth\u00e8que LUM et les rapports<br \/>\nsur le Web, ils sont fermement convaincus que<br \/>\nces services doivent \u00eatre am\u00e9lior\u00e9s.<\/p>\n<p>Les communications ont \u00e9t\u00e9 identifi\u00e9es<br \/>\ncomme un domaine qui exige une am\u00e9liora-<\/p>\n<p>tion constante, surtout depuis que la profession<br \/>\nd\u2019\u00e9valuateur subit d\u2019importants changements.<br \/>\nLes r\u00e9pondants croient qu\u2019il est essentiel que<br \/>\nl\u2019Institut communique fr\u00e9quemment avec ses<br \/>\nmembres \u00e0 propos des changements qui se<br \/>\nproduisent et des raisons les justifiant, et ce, dans<br \/>\nun certain nombre de formats.<\/p>\n<p>11,8 %<\/p>\n<p>15,5 %<\/p>\n<p>22,5 %<\/p>\n<p>23,0 %<\/p>\n<p>27,3 %<\/p>\n<p>0,0 % 5,0 % 10,0 % 15,0 % 20,0 % 25,0 % 30,0 %<\/p>\n<p>Am\u00e9lioration du site Web\/<br \/>\nplus de renseignements *1<\/p>\n<p>Plus de possibilit\u00e9s<br \/>\nen mati\u00e8re de formation *2<\/p>\n<p>Hausse des normes\/de la discipline\/<br \/>\ndes titres professionnels*3<\/p>\n<p>Plus de promotion\/de lobbying\/<br \/>\nde d\u00e9fense des int\u00e9r\u00eats *4<\/p>\n<p>Meilleur service \u00e0 la client\u00e8le *5<\/p>\n<p>En g\u00e9n\u00e9ral, quels sont les deux services suppl\u00e9mentaires  que l\u2019ICE devrait offrir pour vous<br \/>\naider \u00e0 ex\u00e9cuter votre travail? <\/p>\n<p>En g\u00e9n\u00e9ral, quelles sont les deux am\u00e9liorations que l\u2019ICE devrait apporter aux services qu\u2019il<br \/>\noffre actuellement afin de vous aider \u00e0 mieux ex\u00e9cuter votre travail?<\/p>\n<p>0,7 %<\/p>\n<p>3,7 %<\/p>\n<p>8,5 %<\/p>\n<p>14,2 %<\/p>\n<p>15,3 %<\/p>\n<p>16,4 %<\/p>\n<p>18,8 %<\/p>\n<p>22,3 %<\/p>\n<p>0,0 % 5,0 % 10,0 % 15,0 % 20,0 % 25,0 %<\/p>\n<p>Offrir de meilleurs cours\/une meilleure revue<br \/>\net de meilleurs documents *1<\/p>\n<p>Meilleur service \u00e0 la client\u00e8le\/plus d\u2019employ\u00e9s *2<\/p>\n<p>D\u00e9fense des int\u00e9r\u00eats\/promotion\/<br \/>\ncommercialisation\/sensibilisation accrues *3<\/p>\n<p>Hausser les normes\/<br \/>\nles titres professionnels\/ la discipline*4<\/p>\n<p>Meilleur acc\u00e8s \u00e0 l\u2019information en ligne *5<\/p>\n<p>R\u00e9duction des frais et des exigences des cours\/<br \/>\nplus de souplesse *6<\/p>\n<p>Moins de changements \/plus de souplesse\/<br \/>\nmeilleure utilisation des ressources *7<\/p>\n<p>Assurance \u00e0 la fois meilleure<br \/>\net plus \u00e9conomique *8<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 15<\/p>\n<p>AACI (Hon) Members recognized for<br \/>\noutstanding contributions to profession <\/p>\n<p>I<\/p>\n<p>Member profile<\/p>\n<p>n the previous edition of Canadian Property valuation (Volume 52, Book 3, 2008), we featured four individuals who were the recipients of the first ever Honor-<br \/>\nary AACI designations presented by the Appraisal Institute of Canada (AIC). These designations are with distinction and come with the expectation that the<br \/>\nindividuals honoured in this manner will play an important advisory role within the AIC and its committees, providing leadership and visibility that will assist the <\/p>\n<p>Institute in achieving its goals. In this issue, we present two more of the initial group of 10 who were honoured in 2008.<\/p>\n<p>Michael Brooks<br \/>\nMichael is the Chief executive Officer of the<br \/>\nReal Property Association of Canada (ReAL-<br \/>\npac). ReALpac is a national trade association<br \/>\nof the largest public, private and institutional<br \/>\nreal estate owners in Canada. Its 80 corporate<br \/>\nmembers own apoporoximately $150 Billion<br \/>\n(Cdn) in assets. His role encompasses strategic<br \/>\nplanning, policy formulation, government rela-<br \/>\ntions, member recruitment and retention, and<br \/>\noverseeing office operations. One of Michael\u2019s<br \/>\nkey roles is being proactive with the real estate<br \/>\ncommunity in Canada and internationally, and<br \/>\nensuring that ReALpac is seen as a thought<br \/>\nleader on policy and government relations<br \/>\nissues \u2013 locally, nationally and internationally.<\/p>\n<p>In addition to his duties with ReALpac, <\/p>\n<p>Michael is an Associate Professor at the Ted<br \/>\nRogers School of Management, Ryerson Univer-<br \/>\nsity, Toronto. He is a member of the Canadian<br \/>\nBar Association, American Bar Association, Law<br \/>\nSociety of Upper Canada, International Council of<br \/>\nShopping Centres, and Urban Land Institute. He<br \/>\nis also a Fellow of the Royal Institute of Chartered<br \/>\nSurveyors and is on the Board of Directors of the<br \/>\nCanada Green Building Council. He has practiced<br \/>\nreal estate law in Canada for over 25 years and is<br \/>\nco-editor of the Canadian ReIT Handbook.<\/p>\n<p>According to Michael, \u201cReALpac members<br \/>\nrely on the quality and integrity of appraisers<br \/>\nto maintain the public trust in the real estate<br \/>\nindustry. Because the Institute plays such a<br \/>\ncritical role in this, being recognized with this<br \/>\ndesignation is an honour.<\/p>\n<p>\u201cThe AIC has been very helpful in inform-<br \/>\ning and advising ReALpac on appraisal issues,<br \/>\nand in collaborating with us. In fact, in 2001,<br \/>\nReALpac formed a terminology committee with<br \/>\nAIC representatives to standardize some widely<br \/>\nused real estate terms that could be subject to<br \/>\nabuse. Over the course of a very productive year<br \/>\nand a half, the committee formalized terms that<br \/>\nwere important to the real estate industry and<br \/>\nits ongoing development.<\/p>\n<p>\u201cMore recently, we have re-engaged with<br \/>\nthe Institute to deal with international valuation<br \/>\nstandards and issues and the training required<br \/>\nto meet the challenges ahead. With today\u2019s<br \/>\nglobal economy and the implementation of the<br \/>\nInternational Financial Reporting Standards (IFRS),<br \/>\nthere is going to be considerably more pressure <\/p>\n<p>on the valuation function and process. In order<br \/>\nto ensure a smooth transition, with everyone<br \/>\ninvolved in real estate on the same page, the co-<br \/>\noperation between the appraisal profession and<br \/>\nour industry is extremely important. <\/p>\n<p>\u201cHaving worked with professional apprais-<br \/>\ners over a 25-year law career and an 11-year<br \/>\ncareer at ReALpac, I have seen how their<br \/>\nstandards, education and degree of profes-<br \/>\nsionalism have risen. Today, there seems to be<br \/>\nmore people with university degrees entering<br \/>\nthe appraisal profession and appraisal firms<br \/>\nseem to increasingly recruit from the universi-<br \/>\nties. It is evident that universities are partnering<br \/>\nwith each other to provide appraisal programs<br \/>\nand are more involved in customizing appraisal<br \/>\neducational programs. There are definite-<br \/>\nly more resources available to appraisers, if they<br \/>\nchoose to take advantage of them. Personally,<br \/>\nI am committed to the philosophy of lifelong<br \/>\nlearning and I believe that, for the most part,<br \/>\npeople who continually strive to increase their<br \/>\nknowledge and skill levels are the ones who <\/p>\n<p>\u201c\u201cREALpac members rely<br \/>\non the quality and  <\/p>\n<p>integrity of appraisers<br \/>\nto maintain the  <\/p>\n<p>public trust in<br \/>\nthe real estate industry.\u201d<\/p>\n<p>Michael Brooks<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents16<\/p>\n<p>eventually rise to the top of their fields and pull<br \/>\naway from the pack. There are new challenges<br \/>\ncoming at us all the time and we must be pre-<br \/>\npared to deal with them. Continuing education<br \/>\nis the best way to understand and overcome<br \/>\nthose new challenges.<\/p>\n<p>\u201cReALpac is trying to be a steward of the real<br \/>\nestate industry in Canada and help to lead it in<br \/>\nthe right direction. Part of that process involves<br \/>\nlooking around the world, observing who is the<br \/>\nbest at what they are doing, and determining<br \/>\nhow we can learn from them. For example, <\/p>\n<p>\u201cAs the only regulatory body for the real estate valuation profession in Canada,<br \/>\nthe AIC plays a vital role in ensuring that there is integrity, professionalism  <\/p>\n<p>and accountability in the valuation process.\u201d<br \/>\nSheila Botting<\/p>\n<p>Australia is leading the way in sustainability as it<br \/>\nrelates to real estate, with the UK not far behind.<br \/>\nThere is still a long way to go with this journey<br \/>\nand I am looking forward to continuing my<br \/>\ninvolvement with the AIC to ensure that we reach<br \/>\nour destination.\u201d <\/p>\n<p>Sheila Botting<br \/>\nSheila Botting is Senior Managing Partner &#038;<br \/>\nCanadian Area Leader with Cushman &#038; Wakefield<br \/>\nLePage, based in Toronto. She is responsible for<br \/>\nCanada\u2019s valuation, advisory, business consulting<br \/>\nand property tax practices within the company\u2019s<br \/>\nCapital Markets Group. She is also part of the<br \/>\nfirm\u2019s global valuation Advisory leadership team.<\/p>\n<p>Sheila has more than 24 years of real estate<br \/>\nexperience with Cushman &#038; Wakefield and previ-<br \/>\nously with an international accounting firm. She has<br \/>\nworked on real estate advisory issues and oppor-<br \/>\ntunities providing advisory solutions for pension<br \/>\nfunds, financial institutions, investors, government,<br \/>\ncorporations, rating agencies and property owners.<\/p>\n<p>\u201cOur company is a leader in Canada and<br \/>\nthroughout the world for the valuation of prop-<br \/>\nerty. Cushman &#038; Wakefield valuation is respon-<br \/>\nsible for the valuation of more than $40 billion<br \/>\nworth of property in Canada and more than<br \/>\n$600 billion worldwide. The Canadian valuation<br \/>\n&#038; Advisory team is exceptional and many are<br \/>\nAIC designated professional appraisers. We have<br \/>\nintroduced a program for \u2018emerging Appraisers\u2019<br \/>\nand I am very proud of the fact that they are<br \/>\nemerging as true, highly-competent valuation<br \/>\nprofessionals who will take leadership roles in the<br \/>\nfuture. In this regard, the Appraisal Institute of<br \/>\nCanada (AIC) provides an exceptional education<br \/>\nand training program for new members and I<br \/>\nstrongly recommend that anyone entering the<br \/>\nreal estate profession go through the programs<br \/>\noffered by the Institute, and its designated edu-<br \/>\ncation partners including the University of British<br \/>\nColumbia and Seneca College.<\/p>\n<p>\u201cThe appraisal profession is becoming<br \/>\nincreasingly sophisticated. Technology and<br \/>\ndatabases substantially expand the capacity<br \/>\nof individual appraisers and appraisal firms.<br \/>\nThere is also much more emphasis on corporate<br \/>\ngovernance. The soon-to-be-implemented IFRS<br \/>\nis just one example of the enormous changes<br \/>\nthat are in store for our profession. As a result,<br \/>\nI cannot emphasize enough how important it<br \/>\nis for Institute members to become actively<br \/>\nengaged in their profession, to enhance their<br \/>\nknowledge, to continually develop and refine <\/p>\n<p>their skill sets, and to maintain the highest level<br \/>\nof professional standards. That means being<br \/>\ninvolved in the AIC and its programs. It also<br \/>\nmeans working for outstanding professional<br \/>\nfirms in Canada who are dedicated to excellence<br \/>\nin the technology and educational platform<br \/>\ncritical to our business.<\/p>\n<p>\u201cIn its desire to enhance its leadership role<br \/>\nand ensure that its members can meet the<br \/>\nchallenges ahead, the AIC is actively engaged<br \/>\nin an ongoing strategic planning process. To<br \/>\nenhance the effectiveness of planning and to<br \/>\ninvolve other stakeholders in the industry, the<br \/>\nAIC regularly convenes an Advisory Council<br \/>\ncomprised of other individuals and groups in<br \/>\nthe real estate community. I was honoured to<br \/>\nbe involved with the AIC\u2019s Strategic Planning<br \/>\nCommittee in the past and I very much look<br \/>\nforward to providing more input in the future.\u201d<\/p>\n<p>\u201cAs the only regulatory body for the real<br \/>\nestate valuation profession in Canada, the<br \/>\nAIC plays a vital role in ensuring that there is<br \/>\nintegrity, professionalism and accountability in<br \/>\nthe valuation process. To be honoured by such<br \/>\nan important group means a great deal to me.\u201d<\/p>\n<p>Sheila is also a Fellow of the Institute of<br \/>\nManagement Consultants; a Fellow of the Royal<br \/>\nInstitute of Chartered Surveyors; a Founding<br \/>\nDirector of the Commercial Real estate Women<br \/>\n(CReW) in Toronto. She currently sits on the<br \/>\nAmericas Board for the Institute of Chartered<br \/>\nSurveyors and is a Director of Toronto nAIOP.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 17<\/p>\n<p>Introduction<br \/>\nI believe that there will be a spill over of the US<br \/>\nsub-prime crisis into Canada in terms of a reduc-<br \/>\ntion of real estate transactions, prices and build-<br \/>\ning activity. To support this forecast, this article<br \/>\ncompares residential and investment property<br \/>\nmarkets in both countries. After a brief overview<br \/>\nof the history of sub-prime lending in the US<br \/>\nand the key reasons for the current lending crisis,<br \/>\nUS and Canadian residential lending practices<br \/>\nare compared to see whether the conditions<br \/>\nwhich lead to the US sub-prime crisis also exist<br \/>\nin Canada, and then, through the vehicle of debt<br \/>\nsecuritization, it is demonstrated how mortgage<br \/>\nbacked securities have spread the problem to<br \/>\nother parts of the credit markets.  <\/p>\n<p>Sub-prime glossary<br \/>\nDefinitions<br \/>\nPrime, non-prime and sub-prime are terms<br \/>\nrelating to a borrower\u2019s credit rating. FICO1 credit<br \/>\nrating scores can vary from 300 to 850. Tran-<br \/>\nsUnion credit scores vary from 300 to 900.2<\/p>\n<p>Will the <\/p>\n<p>crisis head<br \/>\nsub-prime<\/p>\n<p>north?<br \/>\nBy John T. Glen, MA, AACI, FRICS, MIMA,  <\/p>\n<p>Director of Corporate Real Estate Advisory Services for AEC<br \/>\nInternational and Course Director, York University,  <\/p>\n<p>Department of Administrative Studies<\/p>\n<p>Prime borrower<br \/>\nA borrower with a very good credit rating and<br \/>\none capable of providing at least a 20%-25%<br \/>\ndown payment.<\/p>\n<p>Sub-prime borrower<br \/>\nThis term has come to describe borrowers<br \/>\nwith fair to poor credit ratings who would not<br \/>\nnormally qualify for a conventional mortgage<br \/>\nrequiring a 20% down payment and a credit<br \/>\nrating. Some lenders required no documentation<br \/>\nof a borrower\u2019s income.<\/p>\n<p>Sub-prime borrowers are generally defined<br \/>\nas individuals with limited income or having FICO<br \/>\ncredit scores below 620 on a scale that ranges<br \/>\nfrom 300 to 850.<\/p>\n<p>Sub-prime mortgages<br \/>\nSub-prime mortgage loans are riskier loans<br \/>\nin that they are made to borrowers unable to<br \/>\nqualify under traditional, more stringent criteria<br \/>\ndue to a limited or blemished credit history. Sub-<br \/>\nprime mortgage loans have a much higher rate of <\/p>\n<p>default than prime mortgage loans and are priced<br \/>\nbased on the risk assumed by the lender.<\/p>\n<p>Sub-prime crisis<br \/>\nBeginning in late 2006, the US sub-prime mortgage<br \/>\nindustry entered what many observers have begun<br \/>\nto refer to as a meltdown. A steep rise in the rate of<br \/>\nsub-prime mortgage foreclosures has caused more<br \/>\nthan two dozen sub-prime mortgage lenders to fail<br \/>\nor file for bankruptcy. The failure of these companies<br \/>\nhas caused prices in the $6.5 trillion mortgage-<br \/>\nbacked securities market to collapse, threatening<br \/>\nbroader impacts on the US housing market and<br \/>\neconomy as a whole. The crisis is ongoing and has<br \/>\nreceived considerable attention from the US media<br \/>\nand from lawmakers during 2007 and 2008. <\/p>\n<p>Sub-prime statistics3<\/p>\n<p>Canada<br \/>\n\u2022 Only 5% of borrowers are sub-prime.<\/p>\n<p>United States<br \/>\n\u2022 Over 20% of borrowers are sub-prime.<\/p>\n<p>NOTE: All Figures detailing information presented in this article can be found on the 6 pages following this article (pages F1-F6). <\/p>\n<p>Click HERE to return to Table of ContentsCanadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada18<\/p>\n<p>Default rates<br \/>\nCanada4<\/p>\n<p>\u2022 Overall default rates are less then 0.5%<\/p>\n<p>United States<br \/>\nEarly indications from the Mortgage Brokers<br \/>\nAssociation show that US default rates vary based on<br \/>\nwhether the mortgage has a fixed or variable rate.   <\/p>\n<p>In July 2008, the Commercial Mortgage<br \/>\nSecurities Association compared delinquencies<br \/>\nfor US prime residential, sub-prime residential<br \/>\nand commercial mortgage bonds to July 2008.<br \/>\n(See Figure 1 (right). Click here to also view<br \/>\nFigures 1.2.1, 1.2.2 and 1.2.3 on page F1. ) <\/p>\n<p>Residential markets<br \/>\nOne measure of the performance of the residential<br \/>\nmarket is housing starts. The second measure is<br \/>\nprices of new house and resale homes.  <\/p>\n<p>Housing starts<br \/>\nFor 2008, Canada Mortgage and Housing Corpora-<br \/>\ntion (CMHC) forecast single-family housing starts<br \/>\nto decline in all provinces except Newfoundland,<br \/>\nManitoba and Saskatchewan. For 2009, only<br \/>\nNewfoundland, Quebec and Manitoba will be<br \/>\nexempted from forecast single-family housing<br \/>\nstart declines. (Click here to view Figure 2.1.1<br \/>\non page F1. )  <\/p>\n<p>Meanwhile, for multi-family housing starts for<br \/>\n2008, CMHC forecast multi-family housing (mostly<br \/>\ncondominiums) starts to decline in all provinces<br \/>\nexcept Quebec, Ontario and Saskatchewan. For<br \/>\n2009, only PEI and Manitoba will be exempted from<br \/>\nforecast declines in multi-family housing starts.<br \/>\n(Click here to view Figure 2.1.2 on page F1. )  <\/p>\n<p>Housing prices<br \/>\nAccording to CMHC forecasts of provincial<br \/>\nresidential resale activity and prices, total resi-<br \/>\ndential resale activity is expected to decline in all<br \/>\nprovinces except Saskatchewan, while average<br \/>\nresidential resale price increases will moderate.<br \/>\nOnly in Newfoundland and Manitoba are prices<br \/>\nexpected to increase from 2007 to 2008. Alberta\u2019s<br \/>\naverage house prices are expected to increase<br \/>\nfrom 3.6% in 2008 to 5.1% in 2009. (Click here<br \/>\nto view Figures 2.2.1 and 2.2.2 on page <\/p>\n<p>popular, but controversial 40-year amortizations.<br \/>\nLonger-term rates of up to 35 years will still be <\/p>\n<p>allowed under new rules released yesterday, which<br \/>\nare seen as a pre-emptive move to quell the kind<br \/>\nof housing implosion in the United States not seen<br \/>\nsince the Great Depression.<\/p>\n<p>\u201cThey are obviously quite concerned about<br \/>\nwhat is happening in the United States, and the<br \/>\nspillover into Canada,\u201d said Jim Murphy, CEO of<br \/>\nthe Canadian Association of Accredited Mortgage<br \/>\nProfessionals. \u201cThe government is looking at their<br \/>\nrisk tolerance and the impact on Canadians.\u201d<\/p>\n<p>Murphy said 37% of all new Canadian<br \/>\nmortgages taken from the one-year period ending<br \/>\nin the fall of 2007 were longer than the standard<br \/>\n25-year amortization period.<\/p>\n<p>\u201cLonger-term mortgages have been extremely<br \/>\npopular with Canadians,\u201d said Murphy.<\/p>\n<p>The new rules, which take effect October 15,<br \/>\nwould also require a minimum down payment of<br \/>\n5% on new government-backed mortgages and also<br \/>\ncall for \u2018consistent\u2019 minimum credit-score require-<br \/>\nments and loan-documentation standards. Under<br \/>\ncurrent rules, it is possible to take out a 40-year<br \/>\nmortgage, which has been available on the market<br \/>\nfor less than two years, with zero down payment.<\/p>\n<p>The regulations will apply to federal agen-<br \/>\ncies such as the Canada Mortgage and Housing<br \/>\nCorp., which has an estimated 60% share of the<br \/>\nmortgage insurance market. <\/p>\n<p>However, private-sector mortgage insurance <\/p>\n<p>F2. )<br \/>\nCMHC\u2019s publication Housing Outlook Canada <\/p>\n<p>Edition Second Quarter 2008 details housing price<br \/>\nforecasts for individual local markets as well. (Click<br \/>\nhere to view Figure 2.2.3 on page F2. )  <\/p>\n<p>Housing starts<br \/>\nFive cities stand out in terms of defying the overall<br \/>\ntrend to fewer housing starts in 2008 compared<br \/>\nto 2007 \u2013 Regina, Toronto, Ottawa, Montreal and<br \/>\nSt John\u2019s. In Regina, the increase in housing starts<br \/>\nis attributable to expected increases in starts of<br \/>\nsingle-family detached homes. In the other four<br \/>\ncities, multi-family starts will offset declines in<br \/>\nsingle-family detached homes starts. <\/p>\n<p>House prices<br \/>\nPrices will increase in all markets from 2007<br \/>\nto 2008 and 2008 to 2009, except for Calgary,<br \/>\nwhich is expected to experience price stability.<\/p>\n<p>Residential mortgage markets<br \/>\nOn July 9, 2008, the federal government<br \/>\nannounced that CMHC would no longer insure<br \/>\n40-year mortgages with zero down payments.<br \/>\nQuoting the July 11, 2008 Toronto Star article<br \/>\n\u2018Ottawa tightens mortgage rules:\u20195<\/p>\n<p>Concerned about the \u201crisk of a U.S.-style<br \/>\nhousing bubble developing in Canada,\u201d the federal<br \/>\ngovernment has tightened rules on government-<br \/>\nbacked mortgages, including limiting the use of <\/p>\n<p>Figure 1:  Securitized mortgages: residential vs commercial default rates<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 19<\/p>\n<p>rivals such as Genworth Financial, PMI Mortgage<br \/>\nInsurance Co. Canada and AIG United Guaranty are<br \/>\nfree to offer the product.<\/p>\n<p>One difference is that the federal government<br \/>\nwill no longer provide insurance that protects lend-<br \/>\ners in the event of a default by the insurers.<\/p>\n<p>The new regulations mean potentially higher<br \/>\nsales and prices in the near-term as \u201cbuyers jump<br \/>\ninto the market before they are enforced,\u201d said<br \/>\nTD Bank deputy chief economist Craig Alexander.<br \/>\n\u201cThen, the new rules will likely contribute to the<br \/>\ncooling of the housing market.\u201d<\/p>\n<p>Interestingly, the Government of Canada<br \/>\naction coincides with continuing instability in US<br \/>\nResidential Secondary Mortgage Bond (RMBS)<br \/>\nmarkets, with two government backed agencies<br \/>\nFannie Mae and Freddie Mac, which securitize<br \/>\nthe bulk of US residential mortgage loans<br \/>\nthrough residential mortgage bond securities<br \/>\n(RMBSs). In the US, banks are making fewer<br \/>\nloans, and on tighter terms, while the securitiza-<br \/>\ntion market is gone that formerly funded large<br \/>\nloans, sub-prime loans and others. <\/p>\n<p>Fannie and Freddie now fund eight out of<br \/>\nevery 10 loans in the US below the $417,000<br \/>\nlevel, according to regulatory data. By March <\/p>\n<p>2008, Fannie and Freddie accounted for 97.6% of<br \/>\nthe mortgage bond market, compared with less<br \/>\nthan 50% in the first quarter of 2007, according<br \/>\nto UBS.6 <\/p>\n<p>On July 13, 2008, the US Treasury and Federal<br \/>\nReserve took wide-ranging steps to boost Fannie<br \/>\nMae and Freddie Mac. Steps included a line of<br \/>\ncredit of $2.5 billion US and the Federal Reserve<br \/>\nauthorized borrowing from the discount window<br \/>\nas necessary.7 <\/p>\n<p>The secondary mortgage market8 is the arena<br \/>\nin which previously originated mortgage loans<br \/>\nare bought and sold. It is critically important to<br \/>\nthe real estate industry as we know it today; not<br \/>\nonly do mortgage loan resales provide liquid-<br \/>\nity, but the requirements for marketability also<br \/>\nstrongly influence the types of loans lenders<br \/>\nchoose to originate.<\/p>\n<p>In his July 12, 2008 article, \u2018Good timing:<br \/>\nFeds avoid Fannie-style mortgage freefall,\u2019 Boyd<br \/>\nErman of the Globe and Mail stated that \u201cthe<br \/>\nchanges unveiled by Ottawa this week should<br \/>\nhelp to avoid any danger of a similar, costly<br \/>\ndebacle in this country.<\/p>\n<p>\u201cThe proof is in the performance of bonds<br \/>\nissued by Canada Housing Trust, which plays the <\/p>\n<p>same role in this country as Fannie and Freddie<br \/>\ndo down south. Canada Housing Trust is the<br \/>\nbiggest issuer (besides governments) of bonds<br \/>\nin the country and the backbone of Canada\u2019s<br \/>\nmortgage market.<\/p>\n<p>\u201cThe trust\u2019s Canada mortgage bonds are<br \/>\nholding up fine. The spread between the interest<br \/>\nrate on a CMB and a similar Canadian govern-<br \/>\nment bond has widened over the past year,<br \/>\nthanks to the credit crunch. Yet, in the past<br \/>\nmonth, as the outlook has become dire for Fred-<br \/>\ndie and Fannie, the Canadian situation has been<br \/>\nboring. Boring is good. Boring means Canada<br \/>\nHousing Trust is able to continue selling bonds<br \/>\nand buying mortgages.<\/p>\n<p>\u201cThe mortgages behind RMBS in Canada are<br \/>\ngenerally pretty good, i.e., they are insured and<br \/>\nhave bigger down payments and shorter amor-<br \/>\ntizations than in the US. Also, because mortgage<br \/>\ninterest is not tax deductible in Canada, we tend<br \/>\nto pay down home loans faster, adding to equity<br \/>\nand credit quality.<\/p>\n<p>\u201cUntil this week, the government was in<br \/>\ndanger of letting the Canada Mortgage Trust<br \/>\nwalk into the same trap as Fannie and Freddie, by<br \/>\nallowing banks to dilute the quality of Canadian<br \/>\nRMBS with more and more dodgy home loans.\u201d9 <\/p>\n<p>By October 2008, further uncertainty led to<br \/>\na decision by the Government of Canada to try<br \/>\nto unfreeze credit, by arranging for a program to<br \/>\nbuy residential mortgages from lending institu-<br \/>\ntions.<\/p>\n<p>CMHC plans to buy up to $7-billion of<br \/>\nmortgages from Canadian lenders on October 23.<br \/>\nThat will be the second wave of purchases under<br \/>\nthe government\u2019s new $25-billion program,<br \/>\ndesigned to help banks and other lenders with<br \/>\nfinancing that will make it easier to lend to<br \/>\nconsumers. The first $5-billion purchase was at<br \/>\na price that suggests Ottawa could earn roughly<br \/>\n$250-million from the $25-billion program.<br \/>\nBanks have welcomed the new measure, and<br \/>\nmany are calling for it to be increased. The<br \/>\ngovernment is using its ability to borrow cheaply<br \/>\nto provide the banks with cheaper financing for<br \/>\ntheir mortgage portfolios than they could raise<br \/>\nthemselves.10<\/p>\n<p>Click HERE to return to Table of ContentsCanadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada20<\/p>\n<p>Investment property markets<br \/>\nNon-residential building permits<br \/>\nIn reviewing the value of both residential and<br \/>\nnon-residential building permits by province for<br \/>\nMay 2007 and May 2008, statistics indicate that<br \/>\ndeclines in non-residential building permits have<br \/>\noutstripped those in residential. Exceptions to the<br \/>\ndecline in non-residential are Newfoundland, PEI,<br \/>\nNew Brunswick, Ontario, Saskatchewan and BC.<br \/>\n(Click here to view Figure 3.1.1 on page F3. )  <\/p>\n<p>As for the value of both residential and<br \/>\nnon-residential building permits by CMA for May<br \/>\n2007 and May 2008, the pattern is much more<br \/>\ncomplex, with some cities showing ongoing<br \/>\nexpansion, while other locations (e.g., Ontario)<br \/>\nhave shown dramatic declines. This type of bifur-<br \/>\ncation in the market is caused by local factors,<br \/>\nsuch as layoffs in manufacturing. (Click here to<br \/>\nview Figure 3.1.2 on page F3. )  <\/p>\n<p>Non-residential construction declined in all<br \/>\ncentres in Atlantic Canada, except Moncton. In<br \/>\nQuebec, Sherbrooke saw a decline, while certain<br \/>\ncentres in Ontario were hit with declines, espe-<br \/>\ncially Ottawa, Oshawa, St. Catharines-Niagara,<br \/>\nBrantford, Guelph, London, Windsor and Thunder<br \/>\nBay. In the prairie provinces, Winnipeg suffered<br \/>\nfrom decreases, while in BC, only Kelowna was<br \/>\nexempted from a decline.<\/p>\n<p>Office and industrial markets<br \/>\nCB Richard Ellis 2008 Canada Market Outlook<br \/>\nsummarized its expectations for the major<br \/>\nCanadian markets for 2008 as follows: <\/p>\n<p>Office markets<br \/>\nFor downtown office markets, the expectations<br \/>\nare buoyant, with most markets except Toronto<br \/>\nand Ottawa indicating decreases in vacancy and<br \/>\nincreasing rents. <\/p>\n<p>For suburban office markets, the expectations<br \/>\nare less optimistic, with Vancouver, Winnipeg,<br \/>\nToronto, Ottawa and Montreal indicating<br \/>\ndecreases in vacancy, while Calgary, Edmonton<br \/>\nand Halifax should see increasing vacancy.<\/p>\n<p>Rents are expected to increase in Vancouver,<br \/>\nCalgary, Edmonton, Toronto, Montreal and<br \/>\nHalifax, while remaining stable in Winnipeg. <\/p>\n<p>Industrial markets<br \/>\nFor industrial markets, availability is expected to<br \/>\ndecrease in Vancouver, Calgary and Halifax, remain<br \/>\nstable in Edmonton and Winnipeg, and increase in<br \/>\nToronto, Ottawa and Montreal. Rents and prices are<br \/>\nlikely to rise in Vancouver, Calgary, Edmonton, Win-<br \/>\nnipeg, Toronto, Ottawa and Halifax. In Montreal,<br \/>\nrents and prices are expected to remain stable.<\/p>\n<p>Commercial and industrial<br \/>\nvaluation parameters<br \/>\nThe Altus-Insite Investment Survey Overall<br \/>\nCapitalization Rates (OCRs) summarize the<br \/>\neffect of the sub-prime crisis dramatically.<br \/>\nGenerally, OCRs have risen 1-4 basis points in<br \/>\nmost categories including office, retail, indus-<br \/>\ntrial and multi-residential markets surveyed<br \/>\nacross Canada.<\/p>\n<p>Interestingly, the Altus-Insite Investment<br \/>\nSurvey of Prices per Square Foot\/Unit illustrates<br \/>\nthat the upward trending OCRs have not neces-<br \/>\nsarily affected prices in all locations. If rents<br \/>\nhave trended upwards, this may have offset the<br \/>\nchange in OCRs.  <\/p>\n<p>As well, Altus-Insite Investment Survey Implied<br \/>\nRents Psf\/Unit shows that dramatic increases in<br \/>\nrents in Vancouver, Edmonton and Calgary have<br \/>\nmore than offset the upward trending OCRs for<br \/>\nboth downtown class AA and class B offices. This<br \/>\nupward trending rental effect is limited to down-<br \/>\ntown class AA in Montreal and Halifax, whereas<br \/>\ndowntown class B rents decreased. This dem-<br \/>\nonstrates the important interaction of rents and<br \/>\ncapitalization rates in different types of real estate<br \/>\nand locations. (Click here to view Figures<br \/>\n3.3.1, 3.3.2 and 3.3.3 on page F4. )  <\/p>\n<p>Commercial mortgage markets<br \/>\nCommercial mortgage-backed securities (CMBS)<br \/>\nare bonds created by pooling a group of com-<br \/>\nmercial mortgages and issuing bonds against the<br \/>\nsecurity of the underlying properties. The security<br \/>\nof the bond is comprised of income producing<br \/>\nproperties such as commercial and industrial build-<br \/>\nings, multi-family units, retail and office spaces.<br \/>\nSpecific properties are secured against overall debt<br \/>\nand subordination of the various tranches can <\/p>\n<p>change a tranche\u2019s credit rating from AAA to BBB.<br \/>\nThis is referred to as the waterfall concept. CMBSs<br \/>\nare structured to pay investors monthly income<br \/>\nconsisting of principal and interest  for the first<br \/>\ntranche rate AAA, and interest only for subsequent<br \/>\ntranches. Principal on a CMBS issue\u2019s tranches is<br \/>\npaid subsequently in order of class. The class A<br \/>\ntranche pays principal out fully before the class B<br \/>\ntranche receives any principal payments and class<br \/>\nC will receive principal payments only after class B<br \/>\nis fully paid out.11  An outline of how the mortgage<br \/>\nsecuritization process functions is outlined in the<br \/>\nadjacent Seconday Mortgage Market Chart.  <\/p>\n<p>In Canada, the success of the residential<br \/>\nsecondary mortgage market has led to the devel-<br \/>\nopment of a commercial secondary mortgage<br \/>\nmarket. The pioneers in this market were CIBC<br \/>\nand Merrill Lynch, but other firms such as TD<br \/>\nBank, Royal Bank and Scotia McLeod (Bank of<br \/>\nNova Scotia) followed.<\/p>\n<p>One notable effect of the sub-prime crisis was<br \/>\nthe effect on commercial mortgage bond securi-<br \/>\nties (CMBS). In Canada, the effects included the<br \/>\nmeltdown in the asset-backed commercial paper<br \/>\n(ABCP) market as well. At the Real Capital Forum, <\/p>\n<p>Secondary Mortgage Market Chart<\/p>\n<p>Mortgages<br \/>\n(bundled)<br \/>\nAnd rated<\/p>\n<p>Securitized into<br \/>\nResidential (RMBS)  <\/p>\n<p>or Commercial (CMBS)<br \/>\nMortgage Bonds<\/p>\n<p>Monoline<br \/>\nBond Insurers<\/p>\n<p>Bought by Investors<br \/>\nSome Investors<br \/>\ncan only invest <\/p>\n<p>in AAA Rated<br \/>\nInvestments<\/p>\n<p>Rating Agencies<br \/>\nRate Bonds  <\/p>\n<p>and Insurers<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 21<\/p>\n<p>held in February 2008, David Miller, President of<br \/>\nCanadian Mortgage Rating Service Ltd., addressed<br \/>\nthe question: \u2018CMBS and mortgage loan securitiza-<br \/>\ntion in Canada: will they survive?\u2019 In Canada 2007<br \/>\nvs 2008 Commercial Mortgage Lending Volumes,12<br \/>\nindications are that commercial lending volumes<br \/>\nwill decrease dramatically in 2008. (Click here to<br \/>\nview Figure 3.4.2 on page F5. )  <\/p>\n<p>This would have a damping effect on com-<br \/>\nmercial property transactions. An article entitled<br \/>\nCMBS Market Correction and Commercial Property<br \/>\nValuations13 suggests property value decreases<br \/>\nby 2.2% for a generic property and 3.1% for a<br \/>\npremium property. Moderating income growth<br \/>\nforecasts by half could further lower valuations<br \/>\nby 5.8% for a generic property and 14.5% for a<br \/>\npremium property.<\/p>\n<p>According to Mr. Plessl of RBC Dominion,<br \/>\n\u201cCanada\u2019s $15-billion a year commercial mort-<br \/>\ngage lending industry has gone from a period of<br \/>\nexcess supply into a relative drought \u2013 one that<br \/>\ncould leave the market $3-billion to $4-billion<br \/>\nshort of what borrowers are seeking in 2008. <\/p>\n<p>\u201cBorrowers who do manage to find a loan<br \/>\nthat suits their purposes should grab it as quickly<br \/>\nand as early in the year as possible, as there is a<br \/>\ngood chance banks will run out of funds allocated<br \/>\nfor commercial mortgages around August.<\/p>\n<p> \u201cThe primary issue is fallout from the global<br \/>\ncredit crisis, which has put a halt to one of the <\/p>\n<p>industry\u2019s key sources of financing, commercial<br \/>\nmortgage-backed securities (CMBS). A form of<br \/>\nbond comprised of commercial mortgage loans<br \/>\nthat are packaged and sold to investors, CMBS<br \/>\nissuance went from $200-million in 1998 to<br \/>\n$4.8-billion in 2006. <\/p>\n<p>\u201cThat came to an abrupt halt late last year,<br \/>\nwhen defaults on sub-prime mortgages in the<br \/>\nUS spilled over to cause a deep freeze on investor<br \/>\ndemand for asset-backed debt products.\u201d14 CMBS<br \/>\nspreads to swaps have increased significantly<br \/>\nfrom February 2007 to March 2008. (Click here<br \/>\nto view Figure 3.4.3 on page F5. )  <\/p>\n<p>Commercial real estate<br \/>\ninvestment market<br \/>\nOn August 27, 2008, CBRE forecast that commer-<br \/>\ncial real estate in Canada would fall by as much<br \/>\nas 40% in 2008.15 CBRE compared commercial<br \/>\ninvestment transactions the second quarter of<br \/>\n2008 to the second quarter of 2007. Only Van-<br \/>\ncouver experienced an increase in market activity.<br \/>\nAll other major Canadian cities experienced<br \/>\ndeclines. The overall decline in commercial real<br \/>\nestate investment in Canada was 24%. (Click<br \/>\nhere to view Figure 3.5.1 on page F6. )  <\/p>\n<p>Specific transactions<br \/>\nOne transaction exemplifies the more difficult<br \/>\nmarket brought about by financing issues. The <\/p>\n<p>acquisition by Calloway REIT was originally<br \/>\nannounced on December 2007 and was to<br \/>\nconsist of 10 properties with a capitalization rate<br \/>\nof 6.42%, totaling 2,049,006 sq. ft. for completed<br \/>\nprojects and a further component for 909,634<br \/>\nsq. ft. of projects under development at a 6.55%<br \/>\ncapitalization rate, for an overall rate of 6.47%. <\/p>\n<p>A revised press release in April 2008 reduced<br \/>\nthe number of properties to six, with a capital-<br \/>\nization rate of 6.78% for developed properties<br \/>\ntotaling 1,409,369 and a further component for<br \/>\n358,045 sq. ft. of projects under development at<br \/>\na 7.14% capitalization rate for an overall rate of<br \/>\n6.88%. Both the price and the financing arrange-<br \/>\nments had changed. Properties in Hamilton,<br \/>\nPembroke, Laval and Winnipeg were excluded.<br \/>\n(Click here to view Figures 4.1 and 4.2 on<br \/>\npage F6. )  <\/p>\n<p>Conclusions<br \/>\nOverview<br \/>\nCanada\u2019s real estate markets have been affected<br \/>\nby the US sub-prime crisis, both directly<br \/>\nthorough the tightening of credit and lending<br \/>\nand indirectly through the resultant economic<br \/>\nslowdown in the housing markets. Industries<br \/>\nsuch as lumber have been affected. Indeed, it<br \/>\ncould be said that the decline in the US dollar<br \/>\nand resultant exchange rates are due in large<br \/>\npart to the sub-prime fiasco. The effects are<br \/>\nby no means completed, because the political<br \/>\nand economic consequences will reverber-<br \/>\nate throughout the US until the results of the<br \/>\nNovember 2008 presidential and congressional<br \/>\nelections are known. <\/p>\n<p>In the meantime, the full effect of the sub-<br \/>\nprime crisis on Canada is still undetermined as<br \/>\nwe approach the end of 2008. The effects will<br \/>\ncontinue through 2009 at a minimum.<\/p>\n<p>Residential markets<br \/>\nIn 2008, residential market activity will slow<br \/>\ndown in all provinces except Saskatchewan.<br \/>\nPrice increases will moderate in all provinces<br \/>\nexcept Newfoundland and Manitoba. In terms<br \/>\nof local markets, price increases will continue to<br \/>\nincrease, but at a more moderate level than in <\/p>\n<p>Click HERE to return to Table of ContentsCanadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada22<\/p>\n<p>2007. In terms of residential mortgage financ-<br \/>\ning, the federal government decision to discon-<br \/>\ntinue CMHC insurance for 40-year amortization<br \/>\nmortgages and zero financing will contribute to<br \/>\ncooling the housing market.<\/p>\n<p>By August 2008, Canada\u2019s housing market<br \/>\nshowed fresh signs it has exited the boom<br \/>\nphase. A Canadian Real Estate Association report<br \/>\nshowed sales activity slumped 13.1% in the first<br \/>\nhalf of the year.16 Resale home prices decreased<br \/>\nby 2.4% between July 2007 and July 2008.<\/p>\n<p>Western Canada led the year-on-year decline<br \/>\nin prices, with Vancouver, Edmonton and Calgary<br \/>\naffected. In contrast, Saskatoon and Regina have<br \/>\ncontinued to benefit from significant price increases. <\/p>\n<p>Eastern Canadian cities, especially Toronto<br \/>\nand Hamilton, have experienced more mod-<br \/>\nerate increases from prior years. Ottawa, a<br \/>\nnotable exception, is still benefiting from<br \/>\ngovernment-induced local growth.<br \/>\n(Click here to view Figures 5.2.1 and 5.2.2<br \/>\non page F6. )  <\/p>\n<p>Investment property markets<br \/>\nThe decline in availability of commercial mortgage<br \/>\nfunds and upward trending capitalization rates will<br \/>\ncontribute to moderating of prices in most major<br \/>\nmarkets. This will be offset by increasing rents<br \/>\nespecially for downtown class AA office space.<br \/>\nDowntown class B office and suburban office space<br \/>\ndemand will moderate in most locations.<\/p>\n<p>Industrial availability will generally remain<br \/>\nlow and rent increases will be moderate, except<br \/>\nin high demand locations such as Vancouver,<br \/>\nEdmonton and Calgary.<\/p>\n<p>In conclusion, Canadian markets are<br \/>\nbifurcated by a combination of local real estate<br \/>\nmarket conditions and economic factors.<br \/>\nThat said, most markets will experience some<br \/>\nmoderating trends due to the sub-prime crisis<br \/>\nand related factors in 2008 and 2009.<\/p>\n<p>According to CB Richard Ellis Ltd, commer-<br \/>\ncial real estate investment in Canada is forecast<br \/>\nto fall by as much as 40% or more this year, the<br \/>\nbiggest drop since the start of the decade.17 <\/p>\n<p>Economic uncertainty and hesitation by<br \/>\ninvestors, a reduction in availability of financing <\/p>\n<p>and a smaller pool of properties mean a chal-<br \/>\nlenging market for commercial sales in 2008.<\/p>\n<p>While residential real estate nationally has<br \/>\nsuffered a decline in sales, the commercial<br \/>\nworld has been taking an even worse hit,<br \/>\nreflecting the global slump in property markets.<\/p>\n<p>Kim Mercado, manager of national research<br \/>\nfor CB Richard Ellis, said some buyers are taking<br \/>\na \u201cwait and see approach\u201d to determine where<br \/>\nthe market is going for commercial deals, which<br \/>\ninclude all office, apartment, industrial and<br \/>\nretail properties.<\/p>\n<p>Mercado is quick to point out that 2007 was<br \/>\na record year, with three significant real estate<br \/>\ninvestment trust transactions, including the<br \/>\nsale of Legacy REIT, the largest hotel and lodg-<br \/>\ning trust, for $2.5 billion, helping to push sales<br \/>\n33% higher than the previous year.<\/p>\n<p>That is not happening this year. In the first six<br \/>\nmonths of the year, investment in commercial<br \/>\nreal estate by both foreign and domestic buyers<br \/>\nwas already showing a steep decline, falling 24%<br \/>\nto $10 billion from the same period in 2007.<\/p>\n<p>Of the nine major markets covered in the<br \/>\nstudy, only Vancouver had a slight increase,<br \/>\nrising from $1.5 billion last year to $1.6 billion in<br \/>\nthe first half of this year for a 6.6% increase.<\/p>\n<p>Already, other indications from analysts<br \/>\nat the Urban Land Institute and Pricewater-<\/p>\n<p>houseCoopers LLP18 indicate that \u201cthe Canadian<br \/>\ncommercial real estate market will be hit by<br \/>\nshockwaves emanating from the economic<br \/>\ncrisis in the US next year, according to a report<br \/>\nby the Urban Land Institute and Pricewater-<br \/>\nhouseCoopers LLP.<\/p>\n<p>However, in 2009, the Canadian market is<br \/>\nmore likely to be in for a tough slog rather than<br \/>\nthe full-blown disaster unfolding in the US,<br \/>\naccording to the report, which included feed-<br \/>\nback from more than 700 industry members.<\/p>\n<p>\u201cOverall, Canada may get sideswiped, but<br \/>\nshould avoid the more serious problems suf-<br \/>\nfered south of its border,\u201d the report said.<\/p>\n<p>Upward pressure on capitalization rates may<br \/>\nbe expected in the next 12 months. The credit<br \/>\ncrisis is affecting the value of commercial real<br \/>\nestate, according to Desjardins Securities analyst<br \/>\nJeff Roberts. Mr. Roberts has raised the capital-<br \/>\nization rates he uses to value real estate invest-<br \/>\nment trusts and real estate operating companies.<\/p>\n<p>\u201cThe financial crisis over the last month has<br \/>\nand will cause real estate cap rates to increase<br \/>\nsignificantly, we believe, despite the scarcity of<br \/>\ntransaction activity,\u201d said Mr. Roberts, adding<br \/>\npricing from deals that closed even as late<br \/>\nSeptember do not reflect the current market-<br \/>\nplace. He estimates cap rates have risen 50 to<br \/>\n100 basis points since early October.19 <\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 23<\/p>\n<p>http:\/\/www.notarius.com<br \/>\nhttp:\/\/www.notarius.com\/en<\/p>\n<p>US developments<br \/>\nand expected affect on Canada<br \/>\nHenry Paulson, the US Treasury Secretary,<br \/>\nturned to Canada and other Group of Seven<br \/>\nindustrialized countries on September 21, 2008<br \/>\nto back a sweeping financial relief package to<br \/>\nalleviate stresses in the banking system that<br \/>\ncarries a fast-rising price tag of well over US<br \/>\n$700-billion to buy up the bad debt associated<br \/>\nwith the sub-prime crisis.20  <\/p>\n<p>Given that the US Federal Reserve and US<br \/>\nTreasury had already committed $380 billion in<br \/>\nprevious attempts to calm the troubled finan-<br \/>\ncial markets for a cumulative investment of over<br \/>\n$1 trillion US dollars to date, some commenta-<br \/>\ntors were calling the latest effort, \u201cResolution<br \/>\nTrust Two,\u201d reminiscent of the process used to<br \/>\novercome the problems caused by the US Savings<br \/>\nand Loan crisis in the 1980s.<\/p>\n<p>The ongoing effects of the sub-prime debt<br \/>\nled to US government takeovers of Fannie Mae<br \/>\nand Freddie Mac, the main holders of troubled<br \/>\nRMBS paper, and AIG Insurance, an insurer of<br \/>\ncollateralized debt securities. In addition, the<br \/>\ninvestment banks Lehman Brothers declared<br \/>\nbankruptcy and Merrill Lynch was taken over by<br \/>\nthe Bank of America.<\/p>\n<p>By September 22, 2008, the last two stand-<br \/>\nalone investment banks on Wall Street surren-<br \/>\ndered their independence, as Goldman Sachs and<br \/>\nMorgan Stanley agreed to transform themselves<br \/>\ninto holding companies and accept much tighter<br \/>\nregulation in a deal that limits their ability to take<br \/>\nrisks and reshapes international finance.<\/p>\n<p>The decision to fundamentally transform<br \/>\nWall Street to look more like Canada\u2019s Bay<br \/>\nStreet, where investment banks operate under<br \/>\nthe wing of commercial banks, reflects the<br \/>\ngrowing acceptance by regulators that the<br \/>\nindependent model has created too much risk<br \/>\nin the financial system.<\/p>\n<p>The move will be welcomed by Canadian<br \/>\nbanks that sought greater clarity from US regula-<br \/>\ntors over the way the industry would be governed<br \/>\nin the future, after investment banks were forced to<br \/>\nbreak the rules and seek emergency funds from the<br \/>\nFederal Reserve to survive amid the credit crisis.<\/p>\n<p>The decision to place the institutions under<br \/>\nFed supervision and reduce the amount of<br \/>\nleverage they can risk for every dollar they hold<br \/>\ncreates a more level playing field for Canadian<br \/>\nand other commercial banks.21  <\/p>\n<p>End Notes<br \/>\n1 FICO is a credit score developed by Fair Isaac &#038; Co. It is used <\/p>\n<p>by many mortgage lenders that use a risk-based system<br \/>\nto determine the possibility that the borrower may default<br \/>\non financial obligations to the mortgage lender. Equifax<br \/>\nand Fair Isaac use this system. TransUnion and Experian,<br \/>\nalso sell their scores to consumers. TransUnion\u2019s credit<br \/>\nscore ranges from 300 to 900. Experian calls its credit score<br \/>\nproduct PLUS Score. The PLUS Score ranges from 330 to<br \/>\n830.<\/p>\n<p>2 Financial Consumer Agency of Canada (2007),<br \/>\n\u2018Understanding Your Credit Report and Credit Score\u2019<\/p>\n<p>3 Canadian Association of Accredited Mortgage Brokers<br \/>\n4 Canadian Association of Accredited Mortgage Brokers, <\/p>\n<p>March 2007<br \/>\n5 Wong, Tony, Trichur, Rita and Daw, James (2008), <\/p>\n<p>\u2018Ottawa tightens mortgage rules,\u2019 Toronto Star,<br \/>\nJuly 10, 2008<\/p>\n<p>6 Saft, James (2008), \u2018The indispensability of Fannie and<br \/>\nFreddie,\u2019 Reuters, July 11, 2008<\/p>\n<p>7 Murray, Brendan and Kopecki, Dawn (2008), \u2018Mortgage<br \/>\ngiants shored up,\u2019 Toronto Star, July 14, 2008<\/p>\n<p>8 These are known as collateral loans versus equity loans.<br \/>\nCollateral lending was heavily promoted in the US as a<br \/>\nmeans of financing new cars, furniture, home renovation,<br \/>\nand vacations. The key in collateral lending is the ability<br \/>\nof the loan recipient to make payments. We have not had<br \/>\nthe same traditional of collateral lending in Canada, again<br \/>\nbecause our lenders are more cautious.<\/p>\n<p>9 Erman, Bart (2008), \u2018Good timing: Feds avoid Fannie-<br \/>\nstyle mortgage freefall,\u2019 Globe and Mail, July 12, 2008.<\/p>\n<p>10 Perkons, Tara, October 2008, \u2018CMHC to buy $7-billion of<br \/>\nmortgages,\u2019 Globe and Mail, October 21, 2008 <\/p>\n<p>11 Cira, Mary Associate Director CIBC Portfolio Advisory<br \/>\nGroup (Summer 2002), Fixed Income Product Focus<br \/>\n\u2013 commercial mortgage-backed securities (CMBS)<\/p>\n<p>12 Miller, David (February 2008), Real Capital Forum<br \/>\n\u2013 Toronto, \u2018CMBS and mortgage loan securitization in<br \/>\nCanada: will they survive?\u2019<\/p>\n<p>13 Barve, N, Bryson, A and Jin, Wei (2008), CMBS World, \u2018CMBS<br \/>\nMarket Correction and Commercial Property Valuations.\u2019<\/p>\n<p>14 McLeod, Lori (2008), \u2018Commercial mortgage market<br \/>\nfaces shortfall,\u2019 Globe and Mail, January 30, 2008.<\/p>\n<p>15 Wong, Tony (2008), \u2018Commercial property sales in steep<br \/>\ndrop,\u2019 Toronto Star, August 27, 2008<\/p>\n<p>16 Grant, Tavia, (2008), \u2018Housing slump stalks Western<br \/>\nCanada,\u2019 Globe and Mail, August 8, 2008<\/p>\n<p>17 Wong, Tony, (2008), \u2018Commercial real estate projected to<br \/>\ntumble,\u2019 Toronto Star, August 8, 2008<\/p>\n<p>18 Mcleod, Lori (2008), \u2018Commercial real estate faces pinch,\u2019<br \/>\nGlobe and Mail, October 21, 2008<\/p>\n<p>19 Ratner, Jonathan, (2008), \u2018Higher cap rates bad news for<br \/>\nREITs,\u2019 Financial Post, October 21, 2008<\/p>\n<p>20 Callan, Eoin, \u2018Fed allows Goldman, Morgan to become bank<br \/>\nholding companies,\u2019 National Post, September 22, 2008<\/p>\n<p>21 Ibid<\/p>\n<p>References<br \/>\nAltus-Insite, (Q2 2007 and Q2 2008), Altus-Insite Investment Survey<br \/>\nBarve, N., Bryson, A., and Jin, Wei (2008), CMBS World, \u2018CMBS <\/p>\n<p>Market Correction and Commercial Property Valuations\u2019<br \/>\nBisson, Chris (2008), \u2018Mortgage Meltdown &#8211; Should we be <\/p>\n<p>worried?\u2019 Housing Finance, University of Guelph<br \/>\n Mortgage Centre<\/p>\n<p>Callan, Eoin, \u2018Fed allows Goldman, Morgan to become bank<br \/>\nholding companies,\u2019 National Post, September 22, 2008.<\/p>\n<p>Calloway REIT (2007), Press Release, December 2007<br \/>\nCalloway REIT (2008), Press Release, April 2007<br \/>\nCanadian Association of Accredited Mortgage Brokers,  (March 2007)<br \/>\nCanadian Real Estate Association (2008), \u2018Average Local  <\/p>\n<p>House Prices\u2019<br \/>\nCB Richard Ellis (2008), Canada Market Outlook 2008<br \/>\nCMHC (2008), Housing Outlook Canada Edition Second Quarter 2008<br \/>\nCira, Mary Associate Director CIBC Portfolio Advisory <\/p>\n<p>Group (Summer 2002), \u2018Fixed Income Product Focus<br \/>\n\u2013 Commercial Mortgage Backed Securities (CMBS)\u2019<\/p>\n<p>Erman, Bart (2008), \u2018Good timing: Feds avoid Fannie-style<br \/>\nmortgage freefall,\u2019 Globe and Mail, July 12, 2008<\/p>\n<p>Financial Consumer Agency of Canada (2007), \u2018Understanding<br \/>\nYour Credit Report and Credit Score\u2019<\/p>\n<p>Grant, Tavia, (2008), \u2018Housing slump stalks Western Canada,\u2019<br \/>\nGlobe and Mail, August 8, 2008<\/p>\n<p>McLeod, Lori (2008), \u2018Commercial mortgage market faces<br \/>\nshortfall,\u2019 Globe and Mail, January 30, 2008<\/p>\n<p>McLeod, Lori and Carmichael, Kevin (2008), \u2018Ottawa tightens<br \/>\nmortgage rules to avoid \u2018bubble,\u201d Globe and Mail,<br \/>\nJuly 9, 2008.<\/p>\n<p>Mcleod, Lori (2008), \u2018Commercial real estate faces pinch,\u2019 Globe<br \/>\nand Mail, Oct. 21, \u201808 <\/p>\n<p>Murray, Brendan and Kopecki, Dawn (2008), \u2018Mortgage giants<br \/>\nshored up,\u2019 Toronto Star, July 14, 2008.<\/p>\n<p>Miller, David (February 2008), Real Capital Forum \u2013 Toronto,<br \/>\n\u2018CMBS and Mortgage Loan Securitization in Canada: Will<br \/>\nthey survive?\u2019<\/p>\n<p>Perkons, Tara, (2008), \u2018CMHC to buy $7-billion of mortgages,\u2019<br \/>\nGlobe and Mail, October 21, 2008<\/p>\n<p>Ratner, Jonathan, (2008), \u2018Higher cap rates bad news for REITs,\u2019<br \/>\nFinancial Post, October 21, 2008<\/p>\n<p>Saft, James (2008), \u2018The indispensability of Fannie and Freddie,\u2019<br \/>\nReuters, July 11, 2008<\/p>\n<p>Statistics Canada (2008), Non-Residential Building Permits<br \/>\n(Monthly), May 2008.<\/p>\n<p>Wong, Tony, Trichur, Rita and Daw, James (2008), \u2018Ottawa<br \/>\ntightens mortgage rules,\u2019 Toronto Star, July 10, 2008.<\/p>\n<p>Wong, Tony, (2008), \u2018Commercial real estate projected to<br \/>\ntumble,\u2019 Toronto Star, August 8, 2008<\/p>\n<p>Click HERE to return to Table of ContentsCanadian Property Valuation Volume 52 | book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada24<\/p>\n<p>25<\/p>\n<p>20<\/p>\n<p>15<\/p>\n<p>10<\/p>\n<p>5<\/p>\n<p>0<\/p>\n<p>%<\/p>\n<p>01 02 03 04 05 06<\/p>\n<p>US Canada<\/p>\n<p>Figure 1.2.1:  Canada versus US sub-prime lending<\/p>\n<p>Figure 1.2.2:<br \/>\nSub-prime ratio of adjustable rate mortgages<\/p>\n<p>Source:  Bisson, Chris (2008), \u2018Mortgage meltdown:<br \/>\nShould we be worried?\u2019 Housing Finance, Univeristy of Guelph Mortgage Centre<\/p>\n<p>Sub-prime 72%<\/p>\n<p>Prime 18%<\/p>\n<p>Alt. A<br \/>\n10%<\/p>\n<p>&#8230; And most of it is sub-prime<\/p>\n<p>RATING TYPE DEFAULT %<\/p>\n<p>Sub Prime Variable 17.0%<\/p>\n<p>Sub Prime Fixed 10.0%<\/p>\n<p>Better Variable 3.7%<\/p>\n<p>Prime Variable 2.2%<\/p>\n<p>Figure 1.2.3:  US sub-prime default rates: December 2007<\/p>\n<p>Source: Mortgage Brokers Association<\/p>\n<p>Province 2003 2004 2005 2006 2007 2008(F) 2009(F)<\/p>\n<p>NFLD<br \/>\n2,240 2,229<\/p>\n<p>-0.5%<br \/>\n2,005<\/p>\n<p>-10.0%<br \/>\n1,864<br \/>\n-7.0%<\/p>\n<p>2,184<br \/>\n17.2%<\/p>\n<p>2,425<br \/>\n11.0%<\/p>\n<p>2,500<br \/>\n3.1%<\/p>\n<p>PEI<br \/>\n613 682<\/p>\n<p>11.3%<br \/>\n634<\/p>\n<p>-7.0%<br \/>\n512<\/p>\n<p>-19.2%<br \/>\n573<\/p>\n<p>11.9%<br \/>\n525<\/p>\n<p>-8.4%<br \/>\n500<\/p>\n<p>-4.8%<\/p>\n<p>NS<br \/>\n2,968 3,270<\/p>\n<p>10.2%<br \/>\n3,010<br \/>\n-8.0%<\/p>\n<p>2,757<br \/>\n-8.4%<\/p>\n<p>2,887<br \/>\n4.7%<\/p>\n<p>2,650<br \/>\n-8.2%<\/p>\n<p>2,450<br \/>\n-7.5%<\/p>\n<p>NB<br \/>\n3,139 2,970<\/p>\n<p>-5.4%<br \/>\n2,665<\/p>\n<p>-10.3%<br \/>\n2,445<br \/>\n-8.3%<\/p>\n<p>2,733<br \/>\n11.8%<\/p>\n<p>2,510<br \/>\n-8.2%<\/p>\n<p>2,400<br \/>\n-4.4%<\/p>\n<p>QUE<br \/>\n27,225 28,871<\/p>\n<p>6.0%<br \/>\n23,930<br \/>\n-17.1%<\/p>\n<p>21,917<br \/>\n-8.4%<\/p>\n<p>22,177<br \/>\n1.2%<\/p>\n<p>19,500<br \/>\n-12.1%<\/p>\n<p>19,750<br \/>\n1.3%<\/p>\n<p>ONT<br \/>\n47,610 48,929<\/p>\n<p>2.8%<br \/>\n41,682<br \/>\n-14.8%<\/p>\n<p>38,309<br \/>\n-8.1%<\/p>\n<p>37,910<br \/>\n-1.0%<\/p>\n<p>34,825<br \/>\n-8.1%<\/p>\n<p>31,000<br \/>\n-11.0%<\/p>\n<p>MAN<br \/>\n3,165 3,484<\/p>\n<p>10.1%<br \/>\n3,709<br \/>\n6.5%<\/p>\n<p>3,552<br \/>\n-4.2%<\/p>\n<p>3,857<br \/>\n8.6%<\/p>\n<p>3,900<br \/>\n1.1%<\/p>\n<p>4,050<br \/>\n3.8%<\/p>\n<p>SASK<br \/>\n2,097 2,193<\/p>\n<p>4.6%<br \/>\n2,425<br \/>\n10.6%<\/p>\n<p>2,689<br \/>\n10.9%<\/p>\n<p>4,017<br \/>\n49.4%<\/p>\n<p>4,600<br \/>\n14.5%<\/p>\n<p>4,100<br \/>\n-10.9%<\/p>\n<p>ALTA<br \/>\n21,918 22,487<\/p>\n<p>2.6%<br \/>\n26,684<br \/>\n18.7%<\/p>\n<p>31,835<br \/>\n19.3%<\/p>\n<p>28,105<br \/>\n-11.7%<\/p>\n<p>19,250<br \/>\n-31.5%<\/p>\n<p>20,000<br \/>\n3.9%<\/p>\n<p>BC<br \/>\n12,252 14,056<\/p>\n<p>14.7%<br \/>\n13,719<br \/>\n-2.4%<\/p>\n<p>15,433<br \/>\n12.5%<\/p>\n<p>14,474<br \/>\n-6.2%<\/p>\n<p>12,500<br \/>\n-13.6%<\/p>\n<p>12,300<br \/>\n-1.6%<\/p>\n<p>CANADA<br \/>\n123,227 129,171<\/p>\n<p>4.8%<br \/>\n120,463<br \/>\n-6.7%<\/p>\n<p>121,313<br \/>\n0.7%<\/p>\n<p>118,917<br \/>\n-2.0%<\/p>\n<p>102,700<br \/>\n-13.6%<\/p>\n<p>99,050<br \/>\n-3.6%<\/p>\n<p>Source: CMHC. *Totals may not add due to rounding.<br \/>\n(F) Forecast.<\/p>\n<p>Figure 2.1.1: Provincial Housing Starts Summary \u2013 Single Detached Starts<\/p>\n<p>Province 2003 2004 2005 2006 2007 2008(F) 2009(F)<\/p>\n<p>NFLD<br \/>\n452 641<\/p>\n<p>41.8%<br \/>\n493<\/p>\n<p>-23.1%<br \/>\n370<\/p>\n<p>-24.9%<br \/>\n465<\/p>\n<p>25.7%<br \/>\n400<\/p>\n<p>-14.0%<br \/>\n375<\/p>\n<p>-6.3%<\/p>\n<p>PEI<br \/>\n201 237<\/p>\n<p>17.9%<br \/>\n228<\/p>\n<p>-3.8%<br \/>\n226<\/p>\n<p>-0.9%<br \/>\n177<\/p>\n<p>-21.7%<br \/>\n175<\/p>\n<p>-1.1%<br \/>\n175<\/p>\n<p>0.0%<\/p>\n<p>NS<br \/>\n2,128 1,447<\/p>\n<p>-32.0%<br \/>\n1,765<\/p>\n<p>22.0%<br \/>\n2,139<\/p>\n<p>21.2%<br \/>\n1,863<\/p>\n<p>-12.9%<br \/>\n1,850<br \/>\n-0.7%<\/p>\n<p>2,050<br \/>\n10.8%<\/p>\n<p>NB<br \/>\n1,350 977<\/p>\n<p>-27.6%<br \/>\n1,294<br \/>\n32.4%<\/p>\n<p>1,640<br \/>\n26.7%<\/p>\n<p>1,509<br \/>\n-8.0%<\/p>\n<p>1,415<br \/>\n-6.2%<\/p>\n<p>1,250<br \/>\n-11.7%<\/p>\n<p>QUE<br \/>\n23,064 29,577<\/p>\n<p>28.2%<br \/>\n26,980<br \/>\n-8.8%<\/p>\n<p>25,960<br \/>\n-3.8%<\/p>\n<p>26,376<br \/>\n1.6%<\/p>\n<p>27,000<br \/>\n2.4%<\/p>\n<p>26,000<br \/>\n-3.7%<\/p>\n<p>ONT<br \/>\n37,570 36,185<\/p>\n<p>-3.7%<br \/>\n37,113<br \/>\n2.6%<\/p>\n<p>35,108<br \/>\n-5.4%<\/p>\n<p>30,213<br \/>\n-13.9%<\/p>\n<p>37,350<br \/>\n23.6%<\/p>\n<p>34,000<br \/>\n-9.0%<\/p>\n<p>MAN<br \/>\n1,041 956<\/p>\n<p>-8.2%<br \/>\n1,022<br \/>\n6.9%<\/p>\n<p>1,476<br \/>\n44.4%<\/p>\n<p>1,881<br \/>\n27.4%<\/p>\n<p>1,550<br \/>\n-17.6%<\/p>\n<p>1,600<br \/>\n3.2%<\/p>\n<p>SASK<br \/>\n1,218 1,588<\/p>\n<p>30.4%<br \/>\n1,012<\/p>\n<p>-36.3%<br \/>\n1,026<br \/>\n1.4%<\/p>\n<p>1,990<br \/>\n94.0%<\/p>\n<p>2,000<br \/>\n0.5%<\/p>\n<p>1,800<br \/>\n-10.0%<\/p>\n<p>ALTA<br \/>\n14,253 13,783<\/p>\n<p>-3.3%<br \/>\n14,163<br \/>\n2.8%<\/p>\n<p>17,127<br \/>\n20.9%<\/p>\n<p>20,231<br \/>\n18.1%<\/p>\n<p>18,000<br \/>\n-11.0%<\/p>\n<p>13,000<br \/>\n-27.8%<\/p>\n<p>BC<br \/>\n13,922 18,869<\/p>\n<p>35.5%<br \/>\n20,948<br \/>\n11.0%<\/p>\n<p>21,010<br \/>\n0.3%<\/p>\n<p>24,721<br \/>\n17.7%<\/p>\n<p>22,200<br \/>\n-10.2%<\/p>\n<p>20,600<br \/>\n-7.2%<\/p>\n<p>CANADA<br \/>\n95,199 104,260<\/p>\n<p>9.5%<br \/>\n105,018<\/p>\n<p>0.7%<br \/>\n106,082<\/p>\n<p>1.0%<br \/>\n109,426<\/p>\n<p>3.2%<br \/>\n111,940<\/p>\n<p>2.3%<br \/>\n100,850<br \/>\n-9.9%<\/p>\n<p>Source: CMHC. *Totals may not add due to rounding.<br \/>\n(F) Forecast.<\/p>\n<p>Figure 2.1.2: Provincial Housing Starts Summary \u2013 Multi-Family Starts<\/p>\n<p>Click HERE to return to page 19 Click HERE to return to Table of Contents<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Source: The Canadian Real Estate Association. *Totals may not add due to rounding.<br \/>\n(F) Forecast by CMHC.<\/p>\n<p>Figure 2.2.1:<br \/>\nTotal Residential Resales (units and annual percentage change)<\/p>\n<p>Province 2003 2004 2005 2006 2007 2008(F) 2009(F)<\/p>\n<p>NFLD<br \/>\n3,238 3,265<\/p>\n<p>0.8%<br \/>\n3,211<br \/>\n-1.7%<\/p>\n<p>3,537<br \/>\n10.2%<\/p>\n<p>4,471<br \/>\n26.4%<\/p>\n<p>4,250<br \/>\n-4.9%<\/p>\n<p>4,200<br \/>\n-1.2%<\/p>\n<p>PEI<br \/>\n1,404 1,500<\/p>\n<p>6.8%<br \/>\n1,449<br \/>\n-3.4%<\/p>\n<p>1,492<br \/>\n3.0%<\/p>\n<p>1,769<br \/>\n18.6%<\/p>\n<p>1,600<br \/>\n-9.6%<\/p>\n<p>1,550<br \/>\n-3.1%<\/p>\n<p>NS<br \/>\n9,221 8,887<\/p>\n<p>-3.6%<br \/>\n10,948<br \/>\n23.2%<\/p>\n<p>10,697<br \/>\n-2.3%<\/p>\n<p>11,857<br \/>\n10.8%<\/p>\n<p>11,100<br \/>\n-6.4%<\/p>\n<p>10,900<br \/>\n-1.8%<\/p>\n<p>NB<br \/>\n5,489 5,979<\/p>\n<p>8.9%<br \/>\n6,836<br \/>\n14.3%<\/p>\n<p>7,125<br \/>\n4.2%<\/p>\n<p>8,161<br \/>\n14.5%<\/p>\n<p>7,600<br \/>\n-6.9%<\/p>\n<p>7,450<br \/>\n-2.0%<\/p>\n<p>QUE<br \/>\n67,130 69,296<\/p>\n<p>3.2%<br \/>\n70,649<br \/>\n2.0%<\/p>\n<p>72,520<br \/>\n2.6%<\/p>\n<p>80,338<br \/>\n10.8%<\/p>\n<p>76,000<br \/>\n-5.4%<\/p>\n<p>79,250<br \/>\n4.3%<\/p>\n<p>ONT<br \/>\n184,457 197,353<\/p>\n<p>7.0%<br \/>\n197,140<br \/>\n-0.1%<\/p>\n<p>194,930<br \/>\n-1.1%<\/p>\n<p>213,379<br \/>\n9.5%<\/p>\n<p>193,375<br \/>\n-9.4%<\/p>\n<p>181,250<br \/>\n-6.3%<\/p>\n<p>MAN<br \/>\n11,523 12,098<\/p>\n<p>5.0%<br \/>\n12,761<br \/>\n5.5%<\/p>\n<p>13,018<br \/>\n2.0%<\/p>\n<p>13,928<br \/>\n7.0%<\/p>\n<p>13,600<br \/>\n-2.4%<\/p>\n<p>13,900<br \/>\n2.2%<\/p>\n<p>SASK<br \/>\n7,698 8,172<\/p>\n<p>6.2%<br \/>\n8,312<br \/>\n1.7%<\/p>\n<p>9,140<br \/>\n10.0%<\/p>\n<p>12,054<br \/>\n31.9%<\/p>\n<p>13,400<br \/>\n11.2%<\/p>\n<p>12,750<br \/>\n-4.9%<\/p>\n<p>ALTA<br \/>\n51,334 57,460<\/p>\n<p>11.9%<br \/>\n65,866<br \/>\n14.6%<\/p>\n<p>74,350<br \/>\n12.9%<\/p>\n<p>71,430<br \/>\n-3.9%<\/p>\n<p>61,250<br \/>\n-14.3%<\/p>\n<p>62,750<br \/>\n2.4%<\/p>\n<p>BC<br \/>\n93,095 96,385<\/p>\n<p>3.5%<br \/>\n106,310<br \/>\n10.3%<\/p>\n<p>96,671<br \/>\n-9.1%<\/p>\n<p>102,805<br \/>\n6.3%<\/p>\n<p>93,750<br \/>\n-8.8%<\/p>\n<p>91,000<br \/>\n-2.9%<\/p>\n<p>CANADA<br \/>\n434,589 460,395<\/p>\n<p>5.9%<br \/>\n483,482<\/p>\n<p>5.0%<br \/>\n483,480<\/p>\n<p>0.0%<br \/>\n520,192<\/p>\n<p>7.6%<br \/>\n475,900<br \/>\n-8.5%<\/p>\n<p>465,000<br \/>\n-2.3%<\/p>\n<p>Source: The Canadian Real Estate Association. *Totals may not add due to rounding.<br \/>\n(F) Forecast by CMHC.<\/p>\n<p>Figure 2.2.2:<br \/>\nAverage Residential Resale Prices (units and annual percentage change)<\/p>\n<p>Province 2003 2004 2005 2006 2007(E) 2008(F) 2009(F)<\/p>\n<p>NFLD<br \/>\n119,822 131,499<\/p>\n<p>9.7%<br \/>\n141,167<br \/>\n7.4%<\/p>\n<p>139,542<br \/>\n-1.2%<\/p>\n<p>149,258<br \/>\n7.0%<\/p>\n<p>165,000<br \/>\n10.5%<\/p>\n<p>175,000<br \/>\n6.1%<\/p>\n<p>PEI<br \/>\n101,745 110,815<\/p>\n<p>8.9%<br \/>\n117,238<br \/>\n5.8%<\/p>\n<p>125,430<br \/>\n7.0%<\/p>\n<p>133,457<br \/>\n6.4%<\/p>\n<p>137,500<br \/>\n3.0%<\/p>\n<p>142,000<br \/>\n3.3%<\/p>\n<p>NS<br \/>\n136,292 146,033<\/p>\n<p>7.1%<br \/>\n159,221<br \/>\n9.0%<\/p>\n<p>168,614<br \/>\n5.9%<\/p>\n<p>180,989<br \/>\n7.3%<\/p>\n<p>190,000<br \/>\n5.0%<\/p>\n<p>195,000<br \/>\n2.6%<\/p>\n<p>NB<br \/>\n105,858 112,933<\/p>\n<p>6.7%<br \/>\n120,641<br \/>\n6.8%<\/p>\n<p>126,864<br \/>\n5.2%<\/p>\n<p>136,603<br \/>\n7.7%<\/p>\n<p>142,000<br \/>\n4.0%<\/p>\n<p>146,000<br \/>\n2.8%<\/p>\n<p>QUE<br \/>\n151,881 171,099<\/p>\n<p>12.7%<br \/>\n184,583<br \/>\n7.9%<\/p>\n<p>194,024<br \/>\n5.1%<\/p>\n<p>208,240<br \/>\n7.3%<\/p>\n<p>218,000<br \/>\n4.7%<\/p>\n<p>224,000<br \/>\n2.8%<\/p>\n<p>ONT<br \/>\n226,824 245,230<\/p>\n<p>8.1%<br \/>\n262,949<br \/>\n7.2%<\/p>\n<p>278,364<br \/>\n5.9%<\/p>\n<p>299,544<br \/>\n7.6%<\/p>\n<p>310,000<br \/>\n3.5%<\/p>\n<p>317,500<br \/>\n2.4%<\/p>\n<p>MAN<br \/>\n106,788 119,245<\/p>\n<p>11.7%<br \/>\n133,854<br \/>\n12.3%<\/p>\n<p>150,229<br \/>\n12.2%<\/p>\n<p>169,189<br \/>\n12.6%<\/p>\n<p>192,000<br \/>\n13.5%<\/p>\n<p>207,000<br \/>\n7.8%<\/p>\n<p>SASK<br \/>\n104,995 110,824<\/p>\n<p>5.6%<br \/>\n122,765<br \/>\n10.8%<\/p>\n<p>132,078<br \/>\n7.6%<\/p>\n<p>174,405<br \/>\n32.0%<\/p>\n<p>220,000<br \/>\n26.1%<\/p>\n<p>238,000<br \/>\n8.2%<\/p>\n<p>ALTA<br \/>\n182,845 194,769<\/p>\n<p>6.5%<br \/>\n218,266<br \/>\n12.1%<\/p>\n<p>285,383<br \/>\n30.8%<\/p>\n<p>356,235<br \/>\n24.8%<\/p>\n<p>369,000<br \/>\n3.6%<\/p>\n<p>388,000<br \/>\n5.1%<\/p>\n<p>BC<br \/>\n259,968 289,107<\/p>\n<p>11.2%<br \/>\n332,224<br \/>\n14.9%<\/p>\n<p>390,963<br \/>\n17.7%<\/p>\n<p>439,119<br \/>\n12.3%<\/p>\n<p>479,500<br \/>\n9.2%<\/p>\n<p>498,500<br \/>\n4.0%<\/p>\n<p>CANADA<br \/>\n207,162 226,387<\/p>\n<p>9.3%<br \/>\n249,219<br \/>\n10.1%<\/p>\n<p>276,943<br \/>\n11.1%<\/p>\n<p>307,306<br \/>\n11.0%<\/p>\n<p>323,000<br \/>\n5.1%<\/p>\n<p>333,500<br \/>\n3.3%<\/p>\n<p>Figure 2.2.3:<br \/>\nSelected Local Housing Markets<\/p>\n<p>Housing<br \/>\nStarts<\/p>\n<p>Single<br \/>\nDetached<\/p>\n<p>Multi<br \/>\nFamily<\/p>\n<p>NHPI<br \/>\nAnnual %<\/p>\n<p>MLS<br \/>\nSales<\/p>\n<p>Average<br \/>\nPrice<\/p>\n<p>Victoria 2007 2,579 795 1,784 0.5 8,403 466,974<br \/>\n2008(F) 2,275 850 1,425 1.0 7,700 500,000<br \/>\n2009(F) 1,845 820 1,025 0.7 7,300 520,000<\/p>\n<p>Vancouver 2007 20,736 4,211 16,525 7.1 38,978 570,795<br \/>\n2008(F) 19,000 4,000 15,000 6.5 36,000 615,000<\/p>\n<p>2009(F) 18,500 3,600 14,900 5.8 35,000 645,000<\/p>\n<p>Edmonton 2007 14,888 7,682 7,206 32.1 20,427 338,636<br \/>\n2008(F) 9,500 4,500 5,000 5.0 8,500 350,000<\/p>\n<p>2009(F) 10,200 5,200 5,000 7.0 19,000 370,000<\/p>\n<p>Calgary 2007 13,505 7,777 5,728 6.2 32,176 414,066<br \/>\n2008(F) 12,500 5,500 7,000 2.5 26,000 429,000<\/p>\n<p>2009(F) 8,600 5,600 3,000 3.5 26,750 429,000<\/p>\n<p>Saskatoon 2007 2,380 1,485 895 38.8 4,446 232,755<br \/>\n2008(F) 2,550 1,650 900 25.0 5,000 275,000<\/p>\n<p>2009(F) 2,250 1,450 800 13.0 4,750 297,500<\/p>\n<p>Regina 2007 1,398 864 534 22.2 3,957 165,613<br \/>\n2008(F) 1,400 950 450 15.0 4,400 230,000<\/p>\n<p>2009(F) 1,300 900 400 10.0 4,200 250,000<\/p>\n<p>Winnipeg 2007 3,371 1,870 1,501 12.2 12,319 174,500<br \/>\n2008(F) 3,150 1,950 1,200 8.5 12,000 200,000<\/p>\n<p>2009(F) 3,275 2,025 1,250 6.5 12,250 216,000<\/p>\n<p>Hamilton 2007 3,004 1,761 1,243 4.5 3,866 268,857<br \/>\n2008(F) 3,070 1,810 1,260 4.3 12,900 285,000<\/p>\n<p>2009(F) 2,910 1,770 1,140 4.2 12,100 296,000<\/p>\n<p>Toronto 2007 33,293 14,769 18,524 2.5 95,164 377,029<br \/>\n2008(F) 38,300 13,500 24,800 2.3 84,000 394,000<\/p>\n<p>2009(F) 32,800 10,500 22,300 2.0 77,000 404,000<\/p>\n<p>Ottawa 2007 6,506 2,973 3,533 1.6 14,739 273,058<br \/>\n2008(F) 6,900 2,750 4,150 1.6 13,500 285,000<\/p>\n<p>2009(F) 6,400 2,500 3,900 1.7 13,250 295,000<\/p>\n<p>Montr\u00e9al 2007 23,233 8,013 15,220 4.1 43,543 253,340<br \/>\n2008(F) 22,600 7,300 15,300 3.5 41,800 266,000<\/p>\n<p>2009(F) 22,200 7,200 15,000 3.0 40,700 276,000<\/p>\n<p>Qu\u00e9bec 2007 5,284 2,144 3,140 4.0 7,287 178,212<br \/>\n2008(F) 5,000 1,900 3,100 3.5 7,000 191,000<\/p>\n<p>2009(F) 4,700 1,750 2,950 3.0 7,200 201,000<\/p>\n<p>Moncton 2007 1,425 655 770 1.0 2,849 140,032<br \/>\n2008(F) 1,340 620 720 2.5 2,650 147,000<\/p>\n<p>2009(F) 1,250 590 660 2.0 2,500 152,000<\/p>\n<p>Halifax 2007 2,489 1,207 1,282 7 5. 6,938 215,018<br \/>\n2008(F) 2,450 1,175 1,275 5 5. 6,500 225,000<\/p>\n<p>2009(F) 2,550 1,075 1,475 5 3. 6,400 233,000<\/p>\n<p>St. John\u2019s 2007 1,480 1,174 306 5.0 4,471 149,258<br \/>\n2008(F) 1,725 1,400 325 7.5 4,250 165,000<\/p>\n<p>2009(F) 1,750 1,450 300 5.0 4,200 175,000<\/p>\n<p>Click HERE to return to page 19Click HERE to return to Table of Contents<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Second quarter<br \/>\n2007<\/p>\n<p>Second quarter<br \/>\n2008<\/p>\n<p>Second quarter<br \/>\n2007 to second <\/p>\n<p>quarter 2008<br \/>\nSeasonally adjusted<\/p>\n<p>$ millions % Change<br \/>\nAtlantic Canada<\/p>\n<p>St. John\u2019s 41 39 (4.9)<\/p>\n<p>Halifax 83 81 (2.4)<\/p>\n<p>Moncton 39 42 7.7<\/p>\n<p>Saint John 32 28 (12.5)<\/p>\n<p>Quebec 1,606 1,709 6.4<\/p>\n<p>Quebec w\/o Montreal 766 806 5.2<\/p>\n<p>Saguenay 31 34 9.7<\/p>\n<p>Qu\u00e9bec 181 272 50.3<\/p>\n<p>Sherbrooke 44 40 (9.1)<\/p>\n<p>Trois-Rivi\u00e8res 46 46 0.0<\/p>\n<p>Montr\u00e9al 840 903 7.5<\/p>\n<p>Ottawa\u2013Gatineau (Que. part) 44 53 20.5<\/p>\n<p>Ontario 2,956 3,261 10.3<\/p>\n<p>Ontario w\/o Toronto 1,314 1,317 0.2<\/p>\n<p>Ottawa\u2013Gatineau (Ont. part) 376 307 (18.4)<\/p>\n<p>Kingston 48 67 39.6<\/p>\n<p>Peterborough 14 15 7.1<\/p>\n<p>Oshawa 95 85 (10.5)<\/p>\n<p>Toronto 1,642 1,944 18.4<\/p>\n<p>Hamilton 139 205 47.5<\/p>\n<p>St. Catharines\u2013Niagara 71 69 (2.8)<\/p>\n<p>Kitchener 140 154 10.0<\/p>\n<p>Brantford 40 17 (57.5)<\/p>\n<p>Guelph 50 43 (14.0)<\/p>\n<p>London 118 153 29.7<\/p>\n<p>Windsor 90 63 (30.0)<\/p>\n<p>Barrie 54 58 7.4<\/p>\n<p>Greater Sudbury 56 65 16.1<\/p>\n<p>Thunder Bay 23 16 (30.4)<\/p>\n<p>Prairie Provinces 1,728 1,964 13.7<\/p>\n<p>Winnipeg 151 122 (19.2)<\/p>\n<p>Regina 62 68 9.7<\/p>\n<p>Saskatoon 96 140 45.8<\/p>\n<p>Calgary 1,092 1,228 12.5<\/p>\n<p>Edmonton 478 528 10.5<\/p>\n<p>BC 1,044 1,010 (3.3)<\/p>\n<p>Kelowna 48 78 62.5<\/p>\n<p>Abbotsford 64 55 (14.1)<\/p>\n<p>Vancouver 842 792 (5.9)<\/p>\n<p>Victoria 90 85 (5.6)<\/p>\n<p>Figure 3.1.2:<br \/>\nInvestment in Non-residential Building Construction, by CMA<\/p>\n<p>May-07 May 2008p<br \/>\nMay 2007 <\/p>\n<p>to May 2008<\/p>\n<p>seasonally adjusted<\/p>\n<p>$ millions % change<\/p>\n<p>Canada 7,006 6,616 (5.6)<\/p>\n<p>Residential 3,845 3,693 (3.9)<\/p>\n<p>Non-residential 3,161 2,923 (7.5)<\/p>\n<p>Newfoundland and Labrador 48 59 23.0<\/p>\n<p>Residential 33 42 26.9<\/p>\n<p>Non-residential 15 17 14.1<\/p>\n<p>Prince Edward Island 13 42 214.4<\/p>\n<p>Residential 10 7 (30.4)<\/p>\n<p>Non-residential 3 35 934.8<\/p>\n<p>Nova Scotia 112 133 18.1<\/p>\n<p>Residential 72 96 34.0<\/p>\n<p>Non-residential 41 37 (9.8)<\/p>\n<p>New Brunswick 98 122 24.9<\/p>\n<p>Residential 47 56 20.0<\/p>\n<p>Non-residential 51 66 29.5<\/p>\n<p>Quebec 1,137 1,111 (2.3)<\/p>\n<p>Residential 701 710 1.3<\/p>\n<p>Non-residential 436 401 (8.1)<\/p>\n<p>Ontario 2,152 2,459 14.3<\/p>\n<p>Residential 1,221 1,352 10.7<\/p>\n<p>Non-residential 931 1,107 19.0<\/p>\n<p>Manitoba 154 136 (11.8)<\/p>\n<p>Residential 83 94 13.2<\/p>\n<p>Non-residential 72 43 (40.6)<\/p>\n<p>Saskatchewan 132 184 38.9<\/p>\n<p>Residential 73 107 46.5<\/p>\n<p>Non-residential 60 77 29.5<\/p>\n<p>Alberta 1,800 1,223 (32.1)<\/p>\n<p>Residential 673 582 (13.6)<\/p>\n<p>Non-residential 1,126 641 (43.1)<\/p>\n<p>British Columbia 1,338 1,137 (15.0)<\/p>\n<p>Residential 926 643 (30.6)<\/p>\n<p>Non-residential 412 495 20.2<\/p>\n<p>Figure 3.1.1:<br \/>\nValue of Building Permits, by Province (monthly)<\/p>\n<p>p : preliminary.           r : revised.           &#8230; : not applicable.<br \/>\nNote: Totals may not add due to rounding.<br \/>\nSources: Statistics Canada, CANSIM, table (for fee) 026-0006 and Catalogue no. 64-001-X.<\/p>\n<p>Click HERE to return to page 21 Click HERE to return to Table of Contents<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Figure 3.2:  CBRE Forecasts for Major Canadian Office and Industrial Markets<br \/>\nVancouver Calgary Edmonton Winnipeg Toronto Ottawa Montreal Halifax National<\/p>\n<p>2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 %- 07-08<br \/>\nOFFICE<br \/>\nInventory 39.2 39.6 48.3 51.3 21.0 21.5 9.4 10.1 140.5 141.7 52.5 52.7 63.8 63.9 9.2 9.6 402.1 408.8 2%<br \/>\nOverall Vacancy 6.5% 5.8% 3.3% 6.8% 4.6% 4.4% 7.0% 6.3% 6.6% 5.9% 4.7% 4.7% 10.4% 9.8% 8.1% 8.7% 6.6% 6.6% 0%<br \/>\nSublet % Total 12.8% 9.7% 22.3% 26.2% 8.9% 9.5% 15.1% 14.8% 9.2% 7.4% 14.5% 14.7% 9.8% 9.6% 4.6% 4.2% 10.6% 12.2% 15%<br \/>\nDowntown 3.2% 2.6% 3.0% 4.9% 4.9% 4.0% 8.3% 7.3% 5.0% 4.5% 3.9% 4.2% 8.3% 7.5% 5.3% 5.0% 5.4% 5.3% (2%)<br \/>\nSuburban 10.0% 8.7% 4.1% 10.4% 3.9% 5.2% 3.2% 3.1% 8.5% 7.5% 5.2% 5.1% 14.5% 14.0% 10.5% 11.7% 8.1% 8.2% 1%<br \/>\nCentral Net Rent $21.50 $24.00 $37.00 $37.00 $20.75 $23.00 $12.19 $12.22 $20.80 $20.38 $18.30 $18.00 $15.45 $16.35 $14.30 $15.00 $18.58 $20.01 8%<br \/>\nSuburban Net Rent $16.10 $16.60 $23.50 $24.25 $14.10 $15.50 $11.00 $11.00 $13.37 $13.64 $13.00 $13.25 $11.63 $12.37 $13.54 $14.00 $13.69 $14.85 8%<br \/>\nTotal Average<br \/>\nNet Rent $17.44 $18.36 $31.29 $30.16 $18.80 $19.99 $12.10 $12.25 $16.21 $16.43 $14.95 $15.07 $14.13 $14.97 $13.80 $14.50 $15.97 $17.18 8%<\/p>\n<p>Total Absorption 0.32 0.67 1.59 1.03 0.66 0.57 -0.09 -0.08 4.63 2.14 0.96 0.20 1.15 0.50 0.14 0.27 9.83 6.70 (32%)<br \/>\nNew Supply 0.35 0.41 2.74 2.93 0.10 0.57 0.00 0.78 1.56 1.20 1.03 0.23 0.15 0.10 0.09 0.35 6.34 6.90 9%<br \/>\nINDUSTRIAL<br \/>\nInventory 161.0 161.8 109.9 112.6 87.1 90.5 79.2 79.6 717.0 724 24.2 24.4 330.8 331.8 10.0 10.21 1661.8 1679.2 1%<br \/>\nAvailability Rate 3.6% 3.5% 1.7% 1.5% 1.7% 1.7% 4.4% 4.4% 5.7% 5.8% 6.2% 6.3% 8.3% 8.8% 6.7% 6.0% 5.7% 5.8% 2%<br \/>\nAsking Net<br \/>\nRental Rate $8.10 $8.50 $8.90 $9.30 $8.80 $8.90 $5.03 $5.05 $5.55 $5.66 $6.85 $7.00 $5.08 $5.06 $6.54 $6.60 $5.64 $5.71 1%<\/p>\n<p>Asking Sale Price (psf) $160.00 $170.00 $175.00 $184.00 $150.00 $165.00 $35.00 $40.00 $90.00 $90.90 $80.00 $85.00 $52.97 $52.97 $57.50 $60.00 $88.68 $94.29 6%<br \/>\nTotal Absorption 1.80 1.75 3.67 2.94 4.12 3.41 -0.47 -0.01 4.24 5.88 0.37 0.18 -0.92 -0.50 0.49 0.62 12.91 15.76 22%<br \/>\nNew Supply 0.75 0.75 3.57 2.75 2.24 3.41 0.25 0.43 7.50 7.00 0.47 0.20 1.34 1.00 0.58 0.60 18.83 18.05 (4%)<\/p>\n<p>Figure 3.3.1: Altus-Insite Investment Survey: Overall Capitalization Rates<br \/>\nLOCATION Vancouver Edmonton Calgary Toronto Ottawa Montreal Halifax<br \/>\nProperty Type Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08<\/p>\n<p>OFFICE: DOWNTOWN<br \/>\nClass AA 5.8 5.9 6.2 6.4 5.7 6.0 5.8 6.0 6.1 6.2 6.6 6.6 6.8 7.1<br \/>\nClass B 6.4 6.4 6.7 6.9 6.3 6.5 6.5 6.7 6.8 6.9 7.2 7.2 7.9 8.0<br \/>\nRETAIL<br \/>\nTier 1 Regional Malls 5.5 5.8 5.8 6.1 5.5 5.7 5.4 5.8 5.7 6.0 5.7 6.2 6.4 6.2<br \/>\nCommunity Malls 6.5 6.7 6.9 7.2 6.5 6.9 7.1 7.2 7.0 7.2 7.2 7.6 7.7 8.0<br \/>\nINDUSTRIAL<br \/>\nSingle Tenant 6.0 6.2 6.5 6.5 6.1 6.3 6.2 6.6 6.6 6.8 6.9 7.2 6.9 7.4<br \/>\nMulti-Tenant 6.0 6.4 6.4 6.6 6.2 6.5 6.3 6.9 6.8 7.1 7.1 7.4 7.3 7.7<br \/>\nMULTI-RESIDENTIAL<br \/>\nMulti-Residential 5.1 5.2 5.6 5.7 5.4 5.5 6.0 6.3 5.9 6.0 6.3 6.4 6.7 7.0<\/p>\n<p>Figure 3.3.2: Altus-Insite Investment Survey: Prices psf\/unit<br \/>\nLOCATION Vancouver Edmonton Calgary Toronto Ottawa Montreal Halifax<br \/>\nProperty Type Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08<br \/>\nOFFICE: DOWNTOWN<br \/>\nClass AA 397 439 287 336 449 481 425 423 357 375 270 280 213 224<br \/>\nClass B 280 329 211 236 348 361 272 263 252 237 203 193 141 123<br \/>\nINDUSTRIAL<br \/>\nSingle Tenant 115 124 103 113 115 114 97 94 96 89 80 80 84 81<br \/>\nMulti-Tenant 118 127 110 112 127 115 99 92 95 87 75 72 79 75<br \/>\nMULTI-RESIDENTIAL<br \/>\nMulti-Residential 150,000 175,875 127,600 200,000 157,200 98,000 94,222 96,667 100,600 97,500 97,333 89,000 88,833<\/p>\n<p>LOCATION Vancouver Edmonton Calgary Toronto Ottawa Montreal Halifax<br \/>\nProperty Type Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08<br \/>\nOFFICE: DOWNTOWN<br \/>\nClass AA 23.03 25.90 17.79 21.52 25.59 28.84 24.65 25.40 21.78 23.27 17.82 18.45 14.48 15.92<br \/>\nClass B 17.92 21.04 14.14 16.25 21.92 23.45 17.68 17.59 17.14 16.36 14.62 13.91 11.14 9.84<br \/>\nINDUSTRIAL<br \/>\nSingle Tenant 6.9 7.70 6.70 7.32 7.02 7.19 6.01 6.17 6.34 6.08 5.52 5.75 5.80 6.01<br \/>\nMulti-Tenant 7.09 8.14 7.03 7.36 7.89 7.47 6.23 6.36 6.43 6.18 5.33 5.34 5.75 5.79<br \/>\nMULTI-RESIDENTIAL<br \/>\nMulti-Residential\/Yr 7,650 9,146 7,273 10,800 8,646 5,880 5,936 5,703 6,036 6,143 6,229 5,963 6,218<br \/>\nMutli-Residential\/Mo 638 762 606 900 721 490 495 475 503 512 519 497 518<\/p>\n<p>Figure 3.3.3: Altus-Insite Investment Survey: Implied Rental psf\/unit   <\/p>\n<p>Click HERE to return to page 21Click HERE to return to Table of Contents<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Source 2007 2008<\/p>\n<p>Actual Low High<\/p>\n<p>Lifeco\u2019s $6.75 $5.75 $5.75<\/p>\n<p>Pension Funds $3.50 $3.25 $3.25<\/p>\n<p>CMBS $3.60 $0.50 $1.00<\/p>\n<p>Bank\/Credit Unions\/<br \/>\nOther<\/p>\n<p>$5.00 $4.00 $4.00<\/p>\n<p>Total $18.85 $13.50 $14.00<\/p>\n<p>Source: CMBS and Mortgage Loan Securitization in Canada: Will they survive?<\/p>\n<p>Figure 3.4.2:<br \/>\nCanada 2007 vs 2008 Commercial Mortgage Lending Volumes $ (billion)<\/p>\n<p>Spread to Swaps<\/p>\n<p>Rating 27-Feb-07 23-Nov-07 07-Mar-08<\/p>\n<p>AAA 23 112 300<\/p>\n<p>AA 32 270 865<\/p>\n<p>A 40 420 1,090<\/p>\n<p>BBB+ 60 700 1,420<\/p>\n<p>BBB 70 800 1,520<\/p>\n<p>BBB- 80 900 1,745<\/p>\n<p>Source: Wachovia Capital Markets LLC<\/p>\n<p>Figure 3.4.3 CMBS Fixed Rate Credit Curves<\/p>\n<p>Figure 3.4.3: CMBS Fixed Rate Credit Curves<\/p>\n<p>27-Feb-07<br \/>\n23-Nov-07<br \/>\n07-Mar-08<\/p>\n<p>2000<\/p>\n<p>1800<\/p>\n<p>1600<\/p>\n<p>1400<\/p>\n<p>1200<\/p>\n<p>1000<\/p>\n<p>800<\/p>\n<p>600<\/p>\n<p>400<\/p>\n<p>200<\/p>\n<p>0<\/p>\n<p>Sp<br \/>\nre<\/p>\n<p>ad<br \/>\n to<\/p>\n<p> Sw<br \/>\nap<\/p>\n<p>s<\/p>\n<p>AAA AA A BBB+ BBB BBB-<br \/>\nCredit Rating<\/p>\n<p>Click HERE to return to page 22 Click HERE to return to Table of Contents<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Location 2Q 2007 2Q 2008 2008 v<br \/>\n2007<\/p>\n<p>London $353 $86 (76%)<\/p>\n<p>Waterloo $465 $289 (38%)<\/p>\n<p>Halifax $193 $153 (21%)<\/p>\n<p>Toronto $4,500 $3,700 (18%)<\/p>\n<p>Montreal $1,782 $1,078 (40%)<\/p>\n<p>Ottawa $618 $322 (48%)<\/p>\n<p>Total East $7,911 $5,628 (29%)<\/p>\n<p>Calgary $2,900 $2,200 (24%)<\/p>\n<p>Vancouver $1,500 $1,600 7%<\/p>\n<p>Edmonton $870 $634 (27%)<\/p>\n<p>Total West $5,270 $4,434 (16%)<\/p>\n<p>Canada $13,181 $10,062 (24%)<\/p>\n<p>Figure 3.5.1: Commercial Real Estate Investment<br \/>\nCanada 2Q 2007 versus 2Q 2008 $ million<\/p>\n<p>When NOI Price Cap Size NOI PSF Price psf<\/p>\n<p>Initial Payment Dec-07 $26,000,000 $405,000,000 6.42% 2,049,006 $12.69 $197.66<\/p>\n<p>Further Payments Dec-11 $18,000,000 $275,000,000 6.55% 909,634 $19.79 $302.32<\/p>\n<p>Completion $44,000,000 $680,000,000 6.47% 2,958,640 $14.87 $229.84<\/p>\n<p>Figure 4.1: Calloway Portfolio Sale Announced Dec-2007<br \/>\nCalloway Portfolio 8.1 Dec-07<\/p>\n<p>When NOI Price Cap Size NOI PSF Price psf<\/p>\n<p>Initial Payment Apr-08 $18,300,000 $270,000,000 6.78% 1,409,369 $12.98 $191.58<\/p>\n<p>Further Payments Dec-11 $7,500,000 $105,000,000 7.14% 358,045 $20.95 $293.26<\/p>\n<p>Completion $25,800,000 $375,000,000 6.88% 1,767,414 $14.60 $212.17<\/p>\n<p>Figure 4.2: Revised Calloway Portfolio Sale Announced April 2008<br \/>\nCalloway Portfolio 8.2 Apr-08<\/p>\n<p>Location Jul-07 Jul-08 08 vs 07 % Change<br \/>\nWEST<br \/>\nVictoria $464,417 $487,864 $23,447 5.0%<br \/>\nVancouver $581,108 $575,256 ($5,852) (1.0%)<br \/>\nEdmonton $353,919 $335,100 ($18,819) (5.3%)<br \/>\nCalgary $436,739 $402,788 ($33,951) (7.8%)<br \/>\nSaskatoon $245,152 $292,428 $47,276 19.3%<br \/>\nRegina $176,537 $246,463 $69,926 39.6%<br \/>\nEast<br \/>\nToronto $366,012 $371,410 $5,398 1.5%<br \/>\nHamilton $268,561 $281,580 $13,019 4.8%<br \/>\nOttawa $269,792 $295,134 $25,342 9.4%<br \/>\nFredericton $133,081 $147,091 $14,010 10.5%<br \/>\nSaint John $136,995 $154,274 $17,279 12.6%<br \/>\nHalifax $219,032 $236,514 $17,482 8.0%<\/p>\n<p>Figure 5.2.1: MLS Average Resale Home Prices July 2007 versus July 2008 \u2013 By City<\/p>\n<p>Source: Canadian Real Estate Association<\/p>\n<p>Location Jul-07 Jul-08 08 vs 07 % Change<br \/>\nBC $446,481 $444,589 ($1,892) (0.4%)<br \/>\nAlberta $309,885 $302,298 ($7,587) (2.4%)<br \/>\nSaskatchewan $182,920 $237,604 $54,684 29.9%<br \/>\nManitoba $167,774 $190,354 $22,580 13.5%<br \/>\nOntario $291,807 $298,630 $6,823 2.3%<br \/>\nQuebec $202,395 $214,070 $11,675 5.8%<br \/>\nNB $135,631 $141,255 $5,624 4.1%<br \/>\nNS $182,267 $192,160 $9,893 5.4%<br \/>\nPEI $309,885 $302,298 ($7,587) (2.4%)<br \/>\nNewfoundland\/Labrador $152,718 $181,269 $28,551 18.7%<br \/>\nCanada $309,885 $302,298 ($7,587) (2.4%)<\/p>\n<p>Source: Canadian Real Estate Association<\/p>\n<p>Figure 5.2.2: MLS Average Resale Home Prices July 2007 versus July 2008 \u2013 By Province<\/p>\n<p>Click HERE to return to page 22Click HERE to return to Table of Contents to page 23<\/p>\n<p>Will the US sub-prime crisis head north &#8211; FIGURES <\/p>\n<p>PAGE F\ufffd<\/p>\n<p>Revised Regulations take fresh<br \/>\napproach to range of sanctions<\/p>\n<p>he revised Regulations have taken<br \/>\na fresh approach to the range of<br \/>\nsanctions that may be imposed when <\/p>\n<p>a member is found to have acted in breach<br \/>\nof Appraisal Institute of Canada (AIC) Bylaws,<br \/>\nRegulations, and CUSPAP. From the outset, the<br \/>\nprime consideration was an acknowledgement<br \/>\nthat \u201cto err is human,\u201d which has been taken to<br \/>\nmean that we should be able to learn from our<br \/>\nmistakes and, thus, not repeat them. The goal of<br \/>\nproviding education has been the cornerstone of<br \/>\nthe revisions to the range of sanctions available<br \/>\nto the professional practice committees, and the<br \/>\nCounsellor, Professional Practice.<\/p>\n<p>As such, the range of sanctions has been<br \/>\nsegregated into two sections: Part 5, Section<br \/>\n5.44 of the Regulations: Practice Sanctions and<br \/>\nConduct Sanctions. (see table)<\/p>\n<p>Practice sanctions may be imposed in<br \/>\nthree areas: administrative errors in the<br \/>\nconduct of a member\u2019s business or practice,<br \/>\nminor technical appraisal or CUSPAP related<br \/>\nerrors, and minor ethical violations. Practice<br \/>\nsanctions entail a minor error where an easily<br \/>\nremedied oversight has been uncovered.<br \/>\nThe range of practice sanctions is typical of<br \/>\nwhat was available under the old Regulations,<br \/>\nhowever, the focus is on education through<br \/>\ncourses, seminars, peer review or other direc-<br \/>\ntions to assist a member. A new sanction of<br \/>\nfines was added at the request of the Profes-<br \/>\nsional Practice Committee, as there were some<br \/>\nsituations where an alternative to education<br \/>\nis appropriate.<\/p>\n<p>Conduct sanctions specifically address<br \/>\nthe most serious member errors. These are<br \/>\nsignificant breaches of CUSPAP, gross negligence, <\/p>\n<p>Sheila Young, AACI, P. App., Chair, Professional Affairs Coordinating Committee<\/p>\n<p>egregious incompetence, and serious ethical<br \/>\nviolations. Conduct sanctions are intended to<br \/>\ndiscipline a member where the error is serious<br \/>\nand where education has failed to have the<br \/>\nrehabilitative effect desired.<\/p>\n<p>Please note that the Regulations regarding<br \/>\npublication have changed. Practice sanctions<br \/>\nwill not be published. Conduct sanctions will<br \/>\nbe published on the Institute\u2019s website and, in<br \/>\nexceptional circumstances, in the member\u2019s<br \/>\nlocal newspaper. Please see section 5.46 of the<br \/>\nRegulations for more information.  <\/p>\n<p>In summary, the professional practice<br \/>\nprocess has been infused with a renewed sense<br \/>\nof purpose to provide for education first in<br \/>\naddressing complaints, and the vigor to impose<br \/>\ndiscipline where it is necessary.  <\/p>\n<p>Professional Affairs<br \/>\nCoordinating Committee<br \/>\nSheila Young, AACI, P. App., \u2013 Chair,<br \/>\nPresident elect<br \/>\nPeter Lawrek, AACI, P. App. \u2013<br \/>\nChair Adjudicating Committee<br \/>\nHal Love, AACI, P. App. \u2013<br \/>\nChair Insurance Advisory Committee<br \/>\nJohn Hutchinson, AACI, P. App. \u2013<br \/>\nChair Investigating Committee<br \/>\nLeonard Lee, AACI, P. App. \u2013<br \/>\nChair Appeal Committee<br \/>\nRay Bower, AACI, P. App. \u2013<br \/>\nChair Standards Committee<br \/>\nTo contact this committee email:<br \/>\nprofessionalaffairs@aicanada.ca<\/p>\n<p>T Findings Any one or more of the following Sanctions Subject to the following timeframes as applicable  to complete the sanction<br \/>\nPractice Sanctions<br \/>\n(1) Administrative (for example)<\/p>\n<p>\u2022\t\t Invalid\tInsurance<br \/>\n\u2022\t\t Not\tproperly\tregistered\tin\t <\/p>\n<p>co-signor registry<br \/>\n\u2022\t\t Not\tproperly\tregistered\tin\t<\/p>\n<p>fee\/non fee category<br \/>\n(2)  Technical Appraisal related errors<br \/>\n(3) ethical violation of Rules 4.2.6, <\/p>\n<p>4.2.7, 4.2.9 and 4.2.10 and<br \/>\nassociated Comments<\/p>\n<p>(i) Fine<br \/>\n(ii) education,<br \/>\n(iii) Peer Review,<br \/>\n(iv) Reprimand,<br \/>\n(v) Provide advice,<br \/>\n(vi) Direct Member to  <\/p>\n<p>take action,<br \/>\n(vii) Recommend  <\/p>\n<p>mediation<\/p>\n<p>(i) 30 days to pay fines<br \/>\n(ii) 6 months to complete <\/p>\n<p>peer review and<br \/>\neducation<\/p>\n<p>Conduct Sanctions<br \/>\n(1) Gross Incompetence<br \/>\n(2) Multiple complaints<br \/>\n(3) Serious violations<br \/>\n(4) ethical violation<br \/>\n(5) non-Cooperation pursuant  <\/p>\n<p>to Section 20<br \/>\n(6) Improper submission of a Complaint<\/p>\n<p>Any Sanction referred to in<br \/>\nPractice Sanctions, and in<br \/>\naddition, any one or more<br \/>\nof the following:<br \/>\n(i) Censure<br \/>\n(ii) Suspension<br \/>\n(iii) expulsion<\/p>\n<p>(i) Immediate imposition<\/p>\n<p>Professional Affairs<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 25<\/p>\n<p>mailto:professionalaffairs@aicanada.ca<\/p>\n<p>Environmental assessments<br \/>\nare not covered by your insurance<\/p>\n<p>Ours is an exclusive profession \u2013 not everyone who applies is admitted. Our insurance program is not like that. We take in<br \/>\neveryone who is a member and provide them with quality insurance from quality insurers, not to mention our own insurance<br \/>\nfund which provides the first portion of our coverage. But, like any other program, we rely on licensed Canadian insurers for<br \/>\nthe circulation of our insurance. These insurers cover most, but do not cover every exposure that we have.  <\/p>\n<p>Currently, major Canadian lenders are seeking to have you give them assurances in areas that you cannot possibly opine.<br \/>\nIn particular, opinions on the environmental condition of land require a certain type of knowledge or skill which the average<br \/>\nappraiser does not possess. In this issue, Miller Thomson\u2019s Mark Frederick tells us about exclusions to our insurance policy that<br \/>\nyou, the practicing appraiser, must be wary of, and what you can do when faced with these enquiries. Mark is a barrister and<br \/>\nsolicitor with Miller Thomson LLP, a national Canadian firm that specializes in real property and insurance work.  <\/p>\n<p>FIRSt PRoFESSIoNAL<br \/>\nliaBility insurance company<\/p>\n<p>Brian Duncan<br \/>\nAACI, P. App., <\/p>\n<p>President of the Board,<br \/>\nFPLICL<\/p>\n<p>Exclusive advice<br \/>\nWhile we have heard how the insurance indus-<br \/>\ntry has insured everything from Betty Grable\u2019s<br \/>\nlegs to the RMS Queen Mary, there are simply<br \/>\nsome things that cannot be insured. The first<br \/>\nthing we need to understand is the answer to<br \/>\nthe question \u201cWhat is insurance?\u201d<\/p>\n<p>Insurance is a contract of indemnity \u2013 that<br \/>\nmeans that it is an agreement between you<br \/>\n(the insured) and the company who agrees to<br \/>\nprovide you with the ability to meet demands<br \/>\nof third parties for any loss that you or your<br \/>\nactivities may cause them.<\/p>\n<p>In our case, our insurance is more than simply<br \/>\nproviding indemnity. It also provides you with<br \/>\na defence to any suit brought against you for<br \/>\nyour professional conduct. To some extent, you<br \/>\nare your own insurer, because you must pay<br \/>\na deductible for losses that you cause. In the<br \/>\ninsurance world, this is insurance in itself, as it is<br \/>\nassumed that a desire to avoid payment of that<br \/>\ndeductible makes you that much more cautious.<\/p>\n<p>But, insurers learned some time ago that<br \/>\nthere is a need to restrict the type of coverage <\/p>\n<p>they provide to make it commensurate with<br \/>\nthe skill and ability of those whom they insure.<br \/>\nFor example, anyone who is qualified to be a<br \/>\nlawyer in Ontario is given training in several<br \/>\nareas of law \u2013 tax, estates, real estate, family<br \/>\nlaw, labour, etc. Most lawyers do not practice<br \/>\nin all areas. They are expected to refer work in<br \/>\nareas in which they do not practice to others<br \/>\nwho do. But, all the same, they are licensed to<br \/>\ndo all work. nor can they buy insurance that<br \/>\ncovers them for doing just labour law. They<br \/>\nmust buy insurance that covers all aspects of<br \/>\ntheir practice. If the average litigator strays<br \/>\nand does a large land transaction and makes<br \/>\nan error, his policy will still apply to provide<br \/>\nindemnity to him.<\/p>\n<p>For appraisers, it does not work this way. Your<br \/>\npolicy provides coverage for one thing \u2013apprais-<br \/>\ning. If you provide services that are beyond the<br \/>\nscope of appraising \u2013 such as selling property or<br \/>\nproviding accounting or property management<br \/>\nservices \u2013 your policy will not respond to that<br \/>\nrisk. Simply put, you will be practicing outside<br \/>\nthe normal scope of an appraiser.<\/p>\n<p>What about when you do practice as an<br \/>\nappraiser? This does not mean that your insur-<br \/>\nance will guarantee any type of transaction.<br \/>\nWhile appraisers by and large tend not to prac-<br \/>\ntice in areas in which they have no experience<br \/>\nor qualification, your insurance policy contains<br \/>\nrestrictions on what you can opine about.  <\/p>\n<p>The most common issue faced by the<br \/>\nprofession today is the ever increasing demand<br \/>\nby lending underwriters to have you assume<br \/>\nrisk for the environmental state of land that you<br \/>\nappraise. There are good reasons not to provide<br \/>\nopinions on environmental issues.<\/p>\n<p>First, opining on pollution requires not<br \/>\nonly specialized training as an engineer or<br \/>\nchemist, but also sophisticated equipment<br \/>\nthat can not only detect pollutants, but also<br \/>\ndetect the level of these pollutants. Just<br \/>\nbecause land is polluted does not make it<br \/>\ndangerous or even affect its value. Tolerances<br \/>\nof safety allow for some contaminated land<br \/>\nto be adjudged fit for other purposes. As an<br \/>\nappraiser, you have no real ability to make<br \/>\nsuch determinations.<\/p>\n<p>Insurance news &#038; Views<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents26<\/p>\n<p>Second, the rules and regulations that<br \/>\ngovern toxicity keep on changing. What was<br \/>\nacceptable 30 years ago may not be acceptable<br \/>\ntoday, as research into the effect of pollution<br \/>\ncontinues to disclose more health hazards<br \/>\nwith situations previously adjudged safe. To be<br \/>\nfluent and current in this area, one must con-<br \/>\ntinually take courses and updates and watch<br \/>\nthe gazettes where these regulations are<br \/>\npublished. various types of audits and reports<br \/>\nhave been established to be undertaken before<br \/>\nthe Crown regards land as being clean.  <\/p>\n<p>Third, knowledge of pollution also requires<br \/>\nknowledge of the historical use of property<br \/>\nand the processes that clean them. In urban<br \/>\ncentres, this is particularly difficult, as the<br \/>\nindustrial usages of property can go back over<br \/>\n200 years. While we look fondly on the days<br \/>\nof yesteryear as being a less complicated time,<br \/>\nthe use of noxious chemicals and processes<br \/>\ncreated horrible blights on waterfronts,<br \/>\nrailway right of ways and canals that are only<br \/>\nbeing understood today. Other problems, such<br \/>\nas the spread of fill and waste, complicate the<br \/>\nsoil-bearing aspects of property, as well as<br \/>\nthe environmental impact of concrete rubble.<br \/>\nCurrently, there are many techniques and<br \/>\nsolutions for repairing or restoring polluted<br \/>\nland. However, these processes are not areas<br \/>\ncovered by appraisal qualifications courses.  <\/p>\n<p>Aside from these practical aspects is a<br \/>\nprohibition in your insurance policy (mimicked<br \/>\nin large part by an exclusion in the limiting<br \/>\ncondition that most of you use \u2013 and all of you<br \/>\nshould be using) that provides no coverage for<br \/>\nmatters relating to environmental impairment.<\/p>\n<p>The current threat then is the situation<br \/>\nwhere lenders ask you to provide confirma-<br \/>\ntion as to the state of property that you are<br \/>\nto appraise and include within their instruc-<br \/>\ntions requests that your report meet Phase 1<br \/>\nenvironmental Site Assessment guidelines.<\/p>\n<p>For some of you, providing comprehensive<br \/>\nreports is done all the time. You will hire<br \/>\nothers to do this job. If you do, it is wise to <\/p>\n<p>ensure that they are qualified to provide you<br \/>\nwith the opinion that the client requests. It<br \/>\nis then wise to ensure that they have insur-<br \/>\nance to back up their conclusions. Finally, it is<br \/>\nprudent to have them issue that component of<br \/>\ntheir report separate from yours, addressed to<br \/>\nthe client, and have the client pay for that part<br \/>\nof the report separately from yours. Indeed,<br \/>\nyou are wise to reflect this in your report as<br \/>\nfollows:<\/p>\n<p>\u201cYou requested we provide a comprehen-<br \/>\nsive appraisal report on your land located at<br \/>\n_____. Included in your instructions was a<br \/>\nrequest to provide an opinion with regard to<br \/>\nthe environmental condition of the property.<br \/>\nAs we noted to you, we do not have the requi-<br \/>\nsite skill and ability to opine on environmental<br \/>\nmatters, nor are we insured to do so. At your<br \/>\ninstructions, we have obtained an independent<br \/>\nopinion on matters relating to environmental<br \/>\nconcerns from _________engineers<br \/>\nand have attached same hereto. We take<br \/>\nno responsibility for this opinion, which is<br \/>\nindependent and unrelated to our opinion. Any<br \/>\nquestions as to the content or sufficiency of<br \/>\nthis opinion must rest with its authors.\u201d<\/p>\n<p>If you receive a request in writing to provide<br \/>\nany environmental view, you must answer<br \/>\nit with a notice in writing that you do not<br \/>\nprovide such opinions and that, if the client<br \/>\nwishes, you may provide them with some<br \/>\nrecommendations of persons who do provide<br \/>\nsuch opinions which they may thereafter retain<br \/>\nat their own cost.<\/p>\n<p>KeeP In MInD THAT IF YOU TAKe On A JOB<br \/>\nTHAT COMPeLS YOU TO PROvIDe An OPInIOn<br \/>\nOn THe envIROnMenTAL STATe OF LAnD, YOU<br \/>\nWILL nOT HAve InSURAnCe COveRAGe. YOU<br \/>\nWILL BeCOMe YOUR OWn InSUReR.<\/p>\n<p>Remember the following:<br \/>\n1) do not accept jobs that compel you to do <\/p>\n<p>things that you cannot do;<br \/>\n2) ensure that your appraisal has limiting <\/p>\n<p>conditions that mitigate against such con-<br \/>\ncerns as pollution and other environmental<br \/>\nimpairment;<\/p>\n<p>3) see that the client retains independent<br \/>\nexperts for reports on issues that you do not<br \/>\nhave the skill to report upon; and<\/p>\n<p>4) reject jobs where you cannot impose<br \/>\n1-3 above.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 27<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"q4MSYPvkjy\"><p><a href=\"http:\/\/www.ara.ca\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Home&#8221; &#8212; ARA - Atlantic Realty Advisors\" src=\"http:\/\/www.ara.ca\/embed\/#?secret=pbWCPLCahG#?secret=q4MSYPvkjy\" data-secret=\"q4MSYPvkjy\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Click HERE to return to Table of Contents<\/p>\n<p>http:\/\/www.realestate.ubc.ca\/cpd<br \/>\nmailto:info@realestate.sauder.ubc.ca<\/p>\n<p>n this column, we highlight two<br \/>\nof the UBC Real estate Division\u2019s<br \/>\ncontinuing professional devel-<\/p>\n<p>opment (CPD) courses that will<br \/>\nbe available mid-December.<br \/>\nUBC\u2019s CPD courses are intended<br \/>\nto: (1) refresh Appraisal Institute<br \/>\nof Canada (AIC) members\u2019 skills and<br \/>\nknowledge; and\/or (2) teach members<br \/>\nnew techniques and applications for the<br \/>\nevolving marketplace. The CPD courses are<br \/>\nshort, self-paced, and completed online.  <\/p>\n<p>CPD 114: Valuation for Finan-<br \/>\ncial Reporting \u2013 Real Property<br \/>\nAppraisal and IFRS<br \/>\nOn January 1, 2011, the International Financial<br \/>\nReporting Standards (IFRS) will replace Canada\u2019s<br \/>\ncurrent Generally Accepted Accounting Principles<br \/>\n(or GAAP) for publicly accountable profit-ori-<br \/>\nented enterprises. In other words, December 31,<br \/>\n2010 will be the last day of financial reporting<br \/>\nunder Canadian GAAP for many organizations.  <\/p>\n<p>IFRS adoption in Canada brings with it a<br \/>\npotential for significant amounts of real prop-<br \/>\nerty valuation and consulting work, starting as<br \/>\nearly as 2009. Some proponents suggest this<br \/>\nwill be the largest ever one-time increase in the<br \/>\nreal property valuation sector, bigger than capi-<br \/>\ntal gains valuation day back in 1972. entities<br \/>\npreparing for IFRS in 2011 will begin securing<br \/>\nvaluation services in 2009 \u2013 meaning appraisal<br \/>\nfirms that are ready, willing, and able to take on<br \/>\nIFRS-related work will likely experience a major<br \/>\nexpansion in scope of work very soon.<\/p>\n<p>This course will answer questions about the<br \/>\nimpact on the appraisal community with the<br \/>\ncoming adoption of IFRS. The primary audi-<br \/>\nence for this course is active members of the <\/p>\n<p>Spotlight on continuing<br \/>\nprofessional development <\/p>\n<p>I<\/p>\n<p>AIC, who practice in the field of industrial,<br \/>\ncommercial, and investment (IC&#038;I) property<br \/>\nvaluation and consulting. It will examine<br \/>\npotential valuation opportunities arising from<br \/>\nthe adoption of IFRS in Canada, looking at<br \/>\nboth a best case and conservative scenario.<br \/>\nWill it be a new golden age for appraisers or<br \/>\nbusiness as usual?   <\/p>\n<p>The course outlines opportunities and<br \/>\nthreats from IFRS:<br \/>\n\u2022\t A\tvirtual\ttidal\twave\tof\tvaluation-related\t<\/p>\n<p>work coming very soon.<br \/>\n\u2022\t Unprecedented\topportunity\tfor\texpansion\t<\/p>\n<p>of client base and services offered.<br \/>\n\u2022\t If\tthere\tare\tinsufficient\tappraisers\tto\tfulfill\t<\/p>\n<p>the demand, the work will have to be<br \/>\ndone by someone&#8230;if not AIC members,<br \/>\nthen who?<\/p>\n<p>\u2022\t What\tcan\tindividual\tappraisers\tand\tthe\tAIC<br \/>\ndo to take advantage of this opportunity<br \/>\nand avoid these threats? <\/p>\n<p>Learning Advisory<\/p>\n<p>The conclusion is there may be a significant<br \/>\nshortfall in appraiser capacity to meet this demand.<br \/>\nThe appraisal profession faces a significant oppor-<br \/>\ntunity, but to seize this opportunity it must start<br \/>\npreparing for IFRS now! If the appraisal profession<br \/>\ncannot meet the initial and ongoing demand for<br \/>\nIFRS valuation services, others will.<\/p>\n<p>The lesson closes with a series of opinions from<br \/>\nvaluation professionals who are currently prepar-<br \/>\ning for IFRS. These valuation professionals share <\/p>\n<p>their views on the business opportunities,<br \/>\nchallenges, and practice issues <\/p>\n<p>appraisers may face in<br \/>\nthe next two years, as <\/p>\n<p>Canadian business and govern-<br \/>\nment prepare for the transition to IFRS.  <\/p>\n<p>We caution that students completing this<br \/>\nintroductory course will not suddenly be consid-<br \/>\nered experts in this specialized field of practice.<br \/>\nLooking beyond, the UBC Real estate Division and<br \/>\nthe Appraisal Institute of Canada plan to develop<br \/>\nadditional learning materials on this subject when<br \/>\nmore information becomes available on IFRS imple-<br \/>\nmentation in Canada. For example, we will develop<br \/>\na series of case studies illustrating the practical<br \/>\napplication of new and adaptive valuation processes<br \/>\nto meet the requirements for financial reporting of<br \/>\nreal estate values.  <\/p>\n<p>CPD 126:  Getting to Green<br \/>\n\u2013 Energy Efficient and Sustain-<br \/>\nable Housing<br \/>\nInterest in green residential construction is growing<br \/>\nrapidly, spurred on by rising fuel prices combined<br \/>\nwith a growing interest in mitigating climate<br \/>\nchange. Homeowners, feeling the impact of high<br \/>\nenergy bills, are looking for ways to control their<br \/>\nown energy consumption \u2013 energy efficient \u2018green<br \/>\nhomes\u2019 are well-placed to fill this niche.  <\/p>\n<p>By John Bridal, Manager, Program Development, Real estate Division (ReD)<br \/>\nSauder School of Business, University of British Columbia<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 29<\/p>\n<p>Describing a property as \u2018green\u2019 can mean dif-<br \/>\nferent things to different people. For most, \u2018green\u2019<br \/>\nimplies \u2018environmentally friendly.\u2019 For others,<br \/>\n\u2018green\u2019 is interchangeable with \u2018sustainable,\u2019 \u2018high<br \/>\nperformance,\u2019 or \u2018energy-efficient.\u2019 This course will<br \/>\ndiscuss a variety of features that contribute to resi-<br \/>\ndential structures being considered \u2018green,\u2019 includ-<br \/>\ning a variety of measures established by third-party<br \/>\nrating organizations and legislating bodies.  <\/p>\n<p>The goal of this course is to help consumers,<br \/>\nreal estate professionals, and government \u2018get to<br \/>\ngreen,\u2019 by which we mean recognizing the ben-<br \/>\nefits of energy efficient and sustainable real estate<br \/>\nand then pursuing these benefits. Our definition of<br \/>\na model green building is one that is energy-effi-<br \/>\ncient, water-efficient, designed for healthy living,<br \/>\nconstructed of low-impact materials that do not<br \/>\ncompromise the building\u2019s durability or perfor-<br \/>\nmance, is accessible to amenities, and is protective<br \/>\nof the local ecosystems. A green building is in<br \/>\nharmony with its occupants and its environment<br \/>\nsuch that it:<\/p>\n<p>\u2022\t provides\ta\thealthy\tindoor\tliving\tenvironment;<br \/>\n\u2022\t allows\tample\tfresh\tair\tand\tnatural\tlight;<br \/>\n\u2022\t is\tdesigned\tto\ttake\tadvantage\tof\tnatural\t<\/p>\n<p>resources such as solar or geothermal heat,<br \/>\nnatural airflow patterns, or rainwater;<\/p>\n<p>\u2022\t uses\tsignificantly\tless\tenergy\tand\twater\tthan<br \/>\ntypical homes; and<\/p>\n<p>\u2022\t requires\tminimal\tcare\tand\tmaintenance.<\/p>\n<p>A significant proportion of a building\u2019s \u2018green-<br \/>\nness\u2019 derives from its construction and building<br \/>\nsystems, so the course focuses on Building Science<br \/>\n101, explaining exactly how the components of a<br \/>\nhome work together to control the flow of air, heat,<br \/>\nand moisture to maintain healthy indoor environ-<br \/>\nments. Green construction practices and building<br \/>\nfeatures aim for a residence that is built with fewer<br \/>\nnon-renewable resources, disrupts fewer natural<br \/>\nsystems, and uses less energy and water in its final<br \/>\noperations. Topics explored include:<br \/>\n1. energy-efficiency<br \/>\n2.  Water-efficiency<\/p>\n<p>3.  Low-impact, durable building materials<br \/>\n4.  Form and function for healthy living<br \/>\n5.  Access to amenities<br \/>\n6.  Protection of local ecosystems<\/p>\n<p>The course concludes by investigating<br \/>\neconomic, governmental, and other market<br \/>\nmechanisms that are driving the green building<br \/>\nmarket forward, while also examining chal-<br \/>\nlenges and barriers to this burgeoning industry.<br \/>\nIt appears building green is finally entrenched in<br \/>\nCanada and on the cusp of rapid expansion. The<br \/>\nbusiness model incorporates a shift in evaluation<br \/>\nsystems from single to triple bottom line factors<br \/>\n(economic, social, and environmental) and from<br \/>\nshort-term to long-term cost analysis. The course<br \/>\nwill examine tools for advancing green building<br \/>\ntechnologies and success stories world-wide that<br \/>\ndemonstrate the potential for a greener future.<\/p>\n<p>For more information on these and other UBC<br \/>\nCPD offerings, you may wish to visit our website:<br \/>\nwww.realestate.ubc.ca\/cpd. <\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents30<\/p>\n<p>http:\/\/www.realestate.ubc.ca\/cpd<br \/>\nhttp:\/\/www.thepersonal.com\/aicanada<\/p>\n<p>notice of annual<br \/>\ngeneral meeting<br \/>\nAppraisal Institute of Canada AGM 2009<br \/>\nFairmont Mont tremblant Hotel  |  Mont tremblant, Quebec<br \/>\nSaturday, May 30, 2009<\/p>\n<p>avis d\u2019assembl\u00e9e<br \/>\ng\u00e9n\u00e9rale annuelle<br \/>\nInstitut canadien des \u00e9valuateurs, AGA 2009<br \/>\nH\u00f4tel Fairmont Mont tremblant  | Mont tremblant, Qu\u00e9bec<br \/>\nsamedi, le 30 mai, 2009<\/p>\n<p>Agenda<br \/>\n1. To confirm the minutes of the June 6, 2008 AGM.<br \/>\n2. To receive reports<br \/>\n a)  President<br \/>\n b)  Management<br \/>\n c)  AIC committee reports<br \/>\n3. To receive audited financial statements for the past year and <\/p>\n<p>appoint auditors for the forthcoming year.<br \/>\n4.   To elect the Board of Directors of the Appraisal Institute of Canada.<br \/>\n5. To consider AIC By-law revisions as presented by the Board of <\/p>\n<p>Directors.<br \/>\n6.  To consider resolutions submitted in accordance with the By-laws.<br \/>\n7.  To consider all other business as may properly come before  <\/p>\n<p>the meeting.<\/p>\n<p>Note: Designated members have the right to vote by proxy. <\/p>\n<p>ordre du jour<br \/>\n1. Approbation du proc\u00e8s-verbal de l\u2019AGA du 6 juin 2008.<br \/>\n2. Pr\u00e9sentation des rapports<br \/>\n a)  du Pr\u00e9sident<br \/>\n b)  de la direction<br \/>\n c)  des comit\u00e9s de l\u2019ICe<br \/>\n3. Pr\u00e9sentation des \u00e9tats financiers v\u00e9rifi\u00e9s du dernier exercice et <\/p>\n<p>nomination des v\u00e9rificateurs pour le prochain exercice.<br \/>\n4. \u00c9lection des membres du Conseil d\u2019administration de l\u2019Institut <\/p>\n<p>canadien des \u00e9valuateurs.<br \/>\n5.   examen des modifications aux r\u00e8glements de l\u2019ICe, telles que <\/p>\n<p>pr\u00e9sent\u00e9es par le Conseil d\u2019administration national (CAn).<br \/>\n6. examen des r\u00e9solutions pr\u00e9sent\u00e9es conform\u00e9ment aux r\u00e8glements.<br \/>\n7. \u00c9tude de tous les autres points d\u00fbment pr\u00e9sent\u00e9s \u00e0 l\u2019Assembl\u00e9e. <\/p>\n<p>Note : les membres agr\u00e9\u00e9s ont le droit de voter par procuration.  <\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 31<\/p>\n<p>L\u2019Association du Qu\u00e9bec de l\u2019Institut Canadien<br \/>\ndes \u00c9valuateur [AQICe] is very pleased<br \/>\nand proud to be hosting the 2009 annual<br \/>\nconference in Mont-Tremblant, Qu\u00e9bec.<\/p>\n<p>The 2009 conference presents<br \/>\ndelegates with the opportunity to engage<br \/>\nin stimulating professional development<br \/>\nprograms in striking surroundings. The<br \/>\nOrganizing Committee has created an<br \/>\neducational program built on three<br \/>\nessential pillars \u2013 education, experience,<br \/>\nand high standards.  <\/p>\n<p>The 2009 conference presents a unique<br \/>\nopportunity for members from coast to<br \/>\ncoast to examine trends and innovation<br \/>\nin the Quebec real property milieu, as<br \/>\nwell as the national scene. The diversity<br \/>\nof the program is intended to reflect the <\/p>\n<p>Appraisal Institute of Canada <\/p>\n<p>2009 Annual Conference<br \/>\nFairmont Hotel Mont-tremblant May 27 \u2013 30, 2009<\/p>\n<p>diversity of AIC members and the schedule<br \/>\nwill feature a mix of well known speakers,<br \/>\npanel discussions and tours with a Qu\u00e9becois<br \/>\nflavour. LeeD and Green Certification, the<br \/>\nimplications of IFRS, and the impact of<br \/>\nglobal economic developments are all<br \/>\non the agenda, along with informative<br \/>\nsessions on marketing and Human Resource<br \/>\nmanagement, as well as new approaches to<br \/>\ntraditional valuation topics. <\/p>\n<p>Do not miss this opportunity to<br \/>\nvisit one of Canada\u2019s most picturesque<br \/>\ncommunities. Mont-Tremblant, Qu\u00e9bec is<br \/>\nknown world over as a beautiful resort area<br \/>\noffering fantastic local eateries; cultural<br \/>\nentertainment; and stunning scenery. Start<br \/>\nyour travel planning now; book early to<br \/>\nensure your accommodation requirements <\/p>\n<p>are guaranteed. The Mont-Tremblant area is<br \/>\nlocated north of Ottawa and Montreal and<br \/>\noffers tourists the opportunity to visit both<br \/>\nOntario and Quebec communities. If you plan<br \/>\nto do some sightseeing, we recommend that<br \/>\nyou book your car as soon as possible. visit<br \/>\nhttp:\/\/www.aicanada.ca\/e\/aboutaic_events_<br \/>\ncon2009.cfm for accommodation, car rental,<br \/>\nand tourist attractions. Come and join us in<br \/>\n\u201cla belle province.\u201d<\/p>\n<p>AIC has arranged for shuttles to transport<br \/>\nattendees from the Pierre elliott Trudeau<br \/>\nAirport in Montreal to and from Mont-Trem-<br \/>\nblant. More details to follow!<\/p>\n<p>Laurent Brosseau, AACI, P. App<br \/>\nConference Chair<\/p>\n<p>The Appraisal Institute of Canada \u2013 Quebec <\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents32<\/p>\n<p>http:\/\/www.aicanada.ca\/e\/aboutaic_events_con2009.cfm<\/p>\n<p>Conf\u00e9rence Annuelle 2009<br \/>\nde l\u2019Institut canadien des \u00e9valuateurs<br \/>\nH\u00f4tel Fairmont Mont-tremblant du 27 au 30 mai 2009<\/p>\n<p>C\u2019est avec fiert\u00e9 et grand plaisir que l\u2019Association<br \/>\ndu Qu\u00e9bec de l\u2019Institut canadien des \u00e9valuateurs<br \/>\n[AQICe] vous invite \u00e0 la conf\u00e9rence annuelle 2009<br \/>\nau Mont-Tremblant, Qu\u00e9bec.<\/p>\n<p>La conf\u00e9rence 2009 permettra aux d\u00e9l\u00e9gu\u00e9s<br \/>\nde participer \u00e0 des programmes stimulants de<br \/>\nperfectionnement professionnel dans un milieu<br \/>\nsans pareil. Le comit\u00e9 organisateur a \u00e9labor\u00e9 un<br \/>\nprogramme p\u00e9dagogique qui prend appui sur les<br \/>\ntrois piliers du professionnalisme, soit l\u2019\u00e9ducation,<br \/>\nl\u2019exp\u00e9rience et des normes \u00e9lev\u00e9es. <\/p>\n<p>La conf\u00e9rence 2009 permettra \u00e9galement<br \/>\naux membres de tous les coins du pays de se<br \/>\npencher sur les tendances et l\u2019innovation dans le<br \/>\nsecteur de l\u2019immobilier au Qu\u00e9bec, ainsi que sur<br \/>\nla sc\u00e8ne nationale. La diversit\u00e9 du programme<br \/>\nvise \u00e0 refl\u00e9ter la diversit\u00e9 des membres de l\u2019ICe et<br \/>\nle programme met en vedette des conf\u00e9renciers <\/p>\n<p>r\u00e9put\u00e9s, des discussions de groupes et des tourn\u00e9es<br \/>\n\u00e0 saveur purement qu\u00e9b\u00e9coise. Le programme<br \/>\nd\u2019\u00e9valuation LeeD, la certification des b\u00e2timents<br \/>\ndurables, les cons\u00e9quences des nIRF et l\u2019impact des<br \/>\nd\u00e9veloppements \u00e9conomiques \u00e0 l\u2019\u00e9chelle du monde<br \/>\nsont tous \u00e0 l\u2019ordre du jour, ainsi que des s\u00e9ances<br \/>\nd\u2019information sur la gestion du marketing et des<br \/>\nressources humaines et les nouvelles approches aux<br \/>\nsujets traditionnels portant sur l\u2019\u00e9valuation. <\/p>\n<p>ne ratez pas cette occasion de visiter l\u2019une des<br \/>\ncollectivit\u00e9s les plus pittoresques du Canada. La<br \/>\nr\u00e9gion du Mont-Tremblant au Qu\u00e9bec est reconnue<br \/>\nde par le monde comme centre touristique o\u00f9 l\u2019on<br \/>\nretrouve des \u00e9tablissements culinaires in\u00e9gal\u00e9s,<br \/>\nune grande diversit\u00e9 culturelle et un paysage qui<br \/>\nvous coupera le souffle. Commencez \u00e0 planifier<br \/>\nvotre s\u00e9jour avec nous d\u00e8s maintenant. Il faut<br \/>\nr\u00e9server t\u00f4t pour garantir votre h\u00e9bergement.  <\/p>\n<p>Le parc du Mont-Tremblant est nord localis\u00e9<br \/>\nd\u2019Ottawa et de Montr\u00e9al et offre donc aux<br \/>\ntouristes l\u2019occasion de visiter des collectivit\u00e9s \u00e0 la<br \/>\nfois ontariennes et qu\u00e9b\u00e9coises. Si vous pr\u00e9voyez<br \/>\nvisiter la r\u00e9gion, nous vous recommandons de<br \/>\nr\u00e9server votre voiture dans les meilleurs d\u00e9lais.<br \/>\nPour de l\u2019information sur l\u2019h\u00e9bergement, la<br \/>\nlocation de voitures et les attractions touristiques,<br \/>\nveuillez consulter l\u2019adresse http:\/\/www.aicanada.<br \/>\nca\/e\/aboutaic_events_con2009.cfm. Joignez-<br \/>\nvous \u00e0 nous dans la \u00ab la belle province \u00bb.<\/p>\n<p>L\u2019ICe a fait des arrangements pour le trans-<br \/>\nport en navette aller-retour des participants entre<br \/>\nl\u2019a\u00e9roport Pierre elliott Trudeau de Montr\u00e9al et le<br \/>\nMont-Tremblant. Plus de d\u00e9tails \u00e0 suivre!<\/p>\n<p>Laurent Brosseau, AACI, P.App<br \/>\nPr\u00e9sident de la conf\u00e9rence <\/p>\n<p>L\u2019Association du Qu\u00e9bec de l\u2019Institut Canadien des \u00c9valuateurs (AQICE)<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 33<\/p>\n<p>http:\/\/www.aicanada.ca\/e\/aboutaic_events_con2009.cfm<\/p>\n<p>he introduction of our Canadian Uniform<br \/>\nStandards of Professional Appraisal Prac-<br \/>\ntice (CUSPAP) states that the Standards <\/p>\n<p>meet the sponsor criteria of the Appraisal Founda-<br \/>\ntion in their international membership category,<br \/>\nand endorse the International Valuation Standards<br \/>\n(IVS) as an authority promoting world-wide<br \/>\nacceptance of standards for property valuation.1<br \/>\nThe purpose of this article is to introduce the<br \/>\nmost recent edition of the International Valuation<br \/>\nStandards and compare it to our Standards.<\/p>\n<p>The eighth edition of IVS (2007) is a docu-<br \/>\nment that contains 462 pages. Almost 65% of<br \/>\nthe IVS book is dedicated to Guidance notes,<br \/>\nwhich are designed to amplify the fundamentals<br \/>\nof valuation so that they may be better under-<br \/>\nstood.2  By comparison, the current 2008-2009<br \/>\nedition of Uniform Standards of Professional<br \/>\nAppraisal Practice (USPAP) has 95 pages plus<br \/>\nAdvisory Opinions and FAQs. Our Standards<br \/>\ncontain only 62 pages, including Practice notes<br \/>\nand definitions. However, note that USPAP has<br \/>\n39 individual appraisal reporting rules,3 plus<br \/>\nan additional 24 appraisal development rules,4<br \/>\nwhereas our Standards have 27 appraisal stan-<br \/>\ndards rules. The real property valuation reporting<br \/>\nstandards of IVS contain only 17 reporting rules.5<\/p>\n<p>The IVS document is broken down into nine<br \/>\nareas (plus an index) briefly summarized as follows:<\/p>\n<p>Introduction (Pages 1-18)<br \/>\nHere, the objective and scope of IVS state<br \/>\nthat the development of the standards have<br \/>\nbeen guided by the objectives of facilitating<br \/>\ncross-border transactions and to contribute to<br \/>\nthe viability of international property markets<br \/>\nby promoting the reliability of valuations<br \/>\nperformed to secure loans and mortgages, for<br \/>\ntransfer of ownership and for settlement in <\/p>\n<p>Primer on<br \/>\nInternational Valuation Standards<\/p>\n<p>T litigation or tax matters. These concepts are familiar to our members in their day to day activities. In addition, however,<br \/>\nthe IVS looks to provide rules and<br \/>\nguidelines for appraising as it<br \/>\nrelates to the emergence of<br \/>\nnew financial reporting rules,<br \/>\nsomething that our Standards<br \/>\ncurrently do not address.<\/p>\n<p>Concepts<br \/>\nfundamental to<br \/>\nGenerally Accepted<br \/>\nValuation Principles<br \/>\n(GAVP) (Pages 19-34)<br \/>\nThe concepts referred to are<br \/>\nuniversal and are the basis for the<br \/>\nStandards, Applications and Guidance<br \/>\nnotes. This section addresses these various<br \/>\nconcepts including land, property, real estate,<br \/>\nassets, price, costs, value, highest and best use,<br \/>\nutility, etc. The section also provides overviews of<br \/>\nthe various valuation approaches.<\/p>\n<p>Code of Conduct (Pages 35-45)<br \/>\nAs with our own Ethical Standard Rules, the IVS<br \/>\nrecognizes that valuations should be provided<br \/>\nby honest and competent people, the Code of<br \/>\nConduct deals specifically with ethics (integrity,<br \/>\nconflicts of interest, confidentiality and impartial-<br \/>\nity) competence, and disclosure.<\/p>\n<p>Property types (Pages 46-64)<br \/>\nRecognizing that appraisers often encounter<br \/>\nassignments involving various property types,<br \/>\nIVS provides the distinguishing characteristics<br \/>\nof real property as well as other categories of<br \/>\nproperty, namely personal property, businesses<br \/>\nand financial interests. <\/p>\n<p>Introduction<br \/>\nto the Standards (Pages 65-72)<br \/>\nThis section discusses differences between<br \/>\nmarket value basis and bases other than market<br \/>\nvalue. The concepts of utility, scarcity, desire,<br \/>\npurchasing power, supply, demand, price, cost<br \/>\nand value are briefly discussed.<\/p>\n<p>Standards (Pages 73-104)<br \/>\nThis section contains the rules divided into<br \/>\nmarket value (Standard 1), bases other than<br \/>\nmarket value (Standard 2) and reporting<br \/>\nrequirements (Standard 3). These three Stan-<br \/>\ndards serve as the foundation for international<br \/>\nvaluation applications, which deal with the<br \/>\napplication of valuation for financial reporting<br \/>\nand lending.<\/p>\n<p>By Ray Bower, AACI, P. App., Chair, Standards Committee<br \/>\nStandards<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents34<\/p>\n<p>Standards Committee<br \/>\nRay Bower, AACI, P. App. &#8211; Chair<br \/>\nIain Hyslop, AACI, P. App.<br \/>\nBrian varner, AACI, P. App.<br \/>\nChris Perret, AACI, P. App.<br \/>\nGeorge Ward, AACI, P. App.<br \/>\nTo contact this committee email:<br \/>\nstandards@aicanada.ca<\/p>\n<p>Applications (Pages 105-162)<br \/>\nThe application of both private and public sector<br \/>\nasset valuation to financial statements or related<br \/>\naccounts and to decisions involving loan or<br \/>\nmortgage security is described.<\/p>\n<p>Guidance Notes (Pages 163-328)<br \/>\nThere are 15 topics covered in this section  that<br \/>\ndeal with subjects such as the valuation of lease<br \/>\ninterests, plant and equipment, intangible assets,<br \/>\npersonal property, businesses, agricultural prop-<br \/>\nerties, mines, trade related properties and historic<br \/>\nproperties; consideration of hazardous and toxic<br \/>\nsubstances; the cost approach; discounted cash<br \/>\nflow; reviewing valuations; and mass appraisal<br \/>\nfor property taxation.  <\/p>\n<p>Glossary (Pages 329-424)<br \/>\nThe glossary provides a summary of all terms<br \/>\ndefined in the Standards, Applications and Guid-<br \/>\nance notes<\/p>\n<p>Index (Pages 427-462)<br \/>\nThe three principle elements of IVS are the Stan-<br \/>\ndards, Applications and Guidance notes. All are<br \/>\ngiven equal weight and all valuations prepared<br \/>\nin compliance with IVS must conform to the<br \/>\nprinciples and procedures elaborated throughout<br \/>\nthe entire document.6<\/p>\n<p>Ethics Standards Rules\/<br \/>\nCode of Conduct<br \/>\nThe preamble to our Ethics Standards Rules<br \/>\nstates that members of the Institute pledge<br \/>\nto conduct themselves in a manner that is not<br \/>\ndetrimental to the public, the Institute, or real<br \/>\nproperty appraisal profession. Members\u2019 rela-<br \/>\ntionships with other members and the Institute<br \/>\nshall portray courtesy and good faith and show <\/p>\n<p>respect for the Institute and its procedures.7<br \/>\nThe introduction to the IVS Code of Conduct<br \/>\nstates that it is fundamental to the operations<br \/>\nof IVS that valuations performed in compliance<br \/>\ntherewith should be provided by honest and<br \/>\ncompetent professional valuers, free of bias or<br \/>\nself-interest, whose reports are clear, will not<br \/>\nmislead, and will disclose all matters essential<br \/>\nto the proper understanding of the report.<br \/>\nvaluers should always promote and preserve<br \/>\npublic trust in the valuation profession.8 <\/p>\n<p>Our current Ethics Standard Rules are more<br \/>\nAIC specific than the Code of Conduct of IVS in<br \/>\nthat ours deal with issues such as adherence to<br \/>\nthe Institute Bylaws, Regulations, Professional<br \/>\nLiability Insurance Program, AIC cooperation<br \/>\nand the Continuing Professional Development<br \/>\nprogram. Certain concepts are common to both<br \/>\nsets of rules, such as acting in a misleading or<br \/>\nfraudulent way, failing to reveal a conflict of<br \/>\ninterest and contingent reporting, however,<br \/>\nthe IVS Code of Conduct adds certain rules not<br \/>\ncovered in our Standards. For example, IVS<br \/>\nrules require that a valuer shall ensure that any<br \/>\nstaff person or subordinate assisting with the<br \/>\nassignment adhere to the Code of Conduct.9<br \/>\nHowever, arguably this situation could be<br \/>\ncovered under our Comments regarding both<br \/>\nassistance and responsibility. <\/p>\n<p>The IVS rules also are somewhat more<br \/>\nspecific than ours when it comes to the use of<br \/>\nhypothetical conditions wherein IVS requires<br \/>\nthat such hypothetical conditions must be a<br \/>\n\u2018reasonable possibility\u2019 and that there must be<br \/>\nsome discussion both of the prospect of realiz-<br \/>\ning the hypothesis and a consideration of value<br \/>\nthat reflects the true situation prevailing.10<br \/>\nAgain, arguably this situation could be resolved<br \/>\nthrough our \u2018reasonable appraiser\u2019 concept.<\/p>\n<p>One of the more interesting conduct<br \/>\nrules of IVS states that a valuer should act<br \/>\npromptly and efficiently in carrying out the<br \/>\nclient\u2019s instructions and should keep the client<br \/>\ninformed of the valuer\u2019s progress.11 This may<br \/>\ncreate concern for our busy members.<\/p>\n<p>At the end of the day, the Conduct Rules of<br \/>\nIVS are not all that unfamiliar. As professionals<br \/>\nand members of society, all we really need is<br \/>\none ethical rule that simply states \u201cbe ethical,\u201d<br \/>\nhowever, the guidance provided by both our<br \/>\nrules and the IVS rules do indeed assist in<br \/>\nclarifying those grey areas and delicate situa-<br \/>\ntions that often present themselves.<\/p>\n<p>In the next edition, I will continue with the<br \/>\nIVS primer and attempt to briefly compare the<br \/>\nAppraisal Standard Rules with those of IVS. <\/p>\n<p>End notes<br \/>\n1 CUSPAP \u2013 April 2008 (Page i)<br \/>\n2  IVS, 8th edition \u2013 2007 (Page 165)<br \/>\n3 USPAP \u2013 2008-2009 edition \u2013 Standard 2<br \/>\n4 USPAP \u2013 2008-2009 edition \u2013 Standard 1<br \/>\n5 IVS, 8th edition \u2013 2007 (Pages 97-104)<br \/>\n6 IBID (Page 12)<br \/>\n7 CUSPAP \u2013 April 2008 (Page3)<br \/>\n8 IVS, 8th edition \u2013 2007 (Page 37)<br \/>\n9 IVS, 8th edition \u2013 2007 (4.1.7 &#8211; Page 40)<br \/>\n10 IVS, 8th edition \u2013 2007 (4.4.7 &#8211; Page 41)<br \/>\n11 IVS, 8th edition \u2013 2007 (5.3.1 &#8211; Page 42)<\/p>\n<p>\u201cThe guidance provided by both our rules and the IVS rules do indeed assist in<br \/>\nclarifying those grey areas and delicate situations that often present themselves.\u201d<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 35<\/p>\n<p>mailto:standards@aicanada.ca<\/p>\n<p>ccording to CUSPAP, hypothetical<br \/>\nconditions may be used when they are<br \/>\nrequired for legal purposes, purposes <\/p>\n<p>of reasonable analysis, or purposes of comparison.<br \/>\nThe most common hypothetical conditions are uti-<br \/>\nlized for appraisal reports, which include proposed<br \/>\nimprovements. For every hypothetical condition, an<br \/>\nextraordinary assumption is required.  <\/p>\n<p>A common example for a residential appraisal<br \/>\nreport could be as simple as follows:<\/p>\n<p>On the date of inspection, the single-family<br \/>\nresidence as described herein was at the fram-<br \/>\ning stage of construction. In order to facilitate<br \/>\nbuilder mortgage financing, I have completed my<br \/>\nanalysis under the extraordinary assumption and<br \/>\nhypothetical condition that the residence was<br \/>\nalready completed and ready for occupancy.   <\/p>\n<p>Generally, these types of assignments appear to<br \/>\nbe well done; the Investigating Committee (IC) has<br \/>\nnot seen many residential construction mortgage<br \/>\nfinancing report complaints. That being said, given<br \/>\nthe downturn in the economy, builders undoubt-<br \/>\nedly may walk away from partially completed<br \/>\nprojects. now is the time to ensure that, when<br \/>\nwriting this type of report and completing building<br \/>\nconstruction appraisals and progress inspection<br \/>\nreports, care is taken to provide a greater level of<br \/>\ndetail with respect to extraordinary assumptions<br \/>\nand hypothetical conditions.  <\/p>\n<p>As a member of the IC, I have reviewed<br \/>\nseveral reports where it became evident that<br \/>\nthere would likely have been no valid basis for a<br \/>\nsubstantive complaint against the appraiser had<br \/>\nthe writer made it clear throughout the report<br \/>\nthat he was using well thought out extraordinary<br \/>\nassumptions and hypothetical conditions.  <\/p>\n<p>While completing investigation assignments,<br \/>\nI have seen that appraisers often find themselves<br \/>\nwith the daunting task of completing an appraisal <\/p>\n<p>on a unique or challenging property. Typically,<br \/>\nthese assignments take a longer period to<br \/>\ncomplete and the appraiser, faced with tighten-<br \/>\ning tight time constraints, perhaps either omits or<br \/>\nmakes only cursory reference to an extraordinary<br \/>\nassumption and hypothetical condition.  <\/p>\n<p>It has been the consensus of IC members<br \/>\nthat, at a minimum, these statements should be<br \/>\nincluded in the letter of transmittal (if used), at<br \/>\nthe certification page, and every place where the<br \/>\nvalue estimate is indicated. In addition, it is often<br \/>\nbest to provide the details of the extraordinary<br \/>\nassumptions and hypothetical conditions within<br \/>\nthe property description and highest and best<br \/>\nuse sections of the report.  <\/p>\n<p>For example, consider a property that is a<br \/>\nsegment of a larger parent property. One way<br \/>\nto handle this type of assignment would be to<br \/>\nprovide a detailed explanation in the property<br \/>\ndescription as follows:<\/p>\n<p>On the date of inspection, the subject 3.5-<br \/>\nacre parcel was part of a larger parent property<br \/>\nhaving a site area of 10.75 acres. In order to facili-<br \/>\ntate first mortgage financing, I have completed<br \/>\nmy analysis under the extraordinary assumption<br \/>\nand hypothetical condition that the 3.5-acre<br \/>\nparcel land has been subdivided from the parent<br \/>\nproperty and has its own marketable title.<br \/>\nDocumentation provided by the local municipal-<br \/>\nity confirmed that the proposed subdivision of<br \/>\nthe subject property will be approved subject<br \/>\nto installation of services and road works as<br \/>\noutlined herein.  <\/p>\n<p>This explanation could be repeated or<br \/>\npartially repeated in other appropriate places<br \/>\nthroughout the report with additional notifica-<br \/>\ntions at the letter of transmittal, certification<br \/>\npage, and any other place where the value<br \/>\nestimate is noted.  <\/p>\n<p>By Doyle Childs, AACI, P. App., Member, Investigating Committee<\/p>\n<p>Use of extraordinary assumptions<br \/>\nand hypothetical conditions<\/p>\n<p>Investigating<\/p>\n<p>A When using hypothetical conditions, it is imperative that assumed hypothetical condi-tion is reasonable and probable. expanding<br \/>\non the example of a request for valuation of<br \/>\na 3.5-acre site that is to be subdivided from a<br \/>\n10.75-acre property; if the appraiser discov-<br \/>\nered that the zoning would not permit the<br \/>\nproposed subdivision, this assumption should<br \/>\nnot be used.  <\/p>\n<p>It is important to be specific, because a<br \/>\nreader who is relying upon the report can be<br \/>\nmisled. Taking the time to complete a well-<br \/>\nworded report, including properly addressing<br \/>\nextraordinary assumptions and hypothetical<br \/>\nconditions, is a relatively simple and painless<br \/>\nway to avoid a confrontation and a potential<br \/>\ncomplaint against you in the future.  <\/p>\n<p>While working on the IC, it has become<br \/>\nevident to me that the majority of members<br \/>\nare providing professional valuation consulting<br \/>\nservices with a high level of integrity. I believe<br \/>\nthat, with the constructive efforts of our com-<br \/>\nmittee, we can improve the level of service to<br \/>\nall AIC member clients. <\/p>\n<p>Investigating Committee<br \/>\nJohn Hutchinson, AACI, P. App. \u2013 Chair<br \/>\nSheldon Rajesky, AACI, P. App<br \/>\nMichael Lee, AACI, P. App<br \/>\nTrent Gelmici, AACI, P. App<br \/>\nMike Schulkowsky, AACI, P. App<br \/>\nDoyle Childs, AACI, P. App<br \/>\nStan Jugovic, AACI, P. App<br \/>\nDarrell Thorvaldson, AACI, P. App<br \/>\nJane Kulyk, CRA<br \/>\nGerry Gehlen, AACI, P. App<br \/>\nTo contact this committee, email<br \/>\ninvestigating@aicanada.ca<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents36<\/p>\n<p>mailto:investigating@aicanada.ca<\/p>\n<p>Limiting assignments to your<br \/>\nscope of training and expertise<\/p>\n<p>ases coming before the Adjudicating<br \/>\nCommittee (AC) involve a variety of<br \/>\nissues and circumstances which keep <\/p>\n<p>our task challenging and interesting. However,<br \/>\nsome problems seem to occur more frequently<br \/>\nthan others, leaving the impression that certain<br \/>\nmessages are not getting out to the membership<br \/>\nor are simply being ignored by a select few.<\/p>\n<p>Leading the way is the problem of CRAs<br \/>\ncompleting assignments beyond the scope of<br \/>\nthe training and expertise associated with their<br \/>\ndesignation, without the benefit of a co-signature<br \/>\nfrom an AACI. Here are some examples of cases<br \/>\ncoming before the AC:<\/p>\n<p>CRA appraising<br \/>\na commercial property<br \/>\nSome cases are much clearer than others:<br \/>\nCase 1 \u2013 A CRA undertook an appraisal of what<br \/>\nwas described in the report as commercial prem-<br \/>\nises with accommodation above. The property<br \/>\nconsisted of a 10,000 square foot garden centre<br \/>\nand related greenhouses, with a four-bedroom<br \/>\nresidence on the second level.<\/p>\n<p>A cost approach and income approach were<br \/>\nutilized in the property valuation. With the<br \/>\nincome approach, the member elected to capital-<br \/>\nize the income from the business as opposed<br \/>\nto rental income from the property and derived<br \/>\na capitalization rate by \u201ccontacting a couple of<br \/>\ncommercial appraisers from outside the area.\u201d<br \/>\nThe report was not co-signed by an AACI.<\/p>\n<p>There were a number of other ethics and<br \/>\nstandards violations, but the key issues involved<br \/>\na CRA valuing what is clearly a commercial prop-<br \/>\nerty without the benefit of a co-signature. The<br \/>\ninexperience with the property type led to the<br \/>\nemployment of incorrect valuation methodology.<\/p>\n<p>The AC imposed a discipline of Censure with <\/p>\n<p>C<\/p>\n<p>By John Ingram, AACI, P. App., Member, Adjudicating Committee<br \/>\nAdjudicating<\/p>\n<p>publication in the AIC\u2019s Communiqu\u00e9 and Cana-<br \/>\ndian Property Valuation magazine, as well as costs<br \/>\nand an educational discipline.<\/p>\n<p>Some cases are a bit more subtle:<br \/>\nCase 2 \u2013 A CRA completed an appraisal of what<br \/>\nwas contended to be a duplex, with no evidence of a<br \/>\ncommercial use of the property. Closer examination<br \/>\nof the report suggests the contrary. The property<br \/>\nhad a commercial zoning designation, the neigh-<br \/>\nbourhood was characterized as commercial\/resi-<br \/>\ndential, the assessment designation for the property<br \/>\nwas commercial, and the building description identi-<br \/>\nfied the main level room allocation as \u2018store front\u2019<br \/>\nand included the comment \u201ccarpeted store front<br \/>\nfor commercial\/apartment use.\u201d The property had<br \/>\nbeen listed on the market extolling the commercial<br \/>\npotential. The report was not co-signed by an AACI.<\/p>\n<p>The AC imposed a discipline of Censure with<br \/>\npublication in Communiqu\u00e9, Canadian Property<br \/>\nValuation magazine and a local newspaper, as well<br \/>\nas costs and an educational discipline.<\/p>\n<p>CRA appraising<br \/>\ndevelopment land<br \/>\nSometimes, it is claimed to be a misunderstanding:<br \/>\nCase 3 \u2013 A CRA completed an appraisal of<br \/>\nan agricultural operation which involved 200<br \/>\nacres of farm land, a variety of service buildings<br \/>\nand a single-family residence. Over 75% of the<br \/>\nappraised value was allocated to the agricultural<br \/>\ncomponent, with the remainder being attributed<br \/>\nto the residence. <\/p>\n<p>The report was not co-signed by an AACI. The<br \/>\nmember claimed that, since the property involved<br \/>\na residential component, it was acceptable for a<br \/>\nCRA to undertake the appraisal.<\/p>\n<p>The AC imposed a discipline of Censure with<br \/>\npublication in Communiqu\u00e9, Canadian Property <\/p>\n<p>Adjudicating Committee<br \/>\nPeter Lawrek, AACI, P. App. \u2013 Chair<br \/>\nPat Cooper, AACI, P. App<br \/>\nJohn Ingram, AACI, P. App<br \/>\nRolf Halvorsen, AACI, P. App<br \/>\nMichael Wootton, AACI, P. App<br \/>\nvesa Jarvela, AACI, P. App<br \/>\nTo contact this committee, email<br \/>\nadjudicating@aicanada.ca<\/p>\n<p>Valuation magazine and a local newspaper, as<br \/>\nwell as costs and an educational discipline.<\/p>\n<p>Member ignoring the rules<br \/>\nThen there is the occasional slam dunk:<br \/>\nCase 4 \u2013 A Candidate member countersigned<br \/>\nan appraisal with the signature of a former AIC<br \/>\nmember who had held the AACI designation, but<br \/>\nwho had not been a member for 10 years. This<br \/>\npractice was reported by this member to have been<br \/>\nused on 250-300 appraisal reports per year. There<br \/>\nwere other ethics and standards violations in the<br \/>\nreport forming the basis of the complaint, but the<br \/>\nkey issue was the Candidate member using the sig-<br \/>\nnature of a non-member and effectively represent-<br \/>\ning that member as an AACI in good standing.<\/p>\n<p>The Investigating Committee recommended<br \/>\na discipline of expulsion, but the member<br \/>\nresigned prior to the hearing.<\/p>\n<p>Both in the ways the AC deals with these<br \/>\nindividual members and in our efforts to com-<br \/>\nmunicate these issues to the membership, we<br \/>\ncontinually strive to ensure AIC members are<br \/>\nworking within their defined scope of expertise<br \/>\nand training. The key is that these types of situa-<br \/>\ntions be brought to the AIC\u2019s attention as soon as<br \/>\npossible so that we can act to correct them.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 37<\/p>\n<p>mailto:adjudicating@aicanada.ca<\/p>\n<p>here has been a recent trend in the lending<br \/>\nindustry regarding the use and form of<br \/>\nletters of transmittal and reliance. As a <\/p>\n<p>professional appraiser, the typical scenario you<br \/>\nencounter is that, sometime after you  prepare an<br \/>\nappraisal report for a client,  the original  lender<br \/>\n(or a different lender) calls seeking a letter per-<br \/>\nmitting him or her to use and rely on your report<br \/>\nin order to make a lending decision. If asked, you<br \/>\nneed to obtain your client\u2019s consent as you owe<br \/>\na duty of confidentiality to your client before you<br \/>\ndisclose the report to a third party.<\/p>\n<p>First and foremost, it is important to under-<br \/>\nstand that the appraiser\u2019s role is to provide an<br \/>\nindependent opinion on the value of the property<br \/>\nthat, if approved, may have a mortgage charge<br \/>\nregistered against title. What you cannot do is<br \/>\ncomment on the creditworthiness of the borrower<br \/>\nor the borrower\u2019s ability to repay the mortgage.<br \/>\nThus, your role is limited to only the first part in<br \/>\na lender\u2019s decision-making process. You do not<br \/>\naddress the underwriting of lending risk as a<br \/>\nprimary consideration in the investigation, analysis<br \/>\nand presentation of market value. This is best<br \/>\nreflected by including the following recommended<br \/>\ntext in the limiting conditions of a report:<\/p>\n<p>\u201cThe reader should be aware that, when<br \/>\npreparing an appraisal for financing purpose,<br \/>\nappraisers do not investigate if the prospective loan<br \/>\nand applicant satisfy prudent underwriting criteria.<br \/>\nConsequently, we assume no responsibility for<br \/>\nlosses on loans involving our appraisal efforts that<br \/>\nresult from the lender\u2019s failure to do proper due<br \/>\ndiligence regarding creditworthiness of the bor-<br \/>\nrower or their ability to service or repay the loan.\u201d<\/p>\n<p>There are some good business practices that<br \/>\nyou could adopt in order to minimize the risk of<br \/>\nappraisal fraud and liability, while at the same <\/p>\n<p>Letters of transmittal\/reliance \u2013<br \/>\nbusiness opportunities and risks<\/p>\n<p>T time satisfying a lender\u2019s requirements. The first question you should ask yourself before you agree to provide a transmittal\/reliance letter is: How<br \/>\nmuch time has elapsed since the original report was<br \/>\nprepared? If the market has changed, or you are<br \/>\naware of a change affecting the property, it may be<br \/>\nbetter to refrain from issuing the letter and recom-<br \/>\nmend that a new report is more appropriate under<br \/>\nthe circumstances. If you do choose to proceed and<br \/>\nissue a transmittal\/reliance letter, the following<br \/>\nminimum recommendations should be considered:<br \/>\n\u2022\t The transmittal\/reliance letter should include <\/p>\n<p>a true copy of the appraisal report. If you have<br \/>\nnot already provided the lender with a true<br \/>\ncopy directly (i.e., not through a broker or<br \/>\nproperty owner), then the prudent thing to<br \/>\ndo is to provide them with one.<\/p>\n<p>\u2022\t There should be a statement to the effect that<br \/>\nthe lender may rely on the true copy only, that<br \/>\nliability on any other copy is expressly denied.<\/p>\n<p>\u2022\t The transmittal\/reliance letter should specify<br \/>\nthe date of inspection, the effective date of<br \/>\nthe appraisal (particularly if there is a time<br \/>\nlapse worth highlighting), the property<br \/>\naddress, and the opinion of value. It should<br \/>\nalso state that this letter forms part of the<br \/>\nappraisal and should be read in conjunction<br \/>\nwith the appraisal.<\/p>\n<p>\u2022\t The transmittal\/reliance letter should specify<br \/>\nthat the report must be relied upon in its<br \/>\nentirety. (It is recommended that this also be<br \/>\na Standard Limiting Condition contained in<br \/>\nthe appraisal report.) Quoting excerpts from<br \/>\nan appraisal report is fraught with challenges,<br \/>\nnot the least of which is that the limiting<br \/>\nconditions and extraordinary conditions must<br \/>\ncontinue to be deemed to apply, and that<br \/>\nquotes are likely to be out of context.<\/p>\n<p>Robert Patchett<br \/>\nLL.B, CD, AIC Counsellor, <\/p>\n<p>Professional Practice<\/p>\n<p>From the Counsellor\u2019s Desk<\/p>\n<p>Also arising for consideration are requests<br \/>\nfrom lenders to extend reliance beyond the<br \/>\noriginal purpose and scope, and to additional<br \/>\nparties. Thus, once the primary purpose has<br \/>\nbeen fulfilled, the lender now wishes to make<br \/>\nsubsequent decisions to sell the mortgage<br \/>\nrisk as part of a syndication\/club to a group of<br \/>\ninvestors in the syndicate\/club. As an appraiser,<br \/>\nyou play no part in that decision; nor in the<br \/>\ndecision of the syndicate\/club participants to<br \/>\ninvest; nor can you know for certain who they<br \/>\nare. The following is an example of the kind of<br \/>\nbroad reliance you may be asked to extend to<br \/>\nunknown third parties:<\/p>\n<p>\u201dInvestors who purchase the mortgage loan<br \/>\nor a participation interest in the mortgage loan<br \/>\nand the trustee in a securitization that includes<br \/>\nthe mortgage loan, each servicer of the mortgage<br \/>\nloan, and all rating agencies involved in any sale,<br \/>\nsecuritization or syndication involving the mort-<br \/>\ngage loan may use and rely upon this Report\u201d<\/p>\n<p>It remains a business decision if you wish<br \/>\nto permit a lender client to use your reports<br \/>\nfor secondary purposes beyond original scope<br \/>\nand purpose, and, in doing so, to permit others<br \/>\nto rely on your report. If you do, the recom-<br \/>\nmended text above should be included in the<br \/>\nreport and any letters of transmittal\/reliance,<br \/>\nwith emphasis on limiting condition that the<br \/>\nreport must be relied upon in its entirety.<\/p>\n<p>Also, as part of this additional request,<br \/>\nyou may be asked to address any questions<br \/>\nand concerns of the syndicate\/club partici-<br \/>\npants with regard to your appraisal, as in the<br \/>\nexample below. Recall that CUSPAP imposes<br \/>\na confidentiality obligation; any discussions<br \/>\nwith unknown third parties require the specific<br \/>\nconsent of your original client. Therefore, care <\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents38<\/p>\n<p>should be taken when agreeing to discuss the<br \/>\nopinion of value. For example: the appraiser<br \/>\n\u201cagrees to cooperation in answering questions<br \/>\nby any of the above parties in connection with<br \/>\nthe sale, securitization or syndication.\u201d<\/p>\n<p>none of the above takes into consideration<br \/>\nyour fees, which are a matter that should be<br \/>\nnegotiated in advance and included in the<br \/>\nengagement letter with your client. It should<br \/>\nbe noted that, by granting such broad reliance,<br \/>\nyou would lose any ability to negotiate fees<br \/>\nwith all of the unknown users of your reports,<br \/>\nfor the time you may commit to responding to<br \/>\nnumerous queries.<\/p>\n<p>Finally, some further comments on compli-<br \/>\nance with CUSPAP. The Appraisal Institute of<br \/>\nCanada\u2019s Standards Committee has written<br \/>\non a related issue, (www.aicanada.ca\/e\/pdfs\/<br \/>\nCan_App_Vol_51_Bk_3_14.pdf) and its<br \/>\nconclusions were that CUSPAP, and the best<br \/>\npractices reflected in the Claims Prevention Bul-<br \/>\nletins (number 20, in particular) will guide you<br \/>\nin your business decisions to accept or decline <\/p>\n<p>these types of requests for your professional<br \/>\nservices. An appraiser must not allow any<br \/>\nconflict of interest to infect his or her judge-<br \/>\nment and must exercise a high standard of<br \/>\nskill and expertise for each engagement that is<br \/>\nundertaken. <\/p>\n<p>Practice in action: let\u2019s now consider an<br \/>\nexample of all this and how it might play out:  <\/p>\n<p>The Counsellor, Professional Practice was<br \/>\ncontacted by an appraiser regarding the<br \/>\nsuspected fraud of an appraisal report. The<br \/>\nappraiser had prepared and delivered a report<br \/>\nto the client. Sometime later, the appraiser<br \/>\nwas contacted by an investor (from a different<br \/>\nprovince) in a syndicated mortgage scheme to<br \/>\ninvest in the mortgage. This investor had some<br \/>\nquestions regarding the opinion of value. As it<br \/>\nturns out, the appraiser had no knowledge of<br \/>\nthe syndication and marketing of the appraisal<br \/>\nwithin the syndication process. Further, upon<br \/>\nsome probing, without revealing confiden-<br \/>\ntial information, it was discovered that the<br \/>\ninvestor was not in possession of a true copy, <\/p>\n<p>and, in fact, it appeared that the report had<br \/>\nbeen modified to change the opinion of value<br \/>\nconclusions of the appraiser. The appraiser<br \/>\nwas advised to take specific measures to<br \/>\nnotify lenders and others that might have<br \/>\nbeen provided with a copy of the appraisal to<br \/>\nminimize the lending risk, and to cooperate<br \/>\nwith the local police forces to investigate the<br \/>\nfraudulent activity.<\/p>\n<p>In this particular instance, a single investor<br \/>\nprevented appraisal fraud, but this occurrence<br \/>\nis not typical. Accordingly, the importance of<br \/>\nthe limiting conditions, and understanding the<br \/>\nbusiness opportunities and risks that flow from<br \/>\nextending reliance and use beyond original<br \/>\npurposes, should always be considered. Similar<br \/>\nscenarios play out more often with mortgage<br \/>\nbrokers, when the report is modified and given<br \/>\nto a new broker to obtain mortgage financing.<br \/>\nBy adopting the simple measures outlined in<br \/>\nthis article, you can work within your client<br \/>\nand lender requirements, to build a solid busi-<br \/>\nness reputation and grow your business.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 39<\/p>\n<p>http:\/\/www.aicanada.ca\/e\/pdfs\/Can_App_Vol_51_Bk_3_14.pdf<br \/>\nhttp:\/\/www.ecologeris.com<br \/>\nmailto:info@ecologeris.com<\/p>\n<p>AMCs and<br \/>\nappraiser independence<\/p>\n<p>Gerry McCoombs, AACI, P. App., Chair, Ad Hoc Real estate Fraud Task Force <\/p>\n<p>he residential appraisal market has<br \/>\nbeen witness to tremendous change in<br \/>\nthe recent past, not the least of which <\/p>\n<p>are the significant impacts resulting from the<br \/>\nuse of information technology. The prevalence<br \/>\nof Appraisal Management Companies (AMC)<br \/>\noperating nationally across Canada as well as in<br \/>\nniche markets confirms the trend being witnessed<br \/>\nregarding their increasing usage by lending institu-<br \/>\ntions to rely on the AMC to manage the appraisal<br \/>\nprocess within the mortgage originating process.<\/p>\n<p>At last count, there are at least nine AMCs<br \/>\noperating in Canada, or on the doorstep, poised to<br \/>\nenter the Canadian market based on their domi-<br \/>\nnance in the US marketplace. AMCs are operating<br \/>\nin the appraisal service sector, acting as third party<br \/>\ncompanies between the lender and the appraiser<br \/>\nwho has been retained to provide a valuation.<\/p>\n<p>AMCs also provide additional services that<br \/>\nare secondary to the appraisal report. Lending<br \/>\ninstitutions rely on AMCs to provide a qualitative<br \/>\nreview and an appraiser performance review<br \/>\nsystem. The qualitative review is to ensure com-<br \/>\npliance with appraisal standards, and additional<br \/>\nappraisal criteria imposed by the lender. The<br \/>\nperformance review is based upon an appraiser\u2019s<br \/>\nfee, turnaround times, accuracy, and borrower<br \/>\nsatisfaction (in the event of a dispute regarding<br \/>\nthe value). It is on this additional service that<br \/>\nlenders are placing increasing reliance. Since the<br \/>\nreport is submitted on the AMC appraisal man-<br \/>\nagement platform, it is possible that the report,<br \/>\nin its entirety, may not be provided to lenders,<br \/>\nsince they no longer need to rely on it.<\/p>\n<p>It has been reported that some AMCs may<br \/>\nbe collecting the information contained in<br \/>\nappraisal reports, which then allows them to<br \/>\ncompete directly, not only with appraisers, but<br \/>\nwith AvM service providers. Thus, AMCs are <\/p>\n<p>significantly impacting the residential market-<br \/>\nplace, both as appraisal service managers and<br \/>\nas providers of appraisal information products.<\/p>\n<p>AMCs require appraisers to sign contracts<br \/>\nthat may prohibit appraisers from contact-<br \/>\ning lenders directly. This effectively distances<br \/>\nappraisers from their clients. AMC contracts<br \/>\nprescribe fees and turnaround times, and they<br \/>\nultimately determine whether an appraiser<br \/>\ncan continue working for them. In some cases,<br \/>\nthey impact the ability of appraisers to work<br \/>\nfor other lenders by use of exclusionary lists,<br \/>\n\u2018blacklists,\u2019 or \u2018do not use\u2019 lists.<\/p>\n<p>The Appraisal Institute of Canada (AIC)<br \/>\nhas heard from some members that certain<br \/>\nAMCs have been aggressively driving down<br \/>\nappraisal fees, while at the same time demand-<br \/>\ning higher levels of service. Fees are a matter<br \/>\nof choice, and private sector appraisers need to<br \/>\nappropriately gauge the value of their services<br \/>\nincluding the time and professional expertise<br \/>\nthey provide to the client. Based on the current<br \/>\ndemand for residential appraisals and the<br \/>\navailable supply of appraisers servicing the<br \/>\nresidential marketplace, fees ought to be rising<br \/>\ninstead of decreasing.  <\/p>\n<p>The AIC reminds appraisers that they must not<br \/>\nsacrifice the quality of their work and risk breach-<br \/>\ning the professional practice standards. There is a<br \/>\nconcern that low fees and quick turnarounds may<br \/>\ncompromise the quality of work. As profession-<br \/>\nals, appraisers must always provide independent<br \/>\nprofessional valuations, and, in doing so, they must<br \/>\nstrive to compete on quality and not solely on fee.<br \/>\nThe AIC is aware of the situation and continues to<br \/>\nmonitor it to assess if AMCs could be exerting any<br \/>\nkind of negative impact on the quality of appraisal<br \/>\nwork through their appraisal service requirements.  <\/p>\n<p>The AIC encourages members to contact<br \/>\nthe Counsellor, Professional Practice whenever<br \/>\nthey feel they are being pressured to attain a<br \/>\nspecific outcome by anyone, including AMCs.<br \/>\nRemember, acquiescing to such pressure is<br \/>\nunprofessional and puts appraisers in serious<br \/>\nbreach of AIC appraisal practice standards. The<br \/>\nAIC has addressed these concerns directly and<br \/>\nwill continue to do so when brought to the<br \/>\nCounsellor\u2019s attention.  <\/p>\n<p>Of interest is a recent message from the Regis-<br \/>\ntrar of Mortgage Brokers published by the Financial<br \/>\nInstitutions Commission of British Columbia<br \/>\n(FICOM) \u2013 Dealing With Appraisers Avoiding Undue<br \/>\nInfluence. That message has been reprinted on<br \/>\npage 42 of this issue of the magazine.  <\/p>\n<p>T<\/p>\n<p>Real Estate Fraud<\/p>\n<p>Ad Hoc Real Estate Fraud Task Force<br \/>\nGerald McCoombs, AACI, P. App. \u2013 Chair<br \/>\nPaula Malcolm-Schaller, CRA<br \/>\nKimberly Maber, AACI, P. App<br \/>\ned Saxe, CRA<br \/>\nGeorge Ward, AACI, P. App<br \/>\nBill Balsom, AACI, P. App<br \/>\nTo contact this committee by email:<br \/>\nfraudinfo@aicanada.ca<\/p>\n<p>\u201cThe AIC encourages<br \/>\nmembers to contact the<br \/>\nCounsellor, Professional <\/p>\n<p>Practice whenever<br \/>\nthey feel they are being <\/p>\n<p>pressured to attain a<br \/>\nspecific outcome by anyone, <\/p>\n<p>including AMCs.\u201d <\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents40<\/p>\n<p>mailto:fraudinfo@aicanada.ca<\/p>\n<p>Connecticut \u2013 A new law prohibits mortgage brokers, real estate brokers, and real<br \/>\nestate salespersons from attempting to influence residential appraisals, and from refusing<br \/>\nto pay an appraiser or intentionally avoiding a specific appraiser in the future, because of an<br \/>\nappraiser\u2019s previous work that reflected a fair market value estimate that was less than the sale<br \/>\ncontract price.<\/p>\n<p>Kentucky \u2013 It is now unlawful in Kentucky for \u201cany person in the course of a mortgage<br \/>\ntransaction to improperly influence the development, report, result, or review of a real estate<br \/>\nappraisal sought in connection with a mortgage loan.\u201d <\/p>\n<p>Missouri \u2013  It is illegal in Missouri to \u201cinfluence, through extortion or bribery, the<br \/>\ndevelopment, reporting, result, or review of a real estate appraisal.\u201d <\/p>\n<p>New York \u2013 As part of a comprehensive law addressing the mortgage foreclosure crisis,<br \/>\nit is now a crime in new York to improperly \u201cinfluence the development, reporting, result or<br \/>\nreview of a real estate appraisal relating to real property securing a home loan.\u201d This language<br \/>\nis similar to language that is contained in the Home Valuation Code of Conduct that was spurred<br \/>\nby the investigations of the new York Attorney General.<\/p>\n<p>US state appraiser influence legislation<\/p>\n<p>An ongoing investigation into mortgage fraud<br \/>\nin the US has revealed another scheme where<br \/>\nthe independence of an appraiser can be<br \/>\ncompromised. In that case, a family active in<br \/>\nthe real estate industry was buying properties<br \/>\nand flipping them to family members for<br \/>\ndramatically increased values, and, in some<br \/>\ncases, within days. The lender that funded<br \/>\nthe majority of the flips is under investigation<br \/>\nfor allegedly directing the Appraisal<br \/>\nManagement Company (AMC) to use named<br \/>\nappraisers with reputations for inflating<br \/>\nproperty values.<\/p>\n<p>CUSPAP is your  authority for<br \/>\naddressing this problem.<br \/>\nAppraisal Rule 6.2.23 directs an appraiser to<br \/>\nanalyze the purchase and sale agreement.<br \/>\nThus, the obligation of the appraiser is to obtain<br \/>\na copy of the agreement in order to confirm<br \/>\nwhether or not it is an arm\u2019s length transaction.<br \/>\nReviewing this agreement will also provide<br \/>\nthe sale price and any special conditions that<br \/>\nmight affect value, such as a vendor take back<br \/>\nmortgage, or down-payment provisions.<\/p>\n<p>Appraisal Rule 6.2.24 directs an appraiser<br \/>\nto analyze prior sales of a property. In this<br \/>\ninstance, the current sale is a private sale, and<br \/>\nwould not appear on MLS in Canada \u2013 thus,<br \/>\nthe importance of not relying on a single source<br \/>\nfor verifying a property\u2019s prior sales. When<br \/>\nanalyzing prior sales and discovering a recent<br \/>\nsale (e.g., within 90 days) with an unusually<br \/>\nhigh selling price in relation to the prior sale,<br \/>\nthe appraiser should discuss with the client the<br \/>\nnew price and how it may not reflect his or her<br \/>\nestimate of fair market value.<\/p>\n<p>Appraisal Rule 6.2.10 directs an appraiser to<br \/>\nidentify limiting conditions. Where the pur-<br \/>\nchase and sale agreement are not provided, this<br \/>\nshould be identified as a limiting condition in<br \/>\nthe appraisal report. <\/p>\n<p>Single source reliance for prior sales may<br \/>\nlead to the perception of a misleading report, <\/p>\n<p>unless an appraiser can demonstrate that the<br \/>\nsource is reasonable and should contain the<br \/>\ninformation sought. not all sales appear on<br \/>\nMLS and other sources should also be checked<br \/>\nto verify prior sales.<\/p>\n<p>Property flipping<br \/>\n\u2013 all in the family<\/p>\n<p>All of this is a reminder that an appraiser<br \/>\nquickly develops a reputation in his or her com-<br \/>\nmunity and it will certainly be taken into account<br \/>\nwhen lenders make selections for specific types<br \/>\nof engagements.<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 41<\/p>\n<p>Real Estate Fraud<\/p>\n<p>Message from the FICoM Registrar of Mortgage Brokers<\/p>\n<p>Dealing with appraisers:<br \/>\navoiding undue influence<br \/>\nRecently, staff at the Financial Institutions Com-<br \/>\nmission of British Columbia (FICOM)<br \/>\nwere contacted by a representative of the<br \/>\nAppraisal Institute of Canada about the conduct<br \/>\nof a registered mortgage broker. In particular, we<br \/>\nwere advised that the mortgage broker had asked<br \/>\nan appraiser to increase the appraised value of a<br \/>\nproperty by using older and more dated compa-<br \/>\nrable properties in her appraisal report.<\/p>\n<p>The public may often conceive of mortgage<br \/>\nfraud as being perpetrated by sophisticated<br \/>\nfraudsters who use forged documents and<br \/>\ndeception to dupe lenders or innocent home<br \/>\nowners. However, mortgage fraud can occur<br \/>\nsimply by telling the lender that a property is<br \/>\nworth more than it really is. Mortgage brokers <\/p>\n<p>may not be aware that by telling an appraiser<br \/>\nthat the appraised value of a property needs<br \/>\nto \u201chit the sale price\u201d or reach a specific value,<br \/>\nthey potentially create a problem for the<br \/>\nappraiser.<\/p>\n<p>Appraisers are hired by lenders to<br \/>\nprovide an objective third party opinion of<br \/>\nthe value of a property in order to ensure<br \/>\nthat there is sufficient equity in the property<br \/>\nshould default occur by the borrower.<br \/>\nThe appraiser must be free to provide an<br \/>\nunbiased opinion for the lender &#8211; they are<br \/>\nthe lender\u2019s best defence against mortgage<br \/>\nfraud. The Canadian Uniform Standards of<br \/>\nProfessional Appraisal Practice (CUSPAP)<br \/>\nstates that it is unethical for an appraiser to<br \/>\naccept an assignment if compensation for the<br \/>\nassignment is contingent upon reporting a<br \/>\npredetermined value or a value which results<br \/>\nfrom improper influence.<\/p>\n<p>Mortgage brokers who pressure appraisers<br \/>\nto inflate property values may also be<br \/>\nengaging in conduct which is prejudicial to the<br \/>\npublic interest, which is activity that can lead<br \/>\nto the suspension of their registration under<br \/>\nsection 8 of the Mortgage Brokers Act.<\/p>\n<p>However, it is appropriate for lenders<br \/>\nor mortgage brokers to conduct appraisal<br \/>\nreview functions to assure themselves that<br \/>\nappraisal reports conform to minimum<br \/>\nappraisal standards and that appropriate<br \/>\nappraisal methodologies have been used by<br \/>\nthe appraiser. When questioning an appraiser<br \/>\nabout an appraisal, mortgage brokers<br \/>\nshould, therefore, be careful to ensure that<br \/>\nthey enquire only about the quality of the<br \/>\nappraisal or the appraiser\u2019s methodology,<br \/>\nand that they do not pressure the appraiser<br \/>\nto simply increase the appraised value to hit<br \/>\na specific value.<\/p>\n<p>Samantha Gale,<br \/>\nManager, Mortgage Broker Regulation,<br \/>\nFinancial Institutions Commission<br \/>\nof British Columbia<\/p>\n<p>\u201cMortgage fraud<br \/>\ncan occur simply  <\/p>\n<p>by telling the<br \/>\nlender  that a property  <\/p>\n<p>is worth more<br \/>\nthan it really is.\u201d<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents42<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"AfoGiT4Gwx\"><p><a href=\"https:\/\/crvg.com\/\">CRVG Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;CRVG Home&#8221; &#8212; CRVG - Canadian Resource Valuation Group\" src=\"https:\/\/crvg.com\/embed\/#?secret=CrTu00G7he#?secret=AfoGiT4Gwx\" data-secret=\"AfoGiT4Gwx\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><br \/>\nmailto:jwasmuth@crvg.com<\/p>\n<p>News<\/p>\n<p>IN MEMORIAM<\/p>\n<p>Les membres suivant de l\u2019Institut canadien des<br \/>\n\u00e9valuateurs sont d\u00e9c\u00e9d\u00e9s. Au nom de tous ceux qui<br \/>\noeuvrent de pr\u00e8s ou de loin au sein de l\u2019Institut et<br \/>\nde la profession, nous exprimons nos plus sinc\u00e8res<br \/>\ncondol\u00e9ances \u00e0 les familles, amis et associ\u00e9s.<\/p>\n<p>The following members of the Appraisal Insti-<br \/>\ntute of Canada have passed away. On behalf of<br \/>\neveryone connected with the Institute and the<br \/>\nprofession, we extend our sincerest sympathies to<br \/>\nthe families, friends and associates.<\/p>\n<p>CRITICAL DATES<br \/>\nThe following dates are provided as a reminder to Appraisal Institute of Canada (AIC) members of critical dates throughout the year:<\/p>\n<p>21 22 23 24 25 26 27<\/p>\n<p>DECEMBER<br \/>\nSUnDAY MOnDAY TUeSDAY WeDneSDAY THURSDAY FRIDAY SATURDAY<\/p>\n<p>28 29 30 31 1 2 3<\/p>\n<p>JANUARy<br \/>\nSUnDAY MOnDAY TUeSDAY WeDneSDAY THURSDAY FRIDAY SATURDAY<\/p>\n<p>AIC offices close at<br \/>\n12:00 noon<\/p>\n<p>AIC offices closed AIC offices closed<\/p>\n<p>AIC offices open AIC offices open<\/p>\n<p>CPD reporting<br \/>\ndeadline<br \/>\n(minimum annual<br \/>\nrequirement  is 6 credits)<\/p>\n<p>Deadline for article<br \/>\nsubmission for next<br \/>\nissue of Canadian<br \/>\nProperty Valuation<\/p>\n<p>AIC offices close<br \/>\nat 12:00 noon<\/p>\n<p>AIC offices closed<\/p>\n<p>Professional<br \/>\nLiability Insurance<br \/>\nlevy payment<br \/>\ndue date<\/p>\n<p>Deadline to<br \/>\ncomplete<br \/>\nWe value Canada<\/p>\n<p>AIC offices closed<\/p>\n<p>John F. Ayliffe, AACI, P. App., Barrie, ON<br \/>\nLinda M Babineau, CRA, St. Stephen, nB<br \/>\nHenry Bil, CRA, Timmins, On<br \/>\nBruce A. Clarke, AACI, P. App., embro, On<br \/>\nJohn Graf, CRA, Regina, SK<br \/>\nMurray J. Jones, AACI, P. App., Toronto, On<br \/>\nRonald L. Marchand, AACI, P. App., Windsor, On<br \/>\nRobert J. Mikitka, AACI, P. App., Duncan, BC<br \/>\nIsadore Nash, Candidate, Toronto, On<\/p>\n<p>Leacy O\u2019Callaghan-O\u2019Brien<br \/>\nbids farewell after<br \/>\nsix years with the Institute<\/p>\n<p>After six years in the position of Director, Professional Development and Member Services, Leacy<br \/>\nO\u2019Callaghan-O\u2019Brien has said goodbye to AIC and moved on to her new position beginning novem-<br \/>\nber 17 with the Canadian Association of Medical Radiation Technologists. Leacy will continue her<br \/>\ncareer in the not-for-profit association environment as she assumes the duties of Director, Advo-<br \/>\ncacy, Publications and events.   <\/p>\n<p>Leacy came to AIC in november 2002 as the Institute was in its nascent stages of a broad<br \/>\nreorganization. Since that time, she has been instrumental in championing many of the innovations<br \/>\nthat have transformed the Institute. Among them:<br \/>\n\u2022\t Formalizing\tpolicy\tthat\tsupports\tthe\tvarious\tnew\tinitiatives\tin\tCPD,\tprofessional\teducation\tand\t<\/p>\n<p>accreditation, and admissions.<br \/>\n\u2022\t The\tdevelopment\tof\tthe\tnew\taccreditation\tmodel\tand\texams.<br \/>\n\u2022\t Innovation\tin\tCPD\tdelivery,\tsuch\tas\tthe\tWe\tValue\tCanada\tworkshop\tand\tthe\tnew\tProfessional\t<\/p>\n<p>Practice Seminar.<br \/>\n\u2022\t Creation\tof\tthe\tCandidate\tCentral\twebsite<br \/>\n\u2022\t Promoting\trecognition\tof\tappropriate\tcredentials\tfrom\tother\torganizations\tsuch\tas\tWAVO\tand\tRICS.\t\t<\/p>\n<p>AIC staff, volunteers and members thank Leacy for her tremendous contributions and service to<br \/>\nthe Institute and wish her well in her new endeavors. The Institute will be reassessing the evolving<br \/>\nresponsibilities of this position prior to filling this vacancy. In the interim, if you have any enquiries<br \/>\nthat would normally be directed to Leacy, please submit them to info@aicanada.ca<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 43<\/p>\n<p>mailto:info@aicanada.ca<\/p>\n<p>Designations\/Candidates\/Students<\/p>\n<p>The Appraisal Institute of Canada (AIC), together with the provincial associations and the provincial bodies affiliated with the AIC, commend the following<br \/>\nmembers who completed the rigorous requirements for accreditation as a designated member of the AIC during the period July 12, 2008 to October 31, 2008:<\/p>\n<p>L\u2019Institut canadien des \u00e9valuateurs (ICE), en collaboration avec les associations provinciales et les organismes provinciaux affili\u00e9s \u00e0 l\u2019ICE, f\u00e9licitent les membres<br \/>\nsuivants qui ont compl\u00e9t\u00e9 le programme rigoureux d\u2019accr\u00e9ditation \u00e0 titre de membre d\u00e9sign\u00e9 de l\u2019ICE durant la p\u00e9riode du 12 juillet au 31 octobre 2008:<\/p>\n<p>AIC designations granted \/ D\u00e9signations obtenues de l\u2019ICE<\/p>\n<p>Candidates \/ Stagiaires<br \/>\nAIC welcomed the following new Candidate members during the period July 12, 2008 to October 31, 2008:<\/p>\n<p>L\u2019ICE souhaite la bienvenue aux personnes suivantes qui ont joint les rangs des membres stagiaires durant la p\u00e9riode du 12 juillet au 31 octobre 2008:<\/p>\n<p>ALBERTA<br \/>\nBrad David Bakke<br \/>\nTereza Demian<br \/>\nGuo Jun He<br \/>\nearl R. Hubbs<br \/>\nJames D. Istvanffy<br \/>\nKarmjit S. Khamba<br \/>\nPaul A. Limacher<br \/>\nDarren A. McCord<br \/>\nAaron Scott nelson<br \/>\nJocelyne Sauser<br \/>\nTim L. Smith<br \/>\nAubrey Ryan Winquist <\/p>\n<p>BRITISH CoLUMBIA<br \/>\nPeter James Dale<br \/>\nvicente A. Gamboa<br \/>\nOmer Ginsberg<br \/>\nTu-Anh Lemckert<br \/>\nKelly W. Morrish<br \/>\nWendy Lynn Pattyn<br \/>\nTrent Stanton Snikkers<br \/>\nYouliana Stoyanov<br \/>\nLeah Tennent<br \/>\nMaria R. Tibbetts<br \/>\nMaura e. Urquhart<br \/>\nDong Ping Wen<\/p>\n<p>NEW BRUNSWICk<br \/>\nCurtis vincent Dixon<br \/>\nPatrice Ducharme<br \/>\nDenis Guay<br \/>\nLyndsay Susan Smith<\/p>\n<p>NEWFoUNdLANd<br \/>\nRichard B. Clift<\/p>\n<p>NovA SCoTIA<br \/>\nMary e. Foshay<br \/>\nDavid W. MacDonald<br \/>\nJosh Morash <\/p>\n<p>oNTARIo<br \/>\nAlmunir Abdulla<br \/>\nPaula M. Aguiar<br \/>\nKristy Lee Allison<br \/>\nJonathan G. Bannister<br \/>\nAndrew Chan<br \/>\nCalvin Perry Colard<br \/>\nBill norman Deevy<br \/>\nSophie Lara Doria<br \/>\nDorothy Gallardi<br \/>\nAdam Aubrey Hannah<br \/>\nBartosz Jarocki<br \/>\nMin Gon (David) Kim<br \/>\nJenny Yan Yan Lo<br \/>\nTimothy William Loch<\/p>\n<p>Students \/ \u00c9tudiants<br \/>\nThis new category of membership was implemented January 1, 2007 and now serves as the first step on the path to designation for those completing their requirements for<br \/>\nCandidate membership. Students considering the appraisal profession as a career option are also welcomed to this new category of membership.<br \/>\nCette nouvelle cat\u00e9gorie de membre entrait en vigueur le 1er janvier 2007 et constitue la premi\u00e8re \u00e9tape sur la voie de la d\u00e9signation pour ceux qui s\u2019affairent \u00e0 compl\u00e9ter les exigences<br \/>\nde la cat\u00e9gorie de membre stagiaire. Les \u00e9tudiants qui contemplent une carri\u00e8re comme \u00e9valuateur professionnel sont bienvenus \u00e0 joindre cette nouvelle cat\u00e9gorie de membre.<\/p>\n<p>BRITISH CoLUMBIA Brian O\u2019Dwyer virendar K. Sharma<br \/>\noNTARIo  Sarah Cathrae  Dane A. Cocco John Michael Mekitiak  <\/p>\n<p>Jatinder Maini<br \/>\nMatthew Martin McClellan<br \/>\nBryen Charles McGuire<br \/>\nPeter R. Murray<br \/>\nChristine Diane Thompson<br \/>\nemmanuel A. Umolu<br \/>\nvalery Zorin <\/p>\n<p>SASkATCHEWAN<br \/>\nCaden Sam Chalack<br \/>\nBarry Wayne Daku<br \/>\nJoshua Stanislaus Korol<br \/>\nSamantha M. Lawrek<br \/>\nMarla T. Minke  <\/p>\n<p>Accredited Appraiser  Canadian Institute<br \/>\nWe welcome and congratulate these individuals as fully accredited members<br \/>\nof the Institute through the granting of their AACI, P. App. designation.<br \/>\nAccueillons et f\u00e9licitons comme membres pleinement accr\u00e9dit\u00e9s de l\u2019Institut et<br \/>\nleur accordons avec fiert\u00e9 la d\u00e9signation AACI, P. App.<\/p>\n<p>ALBERTA<br \/>\nKenneth n. Gurney<br \/>\nShyllo Kofoed<br \/>\nBrandon n. Lo<br \/>\nMatthew Richard Tozer<\/p>\n<p>AACI, P. App<\/p>\n<p>BRITISH CoLUMBIA<br \/>\nPeter B. Drobina<\/p>\n<p>oNTARIo<br \/>\nDon edey<br \/>\nRobert J. Goerke<br \/>\nDavid S. Harris<\/p>\n<p>QUEBEC<br \/>\nF\u00e9lix Cartier<br \/>\nChristian-Pierre Cot\u00e9<\/p>\n<p>CRA<\/p>\n<p>ALBERTA<br \/>\nChelsi Dawn Hofmann<\/p>\n<p>BRITISH CoLUMBIA<br \/>\nPaul G. Dixon<br \/>\nDavid H. van veen<br \/>\nKeri vrabel <\/p>\n<p>Canadian Residential Appraiser<br \/>\nThese members are congratulated on the successful completion of the CRA<br \/>\ndesignation requirements.<br \/>\nNous f\u00e9licitons ces membres pour avoir compl\u00e9t\u00e9 avec succ\u00e8s le programme<br \/>\nmenant \u00e0 la d\u00e9signation CRA.<\/p>\n<p>NEW BRUNSWICk<br \/>\nTroy T. Blakney<br \/>\nPhilomena  Williams<\/p>\n<p>oNTARIo<br \/>\nMichael n. Gillis<br \/>\nColleen R. Hall-Clark<br \/>\nTerry W. Parke<br \/>\nChristopher Roworth <\/p>\n<p>QUEBEC<br \/>\nPierre Douville<br \/>\nMaxime Fournier<br \/>\nJohann Mader<br \/>\nJean venne<\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents44<\/p>\n<p>John Hughton, AB \u2013 CRA<br \/>\nShyllo Kofoed, AB \u2013 Candidate<br \/>\nRichard Gregory Miskiewicz, AB \u2013 Candidate<br \/>\nWanda Wong, AB \u2013 Candidate<br \/>\nPat Woodlock, AB \u2013 Candidate<br \/>\nDale Yachimec, AB \u2013 Candidate<br \/>\nKarim Daya, AB \u2013 Candidate<br \/>\nSanjit Singh, AB \u2013 Candidate<br \/>\nPeter B. Drobina, BC \u2013 AACI, P.App<br \/>\nAlan A. Duncan, BC \u2013 Candidate<br \/>\nL. Rosetta Ferrari, BC \u2013 Candidate<br \/>\nP. Simon Wainwright, BC \u2013 Candidate<\/p>\n<p>n 2003, the Appraisal Institute of Canada (AIC), with its education partner, the Real estate Division, Sauder School of Business, University of British Columbia<br \/>\n(UBC), established the UBC Post-Graduate Certificate in Real Property valuation (PGCv), leading to the AIC\u2019s highest level of professional accreditation,<br \/>\ndesignation as an Accredited Appraiser Canadian Institute (AACI). This program presents a unique opportunity for graduates of recognized Canadian busi-<\/p>\n<p>ness\/commerce degree programs to earn a prestigious post-graduate certificate in real property valuation, while fulfilling the educational requirements for<br \/>\ndesignation by AIC.<\/p>\n<p>For more information on admission and requirements for the UBC\/AIC post-graduate certificate in Real Property valuation, visit UBC\u2019s web site at<br \/>\nwww.sauder.ubc.ca\/AM\/Template.cfm?Section=Real%20_%20Estate%20_%20Division.<\/p>\n<p>In 2006, we had 27 graduates in the PGCv Program. In 2007, an additional 21 members graduated. In 2008, the following 34 graduates earned their PGCv<br \/>\nand joined AIC. We congratulate them on their achievements<\/p>\n<p>I<br \/>\nPost-Graduate Certificates<br \/>\nin Real Property Valuation <\/p>\n<p>Henry Yixin Wang, BC \u2013 Candidate<br \/>\nTyra J. Luckhurst, BC \u2013 Candidate<br \/>\nMegan  McFarlane, BC \u2013 Candidate<br \/>\nNavjot Sandhu, BC \u2013 Candidate<br \/>\nClifford Smirl, BC \u2013 Candidate<br \/>\nEugene Steckley, BC \u2013 Candidate<br \/>\nBrian Michael O\u2019Dwyer, BC \u2013 Student<br \/>\nIan Toogood, MB \u2013 CRA<br \/>\nMatthew D. Johnson, nB \u2013 CRA<br \/>\nJason White, nB \u2013 Candidate<br \/>\nJoanne Hayes, nL \u2013 AACI, P.App<br \/>\nCarla Thistle, nS \u2013 Candidate <\/p>\n<p>Mike Domjancic, On \u2013 AACI, P.App<br \/>\nBill Norman Deevy, On \u2013 Candidate<br \/>\nJohn H.N. Richards, On \u2013 Candidate<br \/>\nMegan A. Brunato, On \u2013 Candidate<br \/>\nJay M. Charbonneau, On \u2013 Candidate<br \/>\nColin Sclater, On \u2013 Candidate<br \/>\nGina W. Genge, On \u2013 Candidate<br \/>\nMartin Dion, QC \u2013 Candidate<br \/>\nTerry Hegel, SK \u2013 Candidate<br \/>\nMatt Proudfoot , UAe \u2013 Candidate <\/p>\n<p>The Jack Warren educational Trust Committee is pleased to announce the recipients of the<br \/>\n2008 scholarships.<\/p>\n<p>Congratulations go to Suzanne Clarke of Surrey, BC, Laura McConnell of victoria,<br \/>\nBC, Richard Marleau of Saskatoon, SK, and Clifford Smirl of Westbank, BC this year\u2019s<br \/>\nrecipients of the Jack Warren education Trust Scholarship.<\/p>\n<p>The annual scholarship is available to individuals from across Canada pursuing careers in<br \/>\nreal estate appraisal. For more information or to obtain an official application form, please<br \/>\ncontact the Appraisal Institute of Canada \u2013 British Columbia by phone (604) 266-8287,<br \/>\nemail info@appraisal.bc.ca or visit www.appraisal.bc.ca, click on Publications, brochures and<br \/>\nthe Jack Warren educational Trust.<\/p>\n<p>Jack Warren scholarship<br \/>\nrecipients for 2008<\/p>\n<p>Click HERE to return to Table of Contents Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada 45<\/p>\n<p>http:\/\/www.sauder.ubc.ca\/AM\/Template.cfm?Section=Real%20_%20Estate%20_%20Division<br \/>\nmailto:info@appraisal.bc.ca<br \/>\nhttp:\/\/www.appraisal.bc.ca<\/p>\n<p>Calendar of Events<\/p>\n<p>*If you are viewing an electronic version of this issue on the AIC web site, please click on these listings for active links to the advertisers\u2019 web sites.<\/p>\n<p>Advertising Information Centre<\/p>\n<p>A Bound Corporation Page 5 www.abound.ca 888-622-6863<br \/>\nACI 2, 3, 48 www.appraiserchoice.com 800-234-8727<br \/>\nAltus Group Ltd. 47 www.thealtusgroup.com 416-204-1100<br \/>\nAtlantic Realty Advisors 27 www.ara.ca<br \/>\nBusiness Information Group 39 www.ecologeris.com 887-512-5204<br \/>\nCanadian Resource valuation Group 42 www.crvg.com 780-424-8856<br \/>\nnotarius  23 www.notarius.com 800-567-6703<br \/>\nPersonal Home &#038; Auto Group Insurance 30 www.thepersonal.com\/aicanada 888-476-8737<br \/>\nSauder School of Business 28 www.realestate.ubc.ca 877-775-7733<\/p>\n<p>AIC Pillars of Professionalism:<br \/>\nEducation, Experience, High Standards<br \/>\n2009 Appraisal Institute of Canada Annual Conference<br \/>\nMay 27 &#8211; 30, 2009 \u2013 Mont Tremblant, Quebec<br \/>\nFor further information: maried@aicanada.ca<\/p>\n<p>BC 2009 BC Land Summit<br \/>\n\u2013 A Better Future; Adapting to Change<br \/>\nMay 20 \u2013 22, 2009 \u2013 Whistler BC<br \/>\nTelus Whistler Conference Centre<br \/>\nThe program of the 2009 BC Land Summit will include up to four<br \/>\nleading, diverse, and engaging keynote speakers, who will present<br \/>\nat four planned plenary sessions. Keynote speakers include: Robert<br \/>\nF. Kennedy, Jr., Sherry Kafka Wagner, Thomas R. Berger, O.C., Q.C.,<br \/>\nO.B.C., and Richard Hebda. <\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"O7b3Tz4TJU\"><p><a href=\"https:\/\/www.bclandsummit.com\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Home&#8221; &#8212; BC Land Summit\" src=\"https:\/\/www.bclandsummit.com\/embed\/#?secret=B0qnimg4mK#?secret=O7b3Tz4TJU\" data-secret=\"O7b3Tz4TJU\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>For information please contact: Jane Anne Dunning<br \/>\ninfo@appraisal.bc.ca  or 604.266.8287 or check www.appraisal.bc.ca\/<\/p>\n<p>AB Annual Conference and AGM<br \/>\nFeb 20-21 2009 \u2013 Banff Park Lodge, Banff Alberta<\/p>\n<p>Professional Practice Seminar (Standards) spring 2009<br \/>\nDate and location TBA<\/p>\n<p>For information please contact AB AIC at info@appraisal.ab.ca or<br \/>\n(403) 207-7892 or check  www.appraisal.ab.ca<\/p>\n<p>Sk For further information please contact Marilyn Steranka<br \/>\nskaic@sasktel.net or (306) 352-4195 or check www.skaic.org\/<\/p>\n<p>MB Holiday Luncheon<br \/>\nDecember 11, 2008 \u2013 Caf\u00e9 Dario, Winnipeg<\/p>\n<p>Professional Practice Seminar<br \/>\n(formerly the Standards)<br \/>\nMarch 6 &#038; 7, 2009  \u2013  Winnipeg<\/p>\n<p>For information please contact Lynne Smith Dark mbaic@mts.net<br \/>\nor (204) 943-1177<\/p>\n<p>oN Everyday Business Management \/<br \/>\nPreparation and Participation<br \/>\nDecember 5, 2008 \u2013 Toronto <\/p>\n<p>Professional Competency Interview<br \/>\nThe Final Step &#8211; For Candidate members<br \/>\nFebruary 21, 2009 \u2013 Toronto<br \/>\n4th Annual Fee Appraisers\u2019 Symposium<br \/>\nFebruary 20 &#038; 21, 2009 \u2013 Toronto<\/p>\n<p>Intensive BUSI (112, 330, 400, 334) courses<br \/>\nMarch 2-6, 2009 &#8211; Toronto<\/p>\n<p>oA-AIC Conference and AGM<br \/>\nApril 24 &#038; 25, 2009 \u2013 London<br \/>\nFor further information please contact Lorraine Rigas<br \/>\nlrigas@oaaic.on.ca or (416) 695-9333 or check www.oaaic.on.ca<\/p>\n<p>QC For further information contact Ginette St-Jean aqice@qc.aira.com<br \/>\nor (450) 454-0377 or check www.aqice.ca<\/p>\n<p>NB AGM and Conference<br \/>\nApril 16, 17, 2009<br \/>\nFor information contact Jennifer nemeth nbarea@nb.aibn.com or<br \/>\n(506) 450-2016 or check www.nbarea.org\/main.asp<\/p>\n<p>NS Seminar and Annual General Meeting<br \/>\nMarch 6 &#8211; 7, 2009<br \/>\nFor information contact Davida Mackay nsreaa@nsappraisal.ns.ca<br \/>\nor (902) 422-4077 or check www.nsappraisal.ns.ca\/<\/p>\n<p>PEI Christmas Social<br \/>\nDec. 12, 5:00 &#8211; 7:00 pm &#8211; ISe\u2019s Bar, Charlottetown<br \/>\nFor further information contact Suzanne Pater<br \/>\npeiaic@xplornet.com or (902) 368-3355<\/p>\n<p>NL AGM<br \/>\nApril 17, 2009<br \/>\nFor further information contact Sherry House naaic@nf.aibn.com<br \/>\nor (709) 753-7644 <\/p>\n<p>Canadian Property Valuation Volume 52 | Book 4 | 2008 \u00c9valuation Immobili\u00e8re au Canada Click HERE to return to Table of Contents46<\/p>\n<p>mailto:maried@aicanada.ca<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"O7b3Tz4TJU\"><p><a href=\"https:\/\/www.bclandsummit.com\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Home&#8221; &#8212; BC Land Summit\" src=\"https:\/\/www.bclandsummit.com\/embed\/#?secret=B0qnimg4mK#?secret=O7b3Tz4TJU\" data-secret=\"O7b3Tz4TJU\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><br \/>\nmailto:info@appraisal.bc.ca<br \/>\nhttp:\/\/www.appraisal.bc.ca\/<br \/>\nmailto:info@appraisal.ab.ca<br \/>\nhttp:\/\/www.appraisal.ab.ca<br \/>\nmailto:skaic@sasktel.net<br \/>\nhttp:\/\/www.skaic.org\/<br \/>\nmailto:mbaic@mts.net<br \/>\nmailto:lrigas@oaaic.on.ca<br \/>\nhttp:\/\/www.oaaic.on.ca<br \/>\nmailto:aqice@qc.aira.com<br \/>\nhttp:\/\/www.aqice.ca<br \/>\nmailto:nbarea@nb.aibn.com<br \/>\nhttp:\/\/www.nbarea.org\/main.asp<br \/>\nmailto:nsreaa@nsappraisal.ns.ca<br \/>\nhttp:\/\/www.nsappraisal.ns.ca\/<br \/>\nmailto:peiaic@xplornet.com<br \/>\nmailto:naaic@nf.aibn.com<br \/>\nhttp:\/\/www.abound.ca<br \/>\nhttp:\/\/www.appraiserschoice.com<br \/>\nhttp:\/\/www.thealtusgroup.com<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"q4MSYPvkjy\"><p><a href=\"http:\/\/www.ara.ca\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Home&#8221; &#8212; ARA - Atlantic Realty Advisors\" src=\"http:\/\/www.ara.ca\/embed\/#?secret=pbWCPLCahG#?secret=q4MSYPvkjy\" data-secret=\"q4MSYPvkjy\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><br \/>\nhttp:\/\/www.ecologeris.com<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"AfoGiT4Gwx\"><p><a href=\"https:\/\/crvg.com\/\">CRVG Home<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"oembed-iframe\"  class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;CRVG Home&#8221; &#8212; CRVG - Canadian Resource Valuation Group\" src=\"https:\/\/crvg.com\/embed\/#?secret=CrTu00G7he#?secret=AfoGiT4Gwx\" data-secret=\"AfoGiT4Gwx\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><br \/>\nhttp:\/\/www.notarius.com<br \/>\nhttp:\/\/www.thepersonal.com\/aicanada<br \/>\nhttp:\/\/www.realestate.ubc.ca<\/p>\n<p>Market intelligence.<br \/>\n     Intelligence de march\u00e9.<br \/>\nIndustry leadership.<br \/>\n     Leadership de l\u2019industrie.<br \/>\nInternational expansion.<br \/>\n     Expansion internationale.<\/p>\n<p>altusgroup.com     groupealtus.com<\/p>\n<p>As Canada\u2019s most diverse consultant<br \/>\nin the industry, Altus has unparalleled<br \/>\nexpertise in all areas of Research,<br \/>\nValuation and Advisory:<\/p>\n<p>Altus \u00e9tant, au Canada, la soci\u00e9t\u00e9 de conseil la<br \/>\nplus diversifi\u00e9e de l\u2019industrie, elle poss\u00e8de une<br \/>\nexpertise in\u00e9gal\u00e9e dans tous les secteurs de la<br \/>\nrecherche, de l\u2019\u00e9valuation et des services-conseils :<\/p>\n<p>> Real estate market<br \/>\n forecasting and analysis<\/p>\n<p>> Market information<br \/>\n and perspective<\/p>\n<p>> Annual property and<br \/>\n portfolio valuation<\/p>\n<p>> Financial due diligence<\/p>\n<p> > Legal support<br \/>\n    (including expert witness)<\/p>\n<p>> Analyse et pr\u00e9visions relatives au<br \/>\n march\u00e9 immobilier<\/p>\n<p>> Renseignements et perspectives<br \/>\n sur le march\u00e9<\/p>\n<p>> \u00c9valuation annuelle de propri\u00e9t\u00e9s et<br \/>\n de portefeuilles<\/p>\n<p>> V\u00e9rification fonci\u00e8re pr\u00e9alable<\/p>\n<p> > Aide juridique<br \/>\n    (notamment t\u00e9moin expert)<\/p>\n<p>Research, Valuation &#038; Advisory<br \/>\nCost Consulting<br \/>\nRealty Tax Consulting<br \/>\nGeomatics<\/p>\n<p>\u00c9valuation et fiscalit\u00e9 municipale<br \/>\nAnalyse immobili\u00e8re<br \/>\nSolutions technologiques<br \/>\nG\u00e9omatique<\/p>\n<p>Click HERE to return to Table of Contents<\/p>\n<p>http:\/\/www.altusgroup.com<br \/>\nhttp:\/\/www.groupealtus.com<\/p>\n<p>Quote from an ACI Sketch\u2122 User<br \/>\n\u201cACI Sketch\u2122 is one of the best new efficiency<br \/>\nproducts for appraisers. We use it in the office<br \/>\nand on our tablet PCs in the field, both with<br \/>\ngreat success. We are particularly impressed<br \/>\nwith the free-form approach that ACI Sketch\u2122<br \/>\nbrings to creating floorplans.\u201d <\/p>\n<p>Jay Delich, President of Arizona Appraisal, LLC<\/p>\n<p>Includes CRAL Collection Integration<\/p>\n<p>$99<br \/>\nCall Today! <\/p>\n<p>800-234-8727<\/p>\n<p>ACI Sketch\u2122<\/p>\n<p>Tape Measure Tool<br \/>\nIllustrates distance <\/p>\n<p>between two points<\/p>\n<p>Symbols<br \/>\nUse the standard symbol library <\/p>\n<p>or create your own easily<\/p>\n<p>Copy &#038; Paste<br \/>\nEasily copy anything on your <\/p>\n<p>sketch to your clipboard<\/p>\n<p>Feet &#038; Inches<br \/>\nChoose between showing decimals <\/p>\n<p>or inches when using feet<\/p>\n<p>Online Help<br \/>\nIncludes help documents <\/p>\n<p>and video tutorials<\/p>\n<p>Arcs<br \/>\nClick &#038; drag center point of <\/p>\n<p>any line to create an arc<\/p>\n<p>Labels<br \/>\nQuickly use stock labels or <\/p>\n<p>customize your own on-the-fly<\/p>\n<p>Intuitive, Clean Interface<br \/>\nSimple-to-use, yet robust features<\/p>\n<p>Introducing<br \/>\nACI Sketch\u2122<br \/>\nPowerful Floorplan Technology <\/p>\n<p>ACI, the leading innovator in appraisal solutions for over 30 years, now offers the premier sketching tool available in the industry,<br \/>\nACI SketchTM.  Advanced features and functions packaged within a simple-to-use interface will make your sketches quick and easy<br \/>\nto draw, yet fully integrated within your CRAL Collection.  ACI Sketch\u2122\u2014yet another way in which ACI stands out from the<br \/>\ncompetition. Offering smart choices is our commitment to you.  ACI\u2014 The Appraiser\u2019s Choice\u2122 <\/p>\n<p>US Dollars<\/p>\n<p>http:\/\/www.appraiserschoice.com<\/p>\n","protected":false},"featured_media":14342,"menu_order":4,"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":""},"class_list":["post-29997","issue","type-issue","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.aicanada.ca\/fr\/wp-json\/wp\/v2\/issue\/29997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aicanada.ca\/fr\/wp-json\/wp\/v2\/issue"}],"about":[{"href":"https:\/\/www.aicanada.ca\/fr\/wp-json\/wp\/v2\/types\/issue"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aicanada.ca\/fr\/wp-json\/wp\/v2\/media\/14342"}],"wp:attachment":[{"href":"https:\/\/www.aicanada.ca\/fr\/wp-json\/wp\/v2\/media?parent=29997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}